2475. Deputy Ryan O'Meara asked the Minister for Justice, Home Affairs and Migration for an update on the movement of responsibility of the MUDS Act to the Department of Housing, Local Government and Heritage. [62556/26]

2506. Deputy Ryan O'Meara asked the Minister for Justice, Home Affairs and Migration with regards to the MUDS Act, should a resident wish to resolve a legal matter with a management company, the options that are available to them; if non-legal methods of mediation can first be pursued before bringing the matter to the Circuit Court. [62915/26]

2507. Deputy Ryan O'Meara asked the Minister for Justice, Home Affairs and Migration with regards to the MUDs Act, does a management company need a sinking fund and the way in which this is calculated. [62913/26]

2508. Deputy Ryan O'Meara asked the Minister for Justice, Home Affairs and Migration with regards to the MUDS Act, does a management company have to hold fire insurance for a full development. [62912/26]

I propose to take Questions Nos. 2475, 2506, 2507 and 2508 together.

The Multi-Unit Developments Act 2011 (MUDs Act) was enacted with the primary objective of reforming the law relating to the ownership and management of common areas of multi-unit developments, and facilitating the fair, efficient and effective management of owners' 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 Act, 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. It is a matter for each individual OMC to determine the amount of the service charge on an annual basis. Section 18 of the Act requires OMCs to establish and maintain a scheme of annual service charges from which they may discharge expenditure incurred on the provision of common or shared services to the owners and occupiers of residential units in the development, including insurance, waste management, and security services. The Act sets out clearly that the service charge must be calculated on a transparent basis and be equitably apportioned between the residential unit owners. To ensure transparency and accountability, both the annual service charge and the services to be provided must be approved by a general meeting of the members of the OMC.

Under section 19 of the MUDs Act, the OMC must establish a sinking fund for the purpose of ‘discharging expenditure reasonably incurred’ on refurbishment, improvement, or maintenance of a non-recurring nature, of the multi-unit development. Section 19(3) obliges the owner of each unit in the multi-unit development to make payment to the sinking fund of the amount of contribution fixed in respect of the unit concerned.

Section 17 of the Act imposes obligations on OMCs: specifically, it provides that OMCs must prepare an annual report and hold a meeting at least once a year to consider the report. That report must contain details of the annual service charges as well as planned expenditure on maintenance and repair; insurance cover and contracts entered into by the company.

The MUDs Act acknowledges the risk of disputes arising in the enforcement of rights and the performance of obligations imposed by its provisions on OMCs. Section 24 of the Act makes provision for the resolution of such disputes. This section provides that a person, including any member of an OMC, may apply to the Circuit Court for an Order to enforce any rights conferred or obligations imposed by the Act. Section 24(2) allows the Court to take into account whether the parties have tried to resolve their differences by mediation or other alternative dispute resolution. Section 27 provides for court-directed mediation if the court considers that a ‘mediation conference’ between the parties would assist in reaching a settlement of the matter.

The Housing Agency which is a statutory body under the aegis of the Department of Housing, Local Government and Heritage, already provides extensive information and guidance relevant to residents and OMCs in dealing with their obligations and rights under the MUDs Act. Further information can be found on the Housing Agency website - www.housingagency.ie/housing-information/multi-unit-developments-managed-estates.

OMCs are also subject to company law provisions, including their own memorandum of association, and are subject to oversight by the Companies Registration Office and the Corporate Enforcement Authority. The Competition and Consumer Protection Commission also plays a role in providing information and advice to intending purchasers of residential units in multi-unit developments.

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. This will streamline support for OMCs and improve oversight. The transfer has been enabled by legislative amendments which were necessary to avoid a conflict of Ministerial responsibility as arose in the Mulcreevy case.

These necessary amendments were made by the Criminal Law and Civil Law (Miscellaneous Provisions) Act 2026, following this enactment, a Transfer of Functions order will then be necessitated. A timeline for this work and the transfer of functions is currently being advanced and engagement between the Departments is ongoing in this regard. The Department is currently working with relevant stakeholders to deliver this commitment in the coming weeks.