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As of 1 December 2021, community land laws have been updated to modernise the development and management of schemes in NSW.
Decisions already made by community, precinct and neighbourhood associations under the Community Land Management Act 1989 (1989 Act) remain valid under the Community Land Management Act 2021 (2021 Act). However, because of significant amendments to the laws, transitional measures have been included in the 2021 Act to give all associations time to adjust to the new laws. This page outlines those savings and transitional measures.
What savings are in place under the 2021 Act?
Decisions of the association are preserved
Decisions, consents or approvals of the association or of the executive committee that were made under the 1989 Act are considered to be in force and are taken to have been validly made under the 2021 Act. This includes any contributions that have been levied and the recovery and payment of any unpaid contributions.
Current committees remain in place
Executive committees and office holders elected under the 1989 Act remain in their position for the balance of their term. However, the name of the executive committee changed on 1 December 2021 to the association committee.
Once the committee’s term expires the association committee and office holders will be elected in accordance with the 2021 Act.
Managing agency agreements entered into before the new laws remain in force
Managing agency agreements that were entered into by the association in accordance with the 1989 Act remain in force. However, terms of appointment are now imposed on these agreements.
Any agreement in place will either end three years after the agreement commenced, or six months after the commencement of the 2021 Act, whichever is later.
Status of existing legal proceedings and orders received
Any proceedings that were commenced but not determined under the 1989 Act are to be dealt with as if the 1989 Act had not been repealed.
Any orders made by an adjudicator or the NSW Civil and Administrative Tribunal (Tribunal) under the 1989 Act, and in force before the commencement of the 2021 Act, are taken to have been made in accordance with the 2021 Act.
Existing management statements and by-laws remain in effect
The management statement and by-laws of an association in effect before 1 December 2021 continue in force and are taken to have been made in accordance with the 2021 Act.
While the by-laws of the association are preserved, there is an obligation that these by-laws comply with the restrictions on by-laws under section 130 of the 2021 Act.
Associations need to be aware of the prohibition on by-laws that are harsh, unconscionable or oppressive. Therefore, it is possible for an association member to challenge a by-law on these grounds and have the Tribunal or a court declare a by-law to be invalid.
Associations should review their by-laws to ensure they are compliant with the restrictions set out in section 130 and make changes if necessary.
What transitional measures are in place?
Extra time for holding first annual general meetings
The new laws have been updated to make it easier for the initial period to expire and allow the association members to take control of the association.
The community land laws require an association to hold its first annual general meeting (AGM) within two months of the initial period expiring. Failure to hold the meeting within two months puts the developer in breach of the Act and a penalty may be issued.
Many associations will find that their initial period ends immediately when the new laws commence on 1 December 2021.
To assist associations and developers to manage the transition, they will have extra time in which to hold the first AGM during the first six months after the new laws commence. If the initial period expires between 1 December 2021 and 1 April 2022, the first AGM must be held by 1 June 2022 at the latest.
For more information on the initial period and how it ends visit the responsibilities of an association page.
For more information on the first AGM, visit the meetings and voting page.