Amending the Occupants Association Law is becoming urgent, EBA
Fatah Allah Fauzi: the existing law is powerless and can't enforce the collection of maintenance and services fees and imposes no more than EGP100 fine on violators.
Nefesa Hashim: The proposed amendments put an end to incessant wrangling over who presides over the Occupants Association at the beginning of every three years.
Construction Committee at Egyptian Businessmen Association (EBA) attended a round table seminar in collaboration with Investigate to discuss amending Occupants Association Law and how to preserve the real estate wealth.
The seminar was also attended by 1st undersecretary of Ministry of Housing, Utilities and Urban Communities and head of Housing & Utilities Sector, together with a group of businessmen working in construction and development sector.
According to Fatah Allah Fawzy chairman and head of Construction Committee at EBA, OAL lacks in substantial elements and smacks of distortions that drove it toothless in protecting the real estate wealth and unable to keep pace with the construction boom that kept engulfing Egypt throughout the past seven years and encompassed the New Administrative Capital, Alamein City and other 4th Generation Cities.
Under the existing law, the Occupants Association is not entitled to enforce the collection of maintenance and services fees and impose serious penalties on violators, like turning off supplies of water and amenities, he explained.
The effective law imposes minuscule fines worth EGP100 on violators who abstain from executing the regular maintenance checks. Consequently, utilities and buildings became in shambles in a short period of time.
With its only 4 board members on average at the helm, mega state-sponsored housing projects appear badly monitored by the Occupants Association.
In the same vein, 1st undersecretary of Ministry of Housing & Utilities and Urban Communities Eng. Nefesa Hashem said the ministry conducted lengthy discussions and negotiations with House of Representatives' Housing Committee over amending law governing Occupants Association to preserve the real estate wealth, as this law will help rectify defects in buildings, ensure safety of housing, buildings and sustainability of services.
" Amendments proposed currently for OAL deal with several and most notorious problems facing developers and whoever presides over the Occupants Association," said she, referring to amendments that help end tumult about its chairmanship, with some articles permitting a developer to take it over within three years starting from its formation, given a 40% occupancy is reached, a calling for setting up a general assembly is proclaimed so as to determine whether the developer can continue at the helm or a new board may be formed.
Among the proposed amendments that cleared up the mess, article 72 stipulates that OA may not set up a company for maintenance and management, in stark violation with corporate regulations. Article 72 is altered to allow OA "hire a management firm."
Additionally, the snag related to defining the integrated compound on the basis of urban planning as a neighborhood necessitates setting up an elementary school, a condition that has nothing to do with realities on the ground at the North Coast area and integrated coastal compounds with low occupancy rates in certain seasons.
Further still, the amendments included deputizing only one person to attend the Occupants Association's General Assembly meeting, as deputizing several persons may interfere with decisions made by the General Assembly.
The proposed amendments also grant the administrative body, be it the city council or the neighborhood, the right to attend meetings of the general assembly and to participate without vote.
Together with keeping the state at bay, under a proposed article, head of Occupants Association, is entitled to hire, not set up, a management company, she elaborated.
"The proposed amendments are credited for putting in place general rules to regulate Occupants Associations, as we found under the existing law widespread interference with the General Assembly decisions and validity of its meetings. In the meantime, a relentless wrangling on withdrawing confidence drags on incessantly."
