General policy statement
As our cities become larger and people seek to reduce commuting distances to city centres, and the make-up of family groups (and their housing needs) change, townhouses, apartments, and other high-density property arrangements are an increasingly significant part of the mix of housing options for New Zealanders.
The law relating to high-density housing, the Unit Titles Act 2010, therefore requires on-going scrutiny to ensure that it is adequate for its purpose and effective in dealing with the change in circumstances of its use, including to ensure it provides sufficient protection for people buying or already living in a unit title complex.
This Bill is a response to a recent examination of that Act, discussions with professionals from the property sector, and a paper released during the period when the Hon Dr Nick Smith was the Minister for Building and Construction. The Bill includes amendments to—
improve the information disclosure regime to prospective buyers of units; and
strengthen the governance arrangements in relation to the body corporate, the (owner) entity responsible for the management and operation of a unit title complex; and
increase the professionalism and standards of body corporate managers; and
ensure that planning and funding of long-term maintenance projects is adequate and proportionate to the size of the complex concerned.
The proposals in the Bill aim to strike a balance between the benefits of additional compliance requirements and any costs that these may impose. Prospective homeowners need to consider apartments and other high-density living arrangements as a viable and attractive living alternative to other more traditional forms of property ownership. Likewise, sector professionals need to have clear rules as to their obligations, which nevertheless allow for flexibility and creativity in their building, operating, and maintenance procedures.