Two Opposition MPs are proposing long-awaited changes to the law governing the $50 billion apartment sector, drafting an overhaul which they hope the Government will support.
Nikki Kaye, Auckland Central MP, and Judith Collins, National's housing and urban development spokeswoman, have produced draft legislation to amend the Unit Titles Act which governs the management and running of thousands of apartments.
They aim to strike a balance between the benefits of more compliance requirements and any potential costs.
A statement said the MPs saw the opportunity to strengthen the existing regime in areas such as pre-contract disclosure, record keeping of body corporates, better management of conflicts of interests and proxy votes.
"The driver for this change has been concerns around a lack of transparency and inadequate long-term maintenance plans, and a clearer understanding of the role of a body corporate manager," Collins said.
The apartment sector is thought to be worth at least $50b. Under-investment in long-term maintenance plans could result in large unexpected bills for homeowners if defects occur, or sharp rises in body corporate fees, the MPs said.
"Places like Auckland have seen a huge increase in unit titles. The number of multi-unit housing developments in Auckland increased from just over 15 per cent of new houses in 2010 to over 40 per cent in 2017," the statement said.