Rural Land Sharing Community (RLSC)

 

This discussion was in response to questions asked for the Visitor’s Weekend at Merimbula in May 2024. The discussion commences with a preamble, with the specific questions at the end.

Community

The key element of Maharishi Peace Village is ‘community’(coherence-creating).

The zoning designation is defined as Rural Land Sharing Community development’ (RLSC). It has unique features to distinguish it from other types of zoning options.

Bega Valley Council, in approving the development of this property under RLSC, specified distinct criteria apply for any DA. Most of these criteria appear to be fit for purpose for an Ideal Village.

Firstly, here is a common understanding for a land development and subdivisions in Australia. 

In any city, suburb, or town; each house in that environment is ‘unitary’ or ‘insular’, and has its own title. That means each house is supplied with electricity, water, gas, roads, pedestrian pavements, sewage, stormwater drainage, curbside lighting, and so on by the local council or utilities. Everything to each house.

Rural Land Sharing is different; it usually refers to a community with a common purpose. In our example, the common purpose is to live in a vastu environment with shared ideals such as group meditation, preventive health care (AyurVeda), organic food, and so on.

The legislation accommodates this commonality to foster such communities to be self-sufficient in their ideals as distinct from a normal subdivision as described above. There are certain advantages legislated into an RLSC community: housing density is lower, rates are lower, and the community is more independent and self-sufficient. A major component is shared facilities amongst the dwellings of a RLSC development.

Shared dining

Significantly, the more dwellings which share facilities under RLSC the more dwellings can be built on the same size of land. Sharing of facilities between dwellings is encouraged in the legislation through a density quotient. Council rates are less also because of the single title designation (or so we have been informed).

What can be shared? We are waiting for an exhaustive listing of this, but assume it includes; shared dining, solar plant/wind power, water tanks, garages, roads, and any other common facilities. Sharing is not required, but it has advantages by reducing cost outlays for each dwelling in construction and in rates.

Shared solar array

Any two or more dwellings which share facilities as above can be considered ONE dwelling. Therefore, we have been approved by Bega Valley Council under a single title (not freehold) to develop the property for 18 dwellings; if each of these 18 dwellings share facilities, the potential density of dwellings increases to 36. If 3 dwellings share then this increases to 54, and sharing is capped at 4 dwellings sharing, which limits such density at 72.

This density quotient is written in the legislation; however it is up to the local Council, as the authorising entity, to approve any DA over and above the initial 18 dwellings.

Shared water tanks

This development can also include communal facilities like a community hall/peace palace, health clinic/panchakarma, etc.

Due to the single title requirement under Rural Land Sharing generally financing is not as easy compared to freehold, because purchase/sale of land usually goes through an itermediary like a Cooperative and banks may feel that if there is default of loans then recoup of the asset is more cumbersome than with freehold. This usually results in reduced land value and therefore allotment costs are cheaper than freehold.

[The proposed school has a separate zoning designation for education purposes.] 

Bega Valley Council is the authorising entity by law, and all  submissions for Maharishi Peace Village would require application by its organising entity and subsequent approval by the council.

We are in touch with an expert in RLSC and he indicates the standard organisational entity to supervise these developments is a Cooperative under Fair Trading NSW. Each Cooperative is required to have a Constitution and appropriate by-laws to govern the Community development. These are democratic entities, and would function in our case where each investor in land purchase would be issued a share in the Cooperative, and each Shareholder would automatically be a Member of the Cooperative, with each Member having equal say in the running of the RLSC, with 5 of these Members forming a “Managing Council” who would be answerable to legal requirements in place for administering Cooperatives. In our case, it would be a self-governing entity for Maharishi Peace Village.

Cooperative model

This would include sale and purchase of Shares for issuing land allotments under the Cooperative Constitution. Further detail of this below. 

Roads, public spaces , drainage, fire breaks, environmental management, etc, and critical infrastructure will be preliminary factors for submission to the council (as outlined to use in the initial letter to us, and we will be required to contract a town planner to assess and make submissions on these points. The Cooperative would assume responsibility for upkeep of these for the whole village.

We have been advised that a quarterly fee would be required from Maharishi Peace Village members for this overall responsibility of the Cooperative. We have communicated with Anthony Hardy on how Rendlesham Garden Village is organised and similar concepts can be adopted for Maharishi Peace Village. Rendlesham ownership is freehold, but each sale contract includes a covenant which includes similar requirements which will be outlined in the MPV Cooperative Constitution. 

This includes all share trading is limited to TM Practitioners and that all construction is Maharishi Vastu.

Submissions for community buildings – peace palace, health clinic, etc can be pursued either with the initial submissions or later as the community starts to take shape.

Peace Palace

Purchase and sale will be on the basis of market value. We have received a preliminary appraisal by Fisk and Nagle realtors in Bega. 

Spedific Questions raised:

Sale of property – by the current owner to?? Individual lot holders? To a holding company? To the management group made up of investors?

Freehold lots? Or shareholders in a single development?

How to re-sell? If freehold, then no issue. If shared title, then how is approval of all the other shareholders secured? What if there is a division of opinion about approving a proposed sale?

Management of the community sites. Roads, water supply, public spaces, community buildings, drainage, sewerage, fire breaks, etc. How will this be done? How will payment be managed? Is there a monthly residents fee that goes into a central management fund for such expenses? If so, what is the estimated monthly fee? What models are being looked at from other communities that can serve as a guide?

Local rates & taxes. If freehold lots, then this will be between the owner and the council. If a shareholding arrangement, who will manage this requirement and what are the projected annual costs per owner?

Building codes and restrictions. What if someone wants to build three or four residences on their lot. Or a commercial property – factory, retail outlet, office space?

Vastu/non-Vastu. Will non-vastu construction be accepted? Will vastu architectural designs be required to be approved by International?

Security. Will this be a gated community with secure entry and access?

Community facilities. Will such facilities as a meeting centre, TM Sidhis program facilities, café, Management Office, etc., be community-owned and on community-owned land within the development?

Community fund. How much is the planned amount to be held in the community fund for management, maintenance and development? What approved accounting or financial management body will have overall responsibility for management and auditing of such a fund?

Defaults. What plans are there if an owner/shareholder is unable to pay the rates/fees for a certain period or indefinitely?

Policing. What plans are there if crimes are being committed in one particular residence – drugs etc?

Biodiversity. Will there be guidelines for landscaping and plant selection? Will non-native species be allowed? Will invasive species be allowed? How will this be overseen?

Animals/livestock. Will domestic pets be allowed, especially cats which are known to be a serious threat to local wildlife? Will chooks, ducks, goats etc be allowed? How will this be overseen?

Noise. Livestock, construction, vehicles, loud music, etc can all be sources of noise pollution. Are there guidelines being planned to manage this?

Energy efficiency. Is sustainable energy production being planned as integral to the project. What sources are being considered?

Water supply. Does the property have its own source of water? If not, are there threats to water supply that need to be considered and be planned for in case of emergencies – e.g. fires, drought etc?

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