Tuesday, 2 December 2014 - 12:47
Homeowner assoc. to be mandatory from 2017
From 2017 (at the latest), owners of a flat or apartment will be required to deposit money into the coffers of their Homeowners Association on a monthly basis. With this Minister Stef Blok wants to combat degradation and force unwilling owners to help pay for much needed major repairs. The obligation may significantly increase the housing costs of homeowners with a sleeping owners association or a poorly maintained property. The mandatory payment to a Homeowners Association will take effect in 2016 or 2017, depending on how quickly the legislative proposal moves through parliament next year. Blok is currently investigating what amounts HOA's require at minimum for maintenance. He is considering an annual percentage of the reconstruction value. The VVD minister emphasizes that well functioning homeowners associations will not suffer from the stricter requirements. "They are saving enough and have a good long-term maintenance plan." Blok also announced an Energy Saving Fund for which he has set 35 million euros aside. From next year homeowners can borrow cheap money from this fund for taking energy saving measures.