Niall Collins (Limerick, Fianna Fail) | Oireachtas source

Fianna Fáil compliments Deputy Murphy on bringing forward this Bill. She has been a longstanding campaigner on the issue of multi-unit developments and we believe her proposals should be considered by the Government.

It is important to point out that people currently living in multi-unit developments pay management fees and are obliged to pay local property tax as well, such that they are paying on the double for services. This is another anomaly that should be addressed by Government. Fianna Fáil has published a Bill on this issue.

It is important that the definition provisions are as simple as possible. The Law Reform Commission has previously done much work in this area, in respect of which it has produced a report and recommendations for reform. This Bill seeks to redefine the definition of a multi-unit development such that a structure requiring a management company would be a multi-unit development of not less than five units with one roof. The Multi-Unit Developments Act was piloted through the Oireachtas by former Minister, Dermot Ahern, in 2009-10. It introduced sweeping reforms for the owners of existing and new apartment and multi-unit residential complexes. It updated legislation in apartment management and ownership and significantly refocused legal protections towards owners of apartments. These comprehensive reforms were designed to improve the regulation of multi-unit developments and the governance of management companies in such developments in the context of the dramatic growth in apartment living in recent years. Many people who have purchased apartments in multi-unit developments may not have fully realised the type of ownership arrangement into which they were entering and the responsibilities involved in membership of the property management company. In some cases, developers were slow to transfer ownership of the common areas to the property management company and these delays have caused frustration for owners who want to become involved in managing and maintaining their developments.

The 2011 Act complemented work in other areas. In 2007, the Department of the Environment, Community and Local Government produced design standards for new apartments. New guidelines on sustainable residential development in urban areas were produced in 2008. In 2009, new regulations setting standards for rented accommodation were introduced. The National Consumer Agency has also taken a keen interest in this issue and has engaged with many of the relevant bodies with a view to improving consumer protection in advance of this legislation. The Office of the Director of Corporate Enforcement also produced an publication entitled, Company Law Handbook on Residential Property Owners' Management Companies.

The 2011 Act amended the law relating to the ownership and management of the common areas of multi-unit developments. It seeks to facilitate the fair, efficient and effective management of bodies responsible for the management of such common areas and to provide for related matters. Former Minister, Dermot Ahern, also introduced new property

In its report on multi-unit developments, the Law Reform Commission identified key issues to be addressed, including such matters as when a property management company is to be established and by whom; the timing of the transfer of ownership of common areas; the mechanics of taking control of the company by the apartment owners; and internal governance arrangements for owners' management companies. The 2011 Act provides that a "multi-unit development" means a development being land on which there stands erected a building or buildings comprising a unit or units and that as respects such units it is intended that amenities, facilities and services are to be shared and subject to section 2(1) the development contains not less than five residential units. The Act also makes provision for multi-unit developments with fewer than five units.

When Deputy Murphy originally introduced her Bill she said that a flaw in the legislation means that any development of more than five houses is deemed to be a multi-unit development, which imposes on it a requirement to introduce a management company. According to Deputy Murphy, that is how the local authorities are interpreting the legislation and that rather than resolving issues the legislation is posing new difficulties. She also said the issue is a one of definition and has proposed a new definition. It is highly unlikely that former Minister, Dermot Ahern, ever intended that the Bill should result in the circumstances identified by Deputy Murphy. Accordingly Fianna Fáil believes this Bill should be considered and supported.

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