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Dáil Éireann debate -
Tuesday, 9 Mar 2010

Vol. 704 No. 3

Multi-unit Developments.

I welcome the opportunity to speak on what is a growing and major issue in my constituency of Dublin Central. This issue relates to the future of a large number of apartment complexes developed during the past number of years. There are a multiple of issues affecting many apartment complexes. I have witnessed at first hand the serious situation which owner-occupiers, tenants and those who have purchased under the social and affordable scheme are currently experiencing. The reality is that quite a number of residents of apartment complexes now find themselves in negative equity. In large tracts of my constituency, such as Pelletstown and the Financial Services Centre, owner-occupiers are under severe pressure economically. In some cases, people have lost their jobs and are struggling to pay their mortgages. On top of this they are faced with ever-increasing bills for management services and charges, an issue that has been growing for some time now.

In many cases, the complexes are well managed with owner-occupiers and tenants part of the management system within the complexes. However, large numbers of developments left at the whim of certain individuals are causing extreme difficulty for people who have purchased apartments therein. In some cases, the service charges are completely out of control with no guarantee of service or quality of service. I recall when these developments were being constructed in the early 1980s a person remarking to me that he hoped these developments in the centre of the city would not become the slums of the future. Unfortunately, in a small number of cases this is almost the case.

There has been a large influx into Ireland of people from other countries during the past number of years. These people are either renting accommodation or have purchased apartments in complexes. We are putting these people in a serious position. I understand from the Minister for the Environment, Heritage and Local Government, Deputy John Gormley, and from the Minister for Justice, Equality and Law Reform, Deputy Dermot Ahern, that legislation in this regard has been promised for some time. I accept this is a complex area and that if this issue is to be addressed it must be done right. However, in some cases individuals and communities are in dire straits. These people do not know what will be the next step for them. While the vast majority of developers have an interest in their developments and have maintained that interest, the standards in some complexes are extremely low.

Of concern are the tenants and residents who have become involved in the management of complexes as these people have been left with serious obligations under various legislation governing this area. Matters such as sinking funds have been let slide. These people are putting themselves under a serious obligation. I look forward to hearing the reply to this extremely serious issue.

I am replying to this Adjournment on behalf of my colleague, the Minister for the Environment, Heritage and Local Government, Deputy John Gormley. I thank Deputy Brady for raising this important matter.

The Government has demonstrated a clear commitment to dealing effectively with the range of complex issues relating to multi-unit developments and is bringing forward a comprehensive suite of legislative proposals in response to the Law Reform Commission's report on such developments. In its consultation paper issued in late 2006, the commission made a number of recommendations relating to areas within the remit of the Department. It identified issues relating to the physical nature of such developments, including size, configuration, facilities and location. In particular, the commission considered that in the past far too many multi-unit developments had not been built to suit families, which was undesirable in terms of sustainability. The commission also recommended that guidelines should be issued on the taking in charge of estates.

The commission's final report commended the progress made by the Department in responding to these matters, noting that, in the period since the publication of the consultation paper, the Department had published a suite of planning guidelines focused on planning and a sustainable built environment. These include guidelines on design standards for new apartments published in September 2007 promoting successful apartment living for individuals and families; guidelines on sustainable residential development in urban areas, promoting high quality living standards in new residential developments; encouraging higher density developments at appropriate locations, such as those with access to public transport, and emphasising that new residential development must be integrated with facilities and services for the new community and promote energy efficiency; and comprehensive guidance on the taking in charge of residential developments-management arrangements in February 2008.

The commission considered that these guidelines should have the status of policy directives. The Planning and Development (Amendment) Bill 2009, currently on Second Stage in the Dáil, will strengthen the implementation requirements on planning authorities in relation to planning guidelines issued by the Minister. This will have the effect of substantially implementing the commission's recommendation. The commission also recommended in its final report that the wording of section 180(6) of the Planning and Development Act 2000, which allows occupiers and unit owners to vote on the question of taking in charge of a multi-unit development, be reconsidered in light of the practical difficulties which the current wording presents. Accordingly, provision is also being made in the current Bill to provide that it is the owners, rather than the occupiers of residential units, who will decide whether to request the taking in charge of the estate.

The Law Reform Commission's report identified a range of other key issues to be addressed in new legislation. As the Deputy will be aware, the Multi-Unit Developments Bill 2009, introduced by the Minister for Justice, Equality and Law Reform in 2009, is currently before the Seanad. This Bill forms the centrepiece of the Government's strategy to deal with multi-unit developments and management companies.

The Dáil adjourned at 9.45 p.m. until 10.30 a.m. on Wednesday, 10 March 2010.
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