Jointly-owned buildings across Cyprus are facing growing challenges: unpaid communal fees, inadequate maintenance, and safety risks threaten thousands of residents. The 2023 draft law on the management of these buildings is urgently needed to enforce accountability, secure proper maintenance, and protect the quality of life for all owners and tenants.
The continuing discussion on the draft bill “The Law on the Management of Communal Buildings and Related Matters of 2023”, which was examined by the Parliamentary Committee on Internal Affairs, has seen many delays towards progress and completion. This legislation is of significant importance as it directly concerns thousands of people who are currently living in these buildings.
With around 70,000 jointly-owned buildings in Cyprus comprising more than 200,000 units, a modern legal framework is expected to regulate their smooth operation. The aim is to provide proper oversight of their registration and management, both at administrative and legal levels.
The Cyprus Association of Communal Building Managers (SYDIKOIK), an affiliated member of the Cyprus Employers and Industrialists Federation (OEB), has reviewed the proposed bill, which it considers to be a good starting point. Their recommendations regarding further provisions of the bill include:
- Clear calculation of each owner’s proportional share.
- Establishing fines to be imposed by Management Committees on owners who consistently fail to pay communal charges.
- Creation of a capital expenditure (CapEx) fund, with mandatory contributions from all unit owners, of at least 15% of the annual communal budget.
- Creating a reserve (sinking) fund, equal to six months of communal expenses to pay for unscheduled maintenance, repairs and other unforeseen expenses.
In addition, SYDIKOIK has suggested to the Parliamentary Committee that:
- A jointly-owned building should be considered “occupied” from the day electricity is connected to the communal meter, with responsibility falling to the owner if a unit remains uninhabited.
- Representatives of professional management companies should be allowed to sit on Management Committees. (Under the draft law, only unit owners may sit on Management Committees.)
Digitalisation is another critical factor. The government service or department implementing the new law should handle and evaluate applications for the registration of Management Committees electronically. By embracing digitisation, together with ensuring broader responsibilities and powers for Management Committees, it is expected that the new system will deliver positive results and much-needed efficiency.
Conclusion
The legal regulation of jointly-owned building management will significantly improve the quality of life for those living in apartment blocks and other communal developments. With proper maintenance, residents will avoid unacceptable situations such as balcony collapses caused by corrosion and lack of upkeep.
A number of organisations have also proposed further changes to the draft law, including the Cyprus Property Developers Association, the Cyprus Scientific and Technical Chamber (ETEK) and the fire service.
Where happened to the process to take non payers to a special court that was mentioned earlier. It is all very well the committee imposing fines, but without the teeth to back them up, then it’s a waste of time. The present judicial system is broken. It takes years to get a judgment, in the meantime complexes are starved of funds.
We’ll have to wait and see what’s in the new law when it’s eventually published.
This is good, but when is this going to be implemented please?
Your guess is as good as mine Garry.