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Kincumber Nautical Village residents fight proposed site fee increases, calls for land lease changes

Central Coast pensioner Noeleen Smith says proposed site fee increases are unaffordable. (ABC Central Coast: Keira Proust)

When Noeleen Smith retired eight years ago she was looking forward to settling down and finding an affordable place to live outside Sydney.

The pensioner thought she found the right spot at Kincumber Nautical Village, a residential land lease community on the New South Wales Central Coast, but is now "scared" about proposed fee increases.

In these communities, the residents own their own homes but pay a weekly or fortnightly site fee for maintenance and services such as garbage collection.

Ms Smith recently received a letter advising that residents living on a "notice method" that a site fee would increase from next month.

The increase would see Ms Smith paying an additional $53 a fortnight.

She says if the increase goes ahead it will cost $244 every week, which is half her pension.

"Just recently, on the pension we got a $37.50 increase a fortnight, which was a godsend because with all of the increases and cost of living [challenges] at the moment," she said.

"But that's taking all of that away, plus more. So, that's a bit scary."

Noeleen Smith relies on her pension and rent assistance to pay for her site fees. (ABC Central Coast: Keira Proust)

Fellow resident Sallyann Field doesn't know how some people will afford the fee increase amid other price increases.

"Petrol has gone up and when you go shopping, it's ridiculous," she said.

"I honestly don't know how some people manage here.

"I just want to see a fairer deal for everyone that lives here."

Residents received a letter at the end of March notifying them of the proposed site fee increases. (ABC Central Coast: Keira Proust)

Thousands living in land lease communities

According to the NSW government, almost 40,000 people live in these types of communities across the state.

A 2021 review of the NSW Residential (Land Lease) Communities Act 2013 made 48 recommendations to improve the operation of the Act, such as fee increases that were easier to understand and predict.

The recommendations are yet to be formally adopted by the government.

The new NSW Fair Trading Minister Anoulack Chanthivong said he was disappointed the former government did not make the proposed changes and that work has been underway to implement the recommendations.

"The review found that while the act still works there are ways we can make [it] better and the department has already begun to work through some of them," he said.

"My goal will be to deliver changes that remove uncertainty and anxiety so people can get on with their lives."

Residents at Kincumber Nautical Village say they want some recommendations implemented immediately, such as more specific and transparent detail about how fee increases will be spent.

In the letter to residents, owner Theo Whitmont said the fees remained "unchanged" for three years but "operating costs had risen".

He did not specifically break down what costs had risen.

Kincumber Nautical Village is located on the NSW Central Coast, an hour north of Sydney. (ABC Central Coast: Keira Proust)

According to the state's industry body, NSW law regulates the methods by which site fees are increased by an operator.

These include a fixed method, which has an up-front agreement about how and when the site fee increases, or a notice method, which means operators must give at least 60 days' notice of any proposed increases.

Site maintenance issues

Kevin Fagan also lives in the village. He would have to pay $251 a week if the proposed increases go ahead.

Kevin Fagan is hopeful that the new government will implement the recommendations. (ABC Central Coast: Keira Proust)

Mr Fagan said the facility was in disrepair and that it was not clear how the fees were spent.

"The swimming pool is full of cracks and the tennis court has weeds growing out of it," he said.

"And there's been no maintenance of lots of the roads and the facilities in the village have deteriorated."

Residents say some of the roads are damaged and not maintained. (ABC Central Coast: Keira Proust)

Since receiving the letters, the residents have applied to NSW Fair Trading for compulsory mediation to fight the proposed fee increases.

If mediation fails, the residents will have to take the matter to the NSW Civil and Administrative Tribunal, which they have done previously.

Mr Whitmont said because the matter was listed for mediation it "would not be appropriate to comment".

Regardless of the outcome of mediation, Ms Smith hopes something is done to make life easier for people doing it tough financially.

"It needs to be controlled a bit more," she said.

"You can't just keep blowing people's pensions out of the water."

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