Written answers

Tuesday, 16 October 2012

Department of Justice and Equality

Housing Management Companies

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
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To ask the Minister for Justice and Equality his views on the situation regarding an apartment complex (details supplied) in Dublin 24; and if he will make a statement on the matter. [44546/12]

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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The Deputy will appreciate that I am unable to comment on a particular case in response to a Parliamentary Question. However, I can indicate the following by way of general information.

The primary purpose of the Multi-Unit Developments Act 2011 is to reform the law relating to the ownership and management of common areas of multi-unit developments and to facilitate the fair, efficient and effective management of owners' management companies (OMCs) which are the bodies established for the management of such areas.

Section 5 of the Act contains provisions which deal with completed or substantially completed multi-unit developments in which the common areas have not been transferred to the OMCs. They oblige the developer to transfer ownership of the relevant parts of the common areas to the relevant OMC within 6 months of the coming into operation of the section, i.e. before 1 October 2011. Subsection (2) defines "substantially completed" as developments in which sales of not less than 80% of the residential units have been closed.

Section 24 deals with the resolution of disputes and it provides that a person may apply to court for an order to enforce any rights conferred or obligation imposed by the Act. The court, if satisfied that a right has been infringed or an obligation has not been discharged, may make such remedial order as it deems appropriate in the circumstances with a view to ensuring the effective enforcement of the right or the effective discharge of the obligation in respect of the development concerned.

Photo of Peter MathewsPeter Mathews (Dublin South, Fine Gael)
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To ask the Minister for Justice and Equality the action he will take regarding management companies or agents who claim they cannot pay for essential maintenance which is in the interest of the general public such as replacement of road signs including stop signs, traffic calming measures, loose manholes and so on; and if he will make a statement on the matter. [44575/12]

Photo of Alan ShatterAlan Shatter (Dublin South, Fine Gael)
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Under the Multi-Unit Developments Act 2011, the owners' management company (OMC) is responsible for the setting and collection of the annual service charge. Section 18 of the Act provides that the OMC must establish a scheme for annual service charges to fund expenditure on:

- insurance;

- general maintenance;

- repairs;

- waste management;

- cleaning;

- gardening and landscaping;

- concierge and security services;

- legal services and accounts preparation; and

- other expenditure arising in connection with the maintenance, repair and management of the common areas.

Section 18 also places an obligation on unit owners to pay the annual service charge, while section 22 provides that unpaid charges may be recovered by the OMC as a simple contract debt. OMCs generally enter into a contract with a property management agent to provide services in respect of their development. The specific tasks of the agent are therefore dependent on the nature and extent of that contract.

Provisions relating to the licensing of property management agents are set out in the Property Services (Regulation) Act 2011 and are implemented by the Property Services Regulatory Authority. As part of the licensing system, the Authority specifies and implements standards relating to:

- education, training and experience levels of licensees;

- levels of professional indemnity insurance,

- quality of financial accounting systems, and

- ethical standards to be observed in the provision of property services.

The Act also empowers the Authority to investigate complaints against property management agents and to impose sanctions, including the revocation or suspension of licences, in cases of improper conduct on the part of licensees.

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