Jim O'Callaghan (Dublin Bay South, Fianna Fail)
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The Multi-Unit Developments Act 2011 was enacted with the primary objective of reforming the law relating to the ownership and management of common areas of multi-unit developments (MUDs), and facilitating the fair, efficient and effective management of OMCs. The Act includes provisions relating to inter alia:

• The setting of the annual service charge payable by apartment owners in a multi-unit development;
• the establishment of a sinking fund, to fund any non-recurring expenditure; and
• the development of house rules for the operation and maintenance of their multi-unit development.

Under Section 18 of the Act, the OMC must establish and maintain a scheme for annual service charges to fund ‘ongoing expenditure reasonably incurred’ on the maintenance, insurance and repair of common areas within its control and for the provision of common services (security, legal, accounting etc.) to unit owners.

The work of my Department in relation to MUDs is necessarily guided by that of the Department for Housing, Local Government and Heritage, in view of that Department’s key policy role in this area. Any regulations that would be made under the Multi-Unit Developments Act 2011 would need to be informed by appropriate policy directions from the Department of Housing, Local Government and Heritage, and agreed with that Department, to enable my officials to further progress the drafting of the regulations mentioned.

Under the Programme for Government, Securing Ireland’s Future, responsibility for the regulation of OMCs and the Multi-Unit Developments Act will be transferred from my Department, to the Department of Housing, Local Government and Heritage. While work in that regard is progressing, a legislative amendment will be necessary to avoid a potential conflict of Ministerial responsibility following the transfer.