Written answers

Wednesday, 3 May 2023

Department of Justice and Equality

Legislative Reviews

Photo of Patrick CostelloPatrick Costello (Dublin South Central, Green Party)
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264. To ask the Tánaiste and Minister for Justice and Equality if he will provide an update on the programme for Government commitment to review the Multi-Unit Developments Act 2011; and if he will make a statement on the matter. [20410/23]

Photo of Simon HarrisSimon Harris (Wicklow, Fine Gael)
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The Multi-Unit Developments Act 2011 was enacted with the primary purpose 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). Well-functioning OMCs are key to maintaining and sustaining higher-density residential developments, such as apartments. 

The Programme for Government contains a commitment by Government to conduct a review of the existing management company legislation, to ensure that it is fit for purpose and that it acts in the best interests of residents. 

Housing for All - a New Housing Plan for Ireland is the Government’s housing plan to 2030. It includes support for effective management and oversight of multi-unit developments, by legislating for necessary changes.  

The Housing for All plan provides for Regulations to be made:

  • under section 18, subsection 17 of the  Multi-Unit Developments Act 2011 (‘the MUDs Act’) to ensure that OMCs are financially sustainable; and
  • under section 18, subsection 19 of the MUDs Act, to ensure that OMCs provide for expenditure of a non-recurring nature (i.e. ‘sinking fund’ expenditure) 
Subsection 17 of section 18 of the Multi-Unit Developments Act 2011 provides that the Minister may make regulations prescribing the class or classes of items of expenditure which may be the subject of annual service charges; the procedures to be followed in setting such charges; the matters to be taken into account in the setting of such charges; and arrangements for the levying and payment of such charges. 

Subsection 9 of section 19 of the MUD Act provides that the Minister may make regulations in relation to sinking funds, prescribing the class(es) of expenditure that may be incurred by a sinking fund, the procedures to be followed in setting contributions to it, the matters to be taken into account in setting such contributions, and the thresholds of expenditure which would necessitate approval by the members of the OMC. 

In regard to both the review of the Act and the making of regulations, my Department works in close co-operation with the Department of Housing, Local Government and Heritage, and is guided by it in relation to overall housing policy. My Department is engaging with the Department of Housing, Local Government, and Heritage in relation to the review and the drafting of the Regulations concerned.

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