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Community and neighbourhood schemes in New South Wales operate under a different legal structure from standard strata schemes. The Community Land Management Act 2021 establishes the framework for managing shared property, governance and financial obligations within these developments.

These schemes are commonly used in master planned communities, residential estates and mixed-use developments where shared facilities such as roads, parks, recreational spaces or private infrastructure are maintained collectively. Understanding how the legislation applies is important for owners, committees and community associations responsible for managing these shared assets.

What Is The Community Land Management Act 2021?

The Community Land Management Act 2021, often referred to as the CLMA, is the legislation governing community, precinct and neighbourhood schemes in New South Wales. It sets out how associations operate, how meetings are conducted and how shared property is maintained.

The legislation works alongside other NSW property laws and establishes governance requirements similar to strata schemes while addressing the unique structure of community title developments. The full legislation can be reviewed through the official Community Land Management Act 2021 legislation website.

How Community Schemes Differ From Strata Schemes

A key difference between a community scheme and a strata scheme is the type of property ownership involved. In a strata scheme, owners usually hold title to an apartment or lot within a shared building. In a community scheme, owners generally own land parcels or dwellings individually while sharing responsibility for common infrastructure and facilities.

This distinction affects governance, maintenance obligations and financial arrangements. The NSW Government's overview of community schemes in NSW explains how these developments are structured and why their management differs from traditional strata arrangements.

Owners comparing structures often look at the broader relationship between community title and strata title. Our guide to NSW strata laws explained outlines how different legislation applies across various property ownership models.

Roles And Responsibilities Under The CLMA

Under the CLMA, the community association or neighbourhood association is responsible for managing shared property and enforcing bylaws within the scheme. Committee members oversee operational matters, while owners contribute levies that fund maintenance and administration.

Managers, committees and owners each have specific responsibilities regarding governance, financial management and compliance. Similar governance principles also apply under the Strata Schemes Management Act 2015, particularly regarding meetings, record keeping and decision making.

Community associations must maintain clear communication with owners and ensure all decisions are properly documented and implemented.

Meetings, Bylaws, and Shared Facilities

Community associations are required to hold meetings, maintain records and manage bylaws in accordance with legislative requirements. Decisions relating to budgets, maintenance and changes to shared facilities are generally made through voting processes involving lot owners.

Shared facilities within community schemes may include private roads, landscaped areas, security infrastructure, recreational facilities and drainage systems. Effective governance helps ensure these assets remain properly maintained and funded over time.

Guidance on governance obligations and operational responsibilities can also be found through the NSW Government’s strata and community living information resources.

Financial And Compliance Obligations

Community schemes must establish financial systems that support the maintenance and operation of shared property. Levies collected from owners contribute to administrative costs, long-term maintenance and regulatory obligations.

Financial planning is essential to avoid deferred maintenance and unexpected costs. Our overview of strata fees and levies explains how contribution systems support ongoing building and infrastructure management across shared property schemes.

Compliance obligations may also include fire safety management, contractor oversight and record-keeping requirements. Our strata compliance services outline how structured governance systems help associations remain compliant with NSW legislation and operational requirements.

How Strata One Supports Community Schemes

At Strata One, we support community and neighbourhood schemes with structured management systems focused on governance, compliance and financial transparency. Our approach helps associations maintain clear records, coordinate maintenance and manage shared facilities efficiently.

We work closely with committees and owners to support decision making, levy planning and compliance management. Our involvement with the broader Strata Community Association sector also helps us remain informed about legislative developments and industry standards affecting community schemes across NSW.

Talk To Us About Managing Your Community Scheme

Managing a community or neighbourhood scheme requires clear governance, reliable financial systems and ongoing compliance oversight.

If your association is seeking professional support under the Community Land Management Act 2021, talk to us about how Strata One can assist with the management of your community scheme, shared facilities and compliance responsibilities across New South Wales.