Dáil Éireann Debate, Thursday - 4 May 2023
193. Deputy Cian O'Callaghan asked the Minister for Justice when the regulations on service charges and sinking funds - under Sections 18.17 and 19.9 of the Multi-Unit Developments Act 2011 - which, as per Housing for All, were supposed to be introduced by Quarter 4 of 2022, will be introduced; and if he will make a statement on the matter. [20953/23]
View answerThe Multi-Unit Developments Act 2011 was enacted with the primary purposes 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). Well-functioning OMCs are key to maintaining and sustaining higher-density residential developments, such as apartments.
As the Deputy is aware, Housing for All - a New Housing Plan for Ireland is the Government’s housing plan to 2030. It includes support to effective management and oversight of multi-unit developments, by legislating for necessary changes. The Housing for All plan provides for Regulations to be made:
• under section 18, subsection 17 of the Multi-Unit Developments Act 2011 (‘the MUDs Act’) to ensure that OMCs are financially sustainable; and
• under section 18, subsection 19 of the MUDs Act, to ensure that OMCs provide for expenditure of a non-recurring nature (i.e. ‘sinking fund’ expenditure)
In this regard, my Department works in close co-operation with the Department of Housing, Local Government and Heritage, and is guided by it in relation to overall housing policy.
Subsection 17 of section 18 of the Multi-Unit Developments Act 2011 provides that the Minister may make regulations prescribing the class or classes of items of expenditure which may be the subject of annual service charges; the procedures to be followed in setting such charges; the matters to be taken into account in the setting of such charges; and arrangements for the levying and payment of such charges.
Subsection 9 of section 19 of the MUD Act provides that the Minister may make regulations in relation to sinking funds, prescribing the class(es) of expenditure that may be incurred by a sinking fund, the procedures to be followed in setting contributions to it, the matters to be taken into account in setting such contributions, and the thresholds of expenditure which would necessitate approval by the members of the OMC.
My Department is engaging with the Department of Housing, Local Government, and Heritage in relation to the drafting of the Regulations, to ensure that they are fully informed by that Department’s appreciation of the key problems and issues requiring to be addressed in this sector.
It is intended to introduce the Regulations when the necessary consultation process is completed.
