Published on: Jul 12, 2011
If your complex is still owned and run by your developer, getting sucked into NAMA is not just a possibility but rapidly becoming inevitable. Even though NAMA has been around for a while now, it’s still hard to know exactly how it will affect you. Will your estate be completed, sold and handed over or will it be left incomplete and inhospitable?
We don’t have all the answers yet but we’re doing our best to get as much clarity as possible. In the meantime, here are some steps you should follow:
- Form a Committee- The Members of the Management Company should form a residents committee and elect a Chairperson, Treasurer and Secretary. This will benefit all parties involved in the process as the there will be one point of contact for the members and information can be disseminated. This structure would mirror what would be in existence if vesting had taken place and the members were able to become Board members/Directors.
- Chairperson to provide a written summary of the issues concerning the Multi Unit Development. For example: Block insurance, the members may not know whether there is insurance in place. Cleaning, are the common areas being cleaned. Refuse collection, is this taking place ?
- Chairperson and residents committee to communicate with the members of the management company that service charges/management fees need to be paid. Some members may feel that there is no point in paying service charges as they will be unsure as to where the money would be going. Others may not be aware of the scale and cost of the provision of services for a multi unit development.
- Managing Agent Communication. If there is a managing agent in place the Residents committee should meet with the Agent and determine a working relationship. The managing agent needs to accept the Bone Fide of the Residents Committee and provide accurate information to the Committee.
- Managing Agent (if one is in place) to prepare a budget for the provision of the essential services. The Residents Committee to be involved in this process and to prepare the budget if no managing agent is employed.
- Financial Status of Management Company. The Residents committee to work with the various parties to determine an accurate financial assessment of the management company and the necessary financial input required for the provision of services for the management company.
- Receiver to communicate the various strategies with the Residents Committee eg, short term, medium term and long term.