The state parliament passed the Manufactured Homes (Residential Parks) Amendment Bill 2024, providing significant protections across 203 residential land lease communities.
QLD LLCs account for 25,513 sites.
The reforms introduced by the bill aim to create a more equitable environment for homeowners by:
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Prohibiting market rent reviews;
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Limiting site rent increases to the higher of the Consumer Price Index (CPI) or 3.5 per cent;
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Implementing an opt-in buyback and site reduction scheme for homes on the market for over 18 months;
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Establishing fairer processes for terminating site agreements and compensating homeowners; and
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Adjusting the definition of CPI to better align with increases in the aged pension.
In six months, additional reforms will take effect, requiring new site agreements to offer multiple rent payment options.
Park owners will have 12 months to implement these options for all existing homeowners.
Further key reforms in the bill, which will be enacted at a later date by proclamation, include:
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Introducing residential park comparison documents.
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Modifying home-selling processes.
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Imposing new registration requirements for residential parks.
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Mandating maintenance and capital replacement plans.
Anthony Pitt (pictured), Partner at Hopgood Ganim, said park owners were surprised by the speed with which the Bill was passed and must now carefully review all aspects of how they operate their business and make adjustments in light of what lies ahead.
Dr Roger Marshall, president of the Queensland Manufactured Home Owners Association, praised the new legislation.
“This Bill provides greater consumer protections for owners of manufactured homes and goes a long way towards addressing some of their long-held concerns, particularly those in relation to excessive increases in site rents and the sale of the home,” he said.
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