Mandatory minimum maintenance reserve for homeowners’ associations
Homeowners' associations are to be legally required to set aside a minimum amount each year for building maintenance and repairs. This amount will calculated on the basis of their long-term maintenance plan or a percentage (0.5%) of the building's reinstatement value. This measure is included in a bill proposed by the Minister for Housing and the Central Government Sector, Stef Blok, and the Minister of Security and Justice, Ard van der Steur, to help homeowners' associations operate more effectively.
The bill, which received cabinet approval on Friday, also gives homeowners' associations explicit permission to take out loans. And it improves the rules on joint and several liability. As soon as a member of a homeowners' association sells their home, their share of the loan passes to the new owner.
The cabinet has agreed to submit the bill to the Council of State for an advisory opinion. The text of the bill and the Council of State's advisory opinion will be published when they are presented to the House of Representatives. The government's aim is for the new legislation to enter into force on 1 January 2017.