Dáil Éireann Debate, Wednesday - 20 March 2024
891. Deputy Emer Higgins asked the Minister for Justice if her Department has any update regarding owners' management companies (OMCs) legislation, including the publication of new regulations and the appointment of a regulator for OMCs; and if she will make a statement on the matter. [12381/24]
Amharc ar fhreagraThe Multi-Unit Developments (MUDs) 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).
The Programme for Government contains a commitment to conduct a review of the MUDs Act, to ensure that it is fit for purpose and that it acts in the best interests of residents. 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 recently been brought forward by the Minister for Housing, Local Government and Heritage.
These include the remediation scheme, which Minister O’Brien announced last 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. Furthermore, an Interim Remediation Scheme for the funding of emergency fire safety defect works in apartments and duplexes was launched last December and is now open to applications from OMCs.
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 not possible at this point to say when the review of the Act will be completed.
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.
In addition, 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.
