Millrace Residents Committee Information Update October 2011

The Millrace Residents Committee has written this guide to explain some of the questions that have been asked by residents of late - whether by email or in person to members of the committee. We hope you find this guide useful! We have provided answers to frequently asked questions on the following topics: Management Company Service Charges Residents Committee Clamping If you have any queries in relation to service charges or parking permits, please contact Natalie in O'Farrell Property Management on 01-2360094. If you are living in a rented property, please advise the owner of your property to do so.

Management Company
Q: What is the Millrace management company? A: Millrace is a private development under the control of a management company that is itself a legally registered company. Q: Who makes up the management company? A: When you bought a property in Millrace, you automatically became a member of the management company. Like all companies, it also has a board of directors. Q: Who are the board of directors? A: At present, the builders of Millrace (William Neville and Sons) are the directors of the management company. It is normal practice for the developers of an estate to retain control of the development until it is completed. When completed, the developers can decide to pass control of the management company to the residents who are also members of the management company. Q: What does the management company do? A: The management company is legally responsible for maintaining Millrace, including many services that are usually the responsibility of the council, for example, street lighting, waste collection, parking and landscaping common areas. Q: Who actually runs the estate on a day-today basis?

A: A management agency usually performs day-to-day running of the management company. O' Farrell Property Management is responsible for Millrace. The directors of the management company appoint the management agency. The management agency performs account and estate management in addition to employing an on-site caretaker. Q: How does the management company make decisions? A: The Board of Directors is responsible for making the majority of decisions. The company, however, will refer some matters to the Annual General Meeting (AGM) where members may vote on matters raised. Only members that have paid all their service charges in full can vote. Like all companies, the management company has a Memorandum and Articles of Association that govern the regulations of the development. You received a copy of these documents when you purchased your property.

Service Charges
Q: Where does the money come from to pay for the services on the estate? A: All homeowners are obliged to pay an annual service charge. Q: Why do we pay service charges? A: The management company uses service charges to fund the everyday costs of managing Millrace, for example, landscaping, waste collection, caretaking, street lighting; common insurance and emergency repairs. In addition to everyday costs, the estate requires a sinking fund. Q: What is a sinking fund? A: A sinking fund is an "emergency fund" for longer-term or unplanned expenses, for example, exterior paintwork on properties. Since the recent Multi-Unit Developments Act (2011), every management company must have a sinking fund by law. Q: Do we have a sinking fund? A: No. we do not currently have a sinking fund. This is because of ongoing issues with non-payment of service charges. This is why, among other things, the management company cannot pay to have houses, apartment buildings and exterior walls in Millrace painted. Q: What happens if no service charges are paid? A: If nobody paid service charges, there would be no street lighting, bin collections, landscaping or caretaker to name but a few things. There would also be no common insurance for apartment buildings or sinking fund. Q: Are services charges legal? A: You signed a contract to pay annual service charges when you bought your property. This was part of your mortgage contract. In addition, you cannot:

Sell your property unless you have paid outstanding service charges in full Vote in the management company AGM if you have not paid your service charges Receive parking permits Q: Why should I pay service charges when I am not happy with the services in Millrace? A: You still receive services as service charges pay for many things that you take for granted such as street lighting, insurance and communal bin collections. It is a vicious circle: the more residents that do not pay the less money there is to pay for things such as landscaping; bin collections and painting. Q: I do not pay service charges but things are still done so what is the problem? A: This means that the neighbours that do pay service charges are paying for services that you are using. For example, bins, grass-cutting, street lighting and insurance. Q: How bad is the service charges situation? A: There is currently 180, 000 in unpaid service charges. Q: What payment options are available? A: You can pay your service charges in instalments or in one payment. You can also discuss a payment schedule for arrears with OFPM. Q: What is the worst thing that could happen? A: In the event of debts continuing to rise compared to the money available to pay for services, the following may occur: There will be no money to pay for street lighting, grass cutting or bin collections There will be no money to paint common areas (such as house and apartment exteriors, walls, etc) making the estate look shabby The management company may even become bankrupt meaning that companies will not deal with us and you cannot sell your property. A bankrupt management company can be struck off the companies register. Reinstatement is a very lengthy and expensive legal process for which contributions will be required from homeowners. There will be no money to pay for block insurance for apartment and duplex units. If this happens, the insurers will notify the mortgage company that it has lapsed. As block insurance is required under the terms of your mortgage, your provider will seek a letter confirming that it is insured which will not be possible to provide

Residents Committee
Q: What is the residents committee? A: The Millrace Residents Committee is a voluntary residents group. Q: Why did you get together?

A: We wanted to highlight common issues with the builders and management agents. We also wanted to create a community spirit between neighbours with activities like a Neighbours Day, estate clean-ups and Neighbourhood Watch. Q: What else do you do? A: In addition, we publish a regular newsletter and run a website (http://millracesaggart.com) and forum for residents to highlight and discuss issues relating to the estate. Q: Are you part of the management company? A: Only insofar that we are residents like everybody else and part of the management company. Q: Are you responsible for management company decisions? A: No, we are not. We are a non-official group: separate from the management company and their agents. We do liaise with the directors and OFPM on a regular basis to highlight common issues on behalf of residents and they consult us on decisions regarding Millrace.

Clamping
As all residents are aware, the management company have decided to implement parking controls in Millrace. We will try to outline what this means for residents. Q: Why did the management company introduce clamping? A: The management company provided the following reasons: Recover the large amount of unpaid service charges Prevent the increasing amount of non-resident parking Prevent dangerous and obstructive (to emergency services) parking Q: Is it possible to provide extra parking spaces? A: Although the same parking provisions are in place that existed when you agreed to buy your property, the builders have promised to provide an extra 18 spaces. Q: How many parking permits will the management company provide per-unit? A: Units that have no service charge arrears (or that have agreed a payment plan) will receive two permits. Q: When will clamping commence? A: OFPM have informed us that clamping of vehicles with no permits has commenced. Q: When will parking restrictions be introduced? A: Restrictions (for example, double yellow lines and restrictions on pavement parking) are still to be decided so input can be provided to make sure the best solution is found for all residents Q: How much does it cost to register a visitor to the development?

A: 60c. Q: How do I know the vehicle is registered as a visitor? A: You will receive a text confirming the registration. Q: Can I buy an extra permit? A: Yes - for a once-off payment of 50 euro Q: How long can a visitor stay? A: A visitor can stay for 24 hours. Q: What happens if my visitor is staying for a few days? A: Ring OFPM in advance. Q: When is permit-controlled parking in operation? A: Permit-controlled parking is in operation 24 hours per day.