Oireachtas Joint and Select Committees
Thursday, 19 April 2018
Joint Oireachtas Committee on Housing, Planning and Local Government
Issues Impacting Apartments and Multi-Unit Developments
9:30 am
Mr. Bryan Maher:
In an overarching sense a lot of the issues could be addressed by having a robust regulator. The Multi-Unit Developments Act is in place but nobody is regulating the breaches of the Act. If a person had an avenue, be it on arbitration or for pointing out breaches, where a regulator could act, we could nip a lot of these issues in the bud.
We certainly could explore the issues around the split of houses and apartments. In a number of developments we see a houses versus apartments situation. Education was referred to. With most multi-unit developments the local authority will, at the very initial stages of development, include a condition that a management company is established. This is the case with the Dublin City Council area where I am situated. Are there thoughts or discussions to be had around whether this is necessary in all cases? It is certainly necessary in apartment developments but it may not be necessary for the part of the development that has houses. Once a person has signed in to the management contract, he or she is signing in with all the other owners as well as to the management company itself. Those contracts are in place and it is very difficult then to row back on that once a person is signed in.
On the administration charges and fees, one of the good aspects of the Multi-Unit Developments Act is that it lays out how service charges are to be levied. At a general meeting of the management company members get to vote on passing a budget. In the context of having a public discussion on the rights and responsibilities of a management company and as the owner of a unit, be it a house or an apartment, we encourage people to have their say and get involved. If a majority of people feel their service charge is unsatisfactory, they can exercise their democratic power. Maybe we need to look at the percentages there with regard to the Multi-Unit Developments Act. We are titled the Apartment Owners' Network, but we are trying to get away from apartment only perception. We are about the management of residential units in managed estates. Apartment Owners' Network was an early title but we have found that we need to broaden ourselves a little bit more. Maybe we need a rebrand. We encourage people to step up and become members of their management companies. People are, unfortunately, petrified about stepping up and becoming a director. They see company law or they see fire safety defects issues and there is a feeling they might be blamed for everything. They do not want to go near the role. It means, however, that people do not get their hands dirty and they do not get to understand the nitty-gritty and why service charges need to go up in some instances. When they receive their service charge bill in January or February, they become terribly frustrated when they do not see the services they are paying for. We need a broad public discussion on how the multi-unit development model and the owner-management company model work in Ireland. There might be a better understanding from all sides around the issues we face.
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