Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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201. To ask the Tánaiste and Minister for Justice and Equality if consideration will be given to the establishment of a regulator for owner management companies; and if he will make a statement on the matter. [25473/23]

Simon Harris (Wicklow, Fine Gael)
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I wish to advise the Deputy that the Multi-Unit Developments Act 2011 (the MUDs Act) 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). Well-functioning OMCs are key to maintaining and sustaining higher-density residential developments, such as apartments.

The OMC model of ownership of common areas of a multi-unit development is based on the recommendations of a Law Reform Commission report published in 2008 titled 'Multi-Unit Developments'. Publication of the Law Reform Commission recommendations was based on a lengthy consultation process during which all relevant stakeholders had the opportunity to make submissions. At that time, the Law Reform Commission did not recommend a specific oversight and enforcement mechanism for OMCs because such companies are subject to company law provisions, including their own memorandum of association, and are subject to oversight by the Company Registration Office and the Office of the Director of Corporate Enforcement. The Law Reform Commission also pointed out that the then Consumer Protection Authority, now incorporated into the Competition and Consumer Protection Commission, also had an important role to play in providing information and advice to intending purchasers of residential units in multi-unit developments.

Furthermore, the MUDs Act acknowledges the risk of disputes arising in the enforcement of rights and the performance of obligations imposed by its provisions and makes provision for the resolution of such disputes. For example, section 24 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. Section 24(2) allows the Court to take into account whether the parties have tried to resolve their differences by mediation or other alternative dispute resolution. While section 27 provides for court-directed mediation if the court considers that a ‘mediation conference’ between the parties would assist in reaching a settlement of the matter.

Finally, the Programme for Government contains a commitment 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. This is referring to the MUDs Act. It is not proposed to make any amendments to this legislation at this time, and until this review has been completed. In regard to the review of the Act, 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.