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A Community Management Statement is a legal document governed in New South Wales under the Community Land Development Act 1989 which is registered with a community plan and sets out the by-laws (also known as CMS by-laws) to regulate the rights and obligations between the community association, each subsidiary body within the scheme and each person who is a proprietor, lessee, occupier or mortgagee in possession of a community development lot, precinct development lot, neighbourhood lot or strata lot within the scheme.

A Community Management Statement must include by-laws, plans and other particulars relating to:

(a) the location, control, management, use and maintenance of any part of the community property that is an open access way or a private access way, and

(b) the control, management, use and maintenance of any other part of the community property, including any special facilities provided on the community property, and

(c) matters affecting the provision of, and payment for, internal fencing on the community parcel including any obligations of the community association or the subsidiary bodies, and

(d) the storage and collection of garbage on and from the community parcel and any related obligations of the community association or the subsidiary bodies, and

(e) the maintenance of water, sewerage, drainage, gas, electricity, telephone and other services, and

(f) insurance of the community property, and

(g) the executive committee of the community association, the office-bearers of the committee and the functions of the office-bearers, and

(h) meetings of the executive committee, and

(i) voting on a motion submitted to the executive committee otherwise than at a meeting of the committee, and

(j) the keeping of records of proceedings of the executive committee.

A Community Management Statement may include by-laws and other particulars relating to any of the following:

(a) the hanging of washing within the parcel,

(b) safety and security measures,

(c) details of any restricted property,

(d) the keeping of pets,

(e) the obligation of the proprietor of a lot within the scheme not to interfere with the quiet enjoyment of another lot or the community property,

(f) the control of unacceptable noise levels,

(g) details of any business or trading activity to be carried on by the association and the method of distributing and sharing any profit or loss,

(h) the control or preservation of the essence or theme of the development under the scheme,

(i) architectural and landscaping guidelines to be observed by lot owners,

(j) a diagram for the purpose of statutory easements,

(k) any agreements entered into for the provision of services or recreational facilities,

(l) a plan for the purposes of Part 5 (which relates to access ways within the scheme).

It is important to note that a Community Management Statement must not include any prohibition or restriction that:

(a) affects the keeping on a lot of an animal that is used as an assistance animal by a person with a disability who is a proprietor or occupier of a lot, or

(b) affects the use on a lot, or on association property, of an assistance animal by a person with a disability, or

(c) is based on race or creed, or on ethnic or socio-economic grouping, or

(d) excludes public housing from a scheme.

If you need any assistance drafting, reviewing or amending your Community Management Statement, we can help.  For a confidential discussion, please contact Michael Pobi on (02) 8710 3430.

The information contained in this article is general information only and not legal advice. The accuracy and completeness of this article (and its contents) should be checked by obtaining independent legal advice before you take any action or otherwise rely upon its contents in any way.