MOHUP New Regulation 204/2024: An Improvement in Common Development Management

In recognition of the surge of common interest development, the Ministry of Housing and Urban Planning issued Model Bylaws of Owners Association on the 7^th of March 2024. This decision aims to resolve uncoordinated maintenance, financial disagreements concerning collection of utilities and maintenance fees and develops’ rules for safety and peace.

The Regulation aims to enhance transparency and accountability in the work of the owner’s association. The election of the owner’s association board of directors is now foreseen by a committee. The term of directors’ assignment is set at 3 years, renewable once. Directors are obliged to present an annual financial report to the general assembly, whereby all owners are to access and review such data. The meeting of the general assembly could be conducted remotely, via video communication. Such provisions are directed to reserve regular rotation of leadership and prohibit the centrality of power in the hands of the few.

To improve the management of shared property, the decision specified the calculation methodology of service fees. This is to reassure the members that they contribute towards a fair share. All shares are to be deposited into a dedicated association fund as a safeguard of the funds. All The decision further regulates the framework of fund disbursement by the directors to ensure transparency.

Whilst the regulation specifies the rights of owners and obligation of directors, it is suggested that further training and informative presentation for board members could reinforce the objective of the regulation as well as establishing clear guidelines for the use of shared facilities will protect all owners’ interests. At all times, the regulation supports amicable solutions in circumstances of dispute.