Blanchardstown & Dublin 15 Citizens Information Centre
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Know your Rights: May 2011

Management companies

Q. What are the changes to the rules about apartment management companies??

The Multi-Unit Developments Act 2011 came into effect on 1 April 2011. The Act aims to regulate some of the issues that have caused disputes between developers and home owners in multi-unit developments – in particular how the common areas (for example, halls and gardens) are managed and funded. The Act provides for the setting up of owners’ management companies to manage such areas.
The Act applies to new developments completed after 1 April 2011 and to existing multi–unit developments. A multi–unit development is generally a development in which there are at least five residential units that share facilities, amenities and services. From 1 April 2011, before a developer can sell any units in a new development, an owners' management company must be set up, and the common areas of the development transferred to it. For existing developments where one or more units have already been sold, the developer has 6 months – until 30 September 2011 – to transfer ownership of the common areas.
Each owner of a residential unit is entitled to membership of the owners’ management company and is generally entitled to one vote. If a different arrangement is already in operation, it can be continued provided it is just and equitable. The owners’ management company must hold annual meetings and provide reports to members. Services charges must be agreed by the owners’ management company. It must also set up a sinking fund into which every member pays on a regular basis (for emergency or very large repairs).
When a unit in a development is sold or transferred, the membership of the owners’ management company automatically transfers to the new owner. It is not necessary to formally execute the transfer or have it approved by the directors of the company. (In general, the transfer of membership of a company does require such formalities.)
In some existing developments, directors appointed by the developer are entitled to remain as directors for life. This is no longer possible after 1 April 2011 and directors in place on 1 April 2011 must cease to be directors by 1 April 2014 at the latest. All new directors will be limited to a term of three years.

Further information is available from your local Citizens Information Centre.

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Medical cards and GP visit cards

Q. What’s the difference between a medical card and a GP visit card?

A medical card allows you to receive certain health services free of charge. The main services are free GP (family doctor) services, free prescribed drugs and medicines (except for a 50 cent charge per prescription item), free in–patient and out–patient public hospital services and some free dental, optical and aural services.
Medical card holders also qualify for other benefits. They pay a reduced rate of Universal Social Charge on their income. They may also be exempt from paying school transport charges and State exam fees (in publicly–funded second–level schools). They may also get financial help with buying school books.
To qualify for a medical card your weekly income must be below a certain figure for your family size. Normally, your dependent spouse or partner and your children are also covered for the same range of health services. Medical cards are small plastic cards (similar in size to a credit card). Your medical card will show your doctor's name. It is usually issued for a year, after which it is reviewed.
The GP visit card entitles you to visit your family doctor for free. If you do not qualify for a medical card on income grounds, you may qualify for a GP visit card. It is means tested, but the income limits are 50% higher than for the medical card. It does not cover any prescribed drugs and does not entitle you to any other health services. (All non–medical card holders living in Ireland can get help with the cost of prescriptions under the Drugs Payment Scheme (DPS). Under the DPS you and your family only have to pay a maximum monthly amount (currently €120) for all prescribed drugs, medicines or appliances.)
You apply for a medical card and a GP visit card on the same application form. You can get it at your Local Health Office or health centre, or download it from hse.ie. Return the completed form to your Local Health Office or health centre.

Further information is available from your local Citizens Information Centre.

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Mortgage Interest Supplement

Q. I co–own a house with my sister. We pay the mortgage jointly. However I recently lost my job and am unemployed. I am getting Jobseeker’s Benefit but am struggling to pay my share of the mortgage. Since my sister is working full–time I don’t think I can get Mortgage Interest Supplement. Is there any other help available?

You may have misunderstood the criteria for Mortgage Interest Supplement (MIS). The disqualification for working full time only applies to couples. This means that if a spouse, civil partner or cohabitant owned the house with you their circumstances would be taken into account. However your sister’s circumstances are irrelevant. If you personally meet the criteria for Mortgage Interest Supplement you can get help with the interest part of your mortgage payments. Your lender can tell you what part of your monthly mortgage payment goes towards the interest on your loan.
The main criteria for Mortgage Interest Supplement (MIS) are:

• You must have been able to afford the repayments when the mortgage was taken out.
• The amount of mortgage interest payable is reasonable (so, for example, you are not paying an excessive interest rate).
• The loan is only for the purchase and essential repair or maintenance of your home. (This means that if you have taken out an extra mortgage for another reason, for example, to support a business, or if you have rolled up all of your loans into a mortgage, the extra loan amount is not eligible for MIS.)
• Your house must not be up for sale.
• You are habitually resident in the State.

As you are aware you won’t qualify for MIS if you, your spouse, civil partner or cohabitant works more than 30 hours a week or if you are in full–time education. If your loan is in arrears and you have not engaged with your lender you may not be awarded MIS. However each case is considered individually. You will not be awarded MIS for interest payments on arrears on your mortgage. The scheme is administered by Community Welfare Officers in your local health centre. Visit keepingyourhome.ie to find out more about the rules for Mortgage Interest Supplement and how to apply.

Further information is available from your local Citizens Information Centre.

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Non Principal Private Residence

Q. I own a holiday cottage in the West as well as my main home. I am currently selling the property and the sale will close in May 2011. Does the new owner have to pay the Non Principal Private Residence Charge on this property and how do I transfer responsibility for it to them?

The Non Principal Private Residence (NPPR) Charge (“second home charge”) is €200 for each property you own on 31 March each year (apart from your main home). This means that, if the sale goes through as planned, you are liable for the charge and not the new owner (since they will not become the owner until after 31 March).
You can pay the NPPR Charge for 2011 from 31 March 2011. You must pay the charge by 30 June each year. A late fee of €20 is charged for each month, or part of a month, after 30 June. You can pay online at nppr.ie.
After you have paid the charge you can print off your receipt from the online system or a receipt will be emailed to your email address if you have provided one during registration. You can also ask the local authority to give you a certificate stating that you have paid the NPPR charge for the year. You should give this to the new owner as evidence of payment. You can remove yourself as owner of the property on the nppr.ie website. It will then be up to the new owner – if it is not their principal private residence – to register as the owner of the house and pay the charge the following year.

Further information is available from your local Citizens Information Centre.

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