Experience of Management Companies implementing "Multi Unit Development Act 2011"

Y

Yorrick

Guest
Has anyone experience of Management Companies implementing the procedures in the new Act as regards the setting of management fees or establishing sinking funds?
 
sink fund doesnt have to be implemented til the end of 2012 i think it is, or maybe it was 18 months after the enactment which would be about that time

service charge breakdown/approtionments need to be presented to members, i would suspect this would happen at the next AGM for that company. the members dont set the fees, the company presents them and if no one argues against them then they are approved. same goes with the budget. if it is argued against and approval is not recieved then the previous years figures are used until approval is recieved.

I would think that a lot of companies will be looking at possibly changing their AGM date to match it with when the budget/service charge invoicing to get the approval easier. we're lucky our AGM usually happens just before service charges are sent out so there wont be a huge change for us date wise
 
I think most well run developements have sinking funds. Any developement that doesnt is going to face a hard task of putting the service charge up in order to establish one. The MUD act recomended that there should be a contribution of €250 per unit towards the sinking fund in a developement but in reality and long term a lot more is required.

On the service charge breakdown, this needs to be shown clearly to the members on their invoice. It does not need to be presented seperately. However there is a requirement to have the budget passed every year at a general meeting or an annual general meeting. However it would take a large number of owners to vote down the budget. 75%+ must vote against the new budget before it is struck down, and once it is struck down the previous years service charge is charged out until the budget is agreed.

This is going to cause some hardship for managing agents id imagine, but hopefully it will mean more owners getting involved in the whole budgetary decision making process and lead to a greater understanding of what their service charge pays for.
 
mud exemption

Zenga,I just bought Garden apt in old Victorian house,does mud act apply,and as only 2 couples residing in house,do we need to set up man co
 
You can't set up a management company retrospectively. The deeds/lease you signed at purchase should details your obligations regarding common expenses to the house such as fire safety and repairs.
 
Yorrick said:
Has anyone experience of Management Companies implementing the procedures in the new Act as regards the setting of management fees or establishing sinking funds?
Click to expand...

The act became law 1st April so everyone should have had to read and apply the act in some manner if they are a director of an OMC. Most companies would of had 2-3 AGMs in that time period so if they have not then something has gone wrong.

Management fees are still generally set by the lease in terms of apportionment and the market in terms of prices. Although the act gave an indication that 200 per unit was a good sinking fund the reality is that it needs to be carefully calculated and attributed to each development.

What the act does require is transparency and openness as to the costs and the overall process. A good think.

The act is just a start though. It needs more teeth and better clarification to help OMC's. OMCs are failing around the country which means communities and people are suffering as a result. If the act cannot protect them then it is lacking.
 
Thanks shesells,does that mean ,there is no legal requirement for omc,and as apt is freehold no further action needs to be taken with regards to mud act,appreciate your help
 
lob020 said:
Thanks shesells,does that mean ,there is no legal requirement for omc,and as apt is freehold no further action needs to be taken with regards to mud act,appreciate your help
Click to expand...

As the legislation was brought in prior to your purchase, your lease/deeds should contain all info and should be in compliance with the legislation already
 
You must log in or register to reply here.
Back
Top