Tiny Homes, Caravans and Manufactured Homes in NSW Planning Law (Part 2)

Mark Evans • November 27, 2024

In Part 1, we considered tiny homes and caravans on private land. That article can be accessed here Part 1. In Part 2, we turn our attention to tiny homes and manufactured homes.

Manufactured homes are generally constructed off-site and transported to a site where they are installed, either on a slab or on piers. Typically, but not always, they will be connected to existing stormwater and electrical infrastructure on the site. Tiny homes, kit homes, and modular homes can all be grouped under the definition of manufactured home if they share the traits of being self-sufficient, transported to a site as a whole or in major sections and fixed to the land.

The type of structure and degree of fixation to the land are important. Legislation in NSW makes a distinction, firstly between a structure on wheels and capable of being registered (a caravan) and a structure that is constructed in sections and installed permanently onsite (a manufactured home).

How are manufactured homes different from a traditional dwelling?


This question relates to the structure, not the use of the dwelling.


The legislation draws a distinction between something that is constructed mostly onsite (traditional dwelling - governed by the EPA Act) and something that is constructed mostly offsite and transported to the site in “major sections” (manufactured home - governed by the LG Act).


Development consent under the Environmental Planning and Assessment Act 1979 (EPA Act) is required for the construction of dwelling on a site, that is not a moveable dwelling. The EPA Act governs traditional structures and construction methods involving erection of a building onsite. Moveable dwellings are governed by the Local Government Act 1993 (LG Act), not the EPA Act. A caravan or a manufactured home falls under the definition of a moveable dwelling. 


Let’s explore that distinction further.


Development consent is required under the EPA Act for “development”. Development is defined broadly in the EPA Act and includes the erection of a building:


1.5   Meaning of “development”

(cf previous s 4)

(1) For the purposes of this Act, development is any of the following—

(a)  the use of land,

(b)  the subdivision of land,

(c)  the erection of a building,

(d)  the carrying out of a work,

(e)  the demolition of a building or work,

(f)  any other act, matter or thing that may be controlled by an environmental planning instrument.


But what is a building you may ask?


The definition of “building” in the EPA Act is broad:


building includes part of a building, and also includes any structure or part of a structure (including any temporary structure or part of a temporary structure), but does not include a manufactured home, moveable dwelling or associated structure within the meaning of the Local Government Act 1993.


There is extensive case law regarding what may be a “building” or a “structure” in planning law. If you are interested in this topic, you can read our article. [What is a “building” in planning law – and when is consent required?]


Importantly, the definition of “building” in the EPA Act excludes a manufactured home and a moveable dwelling as defined in the LG Act. This is why the distinction between a traditional building constructed onsite and a manufactured home transported to a site is important.


Let’s turn our attention to the definition of a manufactured home. 


Manufactured Home


A manufactured home is defined in the LG Act as a: 


self-contained dwelling (that is, a dwelling that includes at least one kitchen, bathroom, bedroom and living area and that also includes toilet and laundry facilities), being a dwelling—

(a)  that comprises one or more major sections, and

(b)  that is not a motor vehicle, trailer or other registrable vehicle within the meaning of the Road Transport Act 2013,

and includes any associated structures that form part of the dwelling.”


A manufactured home must be a “dwelling”. There is a long history of case law concerning the definition of a “dwelling”. The use of the word in the definition requires that a manufactured home be intended for use as a domicile, or where someone lives permanently. Pepper J summarised and reviewed the case law on this issue in Dobrohotoff v Bennic [2013] NSWLEC 61. 


Her Honour stated at [45]:


“Furthermore, when considering the first limb of the definition of "dwelling", regard must  be had to the notion of "domicile" contained within it (820 Cawdor Road at [24]), and the critical element of permanence. Inherent within the term "domicile" is, as a long line of authority in this jurisdiction has established, the notion of a permanent home or, at the very least, a significant degree of permanence of habitation or occupancy…” 


Secondly, the manufactured home must be a “self-contained” dwelling containing a bedroom, living room, kitchen, bathroom and laundry. Sometimes, in a studio arrangement, these will all be contained in a single space.


Thirdly, a manufactured home must “comprise one or more major sections”. This picks up the idea that a manufactured home is manufactured offsite and may arrive as a complete unit or in sections that are installed onsite.


Finally, a manufactured home must not be a motor vehicle, trailer or other registrable vehicle. This excludes campers, trailers and importantly, caravans from the definition of a manufactured home. 


What is required to install a tiny home or manufactured home onsite?


Generally, two things will be required. First, an application under s 68 of the LG Act will be required to install the manufactured home on a site and connect into services like power, water and sewage. Secondly, development consent may be required for the use of the manufactured home as either a home office or secondary dwelling. 


Installation of the manufactured home is governed by the LG Act, not the EPA Act. 


Section 68 of the LG Act specifies the “activities” that require the approval of council. One of those “activities” is the installation of a manufactured home, moveable dwelling or associated structure on land. Other “activities” for the purposes of section 68 are carrying out water supply connections, carrying out sewerage work and stormwater drainage work. So, a section 68 approval is required for the installation of a tiny home or a manufactured home and (usually) water supply, sewerage and stormwater work.


In addition, development consent for use of the manufactured home will be required. This can either be in the form of an application for development consent to Council, or in some circumstances, to a private certifier as complying development. It will save time and cost to make both the s 68 application and the development application at the same time.


A competent town planner should be engaged to clarify what is required to accompany each application and to assist with managing the various consultants and any reports that are required. 


So that deals with the installation of a manufactured home. But what about its use?


Physical structures vs use


The installation or construction of a structure is one thing, the use of that thing in planning law is another. This is best illustrated through an example. A manufactured home might be installed on a site for use as a home office or granny flat (in planning law a “dwelling”). Following installation, the granny flat might be used to house an aging parent or a university student. The structure is a slab, four walls and a roof. But the same structure can be put to many different uses. After the aging parent or university student moves out (hallelujah) that same granny flat could be converted into backyard commercial pub. Same building, same structure, vastly different use (and impact on the neighbours). This is an extreme example, but it highlights the distinction between a structure and its use. 

So it may be lawful to ship a manufactured home to a site and install it onsite, but consent may still be required for the proposed use of the manufactured home on the site. Before installing the manufactured home onsite, the first question to consider is the zoning and whether the proposed use is permissible within the relevant zone.


Zoning


Almost all land in NSW has a specific zoning, for example R2: Low Density Residential zoning or RU1: Primary Production. 

The zoning of a site can be easily obtained through NSW government websites (https://www.planningportal.nsw.gov.au/spatialviewer). 


Once the zoning has been obtained and understood, we can look to the relevant Local Environmental Plan for the “land use table” relevant to the zoning.


Land use tables look like this:

The “land use table” for a specific zone will describe a number of land uses that are: 

(i)              permitted without consent

(ii)             permitted with consent; and

(iii)           prohibited. 


We can see in the above land use table that dual occupancies and dwelling houses are permissible in the zone (with consent). Any use that falls outside “permitted without consent” or “permissible with consent” is prohibited in the zone.


To determine which of these three categories the proposed use falls into, we must first define the use. 


How do we properly define the use?


Tiny homes or manufactured homes installed on a site will typically be used as a “secondary dwelling” which is defined in the LEP as “a self-contained dwelling that is established in conjunction with a principal dwelling.” A granny flat would be permissible (with consent) in the above R3 Medium Density Residential zoning because it could fall under the definition of “multi dwelling housing” which is defined in the LEP as “3 or more dwellings (whether attached or detached) on one lot of land, each with access at ground level.”


Characterisation of use can get quite complex but we don’t need to go into that detail in this article. If you are interested in this topic, you can read our article at [Characterisation of Use in Planning Law].


Recall our two examples above. If the same granny flat is to be used as a dwelling, the use is permissible (with consent) in the R3 zone but the use of the granny flat as a commercial pub (food and drink premises) is prohibited in the zone.


Conclusion

The installation and use of a manufactured home on a site should be relatively straightforward. But, it pays to engage a competent town planner to check the site, the proposed use and the zoning before proceeding to ensure the installation and use are permissible on the chosen site.


This article considered the installation of tiny homes and manufactured homes on private land in NSW. Part 1 of this article examined tiny homes and caravans and can be accessed here: Part 1


Disclaimer

The contents of this article are a general guide and intended for educational purposes only. Determination of the types of issues discussed in this article is complex and often varies from case to case and involves an understanding of matters of fact and degree. Opinions on those matters can vary and be matters on which reasonable minds may differ.


DO NOT RELY ON THIS ARTICLE AS A SUBSTITUTE FOR COMPETENT LEGAL ADVICE.

Require further Assistance? Please do not hesitate to call us on (02) 9145 0900 or make an enquiry below.

Mark Evans Director Whiteacre Legal

Servicing all of NSW, Whiteacre provides expert property law and planning and environment law advice and assistance.

Planning Law Advice

Land and Environment Court Appeals

Voluntary Planning Agreements and Contributions

Development Control Orders and Enforcement

Property Development Advice and Due Diligence

Title Structuring

Easements and Covenants

Strata and Community Title legislation

Book an initial consultation through our website with our planning law solicitor. Whether it's about planning and environment law or property law, you can approach us and discuss your matter to make sure we are a good fit for your requirements.

BOOK ONLINE
tiny homes
By Mark Evans November 22, 2024
In this article we explore tiny homes, caravans, and manufactured homes.
By Mark Evans and William Jamieson November 14, 2024
The general rule is that a development application ( DA ) is to be determined based on the law applicable at the time of determination of the DA, not at the time of lodgement: Sofi v Wollondilly Shire Council (1975) 31 LGERA 416.
When subdivision may not be considered development carried out on land
By Mark Evans and William Jamieson October 31, 2024
Subdivision, alone, may not constitute development “on land” and thus trigger development restrictions. 
Biodiversity Credits
By Mark Evans October 18, 2024
The Independent Pricing and Regulatory Tribunal (IPART) has released a summary of workshops and stakeholders’ submissions concerning the functioning of the NSW Biodiversity Credits Market.
Development
By Mark Evans and William Jamieson October 10, 2024
It is now well established that a development consent cannot be obtained to authorise works that have already been carried out. The classic example is a building that has been built without development consent.
Planning law
By Mark Evans and William Jamieson September 26, 2024
This article discusses the characterisation of land use in NSW planning law.
Private Land
By Mark Evans and Ryan Post September 5, 2024
Public infrastructure like sewerage pipes and stormwater pipes were often constructed a long time ago with no development approval or accurate record keeping. Over time, these assets have remained in place and often the local council authority either has no record of the infrastructure or knowledge of the history of construction of the asset or its ownership. Ideally, Council would have an easement registered on title to the subject land. This can cause huge problems when seeking to develop land with old infrastructure emplaced within the subject site.
By Mark Evans August 29, 2024
This article discusses tax implications of establishing a biodiversity stewardship site and generating biodiversity credits.
Biodiversity Laws Reviews
By William Jamieson and Mark Evans August 9, 2024
Legislation in NSW aimed at protecting biodiversity is not working. The current system is complex and there are many reasons for failure. This article considers recent review of the NSW biodiversity legislation.
An aerial view of a lush green rice field with a river running through it.
By Ryan Post and Mark Evans July 25, 2024
APZ’s on adjoining land? It is possible in some circumstances to use land adjoining a development site for the purpose of an Asset Protection Zone ( APZ ). An APZ is a bush fire protection measure which creates a buffer between a bush fire hazard and buildings, necessary under the Planning for Bush Fire Protection 2019 ( PBP 2019 ) . Case law Shoalhaven City Council v Easter Developments Pty Limited [2024] NSWLEC 49 Facts This case concerned the creation of an APZ on adjoining Council land. The proposed development was a three-lot subdivision of residential property. The property adjoins Council-owned land. The required distance of the APZ was determined to be 21.5 metres. The development plan proposed that 15.5 metres of this would be on the subject site, with the remaining 6 metres on adjoining Council land. Easter Developments (Developer) appealed the Shoalhaven City Council’s (Council) refusal of the development application to the NSW Land and Environment Court. At first instance, the Commissioner upheld the appeal and granted consent to the subdivision, finding that the proposed APZ complied with the requirements of PBP 2019 because it was managed land and had historically been managed (and cleared) by Council for this property and other properties in the street. The Council appealed the Commissioner’s decision. The Developer argued that use of the adjoining land was appropriate as the land would be appropriately managed and maintained by Council, satisfying the requirements under the PBP 2019 for an APZ. The Council contended that the development should be refused because the APZ was not wholly within the boundaries of the development site and that the ongoing maintenance of the APZ had not been considered, nor could it be guaranteed. Decision Preston CJ upheld the appeal, finding that the Council-owned land could not constitute part of the APZ, as it did not satisfy the requirements for management of land required in the PBP 2019. If an APZ is to include part of adjoining land, which is publicly owned by a Council, there must be an adopted Plan of Management that meets the requirements of the PBP 2019. The Bush Fire Risk Management Plan in this matter did not meet the standards necessary for an APZ and was thus found not to be a Plan of Management for the purposes of the PBP 2019. Consideration An APZ is a buffer zone between a bush fire hazard and buildings. An APZ must be appropriately managed to minimise fuel loads and reduce the potential for a bush fire to spread and harm buildings, people, and assets. Its distance is calculated with regard to the vegetation type, slope, and nature of the building. Preston CJ’s judgement serves as an indication that adjoining land, generally, cannot be used as part of an APZ in a development. This is clear within the PBP 2019, which provides that APZs on adjoining land are not encouraged and instead, the accepted solution is to have the APZ wholly within the land's boundaries. An APZ must be maintained for the ‘lifetime of the development’ and, to guarantee that the APZ is appropriately managed, it is logical for it to be solely contained within the overall development site, without reliance on adjoining sites, as this ensures the standards are easily met by one party. Where adjoining land forms part of the APZ, there is no guarantee that the land will be appropriately maintained to the standard required by the PBP 2019, as there are multiple pieces of land to be maintained by different parties. This, however, does not exclude a development from using adjoining land for an APZ. To utilise adjoining publicly owned land, a Plan of Management must be adopted and implemented by Council to act as a legal guarantee that the land will be appropriately managed. These plans must demonstrate clear compliance with the requirements of the PBP 2019. The issue for the Developer in this case was that they could not demonstrate to the Court that the adjoining land would be appropriately managed, and the requirements outlined in the PBP 2019 would be met. The case demonstrates that the current management of the Council land is insufficient and irrelevant as to whether the land is compliant with the PBP 2019. Instead, a Plan of Management must be adopted by the council or government to assure there is appropriate management and there is a regime to ensure ongoing compliance for many years to come. The plan should include the following: the prescribed APZ requirements; and, the predicted timing of the management; and, notification of arrangements for management should the land be acquired or dedicated; and, demonstration that the relevant authority has the capacity to maintain the APZ; and, acknowledgment of the responsibility from the adjoining landholder that the APZ will be appropriately managed. To the question of whether an APZ can include part of the adjoining land, the general rule is that it cannot. The judgment of Preston CJ and the provisions of the PBP 2019 clearly indicate that the preferred option is that any APZ required for a property be contained entirely within the boundaries of that land. This is to ensure that requirements are appropriately managed for the lifetime of the development. However, there are exceptions to the rule. There are stringent requirements to ensure compliance where adjoining land forms part of the APZ. As it pertains to publicly owned land, there must be a Plan of Management and it is insufficient to argue that the land is currently managed in a way that would comply. This is to ensure a legal guarantee that the requirements of the APZ are strictly met and all development on the land is compliant. Key Takeaways When developing on bush fire prone land, as a general rule, adjoining land cannot constitute part of the necessary APZ. There are, however, exceptions to this. For publicly owned land, a Plan of Management must be created to guarantee the appropriate management of the land. Noting this, it is insufficient to rely on the current and future management of the land by the Council or government in matters pertaining to publicly owned land, there must exist a Plan of Management. There must be consideration of the management of adjoining land. The corresponding Plan of Management must comply with the standards outlined in the PBP 2019 and guarantee the ongoing compliance with measures of the APZ. Require further assistance? We have assisted many clients resolve issues with Asset Protection Zones. Some of those cases involve the Asset Protection Zone being, partly or entirely, on adjoining property. Often resolution of the issues can be a simple matter of engaging in constructive consultation with the parties involved or the local council, or alternatively, bringing the matter before the Court for determination. If you require advice regarding Asset Protection Zones, we can assist you in this process. Disclaimer The contents of this article are a general guide and intended for educational purposes only. Determination of the types of issues discussed in this article is complex and often varies from case to case and involves an understanding of matters of fact and degree. Opinions on those matters can vary and be matters on which reasonable minds may differ. DO NOT RELY ON THIS ARTICLE AS A SUBSTITUTE FOR COMPETENT LEGAL ADVICE. 
More Posts
Share by: