The Unit Titles Act is the current legislation governing the management and running of thousands of apartments. Photo / Mark Mitchell
The Unit Titles Act is the current legislation governing the management and running of thousands of apartments. Photo / Mark Mitchell
A Members' Bill to amend the Unit Titles Act, which is hoped to make higher-density living more attractive, has passed its first reading in Parliament this evening.
The Unit Titles (Strengthening Body Corporate Governance and Other Matters) Amendment Bill, under National housing spokeswoman Nicola Willis, is a bid to reform legislation currently governing the management and running of thousands of apartments.
Willis said the Act is not fit for purpose and a "headache" for owners and prospective buyers.
The proposed reform is pitched to ensure conflict of interests are declared and properly managed, the governance and management of unit title dwellings are professionalised, and disclosure regimes made more stringent.
Willis said the current legislation was designed at a time when apartment living was still relatively new. In 2010, multi-unit housing developments made up about 15 per cent of new houses compared to 40 per cent in 2017, she said.
"This Bill will make life easier for thousands of people currently living in multi-unit dwellings and it will open the door for thousands more people to choose that type of housing in the future."
Willis said body corporates were repeatedly listed as a major reason why people chose to buy a house over an apartment.
The Bill aims to address the worry of those burnt by undisclosed future repair bills, the fear of getting ripped off by excessive body corporate fees, and ease the complexity of resolving potential disputes, Willis said.
The draft legislation has been developed over several years and landed with Willis after former Auckland Central MP Nikki Kaye retired from politics.
National Party housing spokeswoman Nicola Willis. Photo / Mark Tantrum
Current Auckland Central MP Chlöe Swarbrick paid tribute to Kaye's work and agreed the current law is not fit for purpose with its many fish hooks and loopholes.
She said there were issues with conflicts of interests and disclosure.
Sometimes it appeared owners were reluctant to investigate existing issues in apartment blocks because of costs that could arise, she said.
Swarbrick said the Greens were proud to support the Bill.
"It is one critical tool that will enable more people to get into a diversity of different living situations, but it's important to note this is only one tool. There are a number of others that must be investigated and applied to solve the housing crisis in this country."
The Act Party also supported the Bill, with deputy leader Brooke van Velden saying more people were looking for alternatives to the traditional but increasingly unaffordable three-bedroom weatherboard home.
She said people considering apartments wanted to know what they were buying into.
"Once you own that property that is part of a body corporate, you want to know that it will keep maintaining the property well.
"There needs to be a clear and transparent process for making decisions when people have different views about how a property should be used and maintained."
Van Velden cautioned that any additional cost to the homeowner under the Bill should be spent to benefit them rather than for the sake of a new regulation.
Hutt South MP Ginny Andersen confirmed Labour would support the Bill's first reading through to the select committee stage.
She flagged areas the party would like to see more work on, including whether a blanket approach would be used and how proportionate utility costs might affect decision-making processes.
Areas proposed for reform:
• Improving the information disclosure regime to prospective buyers of units;
• Strengthening the governance arrangements of the body corporate, the entity responsible for the management and operation of a unit title complex;
• Increasing the professionalism and standards of body corporate managers;
