Seán Haughey (Dublin Bay North, Fianna Fail)
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80. To ask the Minister for Justice and Equality her views on escalating fees being imposed by property management companies in private housing developments; her plans to phase out such fees following the introduction of the local property tax; and if she will make a statement on the matter. [38565/16]

Frances Fitzgerald (Dublin Mid West, Fine Gael)
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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). These are bodies established for the management of such areas, the membership of which comprise the owners of residential units within the development.

As regards service charges, the position is that section 18 of the 2011 Act requires each OMC to establish and maintain a scheme of annual service charges to fund the costs of insurance, maintenance, cleaning, waste management and other common or shared services in respect of the development concerned. These service charges must be calculated on a transparent basis, be apportioned on an equitable basis between residential unit owners and be approved by the OMC members themselves at a general meeting of the OMC. In short, the Act gives residential unit owners themselves a role in determining the level of annual service charge, the level of services to be funded and the manner in which such services are to be provided.

I should add that service charges in multi-unit developments form part of the contract the unit owner enters into when purchasing the property. Consequently, there is no link between the service charge and the Local Property Tax which is charged on all residential properties in the State. Policy responsibility for the Local Property Tax rests with the Minister for Finance.