A management statement must be lodged with each community, precinct and neighbourhood scheme to set out by-laws and other particulars that govern participation in the scheme. Unlike strata schemes, there are no model by-laws for community schemes.
Schedule 2 Community Land Development Act 2021 requires that management statements must be prepared in the approved form, being:
The approved forms, list areas required by legislation to be covered in the statement but leave the terms of the by-laws up to the discretion of the developer.
A community, precinct and neighbourhood management statement must include by-laws, plans and other particulars related to the following:
- the location, control, management, use and maintenance of any part of the community/precinct/neighbourhood property set apart as an open access way or a private access way
- the control, management, use and maintenance of any other part of the community/precinct/neighbourhood property (including any special facilities on the community/precinct/neighbourhood property)
- the provision of and payment for internal fencing on the community/precinct/neighbourhood parcel including, for community/precinct schemes, any obligation of the community/precinct association or subsidiary bodies
- the storage and collection of garbage on and from the community/precinct/neighbourhood parcel and, for community/precinct schemes, any related obligations of the community/precinct association or subsidiary bodies
- the maintenance of water, sewerage, drainage, gas, electricity, telephone and other services and
- insurance of the community/precinct/neighbourhood property.
A precinct management statement is not required to include anything already provided for by the community management statement. Similarly, a neighbourhood management statement is not required to include anything already provided for by the community management statement or precinct management statement, where the neighbourhood scheme is a subsidiary scheme (see Schedule 2, clauses 5(2) and 7(2) Community Land Development Act 2021).
The management statement for a scheme may include by-laws and other particulars relating to:
- the hanging of washing within the scheme parcel
- safety and security measures
- details of any restricted property
- the keeping of pets
- the obligation of the owner of a lot within the scheme not to interfere with the quiet enjoyment of another lot or the association property
- the control of unacceptable noise levels
- details of any business or trading activity to be carried on by the association and the method of distributing and sharing profit or loss
- the control or preservation of the essence or theme of the development under the scheme
- architectural and landscaping guidelines to be observed by lot owners
- a diagram for the purpose of statutory easements
- any agreements entered into for the provision of services or recreational facilities
- a plan showing access ways within the scheme.
These provisions do not limit the matters that may be included in a management statement.
A management statement may also include a schedule specifying by-laws made at the request of public authorities.
The terms of the management statement are binding on the community association, each subsidiary body within the scheme and each person who is a proprietor, lessee, occupier or mortgagee in possession of a community development lot, precinct development lot, neighbourhood lot or strata lot within the scheme. A warning to this effect should be shown on the first sheet of the statement see Approved Form 28, Approved Form 29 and Approved Form 30.
The statement must be available to all prospective purchasers for inspection.
Preparing the statement page provides information on the by-laws in a Management Statement.
Part 1 - By-laws fixing details of development page provides information on by-laws relating to the essence or theme of the community scheme.
Part 2 - By-Laws affecting Association property page provides information on association property rights by-laws which permit part of the the association property within a community, precinct or neighbourhood scheme to be restricted to the use of proprietors or associations within the scheme.
Part 3 - Mandatory matters page provides information on by-laws covering the mandatory matters referred to in Schedule 2 Community Land Development Act 2021.
Part 4 - Optional matters page provides information on the optional matters that the developer wishes to add.
Part 5 - Public authority by-laws page provides information on how to complete a management statement and that it may include a separate schedule of by-laws included at the request of a public authority.
All NSW legislation can be accessed at www.legislation.nsw.gov.au/