Written answers

Friday, 16 September 2016

Department of Justice and Equality

Owners Management Companies

Photo of Alan FarrellAlan Farrell (Dublin Fingal, Fine Gael)
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2. To ask the Minister for Justice and Equality if her attention has been drawn to cases whereby management companies are uncommunicative with homeowners with whom they have a management agreement; the action she plans to take in order to ensure management companies uphold their responsibilities to homeowners and residents within estates which are under their remit; and if she will make a statement on the matter. [24715/16]

Photo of Frances FitzgeraldFrances Fitzgerald (Dublin Mid West, Fine Gael)
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The position is that the Multi-Unit Developments Act 2011 was enacted with the primary purposes of reforming the law relating to the ownership and management of common areas of multi-unit developments and facilitating the fair, efficient and effective management of owners' management companies (OMCs). These are companies registered under the Companies Act, the members of which are the owners of residential units within the development, which are established for the purposes of ownership and management of such common areas.

As regards the provision of information to members, section 17 of the Act imposes specific obligations on OMCs. It provides that they must prepare an annual report which includes details of income and expenditure, as well as assets and liabilities; annual service charges and sinking fund accounts; planned expenditure on maintenance and repair; insurance cover and contracts entered into by the OMC. It also provides that OMCs must hold a meeting at least once a year to consider the report. Advance notice of the meeting must be given to each member at least 21 days before the meeting; a copy of the annual report must be provided at least 10 days beforehand; moreover, the meeting must take place within reasonable proximity to the multi-unit development unless otherwise agreed in writing by 75% of the members.

Section 18 of the Act requires OMCs to establish and maintain a scheme of annual service charges from which they may discharge expenditure incurred on the provision of common or shared services to the owners and occupiers of residential units in the development, including insurance, waste management and security services. These service charges must be calculated on a transparent basis, and be equitably apportioned between the residential unit owners. In order to ensure transparency and accountability, both the annual service charge and the services to be provided must be approved by a general meeting of the members of the OMC.

Section 24 of the Act contains provisions for the resolution of disputes relating to multi-unit developments. It provides that a person, including any member of an OMC, may apply to the Circuit Court for an order to enforce any rights conferred or obligations 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 multi-unit development concerned.

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