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Newsdesk - November 2011

Multi-Unit Developments (MUD's)

Either you live in a MUD, you know someone who lives in a MUD or you have dealings with a MUD, Multi-Unit Developments (MUD’s) effect our lives on a daily basis…

On 2 March, 2011, the Minister for Justice and Law Reform signed a Commencement Order for the Multi-Unit Developments Act 2011... The Order set the 1st day of April as the date on which Act came fully into operation… More importantly it set 1st October 2011 as the date for which the common areas of a multi-unit development must have been transferred to the owner management company and that a ‘sinking fund’ was to be established…

For the first time ever, we now have legislation designed specifically for MUD’s and that provides a statutory framework for the operation and governance of MUD’s…

Under the Act, MUD’s are defined as a development comprising of land on which there stands a building or buildings comprising unit or units and it is intended that amenities, facilities and services are to be shared…

The main provisions of the Act include:

  • A requirement to establish an Owner Management Company (OMC) for all MUD’s at the expense of the developer…
  • Strict conditions with regards to the common areas… The common areas mush have been transferred to the OMC on or before 31st October this year…
  • New regulations for Mixed-Use MUD’s…
  • An automatic membership of the OMC if you own a unit in a MUD with one vote attaching to each unit in a residential MUD…
  • Requirements to hold AGM’s and prepare annual accounts and distribute to members / owners… The formats are also laid down in the Act…
  • Regulations surrounding the annual service charge and the expenditure of the OMC…
  • Establishment of a ‘sinking fund’ again by 31 October of this year…
  • Issues over the Fire Safety Certificates etc…
  • OMC/ MUD house rules…
  • Dispute resolution and mediation in MUD’s…
  • Requirements to have your OMC restored to the Companies Register…

Unfortunately failure to adhere to the new legislation can result in owners being unable to sell their units and having to incur substantial costs in rectifying the situation…

At Anne Brady McQuillans DFK we have years of experience in dealing with Multi-Unit Developments and know only too well the issues effecting them and especially arising out of the new legislation, so don’t end up covered in MUD, contact either Colm in our Audit Department or your usual Anne Brady McQuillans DFK contact…

We’ll stop the ‘MUD’ hitting the fan…!!!