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Legislation and Reforms
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Residential PArk Reforms 2024 QLD - Updated as of 26th April
Heavy Handed Reforms
It has come to our attention that the proposed Manufactured Homes (Residential Parks) Amendment Bill of 2024 is unusually heavy handed in its dealing with the Residential Parks industry in Queensland with wide spanning implications beyond the Residential Park industry and significant proposed effects on Park Operators and Home Owners of Residential Parks.
The operational effects of the proposed amendment bill are highly questionable in terms of its effectiveness to address any of the major issues identified in previous surveys, as well as its implications on individual rights to freehold property, democratic value and the long-term sustainability of Residential Parks.
Housing Crisis
During a significant housing crisis in Queensland, the government has tabled a raft of reforms to the Manufactured Homes (Residential Parks) Act 2003 (Qld) that will put direct pressure on the general Queensland housing market by putting pressure on those currently owning or looking to own homes in over 50's lifestyle Residential Parks. By further creating direct competition between over 50's and younger home buyers these reforms may greatly exacerbate the housing crisis which is also experiencing significant homelessness.
Lack of consultation
The current reforms are of a significant nature and concerningly are proposed to be passed without wider community engagement.
QCAT and increased rate of legal proceedings
The proposed reforms put further pressure on the QCAT processes and expands their jurisdiction. Various submissions to the QLD parliamentary committee handling the reforms have expressed concerns on the lack of proposed funding or assessment on QCAT's ability to handle further volume through these reforms. It is also highly likely that these reforms may further deepen distress and prolong conflicts caught in technical issues caught within the proposed forced buy back reforms and forced revaluations of property and other expanded QCAT jurisdiction under the legislation.
Forced Buy Back scheme
Much like the issues experienced previously in the retirement village industry, the government has proposed that the Park Operators be forced to enter into a buy back scheme for all Home Owners.
The Forced Buy Back scheme has serious implications for Home Owners and Park Operators including perhaps the unforeseen ability of Park Operators to claw back houses at discounted or lower than market rates from Home Owners.
Hidden Rent Freeze
The proposed reforms have a surprising rent freeze surreptitiously included as part of the 'rent increase' chapter of the amendment bill and for the proposed new Act to be assented. This permanent rent freeze may be likened to the permanent freeze for bodies corporate to raise levies to maintain common property and may drive Park Operators to explore creative ways to compensate for the decrease in income.
The rent freeze also poses a significant dilemma to the medium and long term sustainability of Residential Parks and further raises questions as to whether the government intends to takeover parks when they fail due to lack of funds to upkeep or if the government through these reforms intends to see Residential Parks as being transformed into a Charitable or Not For Profit or subsidized sector.