Publication of New Multi Unit Developments BIll

Submitted by Aisling Keenan on Mon, 06/08/2009 - 17:27.

In our recent bolgs we have discussed the issues that have finally been dealt with in the publication of this new Multi-Unit Developments Bill. This new Bill will particularly benefit apartment owners.

In a statement issued by the National Consumer Agency, Ann Fitzgerald has said "With more and more consumers living in multi-unit developments, we have long been aware of the need for regulation of the industry."

"The publication of the bill represents a good day for consumers as many Irish owners of multi-unit properties have found themselves in difficult positions arising from the poor operation and management of their developments. The Bill will serve to empower them to have a greater say in the way in which their developments are managed and administered."

She went on to say, "From a consumer perspective there are a number of key areas adressed in the Bill including the transfer of the common areas to the ownership of the Owners' Management Company, changes in voting rights, transparency in the calculation of service charges and the requirement to create a sinking fund."

Key Areas Addressed in the Bill of Benefit to Consumers : 

1. Transfer of common areas & extinguishment of beneficial interests: The Bill provides a schedule for the transfer of the common areas to the ownership of the Owners' Management Company and, most importantly, for the extinguishment of the Developer's beneficial interest on completion of the development. This clarity is most welcome in delays in transfer of ownership and of beneficial interests in Common Areas have proven a particularly thorny issue for Multi-Unit Developments Owners.

2. Voting: The Bill provides that votes shall be allocated on a single vote per unit basis. This should obviate previous difficulties relating to 'golden votes' being held by Developers. However, the Bill makes no provisions for the voting rights of tenants. 

3. Service Charges: The Bill provides for clear iteration of cost categories to be included in the calculation of the service charge and a formal process, through a general meeting of the Owners Management Company, for the approval of such service charges. 

4. Sinking Funds: The Bill establishes a statutory requirement to create a Sinking Fund. The National Consumer Agency particularly welcomes this as a means of preserving and protecting the long term interests of Unit Owners as developments age and may require works more substantial than mere care and maintenance".

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