Multi-Unit Developments Bill 2009: Committee Stage - 10th March 2010

Multi-Unit Developments Bill 2009: Committee Stage - 10th March 2010
Senator David Norris: May I say a couple of words on this?


An Cathaoirleach: We are on section 1, amendment No. 15, to which Nos. 17, 41 and 73 are related.


Senator David Norris: Yes; I understand that. I lend my support to these amendments, which are important, particularly from the point of view of management committees. I have raised this on numerous occasions in the House and received little response, so I am glad the Government is addressing it. Has the Minister considered - although from a glance through the amendments, I think he has done so - that an unscrupulous developer can retain one unit and thereby control the management committee to the disadvantage of the residents? I hope this is addressed, although it seems it might be. I have come across this on numerous occasions. The tactic is often used, as I have said before, to allow the developer and his family to control the management committee in such a way as to create financial advantage for themselves - for example, by hiring other family members to do cleaning, servicing and so on. This is grossly and utterly wrong.

The other matter to which I draw the Minister’s attention is perhaps more for the local authorities than the Government, but there may be a Government angle. A fine job of refurbishment has been done at what was Fatima Mansions but is now Herberton. There is a management company. I know people who have bought flats there, most of them nurses in St. James’s Hospital, under the affordable housing scheme.


An Cathaoirleach: On the amendment, Senator.


Senator David Norris: This is directly relevant to the amendment, because it is about management committees - at least, I hope it is.


An Cathaoirleach: Does the Senator think so?


Senator David Norris: This series of amendments deals with such things as apportionment of costs and the units in a development.

For example, some management committees have raised management fees considerably and suddenly. People were given indications of a fee of €1,500 per year but were then asked for a deposit of €1,500 as well as the first year’s fee. This is ridiculous. They are paying twice. Then the fee was raised to €2,000, which is outrageous. I hope the Minister will bring this to the attention of his contacts. Affordable housing in this city is not affordable any more. I am happy to support these amendments in as far as they address problems associated with multi-unit developments and the issues with management committees which have caused much concern to citizens.


Deputy Dermot Ahern: Senator Norris referred to sections 3 and 4 which deal with the issue of incompletion and the obligation to transfer ownership on completion, and, to a lesser extent, section 14, which deals with the apportionment of service charges. I empathise with the points he has made. These amendments deal with the extension of the remit of this legislation to mixed-use developments, which contain commercial and residential units within one development, as well as the practice that has been mentioned by Members whereby developers, starting a few years ago, have built traditional housing estates and then imposed, without any justification, management companies and the accompanying charges. There is general acceptance of the amendments.


Senator David Norris: Will the Minister consider the situation for apartment blocks specifically. Some further attention may be required because there are anomalies that are causing much unhappiness.


An Cathaoirleach: We will come to that later.


Amendment agreed to.