Tenant Purchase I
HOUSING ACT 1966
PART V
Disposal of Land and Dwellings
Chapter I
Land
Section 88
Disposal of land by housing authority.
88.—F63[…]
Annotations
Amendments:
F63
Repealed (1.01.2002) by Local Government Act 2001 (37/2001), s. 5(1) and sch. 3 part 1, S.I. No. 558 of 2001, subject to exceptions in s. 6.
Editorial Notes:
E183
Previous affecting provision: application of section restricted (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 3(8)(a)(ii), S.I. No. 223 of 1992; section repealed as per F-note above.
Chapter II
Certain Dwellings Provided under this Act
Section 89
Interpretation (Chapter II of Part VI).
89.—In this Chapter—
F64[“dwelling” means a dwelling provided by a housing authority under this Act of which they are the owner and includes any shop, outoffice, yard, garden or other land appurtenant thereto or usually enjoyed therewith;]
F65[“purchase money”, in relation to a dwelling, means—
(a) the purchase price of the dwelling after taking into account any reduction in the price as a result of any discount or other allowance made by the housing authority concerned, and
(b) any interest payable on the amount determined in accordance with paragraph (a) of this definition;
“purchaser” means the person (including a housing authority) to whom a sale is made and includes a successor in title of that person and the personal representative of that person or successor in title;
“sell”, in relation to a dwelling, means to sell or exchange a freehold or leasehold estate or interest, and cognate words shall be construed accordingly;]
“special condition” means a condition requiring that—
(a) payments in respect of the purchase money shall be made punctually on the due dates,
(b) the dwelling shall, unless the housing authority otherwise allow, be occupied as a normal place of residence by the purchaser or the purchaser’s successor in title or by a member of the purchaser’s family or the family of his successor in title,
(c) the dwelling or any part thereof shall not, without the consent of the housing authority, be mortgaged, charged or alienated otherwise than by devise or operation of law.
Annotations
Amendments:
F64
Substituted (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 25(a), S.I. No. 223 of 1992.
F65
Inserted (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 25(b), S. I. No. 223 of 1992.
Section 90
Power of housing authority to sell or lease certain dwellings provided under this Act.
F66[90.(1) Subject to the provisions of this section and to such regulations as may be made by the Minister for the purposes of this section, a housing authority may sell a dwelling in the state of repair and condition existing at the date of the sale—
(a) where the dwelling is occupied by a tenant—
(i) F67[…]
(ii) to another housing authority, or
(iii) to a body standing approved of for the purposes of section 6 of the Housing (Miscellaneous Provisions) Act, 1992;
(b) where the dwelling is not occupied by a tenant, to any person (including another housing authority).
(2) F67[…]
(3) F67[…]
F68[(4) (a) Subject to any regulations made under this section, section 183 of the Local Government Act, 2001, shall apply in relation to the sale of a dwelling under subparagraph (ii) or (iii) of paragraph (a), or paragraph (b), of subsection (1) of this section but shall not otherwise apply to the sale of a dwelling under this section.
(b) This subsection is without prejudice to the application of section 183 of the Local Government Act, 2001, to the disposal of land by a housing authority under section 211 of the Planning and Development Act, 2000, and for the purposes of this paragraph ‘land’ does not include a dwelling.]
(4A) F67[…]
(5) A sale of a dwelling under this section shall be effected by means of an order (in this section referred to as a “transfer order”) made by the housing authority which shall be expressed and shall operate to vest, on the date specified in the order, the interest specified therein, subject to such terms and conditions, including special conditions, as may be specified therein.
(6) Where a dwelling, being a separate and self-contained flat in premises divided into two or more such flats, is sold under this section, a housing authority may—
(a) make a periodic or other charge on the purchaser in respect of the management, control, maintenance or improvement of the areas, works or services in the said premises that are common to two or more such dwellings where such functions are performed by the authority,
(b) as respects any sum due to them under paragraph (a) of this subsection and remaining unpaid after the due date—
(i) secure payment of the sum by charging the dwelling under the Registration of Title Act, 1964,
(ii) without prejudice to subparagraph (i) of this paragraph, recover the sum as a simple contract debt in any court of competent jurisdiction,
(c) subject to the requirements of regulations (if any) under this section, transfer the ownership or control of the areas, works or services in the said premises that are common to two or more such dwellings to a company or other body having as an object the management, control, maintenance or improvement of the said premises, areas, works or services.
(6A) F67[…]
(7) Regulations under this section may, in particular, but without prejudice to the generality of subsection (1) of this section, make provision in relation to all or any one or more of the following:
(a) F69[…]
(b) F69[…]
(c) F69[…]
(d) the determination of the amount of the purchase price of a dwelling;
(e) the determination of any discount or other allowance to be deducted from the purchase price of a dwelling;
(f) the manner of payment of the purchase money for a dwelling;
(g) the determination from time to time of the rate of interest (if any) payable to a housing authority on moneys owing to the authority in respect of a dwelling;
(h) the security (if any) to be taken for moneys owing to a housing authority and the manner of assessing its adequacy;
(i) the form of, or the matters to be specified in, a transfer order;
(j) such other terms and conditions, including special conditions and the period for which they shall apply, in relation to the sale of a dwelling as the Minister considers appropriate;
(k) in case of a sale of a dwelling under paragraph (a)(iii) of the said subsection (1)—
(i) the form of or the matters to be specified in an agreement between the housing authority and the body in relation to the sale of the dwelling;
(ii) the obtaining of the tenant’s consent to the sale of the dwelling and the manner of so doing;
(iii) the furnishing of information to the tenant for the purpose of obtaining his consent;
(iv) the tenant’s occupation of the dwelling following its sale;
F70[(l) in the case of a sale under this section, the obtaining of the consent of the Minister to the sale;];
(m) the application of section 3 of the Housing (Miscellaneous Provisions) Act, 1992, to the sale of a dwelling under this section.
(8) No warranty shall apply or be deemed to be implied as to the state of repair or condition or the fitness for human habitation of a dwelling sold under this section.
(9) Where a housing authority give or have given consent to a mortgage in respect of a dwelling sold by them under this section, the authority shall be regarded as having consented to—
(a) any further or consolidated mortgage effected by the same mortgagor, and
(b) the exercise by the mortgagee of his powers under either such mortgage.
(10) Where, in relation to a house sold under this section, a written report on the value of a house and any factors likely to affect its value is furnished by a housing authority in connection with the making of a loan by a building society to be secured on the house, the authority may be deemed to be a person competent to value and not disqualified from making a report for the purposes of section 25 (1) (c) of the Building Societies Act, 1989.
(11) (a) The power under this section to sell a dwelling, other than a dwelling being a separate and self-contained flat in premises divided into two or more such flats or a dwelling to which regulations made pursuant to paragraph (m) of subsection (7) of this section apply, shall, except where the dwelling is vested in another housing authority or a body approved of under section 6 of the Housing (Miscellaneous Provisions) Act, 1992, be exercised only by the vesting of the fee simple in the dwelling.
(b) The Landlord and Tenant (Ground Rents) Act, 1978, shall not apply in relation to the sale of a dwelling under subparagraph (ii) or (iii) of paragraph (a) of subsection (1) of this section.
(12) The following additional provisions shall apply in respect of a dwelling to which a special condition described in paragraph (c) of section 89 of this Act applies:
F71[(a) the housing authority may, without prejudice to any other power in that behalf, refuse to consent to a sale of a dwelling if they are of the opinion that—
(i) the intended purchaser is not a person in need of housing, or
(ii) the intended purchaser is or has been engaged in antisocial behaviour or that the intended sale of the dwelling would not be in the interest of good estate management, or
(iii) the intended sale would, if completed, leave the seller or any person who might reasonably be expected to reside with that person without adequate housing;]
(b) where, in relation to the dwelling—
(i) a housing authority give or have given consent to a sale, or
(ii) a mortgagee has exercised his powers of sale under a mortgage,
the condition shall, from the date of such sale, no longer apply;
(c) any attempted or purported mortgaging, charging or alienation in contravention of the special condition shall be null and void against all persons; provided, however, that in any case where the consent of the housing authority is given after the attempted or purported mortgaging, charging or alienation, such consent shall, if the authority so direct, so operate as to validate with retrospective effect such attempted or purported mortgaging, charging or alienation.]
Annotations
Amendments:
F66
Substituted (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 26(1), S.I. No. 223 of 1992, subject to transitional provisions in subss. (2) and (3).
F67
Repealed (1.01.2016) by Housing (Miscellaneous Provisions) Act 2014 (21/2014), s. 31(a), S.I. No. 482 of 2015.
F68
Substituted (1.01.2002) by Local Government Act 2001 (37/2001), s. 183(2), S.I. No. 588 of 2001.
F69
Repealed (1.01.2016) by Housing (Miscellaneous Provisions) Act 2014 (21/2014), s. 31(b), S.I. No. 482 of 2015.
F70
Substituted (1.01.2016) by Housing (Miscellaneous Provisions) Act 2014 (21/2014), s. 31(b), S.I. No. 482 of 2015.
F71
Substituted (1.07.1997) by Housing Miscellaneous Provisions) Act 1997 (21/1997), s. 14(3), S.I. No. 247 of 1997.
Modifications (not altering text):
C50
Application of section restricted (1.07.1997) by Housing (Miscellaneous Provision) Act 1979 (21/1997), s. 14(2), S.I. No. 247 of 1997; as substituted (1.12.2009, 14.06.2010, 1.01.2012) by Housing (Miscellaneous Provisions) Act 2009 (22/2009), s. 8 and sch. 2 part 5, S.I. Nos. 449 of 2009, 253 of 2010, 680 of 2011.
Letting and sale of local authority housing.
14.—[(1) Notwithstanding anything contained in the Housing Acts 1966 to 2009, or in an allocation scheme made under section 22 of the Housing (Miscellaneous Provisions) Act 2009, a housing authority may refuse to allocate or defer the allocation of a dwelling, including a dwelling the subject of a rental accommodation availability agreement (within the meaning of that Act), to a person where]
(a) the authority considers that the person is or has been engaged in anti-social behaviour or that [an allocation] to that person would not be in the interest of good estate management, or
(b) the person fails to provide information, including information relating to persons residing or to reside with that person, which is requested by the housing authority and which the authority considers necessary in connection with [an allocation].
[(2) Notwithstanding anything contained in— …
(d) section 90 of the Housing Act 1966 (inserted by section 26 of the Housing (Miscellaneous Provisions) Act 1992) or a purchase scheme under the said section 90,
a housing authority may refuse to sell a dwelling to— …
(iv) in the case of section 90 of the Housing Act 1966, a tenant,
where the authority considers that the said tenant or the said eligible household or any member of the eligible household or of the tenant’s household, as the case may be, is or has been engaged in anti-social behaviour or that a sale to that eligible household or tenant would not be in the interest of good estate management.]
C51
Reserved functions conferred (1.01.2002) by Local Government Act 2001 (37/2001), ss. 131, 131A and sch. 14A part 3 item 45, S.I. No. 558 of 2001; as amended and inserted (1.06.2014) by Local Government Reform Act 2014 (1/2014), s. 21(2) and (3), S.I. No. 214 of 2014.
Reserved functions.
131.—(1)(a) [Subject to section 131A, the elected council of a local authority or the members of a joint body shall] directly exercise and perform by resolution at a meeting of the local authority or body every function to which this section applies.
(b) The functions referred to in paragraph (a) shall be known as reserved functions of a local authority or of a joint body, as the case may be, and in this Act are referred to as “reserved functions”.
(2) This section applies to every function—
[(a) designated as a reserved function by any provision of the Local Government Acts 1925 to 2014 (including a designation by order under subsection (3)), a provision of any other Act that is to be construed together with those Acts, or as specified in Schedule 14 or, subject to section 131B(1), Schedule 14A,]
(b) designated as a reserved function by any provision of any other enactment relating to a local authority or joint body;
(c) expressly made exercisable by resolution under this Act or under any other enactment relating to a local authority or joint body which was enacted after the 13th day of June, 1940.
(3)(a) The Minister may by order designate a specified function of local authorities or joint bodies to be a reserved function and for so long as an order is in force the function is a reserved function.
(b) Any order made under subsection (2) of section 41 of the Local Government Act, 1991, or continued in force by subsection (5) of that section shall continue in force as if made under this subsection and may be amended or revoked accordingly.
[(c) An order under paragraph (a) may provide that a specified function designated by such order to be a reserved function may be performed, or shall be performed, as provided in the order, in respect of each municipal district in the county or the city and county, as the case may be, by the municipal district members concerned, subject to the provisions of subsections (4) to (6) of section 131A.]
(4) Any reference to a reserved function in respect of a local authority or joint body in any enactment enacted before the commencement of this provision or to a function exercisable by resolution to which subsection (2)(c) applies shall be read as a reference to a reserved function for the purposes of this Act.
(5) For the purposes of this section “function” does not include a function relating to the employees of a local authority or joint body or the direction, supervision, service, remuneration or discipline of such employees or any of them, other than a function referred to in section 145(1).
[Performance of reserved functions in respect of municipal district members
131A.—(1) Subject to subsection (4), in respect of the elected council of a local authority that is the council of a county (other than the council of a county to which section 22A(4) relates) or of a city and county, a reserved function which is specified in—
(a) paragraphs 1 and 3 (other than in respect of a joint body) of Schedule 14 and Part 1 of Schedule 14A shall be performed in respect of each municipal district within the administrative area of the local authority by the municipal district members concerned, and
(b) paragraphs 5, 6 or 7 of Schedule 14 and Part 2 of Schedule 14A, may be performed in respect of a municipal district within the administrative area of the local authority by—
(i) the municipal district members, or
(ii) the local authority.
(2)(a) In addition to the functions referred to in subsection (1), a local authority that is the council of a county or a city and county may, subject to paragraph (e), by resolution delegate with or without restrictions to the municipal district members for any municipal district in the area of the local authority any of its functions that may be performed by resolution and a function so delegated shall, accordingly, be performed in respect of each such municipal district in the administrative area of the local authority (or any part of such district) by the municipal district members concerned.
(b) A local authority may, following consultation with the municipal district members concerned, by resolution, revoke the delegation by it under this subsection of a function, but the revocation is without prejudice to anything previously done by virtue of the delegated function.
(c) A function shall not be delegated by a local authority in such a manner that, at the same time, it is exercisable—
(i) by a committee established under section 51, and
(ii) by municipal district members under this subsection.
(d) A resolution of a local authority delegating or revoking the delegation of a function to municipal district members shall not be treated as having been passed unless at least a half of the total number of members of the local authority concerned vote in favour of the resolution.
(e) A local authority shall not delegate any of its functions to which subparagraphs (i) to (iv) of section 51(2)(a) relates to the municipal district members.
(3) The functions, by virtue of subsection (2)(a), of municipal district members shall not be delegated by the municipal district members.
(4) Municipal district members may by resolution decide, subject to the approval by resolution of the local authority and the approval of the Minister, that a particular function to which subsection (1) relates should be performed only by the local authority.
(5)(a) The Minister may make regulations specifying conditions, restrictions, procedures or other provisions to apply—
(i) generally in relation to the performance of functions to which subsections (1) and (2) relate,
(ii) specifically in relation to performance of one or more than one function to which any of those sections relate,
(iii) in relation to the delegation of functions or the revocation of a delegation of functions under subsection (2), or
(iv) in relation to a decision under subsection (4).
(b) Without prejudice to the generality of paragraph (a), regulations under this subsection may provide for any of the following:
(i) requirements for the purpose of ensuring that municipal district members performing functions do so in a manner consistent with the policies, strategies, programmes or plans of the local authority concerned;
(ii) requirements for the purpose of ensuring the avoidance of unnecessary duplication in the performance of functions between the municipal district members for each of the municipal districts in a local authority area or between the municipal district members and the local authority for that area;
(iii) that specified functions may not be delegated under subsection (2), or may only be delegated with the approval of the Minister;
(iv) that, in circumstances provided for in the regulations, a local authority may perform a specified delegated function in place of the municipal district members in a particular case or occasion;
(v) arrangements for the resolution of any difference or disagreement between a local authority and the municipal district members in relation to the performance of a function which is specified in paragraphs 5, 6 or 7 of Schedule 14 or Part 2 of Schedule 14A;
(vi) that a particular function set out in paragraphs 5, 6 or 7 of Schedule 14 or Part 1 or 2 of Schedule 14A shall only be performable in every instance by the local authority concerned;
(vii) provisions to determine whether a function specified in paragraph 5, 6 or 7 of Schedule 14 and Part 2 of Schedule 14A should, in particular circumstances be performed by municipal district members or by the local authority.
(6) The Minister may issue general policy guidelines to local authorities for the purposes of any provision of this section (including any regulations made under it) and each local authority shall comply with any such guidelines.]
PART 3
Reserved Functions to be Performed by the Local Authority
Reference No.
(1)
Description of reserved function
(2)
Provision under which reserved function is conferred
(3)
…
….
…
45
Adopting a purchase scheme applying to the sale of dwellings.
Section 90 (inserted by section 26 of the Housing (Miscellaneous Provisions) Act 1992) of the Housing Act 1966, as amended by section 183.
…
…
…
C52
Application of section restricted (22.12.1993) by Local Government (Dublin) Act 1993 (31/1993), s. 35 and sch. 3 part 1 para. 1(b) and 9, S.I. No. 400 of 1993.
Part I
Transfer of certain dwellings, etc., between principal authorities
1. …
(b) In this Part “section 90” means section 90 of the Housing Act, 1966 as substituted by section 26 of the Housing (Miscellaneous Provisions) Act, 1992
…
9. Section 12 of the Finance Act, 1895, section 83 of the Local Government Act, 1946 and section 90 shall not apply to any transfer under this Part.
C53
Application of section restricted (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 3(8)(a)(iii), S. I. No. 223 of 1992; section repealed by Housing (Miscellaneous Provisions) Act 2009 (22/2009), s. 7 and sch. 1, subject to transitional provision in s. 96, not commenced as of date of revision.
Granting of shared ownership leases by housing authorities, etc.
3.— …
(8) (a) The following provisions shall not apply in relation to the granting of a shared ownership lease by a housing authority, that is to say: …
(iii) section 90 of the Principal Act (as amended by this Act), except as may be provided for in regulations made under that section.
…
Editorial Notes:
E184
Power pursuant to subs. (7) exercised (19.12.2013) by Housing (Sale of Houses) (Amendment) Regulations 2013 (S.I. No. 507 of 2013).
E185
Power pursuant to subs. (7) exercised (27.11.2012) by Housing (Sale of Houses to Long-Standing Tenants) (Amendment) Regulations 2012 (S.I. No. 465 of 2012).
E186
Power pursuant to subs. (7) exercised (1.11.2012) by Housing (Sale of Houses) Regulations 2012 (S.I. No. 420 of 2012), in effect as per reg. 1(b).
E187
Power pursuant to subs. (7) section exercised (24.02.2011) by Housing (Sale of Houses to Long-standing Tenants) Regulations 2011 (S.I. No. 82 of 2011).
E188
Power pursuant to section exercised (28.07.1999) by Housing (Sale of Houses) (Amendment) Regulations 1999 (S.I. No. 248 of 1999).
E189
Power pursuant to section exercised (18.07.1995) by Housing (Sale of Houses) Regulations 1995 (S.I. No. 188 of 1995).
E190
Power pursuant exercised (25.09.1980) by Housing Regulations 1980 (S.I. No. 296 of 1980).
E191
Previous affecting provision: subs. (4A) inserted (1.12.2009) by Housing (Miscellaneous Provisions) Act 2009 (22/2009), s. 8 and sch. 2, S.I. No. 449 of 2009; deleted as per F-Note above.
E192
Previous affecting provision: subs. (6A) inserted (27.06.2002) by Housing (Miscellaneous Provisions) Act 2002 (9/2002), s. 15, S.I. No. 329 of 2002; deleted as per F-Note above.
E193
Previous affecting provisions: power pursuant exercised (31.03.1998) by Housing (Sale of Houses) Regulations, 1995 (Amendment) Regulations 1998 (S.I. No. 91 of 1998); revoked (28.07.1999) by Housing (Sale of Houses) (Amendment) Regulations 1999 (S.I. No. 248 of 1999).
E194
Previous affecting provision: application of subs. (3) restricted (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 26(3), S.I. No. 223 of 1992; subsection deleted as per F-note above.
E195
Previous affecting provision: application of section extended (9.08.1979) by Housing (Miscellaneous Provision) Act 1979 (27/1979), s. 17(2), S. I. No. 276 of 1979; repealed (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 37 and sch., S. I. No. 223 of 1992.
E196
Previous affecting provision: application of section restricted (9.08.1979) by Housing (Miscellaneous Provision) Act 1979 (27/1979), s. 13, S. I. No. 276 of 1979; repealed (19.08.1988) by Housing Act 1988 (28/1988), s. 23, S.I. No. 199 of 1988, subject to transitional provisions in subs. (2).
E197
Previous affecting provision: subs. (6)(a) repealed and regulation saving provision provided (9.08.1979) by Housing (Miscellaneous Provisions) Act 1979 (27/1979), s. 23(1) and sch., S.I. No. 276 of 1979, subject to continuation in force of regulations under certain conditions; section substituted as per F-Note above.
E198
Previous affecting provision: power pursuant to section exercised (15.09.1978) by Housing Authorities (Borrowing and Management) Regulations, 1974 (Amendment) Regulations 1978 (S.I. No. 270 of 1978); revoked (26.09.1980) by Housing Regulations 1980 (S.I. No. 296 of 1980), art. 5 and sch. 1.
E199
Previous affecting provision: application of section restricted (16.05.1978) by Landlord and Tenant (Ground Rents) Act 1978 (7/1978), s. 4, commenced on enactment; repealed (1.09.1992) by Housing (Miscellaneous Provisions) Act 1992 (18/1992), s. 37 and sch., S. I. No. 223 of 1992.
E200
Previous affecting provision: power pursuant to section exercised (1.07.1976) by Housing Authorities (Borrowing and Management) Regulations, 1974 (Amendment) Regulations 1976 (S.I. No. 143 of 1976), in effect as per reg. 3; revoked (26.09.1980) by Housing Regulations 1980 (S.I. No. 296 of 1980), art. 5 and sch. 1.
E201
Previous affecting provision: power pursuant to section exercised (18.09.1974) by Housing Authorities (Borrowing and Management) Regulations 1974 (S.I. No. 276 of 1974); revoked (26.09.1980) by Housing Regulations 1980 (S.I. No. 296 of 1980), art. 5 and sch. 1.
E202
Previous affecting provision: power pursuant to section exercised (9.03.1970) by Housing Authorities (Loan Charges Contributions and Management) Regulations 1967 (Amendment) Regulations 1970 (S.I. No. 42 of 1970); revoked (18.09.1974) by Housing Authorities (Borrowing and Management) Regulations 1974 (S.I. No. 276 of 1974), reg. 3 and sch. part II.
E203
Previous affecting provision: power pursuant to section exercised (13.04.1967) by Housing Authorities (Loan Charges Contributions and Management) Regulations 1967 (S.I. No. 71 of 1967); revoked (18.09.1974) by Housing Authorities (Borrowing and Management) Regulations 1974 (S.I. No. 276 of 1974), reg. 3 and sch. part II.
Section 91
Recovery of payments in respect of purchase money.
91.—Where—
(a) a special condition described in paragraph (a) of section 89 of this Act applies as respects a dwelling, and
(b) any payment in respect of the purchase money is not made on the date on which it is required to be made under the condition,
the payment may be recovered by the housing authority as a simple contract debt in a court of competent jurisdiction.
Section 92
Registration under Registration of Title Acts, 1891 and 1942 of ownership of dwellings sold or leased under section 90 of Act.
92.—(1) Where a dwelling is sold or leased under section 90 of this Act and the registration of the ownership of the dwelling is not on the date of the sale or lease compulsory by virtue of any provision either of the Act of 1891 or the Land Purchase Acts, on and after such date the registration of the ownership of the dwelling shall be compulsory and the dwelling shall be deemed to be registered land within the meaning of the Act of 1891.
(2) Whenever a housing authority sell or lease a dwelling under the said section 90, the authority shall forthwith apply to the registering authority for the registration under the Act of 1891 of the ownership of the dwelling.
(3) The provisions of Part IV of the Act of 1891 shall have effect in relation to any dwelling which is purchased under this Chapter as if the dwelling were freehold registered land to which the said Part IV applies.
Annotations
Editorial Notes:
E204
Provision for registration under section made (1.02.2013) by Land Registration Rules 2012 (S.I. No. 483 of 2012), rule 21(2), in effect as per rule 1.
Chapter III
Purchase of Certain Cottages under Act of 1936
Section 93
Interpretation (Chapter III of Part VI) and saver.
93.—(1) In this Chapter—
(a) “the Act of 1950” means the Housing (Amendment) Act, 1950 (repealed by this Act);
(b) “annuity” (except in section 101) has the same meaning as in the Act of 1936 and includes part of such annuity;
(c) “cottage” means a cottage provided under the Labourers Acts, 1833 to 1962, and, save where the context otherwise requires, includes the plot (if any) provided with such cottage;
(d) “purchase scheme” has the same meaning as it has for the purposes of the Act of 1936;
(e) “qualified person” means a qualified person for the purposes of section 16 of the Act of 1936.
(2) Notwithstanding the repeal by this Act of section 26 of the Housing (Amendment) Act, 1958, the Act of 1936 together with section 1 and Part III of the Housing and Labourers Act, 1937, shall continue in force until such time as they are repealed or terminated.
Section 94
Purchase of certain cottages under Act of 1936.
94.—(1) Where a housing authority have provided a cottage before the 1st day of January, 1966, and the authority have not complied with the requirement of subsection (2) of section 12 of the Act of 1936 (repealed by this Act) in relation to the cottage, the authority shall, not later than twelve months after the commencement of this section, prepare and submit to the Minister a purchase scheme in relation to the cottage.
(2) The provisions of the Act of 1936 shall apply as respects any purchase scheme prepared and submitted to the Minister under this section in like manner as if the scheme had been prepared and submitted under that Act.
Section 95
Restriction on applications under section 16 of Act of 1936.
95.—(1) Section 16 of the Act of 1936 shall have effect subject to the following modifications:
(a) where a purchase scheme in relation to a cottage is in force immediately before the commencement of this section and no application in respect of the cottage has been sent to the housing authority under the said section 16, an application may be sent under that section if, but only if, it is so sent not later than eighteen months after the commencement of this section;
(b) where a purchase scheme in relation to a cottage comes into force on or after the commencement of this section, an application in respect of the cottage may be sent to the housing authority if, but only if, it is so sent not later than eighteen months after the commencement of this section or six months after the day on which the purchase scheme comes into force, whichever is the later.
(2) A housing authority shall inform each tenant of a cottage within their functional area of the application which may be sent to the authority by a qualified person and the period within which the application must be sent and each such tenant shall be so informed as soon as practicable after,
(a) in case the relevant purchase scheme is in force immediately before the commencement of this section—such commencement, or
(b) in case the relevant purchase scheme comes into force on or after the commencement of this section—the day on which the purchase scheme comes into force.
Section 96
Cottages in urban areas.
96.—(1) Where a cottage in respect of which an application may be sent under section 16 of the Act of 1936 comes within an urban area not more than eighteen months either before or after the commencement of section 94 of this Act, the housing authority to whom the application may be so sent shall not, within the period during which the application may be so sent, transfer the cottage to the housing authority for the urban area.
(2) The right of a person to send an application under section 16 of the Act of 1936 shall not in any way be affected by reason only of the fact that the cottage is at any time situate within an urban area.
(3) Where a cottage purchased under the Act of 1936 comes within an urban area, whether before or after the commencement of this section, all the provisions of the Act of 1936 shall continue to apply in relation to the cottage and the functions in relation to the cottage which could formerly be performed by the authority by whom the relevant vesting order under section 17 of the Act of 1936 was made shall thenceforth be performed by the housing authority for the urban area and in case the cottage came within an urban area before the commencement of this section, the said provisions shall be deemed to have continued to so apply and the said functions shall be deemed to have been so performable as and from the date on which the cottage came within the urban area.
(4) In this section, “urban area” means a county or other borough or urban district.
Section 97
Power to declare certain persons to be qualified persons.
97.—Where, immediately before the commencement of this section, a cottage is let by a housing authority under section 24 of the Act of 1950, the following provisions shall have effect:
(a) the authority may declare that the person to whom the cottage was so let is a qualified person, and thereupon such person shall become a qualified person;
(b) the making of a declaration under this subsection shall be a reserved function.
Section 98
Cottage or plot may be charged, mortgaged, subdivided or alienated.
98.—(1) Notwithstanding sections 17 and 21 of the Act of 1936, and subject to the provisions of this section, any cottage, plot or part of a plot held with a cottage may be and shall be deemed always to have been capable, during the payment period in respect of the cottage, of being charged, mortgaged, subdivided or alienated otherwise than by devise or by operation of law, with the consent of the relevant housing authority.
(2) Without prejudice to any other power in that behalf, a housing authority may withhold their consent to the alienation of a cottage if they are of opinion that—
(a) the person to whom it is intended to alienate the cottage is a person who is not in need of housing, or
(b) the alienation would, if effected, cause or be likely to cause the person intending to make the alienation or any of his dependants to be a person without adequate or suitable housing.
(3) Where a cottage which is subject to and charged with the future payment of an annuity is intended to be sold or transferred, the housing authority may, before consenting to the sale or transfer, require the annuity to be redeemed under section 99 of this Act.
(4) Where a plot or part of a plot held with a cottage which is subject to and charged with the future payment of an annuity is charged, mortgaged, subdivided or alienated otherwise than by devise or by operation of law, after the commencement of this section, the housing authority shall apportion the annuity in such manner as they consider appropriate, and in the case of a sale or a transfer the authority shall require to be redeemed under section 99 of this Act the part of the annuity apportioned by them in respect of the plot or the part of a plot.
(5) F72[…]
(6) In case any person, without the consent of a housing authority, attempts or purports to effect in relation to any cottage, plot or part of a plot held with a cottage, a charge, mortgage, subdivision or alienation as respects which the consent of a housing authority is required by this section or by a vesting order made under section 17 of the Act of 1936, such attempted or purported charging, mortgaging, subdivision or alienation shall be null and void against all persons; provided, however, that in any case where the consent of the authority is given after the attempted or purported charging, mortgaging, subdivision or alienation, such consent shall operate, if the authority so direct, to validate with retrospective effect, such attempted or purported charging, mortgaging, subdivision or alienation.
Annotations
Amendments:
F72
Repealed (9.08.1979) by Housing (Miscellaneous Provisions) Act 1979 (27/1979), s. 23(1) and sch., S.I. No. 276 of 1979.
Section 99
Redemption of annuities.
99.—An annuity at any time outstanding may, if the housing authority entitled to receive the annuity think fit, be redeemed by the person liable to pay the annuity by payment to the authority of such amount as may be approved by the Minister, and the premises, which but for this section would be subject to and charged with the payment of the annuity or the part, shall, on receipt by the authority of the amount so approved, stand freed and discharged from the payment of the annuity.
Section 100
Act of 1936 wholly or otherwise to cease to apply in certain circumstances.
100.—(1) Where—
(a) a cottage, plot or part of a plot held with a cottage, subject to and charged with the future payment of an annuity is either alienated, or is acquired by the housing authority to whom, before the acquisition, the annuity was required to be paid, or
(b) an annuity is redeemed under section 99 of this Act,
all the provisions of the Act of 1936, including the statutory conditions which but for this subsection would continue to apply in respect of the cottage, plot or part of a plot during the payment period shall, in case the cottage, plot or part of a plot is so acquired or the annuity, as respects the cottage, plot or part of a plot is redeemed in full, cease so to apply, or in any other case, cease so to apply to such extent as the housing authority may, by order, determine.
(2) In this section, “statutory conditions” and “payment period” have the same meanings as in section 17 of the Act of 1936.
Section 101
Provisions as respects amount of annuities.
101.—(1) Notwithstanding anything contained in the Act of 1936 or in a purchase scheme, the provisions of subsection (2) of this section shall have effect.
(2) Where the rent of a cottage is revised, whether before or after the commencement of this section, otherwise than on account of any change in the amount of the municipal or county rate, or otherwise than on account of the provisions of a scheme providing for graded or differential rents, the following provisions shall apply:
(a) the amount of the terminable annuity to be paid in respect of the cottage as the consideration for the purchase thereof shall be the amount (in this section referred to as the revised amount) which bears the same proportion to the yearly amount payable in respect of such rent, when so revised, as the amount of the terminable annuity specified in the relevant purchase scheme bears to the amount which was payable annually as respects such rent when the purchase scheme came into force, and
(b) the amount of the terminable annuity specified in the relevant purchase scheme shall, for the purposes of the Act of 1936, be deemed to be equal to the revised amount.
Annotations
Modifications (not altering text):
C54
Reference to a county rate construed (1.06.2014) by Local Government Reform Act 2014 (1/2014), s. 34, S.I. No. 214 of 2014.
References to county rate
34. Except where the contrary intention appears from this Act, a reference however expressed in any enactment to a county rate (being a county rate to which section 12 of the Local Government Act 1946 relates) shall, if the context permits, be read as a reference to a rate in respect of a county council or a city and county council.
Section 102
Amendment of certain provisions of, and validation of certain orders under, Act of 1936.
102.—(1) The Act of 1936 shall be amended as follows:
(a) paragraph (d) of subsection (2) of section 17 is hereby amended by the insertion of the following subparagraph after subparagraph (vi):
“(via) that subject to the provisions of subparagraph (iii) of this paragraph, the cottage shall be occupied as his normal place of residence by a person who is a person mentioned in subparagraph (ii) of this paragraph,”;
(b) in section 24—
(i) “or if during such period the cottage for a continuous period of more than eighteen months, is not occupied as his normal place of residence by a person mentioned in subparagraph (ii) of paragraph (d) of subsection (2) of section 17 of this Act,” is hereby inserted before “such board of health may” in subsection (1);
(ii) “any other grounds” is hereby substituted for “failure to comply with any other statutory condition” in subparagraph (ii) of paragraph (b) of subsection (2);
(iii) the following is hereby substituted for subsection (3):
“(3) Notwithstanding subsection (2) of this section, upon the hearing of an application under subsection (1) of this section the justice of the District Court hearing the application may—
(a) in case he is satisfied that the notice required by this section has been duly given and that a statutory condition mentioned in the notice has not been complied with, or
(b) in case he is satisfied that, for a continuous period of more than eighteen months during the payment period in respect of a cottage, the cottage has not been occupied as his normal place of residence by a person mentioned in subparagraph (ii) of subsection (2) of section 17 of this Act and on an undertaking by the applicant to pay to the person in whom, on the date of the application, the cottage is vested an amount approved by the Minister, being not less than the value of the aggregate of the moneys which have been received by the applicant towards the consideration for the purchase of the cottage to which the application relates,
issue the warrant.”;
(iv) in subsection (4), “sections 86 and 87” is hereby substituted for “section 86”, where that reference first occurs and “subject to the modification that where as respects an application under subsection (1) of this section, the name of the owner of a cottage cannot by reasonable enquiry be ascertained, a summons under the said section 86 may be addressed to ‘the owner’ without naming him” is hereby inserted after “this section.”
(v) “and thereupon the cottage shall for all purposes be deemed to be a dwelling provided under the Housing Act, 1966” is hereby inserted after “fee simple” in paragraph (b) of subsection (5);
(vi) the following is hereby inserted after subsection (5):
“(6) Upon the hearing of an application under subsection (1) of this section it shall be presumed, until the contrary is proved, that, for a continuous period of more than eighteen months during the payment period in respect of the cottage, the cottage has not been occupied as his normal place of residence by a person mentioned in the said subparagraph (ii).”
(c) in section 27—
(i) “notwithstanding that the annuity relating to the cottage has been redeemed or has otherwise ceased to be payable,” and “(in this section referred to as the consolidated holding)” are hereby inserted after “the Irish Land Commission may” and “one holding” respectively in subsection (1);
(ii) the following is hereby inserted after subsection (1):
“(1A) Subject to subsection (2) of this section, the making of a consolidating order shall operate to transfer to the relevant consolidated holding every estate, interest, right, burden, charge (including an annuity payable under this Act, a purchase annuity payable under the Land Purchase Acts or a reclamation annuity within the meaning of the Land Reclamation Act, 1949), liability or equity which immediately before the date of consolidation, was charged upon, attached to or otherwise affected the cottage or holding to which the declaration in the order relates, and any such charge so transferred shall be deemed always to have been charged on the consolidated holding and the amount of the charge shall continue to be recoverable in the manner and with the priority in and with which it could have been recovered before the order was made.”;
(iii) the following is hereby inserted after subsection (2):
“(3) The registering authority under the Act of 1891 shall, on the application of the Irish Land Commission, register the ownership of the consolidated holding and shall make such changes in the appropriate register as appear to him to be necessary”;
(d) paragraph (d) of section 29 is hereby amended by the insertion of “addressing it to ‘the owner’, without naming him and” before “delivering” and by the substitution of “or” for “or by”.
(2) Notwithstanding subsection (2) of section 17 of the Act of 1936, an order made under subsection (1) of that section and expressed to vest a cottage in a person in fee simple on a day being not later than the 31st day of December, 1964, shall be deemed never to have failed to operate to vest the cottage by reason only of the fact that the vesting day expressed in the order is a day other than the gale day which next followed the date of the order.
(3) F73[…]
(4) Paragraph (a) of subsection (1) of this section shall be deemed to have come into operation on the 29th day of June, 1936, and every order under section 17 of the Act of 1936 and made before the commencement of this section shall be deemed to have expressed and shall operate and shall be deemed always to have operated to apply the provisions contained in the amendment effected by the said paragraph (a).
Annotations
Amendments:
F73
Repealed (19.08.1988) by Housing Act 1988 (28/1988), s. 30(1) and sch., S.I. No. 199 of 1988.
Section 103
Amendment of section 46 of Land Act, 1923.
103.—Section 46 of the Land Act, 1923, shall be construed as if the references to the original holding included references to a cottage in respect of which an annuity has been fully paid, or has been redeemed under section 3 of the Labourers Act, 1965, or section 99 of this Act.
Section 104
Amendment of sections 6 and 7 of Land Act, 1946.
104.—Sections 6 and 7 of the Land Act, 1946, shall each be construed as if the references to the original holding included references to a cottage.
Section 105
Saver.
105.—Nothing in this Chapter shall be construed as enabling a housing authority to make a purchase scheme in relation to any of the following:
(a) a cottage in relation to which a special contribution within the meaning of section 44 of this Act is made by the Minister to the authority;
(b) a cottage containing two or more separate tenements;
(c) a cottage situate on state land (other than state land to which the housing authority have, within six months after the commencement of this section, become the owner in fee simple);
(d) a cottage which, immediately before the commencement of this section, was appropriated under section 3 of the Housing (Amendment) Act, 1942 (repealed by this Act);
(e) a cottage in relation to which subsection (1) of section 34 of the Act of 1948 would apply but for section 6 of this Act;
(f) a cottage provided under section 24 of the Act of 1950 other than a cottage in relation to which a declaration is made either under subsection (3) of the said section 24 or section 97 of this Act.
Chapter IV
Miscellaneous
Section 106
Duty of housing authority to put certain cottages and dwellings into good structural condition.
106.—F74[…]
Annotations
Amendments:
F74
Repealed (9.08.1979) by Housing (Miscellaneous Provisions) Act 1979 (27/1979), s. 23(1) and sch., S.I. No. 276 of 1979.
Editorial Notes:
E205
Previous affecting provision: existing regulations carried forward under certain conditions (9.08.1979) by Housing (Miscellaneous Provisions) Act 1979 (27/1979), s. 23(3) and sch., S.I. No. 276 of 1979; no regulations remain in force.
E206
Previous affecting provision: power pursuant to section exercised (18.09.1974) by Housing Authorities (Borrowing and Management) Regulations 1974 (S.I. No. 276 of 1974); revoked (26.09.1980) by Housing Regulations 1980 (S.I. No. 296 of 1980), art. 5 and sch. 1.
E207
Previous affecting provision: power pursuant to section exercised (13.04.1967) by Housing Authorities (Loan Charges Contributions and Management) Regulations 1967 (S.I. No. 71 of 1967); revoked (18.09.1974) by Housing Authorities (Borrowing and Management) Regulations 1974 (S.I. No. 276 of 1974), reg. 3 and sch. part II.
Section 107
Recovery of possession in certain circumstances of houses and dwellings sold or leased by housing authority.
107.—(1) If during the payment period—
(a) the owner of a house sold or leased under section 11 of the Housing (Ireland) Act, 1919, cannot be found or ascertained,
(b) a special condition applying as respects a dwelling is not complied with, or
(c) the owner of a dwelling sold or leased under section 90 of this Act cannot be found or ascertained,
the housing authority may (without prejudice to any other method of recovering possession) subject to the provisions of this section, apply to the justice of the District Court having jurisdiction in the district court district in which the house or dwelling is situate for the issue of a warrant under this section.
(2) Before making an application under subsection (1) of this section in relation to the non-compliance with a special condition applying as respects a dwelling, the housing authority shall give to the owner of the dwelling not less than twenty-one days’ notice in writing of their intention to make the application and every such notice shall state the grounds on which the application is to be based.
(3) Upon the hearing of an application under subsection (1) of this section grounded upon non-compliance with the special condition mentioned in paragraph (b) of section 89 of this Act, it shall be presumed, until the contrary is proved, that the condition has not been complied with.
(4) Upon the hearing of an application duly made under subsection (1) of this section, the justice of the District Court hearing the application shall—
(a) in case he is satisfied that the notice required by this section has been duly given and that a special condition mentioned in the notice has not been complied with, or
(b) in case he is satisfied that the owner of the house or dwelling cannot by reasonable enquiry be found or ascertained and on an undertaking being given by the authority in accordance with subsection (7) of this section,
issue the warrant.
(5) The provisions of sections 86, 87 and 88 of the Act of 1860 shall apply in respect of the issue of a warrant under this section subject to the modification that where as respects an application under subsection (1) of this section, the name of the owner of a house or dwelling cannot by reasonable enquiry be ascertained, a summons under the said section 86 may be addressed to “the owner” without naming him, and the warrant when so issued shall have the same effect as a warrant under the said section 86.
(6) Whenever a warrant is issued under this section and a housing authority recover possession of a house or dwelling by virtue of the warrant, the following provisions shall have effect:
(a) all the estate, right, interest and title of the person to whom the house or dwelling was leased or sold, and any other person claiming through or under him shall vest in the authority without any conveyance or transfer and thereupon the house or dwelling shall for all purposes be deemed to be a dwelling provided under this Act;
(b) all the terms or conditions, including any special condition, applied to the dwelling by virtue of this Part shall cease to apply thereto.
(7) In a case in which the owner cannot be found or ascertained, the housing authority may, at the hearing of an application under subsection (1) of this section, give to the court, as respects the relevant house or dwelling, an undertaking in writing to pay in accordance with an order of the court under subsection (8) of this section the appropriate amount or part thereof together with interest F75[at the rate at which on the date of the undertaking the authority could borrow from the Housing Finance Agency for the purposes of house purchase loans which are subject to a variable interest rate], and calculated as respects the period beginning on the date of the undertaking and ending either on the date of the direction of the court under the said subsection (8) or twelve years after such date, whichever is the earlier.
(8) Any person who, but for the provisions of subsection (6) of this section, would be entitled to all or part of the estate, right, interest and title in a house or dwelling mentioned in subsection (1) of this section and as respects which an undertaking is given under subsection (7) of this section, may make an application to the justice of the District Court having jurisdiction in the district court district in which the house or dwelling is situate for an order under this subsection and on the hearing of the application the justice may, if satisfied that the applicant would, but for the provisions of the said subsection (6) be entitled as aforesaid, order the payment to the applicant by the housing authority by whom an undertaking under the said subsection (7) was given of the appropriate amount and interest, or so much thereof as he shall in the particular circumstances of the case consider appropriate.
(9) In this section—
“the appropriate amount” means the value of the aggregate of any moneys paid to a housing authority in respect of the sale or lease by the authority of a house or dwelling mentioned in subsection (1) of this section and in relation to which the application is brought under subsection (8) of this section;
“cottage” means a cottage within the meaning of section 93 of this Act;
“payment period” means the period for payment to the housing authority of purchase or other money or of rent in respect of the relevant house or dwellings;
“special condition” means a special condition within the meaning of section 89 of this Act.
Annotations
Amendments:
F75
Substituted (1.12.2009) by Housing (Miscellaneous Provisions) Act 2009 (22/2009), s. 8 and sch. 2 part 1 item 2, S.I. No. 449 of 2009.
Modifications (not altering text):
C55
Application of section restricted (19.08.1988) by Housing Act 1988 (28/1988), s. 17(3), S.I. No. 199 of 1988.
Mortgage of houses sold or leased by housing authorities.
17.— …
(3) Notwithstanding section 107 of the Principal Act, a housing authority shall, before making an application for a warrant under subsection (1) of that section in respect of a house sold or leased by them, give to a mortgagee in whose favour a mortgage on the house has been effected not less than two months’ notice in writing of the authority’s intention to make the application, and every such notice shall state the grounds on which the application is to be based.
Section 108
Capital money.
F76[108.—Capital money arising from the disposal of land under this Part of this Act shall be applied for a purpose approved of by the Minister.]
Annotations
Amendments:
F76
Substituted (19.08.1988) by Housing Act 1988 (28/1988), s. 22, S. I. No. 199 of 1988
F77
Repealed by Local Government Act 2001 (37/2001), s. 5(1) and sch. 3 part 1, not commenced as of date of revision, subject to exception in s. 6.
Modifications (not altering text):
C56
Section repealed by Local Government Act 2001 (37/2001), s. 5(1) and sch. 3 part 1, not commenced as of date of revision.
108.—F77[…]
HOUSING (MISCELLANEOUS PROVISIONS) ACT 1997
Section 1A
F9[
Person ceasing to be relevant purchaser
1A. (1) A person shall cease to be a relevant purchaser for the purposes of this Act—
(a) where the sale of the house concerned was effected by a transfer order made by way of a shared ownership lease provided for in accordance with Regulation 11 of the Housing (Sale of Houses) Regulations 1995 (S.I. No. 188 of 1995)—
(i) on the date of expiry of the lease due to the effluxion of time, or
(ii) where the purchaser purchases the reversion expectant on the termination of the lease, on the expiry of—
(I) the period of 20 years from the date the transfer order became effective, or
(II) the period from the date the transfer order became effective to the date of purchase of the reversion expectant on the termination of the lease,
whichever is the longer period,
(b) in the case that the sale of the house was effected by a transfer order made by way of a lease other than a lease referred to in paragraph (a) —
(i) on the date of expiry of the lease due to the effluxion of time, or
(ii) where the purchaser acquires the fee simple in the house from the housing authority under section 26 of the Landlord and Tenant (Ground Rents) (No. 2) Act 1978, on the expiry of—
(I) the period of 20 years from the date the transfer order became effective, or
(II) the period from the date the transfer order became effective to the date of acquisition of the fee simple,
whichever is the longer period,
(c) in the case that the house was sold under Part 3 or 4 of the Housing (Miscellaneous Provisions) Act 2009 or Part 3 of the Housing (Miscellaneous Provisions) Act 2014, on the expiration of the charged period provided for by each of those Parts respectively, or
(d) in any other case, on the expiry of the period of 20 years from the date of the sale of the house.
(2) Subsection (1) shall apply to a person irrespective as to when the house (other than an affordable house) was sold by the housing authority to the person concerned and, in the definition of ‘relevant purchaser’ in section 1—
(a) the reference in paragraph (a) of that definition to the Housing Acts 1966 to 2014, and
(b) paragraph (b) of that definition,
shall be construed accordingly.]
Annotations
Amendments:
F9
Inserted (13.04.2015) by Housing (Miscellaneous Provisions) Act 2014 (21/2014), s. 19(2), S.I. No. 121 of 2015.
Housing (Miscellaneous Provisions) Act 2014
PART 4
TENANT PURCHASE OF APARTMENTS
Annotations
Editorial Notes:
E71
Fee chargeable in respect of an application to the Land Registry for registration of a transfer or termination consequential on lapse of a designation under Part prescribed (1.12.2012) by Land Registration (Fees) Order 2012 (S.I. No. 380 of 2012), art. 4(1) and sch. item 16, in effect as per reg. 1(2).
E72
Fee chargeable in respect of an application to the Land Registry for registration of an apartment complex transfer order, an apartment transfer order, or an apartment assignment order under Part prescribed (1.12.2012) by Land Registration (Fees) Order 2012 (S.I. No. 380 of 2012), art. 4(1) and sch. item 15, in effect as per reg. 1(2).
E73
Apartments specifically designed for occupation by one or more than one elderly person are excluded from sale under Part (1.01.2012) by Housing (Tenant Purchase of Apartments) Regulations 2011 (S.I. No. 679 of 2011), reg. 39, in effect as per reg. 2.
E74
Arrangements for tenant plebiscite, and terms and conditions of scheme for tenant purchase of local authority apartments, under Part prescribed (1.01.2012) by Housing (Tenant Purchase of Apartments) Regulations 2011 (S.I. No. 679 of 2011).
E75
Prohibition on sale of dwellings by housing authority or approved body under an incremental purchase arrangement to a person who previously purchased a dwelling from a housing authority or an approved body under Part (14.06.2010) by Housing (Incremental Purchase) Regulations 2010 (S.I. No. 252 of 2010), reg. 5, in effect as per reg. 2.
E76
Previous affecting provision: application of Housing (Local Authority Loans) Regulations 2012 (S.I. No. 408 of 2012) to the provision of loan finance by housing authorities to first time buyers for the purchase of an apartment under Part provided (31.07.2012) by Housing (Local Authority Loans) Regulations 2012 (S.I. No. 408 of 2012), reg. 3(c), in effect as per reg. 1(2); revoked (1.02.2018) by Housing (Rebuilding Ireland Home Loans) Regulations 2018 (S.I. No. 25 of 2018), reg. 15(1), in effect as per reg. 1(2), subject to transitional provisions in reg. 15(2).
E77
Previous affecting provision: application of Housing (Local Authority Loans) Regulations 2009 (S.I. No. 145 of 2009) to the provision of loan finance by housing authorities to first time buyers for the purchase of an apartment under Part provided by Housing (Local Authority Loans) Regulations 2009 (S.I. No. 145 of 2009), reg. 3, as amended (1.01.2012) by Housing (Local Authority Loans) (Amendment) Regulations 2011 (S.I. No. 678 of 2011), reg. 2, in effect as per reg. 1(2); revoked (31.07.2012) by Housing (Local Authority Loans) Regulations 2012 (S.I. No. 408 of 2012), in effect as per reg. 1(2).
Section 50
Interpretation (Part 4).
50.— (1) In this Part—
“apartment” means a separate and self-contained dwelling in an apartment complex which requires arrangements for the upkeep and management of all or any part of the common areas, structures, works or services other than by the owner of the apartment;
“apartment assignment order” has the meaning given to it by section 64 (2);
“apartment complex” means land on which there stands erected a building or buildings, comprising or together comprising not less than 5 apartments (but not including any community apartment) and the common areas, structures, works and services;
“apartment complex service charge” has the meaning given to it by section 67 (1) and “ service charge ” shall be construed accordingly;
“apartment complex support fund” has the meaning given to it by section 70;
“ apartment complex transfer order ” has the meaning given to it by section 59;
“apartment owner” , in relation to an apartment (including a community apartment) in a designated apartment complex, means, subject to section 65 (1) (b)—
(a) an apartment purchaser, or
(b) the housing authority, in the case of an apartment which has not been sold by the housing authority—
(i) under section 90 of the Principal Act, whether before or after the coming into operation of this Part, or
(ii) under this Part and any regulations made thereunder;
“apartment purchaser” means, subject to section 76, a person who purchases an apartment under this Part and includes a person in whom there subsequently becomes vested the interest of the apartment purchaser or his or her successor in title and the personal representative of that person or successor in title and references to “purchaser” shall be construed accordingly;
“apartment transfer order” has the meaning given to it by section 60;
“charging order” has the meaning given to it by section 74;
“charged period” has the meaning given to it by section 74;
“charged share” has the meaning given to it by section 74;
“common areas, structures, works and services” means, in relation to an apartment complex, areas, structures, works and services that are, or are intended to be, common to apartments (including community apartments) in the apartment complex and enjoyed therewith, including where relevant access and side roads, architectural features, circulation areas, footpaths, internal common stairways, open spaces, parking areas, utility rooms and that portion of the roof or exterior of any building not intended to form or not forming part of any individual apartment;
“community apartment” means an apartment in an apartment complex that is authorised by the housing authority to be used for activities for the common benefit or enjoyment of the occupiers of apartments in the apartment complex;
“current market value” means the price for which an apartment might reasonably be expected to be sold, on the open market, on the date of sale under section 76, in its existing state of repair and condition and not subject to the conditions specified in section 64 (5) or to a charging order;
“designated apartment complex” has the meaning given to it by section 55 (1);
“financial year”, in relation to a management company, means a period of 12 months ending on 31 December in any year, and, in the case of the first financial year of a management company, means the period commencing on the expiry of the period specified in section 63 (1) and ending on 31 December next following;
“initial selling period” has the meaning given to it by section 56 (2);
“management company” has the meaning given to it by section 57 (2);
“management company annual charges” has the meaning given to it by section 69;
“member” means a member of the management company;
“property management services” means services in respect of the management of an apartment complex carried out on behalf of a management company, and such services include—
(a) administrative services, and
(b) the procurement of or any combination of the maintenance, servicing, repair, improvement or insurance of the apartment complex or any part or parts of the apartment complex;
“purchase money”, in relation to an apartment, means the monetary value of the proportion of the purchase price of the apartment fixed by the housing authority, in accordance with regulations made under section 77 for the purposes of calculating the purchase money, as the proportion that is required to be paid to purchase the apartment;
“purchase price”, in relation to an apartment, means the price of the apartment determined by a housing authority in accordance with regulations made under section 77 for the purposes of calculating the purchase price;
“section 53 proposal” has the meaning given to it by section 53;
“sell”, in relation to an apartment, means to sell or assign a leasehold estate or interest;
“sinking fund” has the meaning given to it by section 68 (1);
“sinking fund contribution” has the meaning given to it by section 68 (3);
“tenant” means the tenant of an apartment pursuant to a tenancy agreement between the household and a housing authority.
(2) Save where otherwise provided for by this Part—
(a) references in this Part to an apartment, shall not include a community apartment, and
(b) references in this Part to a tenant, shall not include any tenant of a community apartment.
(3) In this Part, save where the context otherwise requires, a reference to a transfer of ownership shall be construed as a reference to a deed of transfer, conveyance or assignment.
Section 51
Consideration of designation of apartment complex.
51.— (1) Subject to and in accordance with this Part and any regulations made thereunder, a housing authority may propose to designate an apartment complex for the purpose of making all of the apartments comprised therein, in respect of which the housing authority is the apartment owner, available for sale to the tenants thereof, under this Part and any regulations made thereunder, where the housing authority is satisfied that the conditions specified in subsection (2) are met.
(2) The conditions referred to in subsection (1) are that—
(a) the housing authority considers that the sale of the apartments concerned is consistent with good estate management and management of its overall dwelling stock in accordance with the policy objectives set out in its housing services plan relating to the management and maintenance of dwellings owned by the housing authority,
(b) the apartment complex is suitable for designation having regard to, but not necessarily limited to, the following—
(i) the configuration of the apartment complex by reference to its design and layout and to the common areas, structures, works and services,
(ii) the annual cost of managing and maintaining the apartment complex and providing for future capital works to preserve and improve the apartment complex, and
(iii) the number of apartments available for sale,
(c) the housing authority is satisfied, in a case where structural work has been carried out on the apartment complex within the previous 10 years or, in any other case, where a survey of the structural condition of the apartment complex has been carried out within the previous 5 years, that the apartment complex is in good structural condition, order and repair,
(d) with respect to the apartment complex concerned, neither the housing services plan nor the housing action programme contain—
(i) proposals to carry out reconstruction or improvement works by virtue of section 12 of the Act of 1988, or
(ii) plans for the regeneration of the area in which the apartment complex is situated,
(e) good and marketable title may be transferred to a management company under section 59 for the purposes of this Part, and
(f) none of the apartments in the apartment complex is of a class excluded from sale under this Part by regulations made under section 77.
Section 52
Preparation of draft proposal to designate apartment complex.
52.— (1) Where a housing authority proposes to designate an apartment complex, the housing authority shall prepare a draft proposal, which shall—
(a) specify the apartment complex which it is proposed to designate,
(b) include information relating to the arrangements for—
(i) holding a tenant plebiscite in respect of the proposed designation of the apartment complex within 3 months of the adoption by the housing authority of a section 53 proposal,
(ii) transferring ownership of the apartment complex to a management company,
(iii) the sale of apartments in the apartment complex to the tenants of those apartments,
(iv) managing and maintaining the common areas, structures, works and services in the apartment complex, and
(v) funding expenditure of a type referred to in section 68 (1),
(c) include information relating to the terms and conditions of sale of an apartment in the apartment complex to the tenant thereof, including—
(i) the obligation to pay the management company annual charges and the estimated level thereof in the first year after purchase,
(ii) the restrictions on resale of an apartment by an apartment purchaser, and
(iii) the covenants in the apartment assignment order and the consequences for the apartment purchaser of failure to observe same,
(d) include information relating to the performance by the housing authority of its functions in respect of apartments in the apartment complex the subject of tenancy agreements between the housing authority and the tenants thereof,
(e) set out indicative figures for the projected purchase price and purchase money for the different classes of apartment in the apartment complex, and
(f) include any other information that the authority considers relevant to the draft proposal.
(2) The housing authority shall—
(a) publish and maintain on the Internet a copy of a draft proposal under this section to designate an apartment complex,
(b) make the draft proposal available for inspection on request by any person, without charge, at its offices and such other places as it considers appropriate during normal office hours,
(c) give notice of the draft proposal to—
(i) each tenant of an apartment in the apartment complex, and
(ii) each member of the housing authority.
(3) A housing authority shall take such steps as it considers appropriate for the purposes of informing tenants and seeking their views about a draft proposal under this section to designate an apartment complex including but not limited to—
(a) the holding of an information meeting or meetings about the draft proposal, and
(b) arranging to meet with individual tenants, as appropriate, on request, regarding the draft proposal.
(4) For the purposes of subsection (1) (a), the draft proposal may include a map that clearly indicates the boundaries, common areas, structures, works and services of the apartment complex concerned.
Section 53
Proposal to designate apartment complex.
53.— (1) Where, subject to the conditions specified in section 51 (2) continuing to be satisfied and having regard to the views of the tenants concerned expressed at information meetings or otherwise under section 52 (3), the F51[chief executive] decides to proceed with the proposal to designate the apartment complex, the F51[chief executive] shall submit the draft proposal to the members of the housing authority with or without such modifications as the F51[chief executive] considers appropriate.
(2) Where the F51[chief executive] decides not to proceed with the proposal to designate an apartment complex—
(a) because any condition specified in section 51 (2) is no longer satisfied,
(b) having regard to the views of the tenants concerned expressed at information meetings or otherwise under section 52 (3), or
(c) for any other reason,
the F51[chief executive] shall advise the tenants concerned and the members of the housing authority of his or her decision and the reasons for that decision.
(3) The housing authority may, with or without modification, adopt the draft proposal, submitted to it under subsection (1), to designate the apartment complex (in this Part referred to as a “section 53 proposal”).
(4) The adoption under this section of a section 53 proposal is a reserved function.
Annotations
Amendments:
F51
Substituted (1.06.2014) by Local Government Reform Act 2014 (1/2014), s. 5(3) and sch. 2 part 1.
Section 54
Tenant plebiscite.
54.— (1) Where a housing authority adopts a section 53 proposal, it shall hold a tenant plebiscite in respect of the apartment complex concerned within the period specified in the proposal and in accordance with this section and any regulations made thereunder for the purpose of ascertaining the level of—
(a) support for the designation of the apartment complex, and
(b) willingness of tenants who purchase apartments in the apartment complex under this Part to serve as directors of the management company.
(2) (a) Subject to paragraph (b), each apartment in the apartment complex concerned shall be afforded one vote in the plebiscite.
(b) Where an apartment has been sold by the housing authority under section 90 of the Principal Act, whether before or after the coming into operation of this Part, the apartment shall not be included for the purposes of a tenant plebiscite under this section.
(3) A vote under subsection (2) may only be exercised—
(a) by the tenant of the apartment at the time of the plebiscite, and
(b) by completing and returning a ballot paper in the form and manner prescribed under subsection (6).
(4) In the case of an apartment where there are 2 or more tenants—
(a) they shall be considered as one tenant for the purposes of subsection (3) (a),
(b) they are not entitled to vote in the plebiscite unless a majority of them concurs, and
(c) unless the vote is signed by a majority of them, it shall be disregarded for the purposes of the plebiscite.
(5) Not later than 2 months after the adoption of the proposal to designate the apartment complex, the housing authority shall send to the tenants concerned, by ordinary post or any other means that may be prescribed under subsection (6), all ballot papers for completion under subsection (3) together with a copy of the section 53 proposal and any other explanatory material it considers relevant.
(6) The Minister may make regulations—
(a) relating to and governing the conduct of a tenant plebiscite,
(b) prescribing the form of a ballot paper under this section and the manner in which it is to be completed and returned, and
(c) prescribing means other than post for the delivery and return of ballot papers under this section.
Annotations
Editorial Notes:
E78
Power pursuant to subs. (6) exercised (1.01.2012) by Housing (Tenant Purchase of Apartments) Regulations 2011 (S.I. No. 679 of 2011), in effect as per reg. 2.
Section 55
Designation of apartment complex.
55.— (1) Where, following the holding of a tenant plebiscite, the conditions specified in section 51 (2) continue to be met, and subject to the conditions specified in subsection (2) being satisfied, the housing authority may designate the apartment complex (in this Part referred to as a “designated apartment complex”) in accordance with the section 53 proposal.
(2) The conditions referred to in subsection (1) are that—
(a) the number of votes in favour of the designation of the apartment complex equals or exceeds 65 per cent of the number of tenants entitled to vote at the plebiscite, and
(b) the number of voters who indicate at the plebiscite that, if designation proceeds and they purchase their apartments, they are willing to serve as directors of the management company equals or exceeds the greater of—
(i) the minimum number of tenants specified in column (2) of the Table to this subsection opposite the entry in column (1) of the class of apartment complex corresponding to the class of the apartment complex concerned, or
(ii) the number (rounded up to the nearest higher whole number) of tenants represented by the minimum proportion of all tenants specified in column (3) of the said Table opposite the said entry in column (1).
TABLE
Class of apartment complex determined by the number of apartments comprised therein of which the housing authority is the apartment owner
(1)
Minimum number of tenants in apartment complex willing to serve as directors of management company
(2)
Minimum proportion of all tenants in apartment complex willing to serve as directors of management company
(3)
Apartment complex comprising not more than 9 apartments
3
60%
Apartment complex comprising 10 to 19 apartments
6
40%
Apartment complex comprising 20 to 29 apartments
8
None
Apartment complex comprising 30 to 59 apartments
9
None
Apartment complex comprising 60 apartments or more
10
None
(3) Where an apartment complex is designated under subsection (1), the designation lapses if no apartment is sold by the housing authority under this Part before the expiry of the initial selling period.
(4) The designation of an apartment complex is a reserved function.
Section 56
Initial selling period.
56.— (1) A housing authority shall, within 6 months of designating an apartment complex under section 55, by written notice given to each tenant of an apartment in the apartment complex, invite him or her to submit to the authority an application to purchase the apartment.
(2) Apartments in a designated apartment complex shall be available for sale under this Part to the tenants thereof during the period (in this Part referred to as the “initial selling period”) beginning on the date specified in subsection (3) and ending on the later of the following—
(a) 3 years from the date on which the initial selling period begins, or
(b) 5 years from the date on which the initial selling period begins in a case where the housing authority, before the expiry of the period specified in paragraph (a), extends that period for a further period of 2 years where it is satisfied that the sales of at least the minimum number of apartments available for sale in the designated apartment complex, calculated in accordance with section 64 (4), will proceed during any such extended period.
(3) The specified date for the purposes of subsection (2) is the date of the first occasion following designation of the apartment complex under section 55 on which the housing authority, pursuant to an application referred to in subsection (1), provides to a tenant the necessary information, documentation, particulars of title and terms and conditions of sale relating to the apartment concerned together with information and documentation relating to the management company.
(4) The extension of the initial selling period for the purposes of subsection (2) (b) is a reserved function.
(5) The F52[chief executive] shall arrange for the establishment of a management company under section 57 where the F52[chief executive] is satisfied that—
(a) the sales are ready to proceed, during the initial selling period, of at least the minimum number of apartments available for sale in the designated apartment complex calculated in accordance with subsection (6), and
(b) in relation to those sales that are ready to proceed as referred to in paragraph (a), the number of tenants of the apartments concerned that have indicated their willingness to serve as directors of the management company equals or exceeds half of the minimum number of apartments calculated in accordance with subsection (6).
(6) The minimum number of apartments for the purposes of subsection (5) (a) is calculated as the greater of—
(a) the minimum number of apartments specified in column (2) of the Table to this subsection opposite the entry in column (1) of the class of apartment complex corresponding to the class of the designated apartment complex concerned, and
(b) the minimum number (rounded up to the nearest higher whole number) of tenants represented by the minimum proportion of all apartments in the designated apartment complex concerned specified in column (3) of the said Table opposite the said entry in column (1).
TABLE
Class of apartment complex determined by the number of apartments comprised therein of which the housing authority is the apartment owner
(1)
Minimum number of apartment sales
(2)
Minimum proportion of all apartments in apartment complex
(3)
Apartment complex comprising not more than 19 apartments
2
35%
Apartment complex comprising 20 or more apartments
7
30%
(7) For the purposes of subsection (5) and section 64 (3), a sale is ready to proceed where, in accordance with the terms and conditions of sale, the tenant has—
(a) signed the apartment assignment order,
(b) paid such deposit as is payable to the housing authority in respect of the purchase concerned, and
(c) provided to the housing authority written notice of loan approval or otherwise established, to the satisfaction of the housing authority, his or her capacity to pay the balance of the purchase money on the completion of the sale to him or her.
Annotations
Amendments:
F52
Substituted (1.06.2014) by Local Government Reform Act 2014 (1/2014), s. 5(3) and sch. 2 part 1.
Section 57
Establishment and objects of management company.
57.— (1) In this section references to an apartment include a community apartment.
(2) A housing authority shall, in relation to a designated apartment complex, establish a company (in this Part referred to as a “management company”) to achieve the principal objects specified in subsections (5) and (6) which shall be a company formed and registered under the Companies Acts and limited by—
(a) shares, where there are not more than 6 apartments in the designated apartment complex concerned, or
(b) guarantee, where there are more than 6 apartments in the designated apartment complex.
(3) The name of every management company shall be comprised of the name of the designated apartment complex concerned and the words “owners’ management company” which words may be abbreviated to “OMC”.
(4) The memorandum and articles of association of a management company shall be in such form consistent with this Act as may be determined by the housing authority.
(5) The principal objects of a management company shall be stated in its memorandum of association to be as follows:
(a) to take a transfer of ownership of a designated apartment complex in accordance with an apartment complex transfer order;
(b) in the case of apartments in the designated apartment complex which have not been sold by the housing authority under section 90 of the Principal Act, whether before or after the coming into operation of this Part, to grant a lease or sublease of the apartments to the housing authority in accordance with an apartment transfer order;
(c) to manage, control and maintain the common areas, structures, works and services in accordance with section 63 (3);
(d) to carry out its functions in accordance with this Part.
(6) Subsection (5) does not prevent or restrict the inclusion of objects and powers that are—
(a) reasonably necessary, proper for or incidental or ancillary to attaining the principal objects referred to in subsection (5), and
(b) not inconsistent with this Part or any other enactment.
(7) The articles of association shall include provision for—
(a) the levying and collection annually of an apartment complex service charge and a charge in respect of the sinking fund contribution, and
(b) the covenants and agreements relating to the designated apartment complex and the apartments comprised therein.
Section 58
Annual meetings and reports of management company.
58.— (1) A management company shall—
(a) prepare and furnish to each member an annual report which complies with subsection (2), and
(b) hold a meeting at least once in each year for purposes which include the consideration of the annual report referred to in paragraph (a).
(2) An annual report of a management company shall include:
(a) a statement of income and expenditure relating to the period covered by the report;
(b) a statement of the assets and liabilities of the company;
(c) a statement of the funds standing to the credit of the sinking fund;
(d) a statement of the amount of the apartment complex service charge and the basis of such charge in respect of the period covered by the report;
(e) a statement of the projected or agreed apartment complex service charge relating to the current period;
(f) a statement of any planned expenditure on refurbishment, improvement or maintenance of a non-recurring nature which it is intended to carry out in the current period;
(g) a statement of the insured value of the designated apartment complex, the amount of the premium charged, the name of the insurance company with which the policy of insurance is held and a summary of the principal risks covered; and
(h) a statement fully disclosing any contracts entered into or in force between the management company and a director or shadow director of the company or a person who is a connected person as respects that director or shadow director.
(3) At least 21 days written notice of the meeting referred to in subsection (1) (b) shall be given to each member.
(4) A copy of the annual report referred to in subsection (1) (a) shall be given to each member at least 10 days before the meeting referred to in subsection (1) (b).
(5) The meeting referred to in subsection (1) (b) shall take place within reasonable proximity to the designated apartment complex and at a reasonable time (unless otherwise agreed by 75 per cent majority vote of the members).
(6) The obligations of a management company under this section are in addition to any other obligation or duty of such company whether arising under an Act, statutory instrument, by rule of law or otherwise.
(7) For the purposes of subsection (2) (h), “shadow director” and “connected person” have the same meanings as they have in the Companies Acts.
Section 59
Transfer of ownership of designated apartment complex to management company.
59.— (1) As soon as practicable after the establishment of the management company under section 57 the housing authority shall, for nominal consideration transfer its ownership of the apartment complex (including its interest in any apartment sold under section 90 of the Principal Act whether before or after the coming into operation of this Part) to the management company by means of an order (in this Part referred to as an “apartment complex transfer order”), in the prescribed form, made by the housing authority, which order shall be expressed and shall operate to vest, on the date specified in the order, the interest specified therein, subject as therein provided and to the terms and conditions specified in subsection (2).
(2) The terms and conditions referred to in subsection (1) include the following—
(a) that the management company shall, on the date specified in the apartment complex transfer order or as soon as practicable thereafter, lease or sublease, as the case may be, each apartment (including any community apartment) in the designated apartment complex to the housing authority in accordance with this Part other than any apartments sold by the housing authority under section 90 of the Principal Act whether before or after the coming into operation of this Part,
(b) that the transfer of ownership under subsection (1) is subject to—
(i) the tenancy agreements between the housing authority and the tenants of the apartments concerned entered into before the date of the apartment complex transfer order, and
(ii) any lease entered into between the housing authority before the date of the apartment complex transfer order for the purpose of the sale of an apartment in the designated apartment complex under section 90 of the Principal Act whether before or after the coming into operation of this Part,
(c) that the consent of the management company shall not be required in respect of the sale or letting of apartments by the housing authority under the Housing Acts 1966 to 2009,
(d) that the management company shall, where the designation of an apartment complex lapses under section 55 (3), comply with the requirements of section 61,
(e) such other terms and conditions as may be prescribed for the purposes of an apartment complex transfer order.
(3) Save as provided for by any other enactment or regulations made thereunder, the transfer of ownership of a designated apartment complex to a management company under this section shall not imply any warranty on the part of the housing authority in relation to the state of repair or condition of the apartment complex or the fitness for human habitation of the apartments concerned.
Section 60
Lease of apartment to housing authority.
60.— (1) In this section, in the case of a designated apartment complex in respect of which a leasehold interest is assigned to the management company for the purposes of section 59, a reference to a lease includes a sublease.
(2) Subject to and in accordance with this section, as soon as practicable after the date specified in the apartment complex transfer order for the purposes of section 59 (1), the management company shall, for nominal consideration, grant a lease to the housing authority in respect of each apartment (including any community apartment) in the designated apartment complex, by means of an order (in this Part referred to as an “apartment transfer order”) in the prescribed form, made by the management company, which shall be expressed and shall operate to vest, on the date specified in the order, the interest specified therein, subject as therein provided and to the terms and conditions specified in subsection (3).
(3) The terms and conditions referred to in subsection (2) include the following—
(a) that the housing authority may, without the consent of the management company—
(i) sell the apartment, under this Part, to a tenant thereof, or
(ii) without prejudice to any tenancy agreement entered into between the housing authority and a tenant of the apartment concerned before the date specified in the apartment transfer order for the purposes of subsection (2), let the apartment in accordance with and in the performance of its functions under the Housing Acts 1966 to 2009,
(b) that the housing authority shall not, without the prior written consent of the management company make material improvements to the apartment,
(c) the condition specified in section 69 (3) relating to payment of the management company annual charges in respect of the apartment and the consequences of failing to pay,
(d) that the management company shall, where the designation of an apartment complex lapses under section 55 (3), comply with the requirements of section 61,
(e) terms and conditions relating to membership of the management company, and
(f) such other terms and conditions relating to the lease of an apartment to the housing authority under this section as may be prescribed for the purposes of an apartment transfer order.
(4) This section does not apply to any apartment in a designated apartment complex sold by a housing authority under section 90 of the Principal Act whether before or after the coming into operation of this Part.
(5) In this section “material improvements” means improvements made to an apartment whether for the purposes of extending, enlarging or converting the apartment but does not include internal decoration and repair.
Section 61
Consequences of designation lapsing under section 55 .
61.— (1) Where the designation of an apartment complex lapses under section 55 (3), the housing authority shall notify the management company in writing and the management company shall, as soon as practicable after receipt of the notification—
(a) terminate the leases granted to the housing authority in respect of each apartment in accordance with the terms and conditions of the apartment complex transfer order and the apartment transfer order;
(b) transfer ownership of the apartment complex to the housing authority, subject to any lease referred to in section 59 (2) (b) (ii), and
(c) arrange for the winding up of the management company in accordance with the Companies Acts.
(2) Where the designation of an apartment complex lapses under section 55 (3) and subject to compliance by the management company with the requirements of subsection (1), the housing authority shall continue to perform its functions under the Housing Acts 1966 to 2009 relating to the management and control of the apartment complex.
Section 62
Costs incurred by management company.
62.— A housing authority shall reimburse a management company established by it in respect of such reasonable and vouched expenses as may be incurred by the management company in the performance of its functions under sections 59 , 60 and 61 .
Section 63
Management, control and maintenance of designated apartment complex.
63.— (1) Notwithstanding the transfer of ownership of a designated apartment complex to a management company under section 59, the housing authority shall manage and control the designated apartment complex in the performance of its functions under the Housing Acts 1966 to 2009, for the period beginning on the date specified in the apartment complex transfer order for the purposes of section 59 (1) and ending on the date of the first sale of an apartment in the apartment complex to the tenant thereof.
(2) The management company shall pay to the housing authority as soon as practicable after receipt thereof any charges paid to the management company in respect of the period specified in subsection (1) by any person to whom an apartment in the designated apartment complex was sold under section 90 of the Principal Act whether before or after the coming into operation of this Part.
(3) On the date of the first sale under this Part of an apartment in a designated apartment complex to the tenant thereof the management company shall, in relation to the common areas, structures, works and services in the designated apartment complex, in accordance with its memorandum and articles of association ensure the effective management and maintenance of the common areas, structures, works and services, and without prejudice to the generality of the foregoing, ensure that the designated apartment complex functions effectively and otherwise comply with the obligations imposed on the management company under and in accordance with this Part and the apartment complex transfer order.
Section 64
Sale by housing authority of apartments to tenants.
64.— (1) In this section, in the case of an apartment in respect of which a sublease is granted to the housing authority for the purposes of section 60, a reference to a lease includes a sublease.
(2) Subject to and in accordance with this Part and the Housing Acts 1966 to 2004 and subject to such regulations as may be made under section 77, a housing authority may, subject to subsections (3) and (4), in consideration of the receipt by the housing authority of the purchase money, sell an apartment, of which it is the apartment owner, in a designated apartment complex, in the state of repair and condition existing on the date of sale, to the tenant of the apartment (in this Part referred to as an “apartment purchaser”) by assignment of the lease granted to the housing authority under section 60 by means of an order (in this Part referred to as an “apartment assignment order”), in the prescribed form, made by the housing authority, which shall be expressed and shall operate to vest, on the date specified in the order, the interest specified in the order, in accordance with and subject to the terms and conditions specified in subsection (5) and the terms and conditions of a charging order.
(3) The F53[chief executive] shall not sign the apartment assignment order for the sale to a tenant under this Part of the first apartment in a designated apartment complex where—
(a) the initial selling period has expired, or
(b) he or she is not satisfied that the sales are ready to proceed (within the meaning of section 56 (7)) within 4 weeks of the date of signing the assignment order of at least the minimum number of apartments available for sale in the designated apartment complex, calculated in accordance with subsection (4), or
(c) the number of tenants of the apartments referred to in paragraph (b) who have indicated a willingness to serve as directors of the management company is less than half of the minimum number of apartments calculated in accordance with subsection (4).
(4) The minimum number of apartments for the purposes of subsection (3) (b) includes the first apartment referred to in subsection (3) and is calculated as the greater of—
(a) the minimum number of apartments specified in column (2) of the following Table opposite the entry in column (1) of the class of apartment complex corresponding to the class of the designated apartment complex concerned, or
(b) the minimum number (rounded up to the nearest higher whole number) of tenants represented by the minimum proportion of all apartments specified in column (3) of the following Table opposite the said entry in column (1).
TABLE
Class of apartment complex determined by the number of apartments comprised therein of which the housing authority is the apartment owner
(1)
Minimum number of apartment sales
(2)
Minimum proportion of all apartments in apartment complex
(3)
Apartment complex comprising not more than 19 apartments
2
30%
Apartment complex comprising 20 or more apartments
6
25%
(5) The terms and conditions referred to in subsection (2) shall include the following—
(a) that the apartment shall, during the charged period, unless the housing authority gives its prior written consent, be occupied as the normal place of residence of the apartment purchaser or of a member of the apartment purchaser’s household;
(b) that the apartment or any part thereof shall not, during the charged period without the prior written consent of the housing authority, be sold, assigned, let or sublet or otherwise disposed of or mortgaged, charged or alienated, otherwise than by devise or operation of law;
(c) terms and conditions relating to the resale of the apartment under section 76 during the charged period;
(d) such other terms and conditions relating to the sale of an apartment as may be prescribed for the purposes of an apartment assignment order.
(6) A tenant who applies to purchase his or her apartment under this Part shall, on or before signing the apartment assignment order, pay to the housing authority a deposit of an amount determined in accordance with such method as may be prescribed under section 77 which deposit, subject to subsection (7), shall not be refundable if the tenant withdraws from the sale for any reason at any time before the expiration of 6 months from the date on which he or she signs the order.
(7) Where a housing authority does not proceed with the sale of an apartment for any reason, the housing authority shall—
(a) notify the tenant in writing,
(b) refund any deposit paid by the tenant and reimburse the tenant in respect of such reasonable legal expenses as may be incurred by him or her in respect of the proposed purchase of the apartment by him or her under this Part, and
(c) pay to the tenant interest on the amount of the deposit refunded under paragraph (b) at the rate prescribed under section 33 for the period beginning on the date the tenant signed the apartment assignment order and ending on the date on which the housing authority notifies the tenant that it is not proceeding with the purchase.
(8) Save as provided for by any other enactment or regulations made thereunder, the sale of an apartment under this Part to a tenant shall not imply any warranty on the part of the housing authority in relation to the state of repair or condition of the apartment or its fitness for human habitation.
(9) A housing authority shall not proceed with the sale of an apartment under this Part to the tenant thereof—
F54[(a) where—
(i) at any time during the 3 years immediately before applying to the authority to purchase an apartment under this Part, the tenant or a member of his or her household was in arrears of rent, rent contributions, charges, fees or any other moneys due and owing for an accumulated period of 12 weeks or more to a housing authority or an approved body in respect of a dwelling or site to which Chapter 3 of Part 2 of the Act of 2009 relates, and
(ii) subject to subsection (9A), the tenant or the household member has not entered into rescheduling arrangements with the housing authority or approved body concerned for the payment of such arrears, or, having entered into such arrangements, has not, in the opinion of the authority or body, substantially complied with their terms,]
(b) where, on the basis of any structural survey of the apartment complex or of an individual apartment that may be carried out after the date of the designation of the apartment complex under section 55, the authority considers that it is not in the interest of good estate management to proceed with the sale,
(c) where the authority is not satisfied, having regard to the provisions of section 65(5), that the number of existing and prospective apartment purchasers willing to serve as directors of the management company is sufficient to enable the company to function effectively, or
(d) where the designation of the apartment complex for tenant purchase has lapsed under section 55 (3).
F55[(9A) In applying subsection (9)(a)(ii), a housing authority shall disregard the case where the authority or approved body concerned is satisfied that the failure of the tenant or the household member concerned to substantially comply with the terms of the rescheduling arrangements was due to circumstances outside the control of such tenant or household member. ]
(10) Section 211(2) of the Planning and Development Act 2000 and section 183 of the Local Government Act 2001 shall not apply to the sale of an apartment to a tenant in accordance with this Part.
Annotations
Amendments:
F53
Substituted (1.06.2014) by Local Government Reform Act 2014 (1/2014), s. 5(3) and sch. 2 part 1.
F54
Substituted (1.01.2016) by Housing (Miscellaneous Provisions) Act 2014 (21/2014), s. 34(j), S.I. No. 482 of 2015.
F55
Inserted (1.01.2016) by Housing (Miscellaneous Provisions) Act 2014 (21/2014), s. 34(k), S.I. No. 482 of 2015.
Editorial Notes:
E79
The amendments made by Housing (Miscellaneous Provisions) Act 2014 (21/2014) refer to “Act of 2009”, which is defined in that Act as being this Act (Housing (Miscellaneous Provisions) Act 2009 (22/2009)).
Section 65
Management company provisions.
65.— (1) In this section—
(a) references to an apartment include a community apartment, and
(b) references to an apartment owner include—
(i) a person to whom an apartment in a designated apartment complex was sold under section 90 of the Principal Act whether before or after the coming into operation of this Part, and
(ii) a person in whom there subsequently becomes vested the interest of the person referred to in subparagraph (i) or his or her successor in title and the personal representative of that person or successor in title.
(2) Each apartment owner shall be a member of the management company.
(3) (a) The voting rights of the members shall be structured in such a manner that in the determination of any matter by the members one vote shall attach to each apartment owner in respect of each apartment in the designated apartment complex to which the management company relates, and that no other person has such a vote.
(b) Each vote referred to in paragraph (a) shall be of equal value.
(4) Where 2 or more persons are joint apartment owners they shall constitute one member in respect of the exercise of the voting and other powers vested in such member.
(5) According as apartments in a designated apartment complex are sold to tenants under this Part, a housing authority shall, subject to subsection (6), nominate for election as directors of the management company such number of persons which, when expressed as a proportion of the total number of directors of the company that will be serving after the election is concluded, does not exceed the proportion of the total number of apartments in the designated apartment complex of which the housing authority is the apartment owner.
(6) A housing authority may decide not to nominate any person for election as a director of the management company where the number of apartments of which the housing authority is the apartment owner is equal to or less than 20 per cent of the total number of apartments in the designated apartment complex.
Section 66
Automatic transfer of membership of management company on sale of apartment.
66.— (1) Where ownership of an apartment in a designated apartment complex is transferred, whether by conveyance, transfer, assignment, by operation of law or otherwise, membership of the management company which arises by virtue of ownership of the apartment shall, notwithstanding any provision to the contrary in the Companies Acts or other enactment, on such transfer stand transferred to the person becoming entitled to the interest in the apartment concerned without the need to execute a transfer or have it approved by the directors of the company, and such person shall—
(a) be entitled to exercise the powers, rights and entitlement of a member in the company concerned, and
(b) subject to subsection (3), be obliged to perform all the obligations (including the payment of the apartment complex service charge, the charge in respect of the sinking fund contribution and any other charges) pertaining to the membership of the company concerned.
(2) Notwithstanding subsection (1) a management company shall take all steps necessary to ensure—
(a) that the share certificate or membership certificate, as appropriate, is issued to the member concerned as soon as practicable following notification of the change of ownership of an apartment,
(b) that the register of members of the company is altered accordingly, and
(c) that there is compliance with all other relevant requirements under the Companies Acts.
(3) This section is without prejudice to the rights, entitlements and obligations of any person to whom an apartment in a designated apartment complex was sold under section 90 of the Principal Act, whether before or after the coming into operation of this Part including a person in whom there subsequently becomes vested the interest of such person or his or her successor in title and the personal representative of that person or successor in title.
Section 67
Apartment complex service charge.
67.— (1) Before the end of the period specified in section 63 (1), and thereafter before the end of the first month of each financial year, the management company shall prepare an estimate of the amount to be raised, in respect of the financial year concerned, by way of an annual charge or charges (in this Part referred to as the “apartment complex service charge”) payable by apartment owners, being the amount required to discharge ongoing expenditure reasonably incurred on the insurance, maintenance (including cleaning and waste management services) and repair of the common areas, structures, works and services of the designated apartment complex concerned and on the provision of common or shared services to the apartment owners and occupiers of the designated apartment complex.
(2) The management company shall prepare the estimate referred to in subsection (1) by reference to the actual or projected expenditure for the financial year in respect of which the service charge is to be levied.
(3) The estimate referred to in subsection (1) shall include the following categories:
(a) insurance;
(b) general maintenance;
(c) repairs;
(d) waste management;
(e) cleaning;
(f) gardening and landscaping;
(g) security services;
(h) legal services and accounts preparation; and
(i) other expenditure anticipated to arise in connection with the maintenance, repair and management of the common areas anticipated to arise.
(4) The apartment complex service charge for each financial year shall not be levied by the management company unless it has been considered by a general meeting of the members called for purposes which include the consideration of the estimate referred to in subsection (1).
(5) The general meeting referred to in subsection (4) shall take place within reasonable proximity to the designated apartment complex and at a reasonable time (unless otherwise agreed by a 75 per cent majority vote of the members).
(6) (a) The proposal in relation to the setting of the apartment complex service charge may be amended at the meeting referred to in subsection (4) with the approval of a 60 per cent majority vote of the members present and voting at the meeting.
(b) Where the apartment complex service charge proposed to the general meeting is disapproved of by not less than a 75 per cent majority vote of the members present and voting at the meeting, the proposed apartment complex service charge shall not take effect but the apartment complex service charge applying to the previous financial year shall continue to apply pending the adoption of an apartment complex service charge in respect of the financial year concerned.
(7) The amount of the apartment complex service charge shall as soon as practicable after its adoption under this section be levied by the management company as a charge on each apartment in the designated apartment complex, the proportion of the apartment complex service charge attributable to any apartment being the same as the proportion which the floor area of that apartment, determined in the prescribed manner, bears to the aggregate floor area of all apartments in the designated apartment complex.
(8) (a) In the case of a designated apartment complex where the housing authority has sold one or more than one apartment under section 90 of the Principal Act, whether before or after the coming into operation of this Part, the management company shall—
(i) determine the net amount of the apartment complex service charge by deducting from the amount of the apartment complex service charge for the financial year concerned the amount of its estimated service charge receipts for the current financial year from the apartment owners of the apartments so sold under the terms and conditions of the transfer orders in respect of the sales of those apartments,
(ii) excluding the apartments so sold from the calculation and subject to the prior approval of the Minister, apportion the net amount of the apartment complex service charge between each of the other apartments in the designated apartment complex by the method of apportionment provided for in the said transfer orders, and
(iii) levy the amount so apportioned in respect of each of those other apartments in the designated apartment complex as a charge on such apartment.
(b) The Minister shall not approve the method of apportionment referred to in paragraph (a) (ii) where he or she is not satisfied that such method is equitable as between the apartments referred to in paragraph (a) (iii).
(c) Where the Minister does not approve the method of apportionment referred to in paragraph (a) (ii), the management company shall, excluding the apartments so sold under section 90 of the Principal Act from the calculation, apportion the net amount of the apartment complex service charge between each of the other apartments in the designated apartment complex by the method of apportionment specified in subsection (7).
(9) (a) To the extent that any part of the apartment complex service charge is not required for the year concerned, any excess shall be taken account of in setting the apartment complex service charge for the following year.
(b) To the extent that the apartment complex service charge is inadequate for the expenditure in the year concerned, the extent of such inadequacy may be added to the apartment complex service charge otherwise payable in respect of the following year.
(10) The management company shall maintain sufficient and proper records of expenditure incurred by it to enable appropriate verification and audits to be undertaken.
(11) The apartment complex service charge levied pursuant to this section shall be applied for the purposes specified in subsection (1) but any excess may, notwithstanding subsections (2) or (9), be applied on expenditure which may be incurred by the sinking fund.
(12) The Minister may make regulations prescribing the class or classes of items of expenditure which may be the subject of the apartment complex service charge.
Annotations
Editorial Notes:
E80
Power pursuant to subs. (12) exercised (1.01.2012) by Housing (Tenant Purchase of Apartments) Regulations 2011 (S.I. No. 679 of 2011), in effect as per reg. 2.
Section 68
Sinking fund.
68.— (1) Before the end of the period specified in section 63 (1), the management company shall establish a building investment fund (in this Part referred to as a “sinking fund”) for the purpose of discharging expenditure reasonably incurred, in respect of the designated apartment complex concerned on—
(a) refurbishment,
(b) improvement,
(c) maintenance of a non-recurring nature, or
(d) advice from a suitably qualified person relating to paragraphs (a) to (c).
(2) For the purposes of subsection (1), expenditure shall not be considered to be expenditure on maintenance of a non-recurring nature—
(a) where the expenditure relates to a matter in respect of which expenditure is generally incurred in each year,
(b) unless it is certified by the directors of the management company as being expenditure on maintenance of a non-recurring nature, and
(c) unless the expenditure is approved by a meeting of the members as being expenditure on maintenance of a non-recurring nature.
(3) (a) Before the end of the period specified in section 63 (1), and thereafter before the end of the first month of each financial year, the management company shall, subject to paragraph (b) prepare an estimate of the sum of moneys (referred to in this Part as the “sinking fund contribution” ) that it considers appropriate and prudent for addition to the sinking fund in the financial year concerned and, applying the method of apportionment specified in subsection (4) (a) or (b), as appropriate, calculate the amount equal to the proportion of the sinking fund contribution that would be attributable to each apartment in the designated apartment complex.
(b) The management company shall not prepare an estimate of the sinking fund contribution for the financial year concerned which, when apportioned between each apartment in the designated apartment complex in accordance with paragraph (a), results in the smallest amount attributable to any apartment being less than €200 or such other amount as may be prescribed for the purposes of this subsection.
(c) If, under the calculation set out in paragraph (a), the smallest amount attributable to any apartment in the designated apartment complex is equal to €200 or such other amount as may be prescribed for the purposes of this subsection, the management company may adopt its estimate under paragraph (a) as the sinking fund contribution for the financial year concerned.
(d) If under the calculation specified in paragraph (a), the smallest amount attributable to any apartment in the apartment complex is more than €200 or such other amount as may be prescribed for the purposes of this subsection, the sinking fund contribution for the financial year shall be adopted by a general meeting of members called for those purposes, provided that such contribution, when apportioned between each apartment in the designated apartment complex on the same basis as the apartment complex service charge, does not result in the smallest amount attributable to any apartment being less than €200 or such other amount as may be prescribed for the purposes of this subsection.
(4) The amount of the sinking fund contribution shall, as soon as practicable after its determination, be levied by the management company as a charge on each apartment in the designated apartment complex, the amount being apportioned between each apartment in the designated apartment complex on the same basis as the apartment complex service charge is apportioned—
(a) in accordance with section 67 (7), or
(b) in the case of a designated apartment complex where the housing authority has sold one or more than one apartment under section 90 of the Principal Act, in accordance with section 67 (8).
(5) The contributions made to the sinking fund shall be held in a separate account and in a manner which identifies such funds as belonging to the sinking fund and those funds shall not be used or expended on matters other than expenditure of a type referred to in subsection (1).
(6) The Minister may make regulations prescribing all or any one or more of the following:
(a) a class or classes of expenditure which may be incurred by a sinking fund;
(b) thresholds of expenditure (by reference to amounts of expenditure or by reference to the proportion of the sinking fund) which necessitate approval of the members;
(c) any other amount for the purposes of subsection (3) having regard to the average level of service charges in designated apartment complexes.
Section 69
Management company annual charges.
69.— (1) A management company may issue a single request for payment of the aggregate of the charges arising under sections 67 and 68 , and every request for payment, whether in reliance on this section or on section 67 or 68 shall set out the basis of the calculation of the charge, a breakdown of how it is calculated and the amount payable in respect of the apartment concerned.
(2) Where payment of charges arising under sections 67 and 68 are requested or collected together such charges may collectively be referred to as “management company annual charges”.
(3) It shall be a condition of the apartment transfer order and the apartment assignment order that—
(a) the apartment owner shall pay the management company annual charges of such amount or amounts and at such times and in such manner as the management company may specify subject to and in accordance with the terms and conditions of the apartment transfer order or the apartment assignment order, as the case may be, and
(b) where the apartment owner fails to comply with the obligation in paragraph (a), the management company shall have the right to re-enter and take possession of the apartment, whereupon the term of the apartment transfer order or the apartment assignment order, as the case may be, shall end, without prejudice to the rights and remedies of the company in respect of any such charge in arrears or of any other breach of the apartment transfer order or apartment assignment order.
(4) Where the management company annual charges or part thereof remain unpaid by the apartment owner on the expiration of the period for payment specified in the apartment transfer order or apartment assignment order, as the case may be, the amount concerned shall bear interest, at the rate provided for therein and calculated in accordance therewith.
(5) Where, during the charged period, the management company annual charges or part thereof remain unpaid by the apartment purchaser concerned for a period of more than 6 months after the expiry of the period for payment of the charge specified in the apartment assignment order, the management company shall notify the housing authority in writing.
(6) Where a housing authority sells an apartment to the tenant thereof under this Part, it shall not be liable, in respect of any period after the date on which the housing authority signs the apartment assignment order, for the management company annual charges for the proportion of the financial year remaining after that date or for any financial year thereafter.
Section 70
Apartment complex support fund.
70.— (1) Subject to subsection (3), on the first sale of an apartment in a designated apartment complex to the tenant thereof under this Part, the housing authority shall establish, maintain and account for a fund (referred to in this Part as an “apartment complex support fund”) for the purposes set out in subsection (4).
(2) (a) The housing authority shall, on the establishment of the apartment complex support fund, pay into the fund an amount fixed in accordance with paragraph (b).
(b) The amount referred to in paragraph (a) shall be calculated as the sum of the prescribed proportion of the purchase price on the date of the first sale referred to in subsection (1) of each apartment in the designated apartment complex, including community apartments and any apartments sold to tenants under section 90 of the Principal Act whether before or after the coming into operation of this Part, which proportion shall not exceed the greater of—
(i) 5 per cent of such purchase price, or
(ii) such amount as may be prescribed for the purposes of this section having regard to the number and size of the apartments comprised in the designated apartment complex concerned.
(3) The moneys referred to in subsection (2) in respect of one or more than one designated apartment complex may be held in, managed and accounted for by a housing authority in a single apartment complex support fund, provided that the funding for each such apartment complex is capable of being separately identified.
(4) The housing authority, in accordance with this section, on a request being made in that behalf by the management company and subject to there being sufficient moneys in the apartment complex support fund, may decide to transfer moneys from the apartment complex support fund to the company’s sinking fund to meet expenditure by, or on behalf of, the management company on any of the works referred to in section 68 (1) (a) to (c).
(5) (a) Where a request is made under subsection (4), the management company shall, as the housing authority may reasonably require for the purpose of deciding whether to transfer moneys from the apartment complex support fund to the sinking fund—
(i) provide details (including drawings and estimated costs) of the proposed works,
(ii) provide financial and other information (including the company’s records relating to management, maintenance and repair of the common areas, structures, works and services), and
(iii) carry out, or facilitate the housing authority in carrying out, inspections, surveys and tests.
(b) The reasonable costs incurred by the management company in meeting the requirements of a housing authority under this subsection shall be paid by the housing authority.
(6) A housing authority may refuse to transfer moneys under subsection (4) where it is of the opinion that any of the following applies:
(a) the works proposed are not in the interest of good estate management;
(b) the management company is not in a position to meet the cost of the works, from its own resources, including the sinking fund, moneys which it has requested under subsection (4) from the apartment complex support fund and borrowings;
(c) the works proposed are necessary because of the management company’s failure to discharge its obligations under section 63 (3), whether this failure is attributable to the company’s failure to levy or collect an adequate apartment complex service charge in one or more than one financial year, or otherwise;
(d) the moneys may be used by the management company for purposes other than the carrying out of the works proposed, including eliminating or reducing any excess of expenditure over income (but not including the sinking fund) on the management company’s accounts.
(7) Where a housing authority decides to transfer moneys under subsection (4) it may do all or any of the following—
(a) transfer from the apartment complex support fund the amount requested by the management company under subsection (4) or an amount less than that so requested;
(b) attach such conditions as it considers appropriate to its decision including conditions specifying—
(i) the works to be carried out,
(ii) the works not to be carried out,
(iii) the standard of the works to be carried out, and
(iv) the timing and content of reports to be given to the housing authority in relation to the works carried out;
(c) transfer same to the sinking fund of the management company in such instalments and at such times as the housing authority considers reasonable having regard to the progress of the works concerned.
(8) The management company in carrying out any of the works referred to in section 68 (1) (a) to (c) shall comply with such conditions if any as may be attached under subsection (7) (b) to the decision to transfer moneys under subsection (4).
(9) (a) The housing authority may, for the purpose of establishing that the moneys transferred under subsection (4) were used for the purpose for which they were intended and in compliance with the conditions attached under subsection (7) (b) to its decision to transfer moneys, carry out such further inspections, surveys and tests of the works concerned as it considers necessary.
(b) The management company shall facilitate the housing authority in the carrying out of the inspections, surveys and tests referred to in paragraph (a) and, if requested by the authority, shall itself carry out such inspections, surveys and tests of the works concerned, as the housing authority considers necessary, the reasonable cost of which shall be paid by the housing authority.
(10) (a) The management company shall be liable to repay to the housing authority—
(i) in case of its failure to use all or any of the moneys transferred under subsection (4) for the purpose for which they were intended, the entire of such moneys or such part thereof, as the case may be, or
(ii) in case of a breach of one or more than one condition attached by the authority under subsection (7) (b) to its decision to transfer moneys under subsection (4), that proportion of the amount of the transferred moneys corresponding to the cost of complying with the condition or conditions concerned expressed as a proportion of the total cost of carrying out the works in respect of which the authority agreed to so transfer moneys.
(b) Any moneys due and owing to the housing authority under paragraph (a) shall, subject to section 71, be repaid by the management company not later than 2 months after the date on which the authority demands repayment from the management company by notice in writing specifying the matters giving rise to the demand for repayment and the amount concerned.
(c) Any moneys repaid by a management company to a housing authority under this subsection shall be paid into the apartment complex support fund.
(11) The housing authority may recoup from the apartment complex support fund such reasonable expenses as it may incur in the exercise of its functions under this section.
(12) The apartment complex support fund shall consist of a current account (in this section referred to as the “current account”) and an investment account (in this section referred to as the “invest ment account”).
(13) The housing authority shall pay into the current account, from time to time, the amount that the authority determines is required for the purposes of—
(a) transferring moneys to a sinking fund under this section, and
(b) defraying the costs incurred by the authority—
(i) under subsection (5) (b), (9) or (11), as the case may be, and
(ii) in the performance of its functions under this section relating to management of the apartment complex support fund.
(14) All other moneys standing to the credit of the apartment complex support fund shall be paid into the investment account.
(15) Whenever the moneys in the current account are insufficient to meet the liabilities of the apartment complex support fund specified in subsection (13), there shall be paid into that account from the investment account the moneys that are necessary to meet those liabilities.
(16) Moneys in the investment account that are not required to meet current and prospective liabilities of that account shall be invested and the investments shall be realised or varied from time to time as occasion requires and the proceeds of any such realisation, and any dividends or other payments received in respect of moneys invested under this paragraph, shall be paid into the investment account or invested under this subsection.
(17) An investment under subsection (16) shall be invested in the State and in the currency of the State—
(a) in the securities (other than shares in a company) that the housing authority considers appropriate, or
(b) by way of deposit of moneys with any credit institution, or the investment of moneys in short term financial products, such as certificates of deposit or commercial paper, issued by any person.
Section 71
Dispute between housing authority and management company arising under section 70 (10).
71.— (1) Where there is a dispute between the housing authority and the management company on any matter relating to a demand for repayment under section 70 (10), which is subsequently resolved by agreement in writing between the housing authority and the management company, repayment of the amount concerned or any revised amount shall be made by the management company not later than 2 months after the date of the agreement.
(2) Where there is a dispute between the housing authority and the management company relating to the demand for repayment under section 70 (10) in respect of a breach of a condition attached under section 70 (7) (b) to its agreement to transfer moneys under section 70 (4), subject to the agreement of the parties in writing, the dispute may be resolved by the management company agreeing to carry out, at its expense, such additional works as are agreed by the parties to be necessary to secure compliance with the condition concerned.
(3) Where there is a dispute between the housing authority and the management company on any matter or matters relating to the demand for repayment under section 70 (10), which cannot be resolved to the satisfaction of both parties, the matter shall be determined by conciliation procedures agreed between both parties or, in default of such agreement, by arbitration under the Arbitration Acts 1954 to 1998.
Section 72
Accounts of management company.
72.— (1) A management company shall keep all proper and usual books or other accounts of—
(a) all moneys received or expended by it, and
(b) all property, assets and liabilities of the management company,
including an income and expenditure account and a balance sheet.
(2) Without prejudice to the generality of subsection (1), a management company shall establish, operate and maintain financial systems, accounts, reporting and record keeping procedures, including the preparation of annual financial statements, which are based on generally accepted accounting principles and practices.
(3) A management company shall—
(a) submit to the housing authority concerned a copy of its annual audited accounts no later than 4 months after the end of each financial year of the management company to which the accounts relate, and
(b) on the request of any member, provide a copy of those accounts at a price not exceeding the reasonable cost of reproduction.
(4) Subsection (3) (a) shall cease to apply in respect of the financial year following the financial year in which the sale of an apartment results in the total number of all apartments in the designated apartment complex that are sold exceeding by one the total number, divided by 2, of apartments (including any community apartment) in the designated apartment complex, rounded up to the nearest whole number, as appropriate.
Section 73
Property services agreement.
73.— (1) In this section “specified body” means—
(a) the housing authority which transferred ownership of the designated apartment complex to the management company under an apartment complex transfer order,
(b) a company referred to in subsection (6), or
(c) an approved body.
(2) Subject to subsection (3), a management company and a specified body may enter into an agreement (in this Part referred to as a “property services agreement”) for the purposes of the provision of such property management services, as may be specified in the agreement, to the management company in respect of the designated apartment complex.
(3) In the case of a property services agreement between a management company and a housing authority the agreement shall be for such period not exceeding 5 years from the date of the first sale of an apartment to the tenant thereof under this Part in the designated apartment complex concerned.
(4) A property services agreement shall be in writing and shall be subject to the terms and conditions and include the information specified in Schedule 4.
(5) The expenses incurred by a specified body in the provision of property management services pursuant to a property services agreement, shall be recouped to the specified body by the management company in accordance with the terms and conditions of the agreement.
(6) A housing authority may, for the purposes of this section, establish a company whose objects include the provision of property management services to management companies, which company shall be a company formed and registered under the Companies Acts.
Section 74
Charging order.
74.— (1) As soon as practicable after an apartment is sold to an apartment purchaser under this Part, the housing authority shall, subject to such regulations as may be made under section 77, make an order (in this Part referred to as a “charging order”), in the prescribed form, charging the apartment in the terms specified in this section for the period specified in the order (in this Part referred to as the “charged period”).
(2) The charging order shall create a charge in favour of the housing authority in respect of an undivided percentage share (in this Part referred to as the “charged share”), calculated in accordance with subsection (3), in the apartment which charged share shall be reduced in accordance with subsection (4).
(3) The charged share is calculated in accordance with the following formula:
Y x 100
Z
where—
(a) Y is the difference between the purchase price of the apartment at the time of sale to the apartment purchaser and the purchase money, and
(b) Z is the purchase price of the apartment at the time of sale to the apartment purchaser.
(4) (a) Subject to paragraph (b) and section 75, the charged share shall be reduced in equal proportions (referred to in this section as “ incremental releases ”) applied annually on the anniversary of the date of the apartment assignment order in respect of each complete year after that date during which an apartment purchaser or a member of his or her household has been in occupation of the apartment as his or her normal place of residence, until the earlier of—
(i) subject to section 76, the first resale of the apartment, or
(ii) subject to section 75, the expiration of the charged period.
(b) The reduction of the charged share for the period of 5 years from the date of the apartment assignment order shall be cumulative and shall not apply until the expiration of that period, provided the apartment purchaser or a member of his or her household has been in occupation of the apartment as his or her normal place of residence for that period.
(5) The housing authority shall, at any time where requested by the apartment purchaser, give a statement in writing in the prescribed form, to the apartment purchaser indicating the accumulated amount of incremental releases that have been applied under the charging order.
(6) A charging order shall be deemed to be a mortgage made by deed within the meaning of the Conveyancing Acts 1881 to 1911 and to have been executed, at the time of the sale of the apartment, in favour of the housing authority for a charge in the terms provided for in this section.
(7) Accordingly, the housing authority shall, as on and from the making of the charging order—
(a) be deemed to be a mortgagee of the apartment for the purposes of the Conveyancing Acts 1881 to 1911, and
(b) have, in relation to the charge referred to in subsection (8), all the powers conferred by those Acts on mortgagees under mortgages made by deed.
(8) Where a housing authority makes a charging order, it shall, as soon as practicable thereafter, cause the order to be registered in the Registry of Deeds or the Land Registry, as appropriate, and it shall be a sufficient description of the charge in respect of which the order is being registered to state that charge to be the charge referred to in section 74 (2) of the Housing (Miscellaneous Provisions) Act 2009.
(9) A charging order affecting an apartment which is registered land within the meaning of the Registration of Title Act 1964 shall be registrable as a burden affecting such land whether the person named in the order as the owner of the land is or is not registered under the said Act as the owner of the land.
(10) A housing authority may, subject to subsection (11), enter into an agreement with a holder of a licence under the Central Bank Act 1971, a building society or other financial institution that a charge proposed to be created by it by a charging order shall have a priority, as against a mortgage or charge proposed to be created in favour of that holder, society or institution, that is different from the priority the charge would otherwise have if this subsection had not been enacted.
(11) A housing authority may only enter into an agreement referred to in subsection (10) if it considers that the agreement will—
(a) enable a tenant to whom it is proposing to sell an apartment under this Part to obtain an advance of moneys from the holder, society or institution referred to in subsection (10) for the purposes of purchasing the apartment, or
(b) enable an apartment purchaser—
(i) to refinance an existing advance of moneys from the holder, society or institution referred to in subsection (10), or
(ii) to obtain a further advance of moneys from the holder, society or institution referred to in subsection (10), for any purpose.
(12) Any amount that becomes payable to a housing authority under section 75 or 76 , as the case may be, may, without prejudice to any other power in that behalf, be recovered by the housing authority from the person concerned as a simple contract debt in any court of competent jurisdiction.
(13) For the avoidance of doubt, neither a charging order nor a charge that arises under it shall be regarded as a conveyance for the purposes of section 3 of the Family Home Protection Act 1976.
(14) (a) On the occurrence of the earlier of the events specified in subsection (4)(a) and subject to the terms and conditions of the apartment assignment order and of the charging order having been complied with, the housing authority shall, where requested to do so by the apartment purchaser, execute a deed of discharge in respect of the charging order.
(b) The housing authority shall be liable for any expenses incurred in the execution and registration of a deed of discharge but shall not otherwise be liable for any expenses incurred by an apartment purchaser under this section or under section 75 or 76 .
Section 75
Suspension of reduction of charged share.
75.— (1) A housing authority may suspend the reduction of the charged share provided for under section 74 in respect of any year ending on the anniversary of the apartment assignment order, where the apartment purchaser fails to comply with any of the terms and conditions of the apartment assignment order.
(2) Where the housing authority suspends the reduction of the charged share under subsection (1), the charged share on the property shall be calculated in accordance with the following formula:
Y x 100 – R
Z
where—
(a) Y is the difference between the purchase price of the apartment at the time of sale to the apartment purchaser and the purchase money,
(b) Z is the purchase price of the apartment at the time of sale to the apartment purchaser, and
(c) R is the portion of the charged share that has been released in accordance with this subsection.
(3) (a) Where a housing authority has suspended the reduction of the charged share under subsection (1), the housing authority shall, as soon as practicable thereafter, notify the apartment purchaser in writing of the suspension and the reasons for the suspension.
(b) The housing authority shall, on the expiration of the charged period, give a statement to the apartment purchaser in writing, in the prescribed form, indicating the amount of the charge outstanding under the charging order on the date of expiration of the charged period, which amount shall be expressed as a percentage of the market value of the apartment, equivalent to the charged share of the housing authority in the apartment on that date calculated in accordance with subsection (2).
(4) (a) The apartment purchaser shall, within 2 months of receipt of the statement referred to in subsection (3), pay to the housing authority the amount set out in the statement.
(b) Where the apartment purchaser fails to pay the amount referred to in paragraph (a), section 74 (12) applies.
(5) For the purposes of this section, “market value” means the price for which an apartment might reasonably be expected to be sold on the date of expiration of the charged period, in its existing state of repair and condition and not subject to the conditions specified in section 64 (5) or to a charging order.
(6) (a) For the purposes of this section, the market value of an apartment shall be determined by the housing authority or, where the apartment purchaser does not agree with the market value so determined, by an independent valuer nominated by the apartment purchaser from a panel of suitably qualified persons, established by the housing authority, who are of a class or description prescribed under section 77.
(b) The housing authority shall not be liable for any expenses incurred by an apartment purchaser under paragraph (a).
Section 76
Control on resale of apartment subject to a charging order.
76.— (1) In this section references to an apartment purchaser shall not include a person in whom there subsequently becomes vested, for valuable consideration, the interest of the apartment purchaser or the successor in title of that person and the personal representative of that person or successor in title.
(2) Where an apartment purchaser proposes to sell an apartment during the charged period, he or she shall give prior written notice to the housing authority in accordance with the terms and conditions specified in the apartment assignment order.
(3) Upon receipt of a notice referred to in subsection (2), the housing authority may purchase the apartment for a sum equivalent to its current market value, reduced by an amount equal to that proportion of the current market value of the apartment corresponding to the charged share in the apartment on the date of resale.
(4) Without prejudice to any other power in that behalf, a housing authority may refuse to consent to the sale to any person of the apartment where the housing authority is of the opinion that—
(a) the proposed sale price is less than the current market value,
(b) the said person is or was engaged in anti-social behaviour or the sale would not be in the interest of good estate management, or
(c) the intended sale would, if completed, leave the vendor or any person who might reasonably be expected to reside with him or her without adequate housing.
(5) Where an apartment purchaser resells an apartment to a person other than a housing authority during the charged period the apartment purchaser shall pay to the housing authority an amount equal to a percentage of the current market value, such percentage being the equivalent of the charged share of the authority in the apartment on the date of resale of the apartment.
(6) Where the amount payable under any of the provisions of this section would reduce the proceeds of the sale (disregarding solicitor and estate agent’s costs and fees) below the purchase money, the amount payable under the charging order shall be reduced to the extent necessary to avoid that result.
(7) Where a purchaser resells an apartment which is subject to a charging order the charged period of which has expired and in respect of which the amount referred to in section 75 (3) has not been paid in accordance with that section, section 74 (12) applies.
(8) (a) For the purposes of this section, the current market value of an apartment shall be determined by the housing authority or, where the vendor does not agree with the current market value so determined, by an independent valuer nominated by the vendor from a panel of suitably qualified persons, established by the housing authority, who are of a class or description prescribed under section 77.
(b) The housing authority shall not be liable for any expenses incurred by a vendor under paragraph (a).
Section 77
Regulations (Part 4).
77.— The Minister may make regulations for the purposes of this Part in relation to all or any one or more of the following:
(a) the class or classes of apartment that are excluded from sale under this Part;
(b) the minimum period for which a person must be a tenant for the purposes of making an application to purchase an apartment under this Part, which period shall not in any case be less than one year before the date of the making of such application;
(c) the method for determining the purchase price;
(d) the method for determining the purchase money, taking account of the financial circumstances of tenants to whom apartment may be sold;
(e) the method for determining the amount of a deposit to be paid by the apartment purchaser under section 64 (6) in respect of the purchase of an apartment under this Part;
(f) the form of, and terms and conditions to be specified in, an apartment complex transfer order, an apartment transfer order and an apartment assignment order;
(g) the form of a charging order;
(h) the determination of the minimum period, or the range within which a housing authority shall fix the minimum period, for which a charging order shall apply in respect of an apartment sold under this Part, which period shall not in any case be less than 20 years from the date of the apartment assignment order;
(i) the determination of the floor area of an apartment, for the purpose of section 67 (7);
(j) the proportion of the sum of the purchase price of each apartment in the designated apartment complex that a housing authority shall pay into the apartment complex support fund under section 70 (2) and the maximum amount that it shall pay into the fund under that provision;
(k) the form of the statement to be issued by a housing authority under section 74 (5) or 75 (3), as the case may be;
(l) the class or classes or description of person who are suitably qualified by reference to their qualifications and experience to determine the current market value or market value (within the meaning of section 75), as the case may be, of an apartment for any of the purposes of this Part.
Annotations
Editorial Notes:
E81
Power pursuant to section exercised (1.01.2012) by Housing (Tenant Purchase of Apartments) Regulations 2011 (S.I. No. 679 of 2011), in effect as per reg. 2.