New law changes rules of residential buildings administration

Owners’ associations will be required by law to set up an annual repair fund and rolling stock, which are now optional, and any changes to the facade of a dwelling will only be possible for the whole façade and in full, according to a bill promulgated by president Klaus Iohannis.

Under the new law, mayors will issue the attestation of people who want to be the condominium administrator, and they will have to have a criminal record and a clean criminal record. Within 3 months of the entry into force of the law, there will updated the occupational standard for condominium occupation, and the Minister of Regional Development and Public Administration will issues an order approving the framework content of the statute and the condominium regulation.

Under the new provisions, owners of the condominium must conclude a written agreement on the rules and conditions of use of the common parts of the building and rules of conduct between owners, called condominium regulation. The law introduces the obligation of the owners ‘associations to set up the annual repair fund and the working capital fund and strengthens the normative framework for the owners’ associations to employ authorized natural persons or legal entities as condominium administrators.

The new normative act introduces, as well, the right of pre-emption of local public administration authorities on dwellings executed for the recovery of the debts of the owners to the contribution rates to the association’s expenses. These dwellings will be used only as social dwellings, the owners executed forced having priority on their distribution, only if they meet the conditions set for access to social housing, the bill shows.

The law also details the modalities and procedures for the provision and contracting of public utility services in condominiums, the joint billing process at owner-owner level or individual billing at owner’s level, individual billing conventions, individual supply or performance of public utility services and the modalities and procedures for contracting and invoicing public utility services in residential complexes.

Finally, the new law provides that the administrator is obliged to use the current account of the association for current payments and all owners must have access for information and receipts. Within this account, all amounts or values received in or on behalf of the association are paid within 24 hours of receipt.

By way of exception to these provisions, with the consent of the general meeting of the owners’ association, exclusively for the purpose of performing the payments for unexpected expenses, the administrator may keep the cash in cash within the limit of a monthly ceiling of RON 1,000.