Serious issues have emerged in relation to apartment management companies. The Green Party is committed to addressing them. Areas of concern include property services, legal issues, consumer protection, company law, planning, design and sustainability.
John Gormley launched the Law Reform Commission’s report on multi-unit developments in June 2008. Minister Gormley’s Department has been working with other Departments including the Department of Justice, Equality and Law Reform and the Department of Enterprise, Trade and Employment to bring in legislation in response to the Commission’s recommendations.
The first piece of legislation, the Property Services (Regulation) Bill, will be introduced by the Minister for Justice in the Oireachtas in the next few weeks. This Bill, which establishes the Property Services Regulatory Authority (NPSRA), will also regulate property management agents and set standards for the provision of property management services. The NPRSA will also provide information on the provision of these services and investigate complaints about management agents.
This will be followed shortly by a Multi-Unit Developments Bill which will update the law applying to the management companies for apartment buildings and other multi-unit developments with common areas. The Bill will ensure that management companies operate in a fair and transparent manner, with an equal say for all apartment owners.
The Bill will require developers to protect the interests of property owners in apartment buildings, and is expected to include the following provisions:
• The common areas of apartment buildings cannot be retained by the developers but must be transferred to the management company before any units are sold.
• Such management companies must be operated on a “one owner one vote” basis – each unit owner to have an equal say in the operation of the company.
• Management companies must provide details of their activities in an annual report.
• Service charges must be approved by a majority of the apartment owners at a general meeting of the management company.
Additional changes to the law will take place in the forthcoming Planning and Development (Amendment) Bill, which is due to be published during the summer. This will give the force of law to Ministerial guidelines on apartment size, the taking in charge of estates and other matters. We want to see best practice from Europe influencing our tenancy legislation and the setting of rents.