Meatheringham v Gateway Redhead Operations Pty Ltd

Civil and Administrative Tribunal

New South Wales

Medium Neutral Citation:

Meatheringham v Gateway Redhead Operations Pty Ltd [2018] NSWCATCD 13

Hearing dates:

19 January 2018

Date of orders:

11 April 2018

Decision date:

11 April 2018

Jurisdiction:

Consumer and Commercial Division

Before:

K Ross, Senior Member

Decision:

(1)   The claimed increase in site fees of $6.50 per week is excessive.

 

(2)   The amount of the increase is reduced to the amount determined by application of the following formula:

 

(a)   Increase equals site fee at date of notice x 2.4%

 

(3)   The site fees for each affected home owner must not exceed the amount calculated by application of the formula in order 2, from 1 September 2017 until 31 August 2018.

 (4)   This order applies to all affected home owners in the community (other than those who opt out).

Catchwords:

RESIDENTIAL (LAND LEASE) COMMUNITIES – rent increase – excessive rent increase

Legislation Cited:

Residential (Land Lease) Communities Act 2013

Category:

Principal judgment

Parties:

Pam Meatheringham (Applicant)

  Gateway Redhead Operations Pty Ltd (Respondent)

Representation:

The applicant in person

  Ben O’Brien for the respondent

File Number(s):

RC 17/34626

Publication restriction:

unrestricted

Reasons for decision

1. By notice dated 29 June 2017 given to each of the home owners in the respondent’s park, the respondent gave notice of an intended increase in site fees of $6.50 for each site, to commence from 1 September 2017. The home owners who are participants in these proceedings objected to the increase. Mediation was attempted but was unsuccessful and this application was lodged pursuant to s 71 of the Act. The applicants (“home owners”) seek an order that the rent increase is excessive. The respondent (“operator”) opposes the order sought.

2. Section 67 of the Residential (Land Lease) Communities Act 2013 (“the Act”) provides as follows:

67 INCREASE OF SITE FEES BY NOTICE

(1) This section applies to a site agreement that provides for the increase of the site fees by notice (otherwise than by a fixed method).

(2) An increase in the site fees is not payable unless the fees are increased in accordance with this section.

(3) The site fees must not be increased except by notice in writing given to all the home owners in the same community at the same time under site agreements to which this section applies.

(4) The notice must:

(a) specify the amount of the increased site fees, and

(b) specify the day (the "effective day" ) on and from which the increased site fees are payable, and

(c) include an explanation for the increase, and

(d) include such other information as may be prescribed by the regulations, and

(e) be in the approved form (if any).

(5) The day specified as the effective day must not be earlier than 60 days after the day on which the notice was given.

(6) Site fees must not be increased more than once in any 12-month period under this section. This is calculated by reference to the day from which the increased site fees…