By John Korff. Section 149 certificate and its impact on property

By John Korff Section 149 certificate and its impact on property

Contents Contents...2 Executive Summary...4 Introduction...4 Local Environmental Plan (LEP):...5 Development Control Plans (DCP):...5 DCP U2.1 Residential Suburban and Medium Density...5 DCP G3.1 Designing for access and mobility...5 DCP G4.1 Exempt & Complying Development...6 State Environmental Planning Policies (SEPP):...6 SEPP No 4 Development without consent and miscellaneous exempt and complying development...6 SEPP (Housing for seniors or people with a disability) 2004...6 SEPP No 6 Number of storeys in a Building...6 SEPP no 21 Caravan Parks...6 SEPP No 22 Shops and Commercial Premises...6 SEPP No 30 Intensive Agriculture...6 SEPP No 32 Urban Consolidation...7 SEPP No 33 Hazardous & Offensive Development...7 SEPP No 36 Manufactured Home Estates...7 SEPP No 50 Canal Estate Development...7 SEPP No 55 Remediation of Land...7 SEPP No 62 Sustainable aquaculture...7 SEPP No 64 Advertising and Signage...7 SEPP No 65 Design Quality of Residential Flat Development...8 SEPP (Major Developments) 2005...8 SEPP (Mining, Petroleum Production and Extractive Industries) 2007...8 SEPP (Building Sustainability Index: BASIX) 2004...8 SEPP (Temporary Structures) 2007...8 SEPP (Infrastructure) 2007...8 SEPP (Rural Lands) 2008...9 SEPP (Exempt and Complying Development Codes) 2008...9 SEPP (Affordable Rental Housing) 2009...9

SEPP (State and Regional Development) 2011...9 Orana Regional Environmental Plan No 1 Siding Spring applies to Dubbo LGA...9 Draft State Environmental Planning Policies:...9 Subject Zoning:...10 Complying Development:...10 Coastal protection:...10 Mine Subsidence:...10 Road Widening and Road Realignment:...10 Council and Other Public Authority Policies in Hazard Risk Restrictions:...11 Flood related Development Controls Information:...11 Land Reserved for Acquisition:...11 Contribution Plans:...11 Dubbo Water Supply and Sewerage Contributions Policy...11 Section 94 Contributions Plan Open Space & Recreation Facilities Plan...11 Section 94 Contributions Plan Urban Stormwater Drainage Headworks Contributions Plan...12 Section 94 Urban Roads & Carparking Contributions Plan...12 Bushfire Prone Land:...12 Orders under Trees (Disputes Between Neighbours) Act 2006:...12 Site Compatibility Certificates for Seniors Housing:...12 Site Compatibility Certificates for Infrastructure:...12 Site Compatibility Certificate and Conditions for Affordable Rental Housing:...13 Matters arising under the Contaminated Land Management Act 1997:...13 Evaluation:...13 Annexures...14 Bibliography...14 Contact Business Cards...Error! Bookmark not defined. Interview Transcripts...Error! Bookmark not defined. Section 149 Certificate...Error! Bookmark not defined.

Executive Summary The following report is based on a section 149 certificate of the subject property and how the aspects of the certificate can impact on the value of real estate. A conclusion is deduced through the extensive research of Local Environmental Plans, Development Control Plans, State Environmental Planning Policies and relevant acts relating to the 149 certificate. To accompany this research interviews have been conducted with professionals in the field. The report follows the structure of a section 149 certificate explaining each point and its potential affect on value as well as how the subject is affected. The report found that the main dependent on value is whether the topic in the 149 certificate restricts the properties use or requires further/ongoing maintenance (negative impact) or allows the property to achieve a use which would not be achieved in normal circumstances (positive impact). It is recommended that the section 149 certificate is read and understood before real estate is purchased, as there could be property specific effects detrimental to value unknown to the purchaser. Introduction The subject property used for this report is 21 Goode Street, Dubbo NSW 2830, which is a standalone residential property located in a low density residential zone according to the Dubbo LEP 2011. The affect of a section 149 certificate on the value of the subject and other real estate will be deduced and explained through the headings of the certificate as follows.

Local Environmental Plan (LEP): The subject property is in the Dubbo Local Government Area and as such falls under the Dubbo Local Environmental Plan 2011. The Dubbo LEP 2011 is part of the new standardisation rollout of LEP s across the state. A property s LEP will usually have minimal impact on the value of a property as it is just the local government area a property is located in. Development Control Plans (DCP): DCP U2.1 Residential Suburban and Medium Density Does not affect the value of the subject as it complies with the DCP. If a property did not comply with the DCP, such as building heights and set-backs, it may incur additional costs, which could impact on the value. DCP G3.1 Designing for access and mobility Does not affect the value of the subject as it complies with the DCP. If a property did not comply with the DCP it may require further works to meet the standards, therefore impacting on value due to these costs.

DCP G4.1 Exempt & Complying Development Only applies to properties of listed as being significant, such as heritage, in a wilderness area or near the locality of an endangered State Environmental Planning Policies (SEPP): SEPP No 4 Development without consent and miscellaneous exempt and complying development Has no affect on value in this circumstance as the property was marketed, and is intended to be used, as a single residential premise. If a property did not comply with this SEPP additional costs may be incurred for the property therefore impacting on the value of the property. SEPP (Housing for seniors or people with a disability) 2004 Does not affect value of the subject as the premise is a single residential purpose not intended for use for senior or disabled people. If the property can handle disabled or senior persons it may hold more value to them and achieve a better result on the market. SEPP No 6 Number of storeys in a Building Has no effect on value of the subject as the dwelling is single storey. Could have adverse impacts on value if the owner were to incur additional costs to make their property compliant. SEPP no 21 Caravan Parks The subject is not affected by this SEPP. If a property was suitable for the development of a caravan park it could increase the value of that property as it has potential to generate income and be profitable. SEPP No 22 Shops and Commercial Premises Not applicable to this situation as the property is located in a residential zone, and has an existing residential use. Could add value to the property if it was a commercial property and was suited to more than one type of commercial use as it could increase interest in the market. SEPP No 30 Intensive Agriculture Has no impact on value for the subject as it is a residentially zoned parcel of land. If a property were suitable for feedlot development this could have a positive impact on value due to it being a higher and better use than vacant rural lands and would provide a quick turnover of income for the owner. Chris Korff gave an example of this, a feedlot of 200 acres can hold 30,000 head of cattle, and to get this many cattle on a regular rural property they would require 180,000 acres.

SEPP No 32 Urban Consolidation Has no impact on the value of the subject as it is not suitable for urban consolidation. If urban consolidation was suitable on a property it would have a substantial impact on the value, increasing it due to a higher and better use of land development. SEPP No 33 Hazardous & Offensive Development This is not an issue for the subject as it has not been used by a potentially hazardous or offensive industry. This could have serious effects on value to a potential purchaser as they may be required to undertake extensive works before they can use the land. The property may also have additional maintenance costs. SEPP No 36 Manufactured Home Estates This does not affect the value of the subject as it is not located in a manufactured home estate nor is it located near any prefabricated homes. If a property were located in a Manufactured home estate if could affect value as manufactured homes are usually aimed at a lower level of demographic therefore the area may not be as well regarded as it should and this could detract from value. However a large residential property could see a positive impact from this SEPP as they could potentially develop a manufactured home estate on their land increasing its potential use and value. SEPP No 50 Canal Estate Development Does not affect the subject property as it is not part of a canal estate. If a property were in a canal estate it may deduct form the value as they are not permitted by this SEPP and remediation of the property may need to occur. SEPP No 55 Remediation of Land The subject is not affected by remediation of any land. Would have adverse affect on a property that did require remediation. An example provided to me by Ed Druitt was the sale over an old service station in Lithgow where he informed me that the property sold for significantly less than the land value of the property due to the remediation costs involved with the property. SEPP No 62 Sustainable aquaculture Has no impact on value of the subject as it is not near the water. Could impact a property that requires upkeep to maintain the aquaculture and might not be seen as a favourable property because of this, decreasing its perceived value. SEPP No 64 Advertising and Signage Does not have any effect on value on the subject as it is a residential premise which does not have any signage. Advertising and signage rights are valuable to large buildings in busy locations as they can draw large advertising income.

SEPP No 65 Design Quality of Residential Flat Development Does not have any effect on value for the subject as it is not a part of a residential flat development. If a property were in a residential flat development and it did not meet the required standards of this SEPP it could have an effect on value as works would need to be carried out for the flat to reach the minimum standard. SEPP (Major Developments) 2005 Does not have any impact on the subject as it is not a significant site to the state. If a property were deemed to be a significant site it may have an impact on value as someone trying to develop the site may incur additional charges in keeping the appeal and significance. Chris Korff gave an example of a mechanic workshop in Coonabarabran, where a property required extensive works and the costs involved with the heritage façade were substantial. SEPP (Mining, Petroleum Production and Extractive Industries) 2007 Does not have any effect on the subject as the subject is residential land and does not have any use with mining. This would apply to all mining properties in the state and would set out their guidelines for their development and operations. Being able to mine a property is a huge economic benefit and would seriously affect the value of that property. SEPP (Building Sustainability Index: BASIX) 2004 Does not affect the subject as it already has a building on the premises that complies. Would affect the development of a property if it was found to not conform with BASIX principles, due to cost of redrawing a development approval, or if a building is found to be without BASIX it will be perceived as less valuable, possibly incurring additional costs, and will achieve less on the market. SEPP (Temporary Structures) 2007 Does not affect the subject as it does not have any temporary structures nor is it located near any. If a property were to have temporary structures it would be deemed less valuable because of the nature of the structures. Also if a property is located near temporary structures they may suffer from noise and heavier traffic than expected, which could reduce the value of the property. SEPP (Infrastructure) 2007 Does not affect value of the subject as it is a residential use and is located in a well established residential area. Predominantly applies to government owned land, which allows them greater flexibility to redevelop land for infrastructure and service facilities, which could potentially make the property more valuable.

SEPP (Rural Lands) 2008 Does not impact on the value of the subject as it is a residential property in a residential zone. As the SEPP regulates rural land it will have a minimal impact on value to rural properties, as it places no restrictions as such on the land, more just sets out general guidelines. SEPP (Exempt and Complying Development Codes) 2008 Does not affect the value of the subject as it is not located in or near a critical habitat of an endangered species, population or ecological community, nor is it in a wilderness area. If a property were located near these areas they may be subject to additional maintenance costs as they would not be able to undertake activities that can normally be done without development approval, to do with environmental impacts. SEPP (Affordable Rental Housing) 2009 Does not affect the value of the subject as there is no affordable rental housing in the area, nor is it available for the subject. Could affect a property if it were a potential residential englobo property of a multi-unit development, increasing value. Could also affect the value of nearby properties if a cheap rental area is created it will attract a lower level of demographic to the area which could reduce the value of nearby residential properties. SEPP (State and Regional Development) 2011 Does not affect the subject as it is not state or council land, nor is it of any significance. Would not affect the value of many properties as many are not state significant. Sets out regulations and restrictions of state significant properties, will have impacts on costs involved with these properties. Orana Regional Environmental Plan No 1 Siding Spring applies to Dubbo LGA Does not apply to the subject as it does not affect the Siding Spring Observatory. This could be detrimental to properties which may be deemed to have impact on the Observatory as there are restrictions in place with lighting of the property, which may be deemed a negative trait, due to cost. Chris Korff gave an example of the main oval in Coonabarabran, which incurred more costs than required when putting up lights so the field could be utilised at night. This was to ensure the lights had a no impact on the Siding Springs Observatory. Draft State Environmental Planning Policies: Does not affect the subject property as there are no draft SEPP s in Dubbo. If a property may be subject to a draft SEPP this could affect value depending on the SEPP s constraints and requirements.

Subject Zoning: The subject land is zoned R2 Low Density Residential. This does not affect the value of the subject as the improvements and use of the property comply with the zoning and what is permitted within the zone. Zoning definitely impacts value as it states what can and can t be done with a certain parcel of land. Complying Development: The subject is not considered to be land that is part of a wilderness area nor does the land comprise an item of environmental heritage, therefore the value of the property is not affected. If a property is considered in a wilderness area or to have an item of environmental heritage a property s value could be affected. If a property is classified to be in one of these areas it may incur additional costs or not be allowed to achieve complying development, which could limit the use of the land, making it less valuable. If a property is in one of these areas it will need to meet a specific criteria of the following: general land based exemptions, general housing code, rural housing code, housing alterations code, general development code, general commercial & industrial code, subdivision code and demolition code. If a property is in these areas it may incur additional costs to meet one or more of these codes. Coastal protection: This does not affect the value of the subject property as the land is not affected by the operation of Section 38 or 39 of the Coastal Protection Act, 1979. If a property were affected by the Coastal Protection Act this may impact in value as it restricts development and must follow ecological sustainable developments. Additional costs may be incurred for these properties reducing their value. Mine Subsidence: The subject property does not fall within Mine subsidence boundaries so it is not affected by this act. If a property does fall within mine subsidence boundaries it could adversely affect the value of the property as it could be used for mining purposes, drastically increasing the value placed on a property. Road Widening and Road Realignment: The subject land is not affected by any road widening or realignment, therefore the value of the property is not affected by the Roads Act 1993. If a property was affected under the act it may be subject to a change in value as it may detract from the area of the land of the property or it could mean a busier road for the property which also can detract from value.

Council and Other Public Authority Policies in Hazard Risk Restrictions: The subject is not affected by any policy adopted by the council or any other public authority; however the subject property is located in the Riparian Land and Waterways and Groundwater Vulnerability Map in the Dubbo LEP 2011, as moderately high groundwater vulnerability. This has limited affect on value as most of Dubbo s residential land is located in this same area due to the Macquarie River. It only restricts certain activities such as bores or mining. (Chris Ansoul) If a property is affected by a policy which has been adopted by the council or any other public authority this could impact on the value of that property. It could mean the property was in an area of landslip, bushfire or flooding etc, which would impact value. Flood related Development Controls Information: The subject is not affected by any policy council have, that restricts the use of land likelihood of flooding. If a property was in a likely flood area this could have impact on the value of that property as flooding could cause extreme discomfort and expenses. Values are more affected by flooding when a flood has occurred recently, if the area has not flooded for some time people tend to forget about the event. (Ed Druitt). However restrictions on buildings are still in place for flood liable properties. Land Reserved for Acquisition: There is no environmental planning instrument that applies to the subject land that allows acquisition of the land by a public authority. If a property were suitable for acquisition by a public authority it could be considered to have a higher value as if the owner requests the council must purchase the land giving the owner the opportunity to sell it for more than it is worth, usually only applies to properties with a strategic infrastructure purpose such as an airport or railway (Chris Ansoul). Contribution Plans: Dubbo Water Supply and Sewerage Contributions Policy The policy has no affect on the value of the subject, or any property as it is a standard policy that requires the landholder to pay their water charges for the property. Section 94 Contributions Plan Open Space & Recreation Facilities Plan The policy has no affect on the subject, or any property as it is a standard policy that requires the landholder to pay rates on open space and recreation facilities that the council provide and maintain.

Section 94 Contributions Plan Urban Stormwater Drainage Headworks Contributions Plan The plan has no affect on the value of any property as it is a required contribution for all properties to council for the maintenance of storm water drainage and headworks. Section 94 Urban Roads & Carparking Contributions Plan The plan has no affect on the value of any property as it is a required contribution for all properties to council for the maintenance and improvements of roads, traffic and carparking in the township of Dubbo. Bushfire Prone Land: The subject is not identified as bushfire prone land; therefore this has no affect on the value of the property. If a property is in bushfire prone land its value may be decreased as it is not a desirable trait. Chris Korff said that if a bushfire has happened in the area recently it may impact values of the property but if it has been a while the public may not think of the issue when placing value on a property. Chris also said that the value could be minimal as people who want to live in the bush, live there knowing the risk. He referred to the recent bushfire in Coonabarabran where people were rebuilding houses in the same place they were burnt down and will continue to live there. Orders under Trees (Disputes Between Neighbours) Act 2006: Does not apply to the subject land, therefore has no impact on value. If a property was found to be breaching the Trees (Dispute Between Neighbours) Act 2006 it may have a small impact on value of the property due to the inconvenience and there may be costs in removing the tree. Site Compatibility Certificates for Seniors Housing: The subject does not have a compatibility certificate for senior housing; therefore it has no affect on value. If a property did have a compatibility certificate it may have an increased value as it is more suitable for seniors to live in. Site Compatibility Certificates for Infrastructure: The subject does not have a compatibility certificate for infrastructure; therefore it has no affect on value. If a property did have a compatibility certificate it may have an increased value as it is more suitable for future development.

Site Compatibility Certificate and Conditions for Affordable Rental Housing: The subject does not have a compatibility certificate for affordable rental housing; therefore it has no affect on value. If a property does have a certificate to construct affordable rental housing it could increase value as multi-dwelling units could be constructed on the site. Matters arising under the Contaminated Land Management Act 1997: The subject land is not declared to be contaminated; therefore contamination is not going to affect the value of the subject property. If a property were subject to contamination it may have adverse impacts on value depending on the extent of the contamination. Even a property that is only potentially contaminated may deter a potential purchaser. Using the same example as explained earlier, supplied by Ed Druitt, regarding the cheap sale of a service station in Lithgow due to the extensive costs of remediation. Evaluation: A section 149 certificate can have many varying impacts on a property. The main dependent on value is whether the topic in the 149 certificate restricts the properties use or requires further/ongoing maintenance (negative impact) or allows the property to achieve a use which would not be achieved in normal circumstances (positive impact). However it comes down to what is stated in the legislation and policies which affect the property and the cost/potential cost or inconvenience associated with them.

Annexures Bibliography Chris Ansoul Senior Building/Development Officer at Dubbo City Council. Interview Chris on the 8 th April 2013 regarding sections of the 149 certificate, Draft SEPP, Groundwater vulnerability, land acquisition and site compatibility certificates. Chris Korff Stock and Station Agent, License No. 225260. Interviewed Chris on the 29 th March 2013 about the SEPP of intense agriculture, bushfire prone land, Orana Regional Environmental Plan No. 1 and the rural lands SEPP. Dubbo City Council Website, http://www.dubbo.nsw.gov.au/ - I searched the Dubbo council website for information on the Dubbo DCP s. Ed Druitt CPV, AAPI, Registered valuer No. 21176. Interviewed Ed Druitt on the 21 st of March 2013 regarding most facets in the report and the affect they could have on the subject property and any other property. NSW Legislation home page, http://www.legislation.nsw.gov.au/maintop/search/inforce - I used the home page to search each SEPP, LEP information and Acts relevant to the Section 149 Certificate. Section 149 Certificate No. 16474 Gathered report headings and the information required on the subject property from the certificate (attached).