The Multi-Unit Developments Act 2011 was enacted with the primary purpose of reforming the law relating to the ownership and management of common areas of multi-unit developments (MUDs) and facilitating the fair, efficient and effective management of owner management companies (OMCs).
The MUDs Act includes provisions relating to:
•the setting of the annual service charge payable by apartment owners in a MUD;
•the establishment of a sinking fund, to fund any non-recurring expenditure; and
•the development of house rules for the operation and maintenance of their multi-unit development.
Under Section 18 of the Multi-Unit Developments Act 2011, the OMC must establish and maintain a scheme for annual service charges to fund ‘ongoing expenditure reasonably incurred’ on the maintenance, insurance and repair of common areas within its control and for the provision of common services (security, legal, accounting etc.) to unit owners.
Under the Programme for Government, Securing Ireland’s Future, responsibility for the regulation of owner management companies (OMCs) and the Multi-Unit Development Act (MUDs) is to be transferred from my Department, to the Department of Housing, Local Government and Heritage.
