Written answers
Thursday, 12 June 2025
Department of Justice and Equality
Business Regulation
Barry Ward (Dún Laoghaire, Fine Gael)
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405. To ask the Tánaiste and Minister for Justice and Equality the position regarding the regulation of owners' management companies (OMCs); if his attention has been drawn to concerns related to the mismanagement of funds by some OMCs; the actions taken in cases in which this is proven to be the case; and if he will make a statement on the matter. [31438/25]
Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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The Multi-Unit Developments Act 2011 (MUDs Act) was enacted with the primary objective 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).
The Act acknowledges the risk of disputes arising in the enforcement of rights and the performance of obligations imposed by its provisions on OMCs. Section 24 of the Act makes provision for the resolution of such disputes. 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 Act also contains provisions which encourage the resolution of disputes that may arise between parties by means of mediation rather than recourse to court proceedings.
The Deputy will be aware that OMCs are companies registered with the Companies’ Registration Office under the Companies Acts. The company members are the owners of residential units within the development. They are subject to company law provisions, including their own memorandum of association, and are subject to oversight by the Companies Registration Office and the Corporate Enforcement Authority. The Competition and Consumer Protection Commission also plays a role in providing information and advice to intending purchasers of residential units in multi-unit developments.
The Deputy will also be aware that Housing for All provides for regulations to be made under the MUDs Act relating to the management of annual service charges by OMCs and expenditure incurred of a non-recurring nature by OMCs (i.e. ‘sinking fund’ expenditure). While my Department currently holds responsibility for the MUDs Act 2011, the work of my Department in relation to multi-unit developments is guided by that of the Department for Housing, Local Government and Heritage (DHLGH) in view of its central policy role in this area.
Under the Programme for Government, Securing Ireland’s Future, responsibility for the regulation of OMCs and the MUDs Act is to be transferred from my Department to DHLGH. Work is currently underway in my Department and in DHLGH to progress the transfer, subject to a legislative amendment to avoid a conflict of Ministerial responsibility as arose in the Mulcreevy case.
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