As you may be aware, last week the Government issued a Commencement Order setting out a staged commencement process.

See the Order here.

See the Amendment Act here.

AMENDMENT ACT – STAGED COMMENCEMENT

 All section references below are sections in the Amendment Act.

 What comes in on 9 December 2022?

  • Section 12 – new section 88 making attending meetings remotely a permanent right
  • Section 16 – new section 16 stating an owner can vote using remote means
  • Section 54(2) – new Reg 27(2A) stating a Committee meeting can be by remote means

What comes in on 9 May 2023?

Everything else except the parts that come in on 9 May 2024 listed further below.

Everything else includes:

  • Ability to reassess utility interests using multiple sets
  • Meeting and voting matters – i.e., new section 101 which clarifies BC resolution thresholds (but excluding electronic voting – see below)
  • BC Chairperson and Committee elections – including must have paid levies, BC Chair is Committee Chair, director or employee can be nominated
  • Committee meetings – agenda, keep written records, must be financial to vote, etc
  • Committee – Code of Conduct and Conflict of Interest regime
  • AGM agenda – must include Committee conflict interests register
  • Body Corporate Managers – their definition, functions, Code of Conduct, Conflict of Interest regime (but excluding clauses to be in BC Management service agreements – see below)
  • Large Bodies Corporate – including requirement to engage a BC Manager (but excluding LTMP matters – see below)
  • New disclosure regime – including new form of PCDS
  • Requirement for BC to keep records to comply with disclosure regime
  • Original owner obligations re service contracts and signage agreements (and savings provisions)
  • Tribunal jurisdiction increase to $100,000
  • Tribunal filing fees – $250 (mediation) and $500 (hearing)
  • Various other minor edits in sections and regulations

What comes in on 9 May 2024?

 Requirement on BC to produce certain records to the Chief Executive on request – s10(2)

  • Electronic voting for unit owners – s17 (we expect some regulations to accompany this – but not released yet)
  • LTMP matters for Large Bodies Corporate – s23, s34 (re 157C), s58, s59
  • Government’s ability to make rules re reasonable legal costs on levy recovery matters – s38
  • Tenancy Tribunal powers and Chief Executive powers – s24, 26, 35(4)&(5), 37, 38, 39, 40, 41
  • Government’s ability to produce Regulations regarding what documents a BC and BC Manager must retain – s42(1)
  • Administrator matters – s29
  • Clauses that must be included in a BC Management service agreements – s57 (re new Reg 28C)

As President and Deputy Presidents of SCA(NZ), Liza Fry Irvine and I will be working with industry experts on deeper dives to navigate the changes & the Property 101 Group team and I look forward to assisting our valued clients through the same.

Joanne Barreto
SCA(NZ) President