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Increased protection for apartment owners in Multi Unit Development Bill
The provisions of the Multi Unit Development Bill 2009 will come into effect in March 2010 and will bring significant change to the ways in which apartment blocks are run and managed.
The new legislation will require developers to establish and transfer ownership of common areas to an Owners Management Company (OMC) before any apartment is sold. The owner of each apartment will become a voting member of the OMC, with one vote per unit.
Developers will retain one vote per unsold unit. The annual service charges will be determined at a general meeting of the OMC and must be calculated in a transparent manner and apportioned fairly between apartment owners. Developers must pay the service charge on each unsold apartment.
Each OMC must establish and maintain a ‘sinking fund’ for non-recurring maintenance and repairs, replacing the lifts, for example. The annual contribution to the sinking fund is a matter for the apartment owners but a minimum annual charge of €200 per unit will apply.
OMC’s may establish a set of “house rules” approved by a meeting of apartment owners.
If apartments are rented, the house rules must be included in the letting agreement and will be binding on the tenants.
