Translated using ChatGPT service.
On May 30, the Saeima approved amendments to the Apartment Ownership Law in the final reading, aimed at simplifying the decision-making procedure in apartment buildings, thereby ensuring more efficient management of multi-apartment residential buildings and promoting the ability of apartment owners to decide on implementing energy efficiency measures in the buildings. The amendments will come into force on November 1, 2024, in line with the need to improve the functionality of the Construction Information System to ensure its compliance with the contents of the amendments to the Apartment Ownership Law.
"The management of multi-apartment buildings and making crucial decisions, such as initiating building renovation projects, often face an insurmountable obstacle – the reluctance of the majority of residents to take responsibility for their property. Therefore, our goal is to facilitate the ability of responsible residents to make important decisions regarding the maintenance and renovation of multi-apartment buildings, thus improving the quality of the Latvian housing stock and energy efficiency. The amendments adopted by the Saeima are an important step in this direction," emphasizes Minister of Economics Viktors Valainis.
As is known, the community of apartment owners can make decisions on matters within their competence in several ways – through a general meeting of apartment owners, by conducting a survey without convening a general meeting, or by mutual agreement.
Previously, the law stipulated that a general meeting of apartment owners is quorate if the registered apartment owners in the participant registration list represent more than half, or 50%+1, of all apartments. At the beginning of 2023, the Ministry of Economics proposed to improve the regulation on apartment owners' voting to simplify the decision-making procedure.
The amendments approved by the Saeima today provide that if the general meeting is not quorate (the registered apartment owners do not represent more than half of all apartments), it can be reconvened. If the general meeting with the same agenda is reconvened within a month, it will be quorate if the registered apartment owners represent more than one-third of all apartments.
A similar solution is provided for surveys – if the apartment owners, representing more than half of all apartments, do not provide a written response within the specified period, a repeat survey can be organized within a month, where the same decision can be made if more than one-third of all apartment owners vote in favor.
This solution was chosen because many apartment owners lack interest in the activities of the community and therefore do not participate in forming the community's will. This is also related to the fact that apartments are increasingly not used for the needs of the owners or their family members but are rented out or purchased as investment properties. This choice is also linked to the need to ensure effective daily management (maintenance) of residential buildings.
A similar practice is applied elsewhere in Europe. For example, in Estonia, the relevant regulatory acts provide that if the general meeting of apartment owners lacks quorum, a new general meeting with the same agenda can be convened, which is quorate regardless of the number of participants. Similarly, in Austria, it is stipulated that in certain cases, a minority of apartment owners can decide on matters affecting the management of residential buildings.
It is important to emphasize that the approved amendments concerning decisions made in repeat general meetings and surveys will not apply to cases already specified in the law (Article 17) where a larger number of votes than a simple majority of all apartments is required.
Additionally, the amendments to the law stipulate the obligation of apartment owners to provide their contact information in the Construction Information System or to submit it to the residential building manager if the Construction Information System is not used. This obligation is aimed at facilitating communication between the residential building manager and apartment owners, as well as promoting the efficiency of the decision-making process by specifying the communication means to be used in the decision-making process of the community of apartment owners.
Details of the amendments approved by the Saeima to the Apartment Ownership Law can be found on the Saeima's website.