Fergus O'Dowd (Louth, Fine Gael)
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Question 659: To ask the Minister for the Environment, Heritage and Local Government his views on management companies for apartment complexes; the number and location of local authorities that are charging management company fees to tenants and residents; the action he intends to take; and if he will make a statement on the matter. [34259/05]

Noel Ahern (Dublin North West, Fianna Fail)
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I refer the Deputy to the reply to Question No. 97 of 25 October 2005. As indicated, arrangements for managing and maintaining the communal elements of private apartment complexes are increasingly being addressed by management companies. These are constituted under the Companies Acts and are required to comply with the provisions of company law, which is the responsibility of the Minister for Enterprise, Trade and Employment. Normal practice is that when the sale of all units in an apartment complex is complete, management responsibility is transferred from the developer to a management company controlled by the owners of the individual apartment units.

A Law Reform Commission working group is examining a range of legal issues relating to management of multi-unit structures. The Government will consider any recommendations the final report makes, including the necessity for new legislation in this area. My Department does not have details of where housing authorities may have acquired apartments in private complexes or of specific arrangements relating to rents or other payments in any such cases. These are a matter for the local authorities concerned. The intention of the Oireachtas, as set out in section 14 of the Housing (Miscellaneous Provisions) Act 2002, is that management costs arising indirectly to a housing authority in such circumstances should be reckonable for rent purposes. However, the degree of any impact on rents would also depend on the operation of the differential rents scheme in the local authority area concerned.