Otago Property Investors Association Inc

03 477 6220

otago@nzpif.org.nz

News & Updates

Recent updates

01-04-2009

POLITICAL & REGULATORY REPORT for MARCH 2009

In essence, the Bill repeals and replaces the original 1972 legislation to provide a new legal framework for the joint ownership and management of land, buildings and facilities by individual owners.

For the Federation, key reforms proposed in the bill include:

  • The clarification of responsibilities of unit owners and bodies corporate, ensuring sound management practices and protection of long-term capital value
  • A clear, flexible governance structure with reduced voting thresholds for bodies corporate to make decision-making more easily managed and to enable the body corporate acts in the interests of the majority of unit owners
  • A robust disclosure regime so unit owners, bodies corporate and prospective buyers have accurate and comprehensive information to allow them to make informed and confident decisions regarding purchases, financial commitments and participation in body corporate matters, and
  • A new cost effective dispute resolution service so anyone with an interest in a unit title development can resolve disputes.

The Bill, largely technical in nature and therefore likely to be non-controversial, has been referred to the Social Services Committee Select Committee for examination. Written submissions close 24 April. The Committee is required to presents its report to Parliament by 4 September.

[The Committee has a National Party majority and it’s members are: Chester Burrows, Sue Bradford, Jo Goodhew (Chair - National), Annette King, Tim Macindoe, Todd McClay, Rajen Prasad, Katrina Shanks (Deputy Chair – National), William Sio].

 

MINISTERIAL BREIFING – Hon Phil Heatley

The Federation met and briefed the Housing Minister, the Hon Phil Heatley on 3 March in Wellington.

In a free and frank exchange the Minister outlined the several key changes he proposed in a reworked Residential Tenancies Amendment Bill.

The changes included:

  • Ensuring landlords are not hit with the costs of damages done by tenants and those they invite into their homes;
  • Clarifying responsibility for outgoings (especially water and waste water charges);
  • Ensuring professional advocates are not used in the Tenancy Tribunal and
  • Enabling the charging of letting fees.

The Minister indicated that a replacement bill would be introduced to Parliament by the middle of this year.

 

RTAB - Targeted Consultation

The Federation was invited to input into the Department of Building and Housing’s targeted consultation on the Residential Tenancies Amendment Bill and attended a meeting in Wellington on 19 March.

The Federation formally responded to the targeted discussion paper offering written comment on five major changes:

  • The proposals allowing for decisive action to be taken to deal with assaults, or threats of assault, by tenants' guests or associates
  • The proposals that will ensure landlords are not hit with the costs of damages done by tenants and those they invite into their homes
  • Ensuring that the Tenancy Tribunal doesn't become an uneven, expensive and time consuming forum through the introduction of professional advocates
  • Clarity around the legal status of a tenancy once the original tenant passes on (inherited tenancies) and the
  • Enabling of real estate agents and others, including property managers to charge letting fees.

 

PROPERTY MANAGERS REVIEW – Closed

Written submissions to the Ministry of Justice review of property managers closed on 16 March. It will be recalled that during the passage of the Real Estate Agents Act 2008 concerns, including misappropriation of rent monies, were raised about property managers, hence the review.

The MoJ hopes to complete the review and pass any resulting legislation before November 2009 so that it comes into effect at the same time as the new REA Act.

 

TAXATION BILL - Associated persons

The Taxation (International Taxation, Life Insurance, and Remedial Matters) Bill, introduced last July is currently under consideration by Parliament’s Finance and Expenditure Committee.

Of interest to the Federation are the proposed changes to the “associated person” rules.

Revenue Minister Peter Dunne has recommended to the Committee that there be a one-year deferment, to the 2010-11 income year, except for the land provisions, which would be deferred from 1 April 2009 to the date of enactment.

The tax bill is not expected to pass into law before August.

 

END

Tags: political report

comments powered by Disqus