Dáil Éireann Debate, Tuesday - 14 November 2023
332. Deputy Cian O'Callaghan asked the Minister for Justice if she will provide an update on the Government’s commitment to review the Multi-Unit Developments Act 2011; if she will establish a regulator for management companies with robust enforcement powers; and if she will make a statement on the matter. [49017/23]
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.
The Programme for Government contains a commitment to conduct a review of the existing management company legislation, to ensure that it is fit for purpose, and that it acts in the best interests of residents. This is referring to the Multi-Unit Developments Act 2011.
Housing for All also provides for Regulations to be made under the MUDs Act relating to the:
• management of annual service charges by OMCs; and
• expenditure incurred of a non-recurring nature by OMCs (i.e. ‘sinking fund’ expenditure).
The work of my Department in relation to multi-unit developments is guided by that of the Department for Housing, Local Government and Heritage, in view of its central role in this area. The importance of policy input from that Department is underlined by a number of important initiatives in relation to multi-unit developments that have been brought forward in recent months by the Minister for Housing, Local Government and Heritage.
These include the remediation scheme, which Minister O’Brien announced earlier this year, and which will provide support for the remediation of apartments and duplexes with fire safety, structural safety and water ingress defects, constructed between 1991 and 2013. The Department of Housing, Local Government and Heritage also published in July this year, a Code of Practice for remediation of such defects to ensure a consistent approach nationwide to remediation, which will allow stakeholders such as OMCs and industry to align their work with its provisions.
The Department for Housing, Local Government and Heritage is also currently working with the Housing Agency on advice and guidance on the steps OMCs should take when carrying out such safety works. Minister O’Brien also expects to publish next year the draft legislation required to underpin the scheme, and to put in place the statutory scheme shortly thereafter.
It is important that the review of the Multi-Unit Developments Act 2011, and the drafting of any Regulations under the Act, would be informed by these key ongoing and priority developments, and as such it is it is not possible to say when the review of the Act will be published.
As regards the establishment of a Regulator for OMCs, there are no plans at present to introduce a specific oversight and enforcement mechanism for OMCs. However, it should be noted that OMCs are subject to company law provisions, including their own memorandum of association, and are subject to oversight by the Company Registration Office and the Office of the Director of Corporate Enforcement. Furthermore, the Competition and Consumer Protection Commission, also plays a role in providing information and advice to intending purchasers of residential units in multi-unit developments.
Furthermore, the MUDs Act acknowledges the risk of disputes arising in the enforcement of rights and the performance of obligations imposed by its provisions and makes provision for the resolution of such disputes. For example, section 24 provides that a person, including any member of an OMC, may apply to the Circuit Court for an Order to enforce any rights conferred or obligations imposed by the Act. Section 24(2) allows the Court to take into account whether the parties have tried to resolve their differences by mediation or other alternative dispute resolution. While section 27 provides for court-directed mediation if the court considers that a ‘mediation conference’ between the parties would assist in reaching a settlement of the matter.
