27/08/2012

27/08/2012

Owner Management Companies (OMC) and the Multi-Unit Development Act 2011

The Multi-Unit Development Act 2011 regulates Owner Management Companies (OMC’s) previously known as Property Management Companies. Some of the key characteristics of a OMC’s are:
  • Companies are set up on a not for profit basis, to maintain the common areas of Multi-Unit Development by controlling income and expenditure
  • Service charges charged to members (unit holders) – there can be residential and commercial service charges
  • Expenditure incurred in relation to both internal and external common areas  (Electricity, garden, refuse, lifts, insurance, management fees)
  • Majority of companies are limited by guarantee , not having a share capital (as such cannot available of exemptions available to small companies – abridged accounts, FRS 1 cash flow exemption)
The Minister for Justice and Law Reform introduced the Multi-Unit Development Act 2011 to try to address some of the existing issues with these types of developments. The sections of the act that will apply to your OMC will depend on the size and type of your development, for example:
  • The Act only applies to residential  and mixed use developments only;
  • Developments with 2-4 units are required to comply with only certain sections of the Act;
  • Developments with 5 or more units are required to comply with the whole Act.
More on this topic is coming soon. Do you have any questions? Please let us know in the comments.