Residents ‘don’t feel like they own their homes’ due to management rules, says TD Ellis

Owner Management Companies (OMCs) are over-stepping their remits in newly built developments across the county, according to Sinn Fein TD Dessie Ellis.

Speaking in the Dail earlier this month, the Dublin North West TD said that people who have purchased new homes recently have contacted him complaining that they feel they don’t fully own their home due to the rules applied by the OMC.

He said that although management companies are important, some are enforcing rules too rigidly, making lives difficult for residents.

“The Multi-Unit Developments Act 2011 (MUD Act) specifies that all new developments must have an Owner’s Management Company in place and the 2011 act provides the legal framework for their operation in managed estates,” Deputy Ellis said in his statement.

“There are three main reasons the OMC is established.

“To manage and maintain common areas in MUDs, to be the legal owner of the common areas on behalf of the owner of the units, and to be the legal owner of the beneficial or reversionary interest of each unit.

“The first two reasons concern the maintenance and management of the common areas.

“The third reason is the OMC is the legal owner of the beneficial or reversionary interest of each unit,” he said.

Under the act, the OMC owns the common the areas in the development on behalf of the residents, and a share of each individual property in premises.

“The members of the OMC are obliged to pay management fees, which would include service charges and a contribution to a sinking fund,” Ellis says

“Residents are also paying the property tax on top of these charges.”

The Sinn Fein TD said that members are “bound by house rules,” which are being imposed to the detriment of residents.

“For example, such as Cedarview in Northwood, Santry, we are seeing a number of concerns relating to the way the estate is managed, particularly in relation to private houses in the estate.

“If someone wanted to put on a bar-b-que or put up a gazebo, they would have to ask permission to do so,” he says.

“There are other similar examples which should not really be contentious but are being refused because of the existing rules.

“The rules seem to be too rigidly interpreted,” Deputy Ellis said.

“While an OMC has the right to alter, amend or add to the house rules of a development, I have found that the rules do not always conform to being fair or reasonable for someone who has invested so much in a property and have paid close to €500,000 for their property.

“Some residents feel that they don’t have full or proper ownership of their own homes.”

Ellis says that people have contacted him complaining about how their “voices” are being “diminished” particularly “if their concerns don’t reflect those of the majority, thereby lessening their influence on their own area.”

There are also worries by some residents that some OMCs are expanding to take in several different developments, meaning “that they are overwhelmed by greater numbers.”

In response, Fianna Fail TD and Minister of State at the Department of Finance Sean Fleming said that there is “extensive legislation in place to regulate the formulation of rules by management companies that cover multi-unit developments.

“The deputy is suggesting there are issues of over-regulation by some management companies in how they implement the rules but […], the rules have to be agreed at specially convened meetings of the property owners or their agents.

“People should always be aware of that,” he said.

“They must also be given 21 days notice of meetings at which any changes to the rules will be proposed.

“The programme for Government commits to conducting a review of the existing management company legislation.

“The Department will engage with all relevant Departments in relation to advancing this commitment.”