Dáil Éireann - Volume 678 - 12 March, 2009

Written Answers. - Estate Management.

Deputy Ciarán Lynch asked the Minister for Justice, Equality and Law Reform the legislation, existing or planned, that governs the operation of management companies; the sanctions applicable to developers of unsold apartments who fail to pay the fees due to the management company thus increasing the payment burden of owner occupiers; and if he will make a statement on the matter. [10565/09]

  Deputy Dermot Ahern: The legislation to address the Law Reform Commission’s recommendations on multi-unit developments is in the course of being drafted by Parliamentary Counsel as a matter of priority. The principal focus of the new Bill will be on ensuring good governance of property management companies and similar bodies which comprise the owners of individual units within multi-unit developments and which exercise management functions in relation to such developments. It is also intended to include provisions for the resolution of disputes arising in relation to such matters. The policy aspects extend to my Department, the Department of Enterprise, Trade and Employment and the Department of the Environment, Heritage and Local Government. The aim is to publish the Bill in the next Session.

There is no legislation specific to the question of responsibility for payment of service charges in respect of unsold units in a multi-unit development. However, the IHBA Code of Practice in relation to Multi-unit developments does stress that “the developer will make good shortfalls in attributable service charge contributions arising from unsold units in a development until such time as the units are sold”. It is intended that the legislation that is being drafted will also address the matter.