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

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 are payable. (7) Increases under this section in site fees payable by home owners in the same community under site agreements to which this section applies must take effect on the same day (and not on different days). (8) A notice under this section may be cancelled. (9) A later notice may provide for a lesser increase than that specified in an earlier notice under this section. A later notice has effect instead of the earlier notice and takes effect from the date on which the earlier notice was to take effect. (10) If the site fees payable under a site agreement are increased under this section, the terms of the agreement are varied accordingly. (11) If a person becomes a home owner after a notice has been given under this section to other home owners in the community but before the date the increase takes effect: (a) the operator must notify the home owner of the notice and its contents and effect, and (b) the increase applies as if the notice had been given to the home owner at the same time as it was given to other home owners. 1. Notices were given to all home owners at the same time as required by s 67 (3). The Tribunal is satisfied that the notices complied with the provisions of s 67 (4). There has been no other site fee increase in the relevant 12 month period. (s 67(6).