Estate not taken in charge with developer going into voluntary liquidation

T

tnegun

Registered User
Messages
425
I'm looking for some advice and to help to understand what the should happen or should have happened in this situation. I live in a large estate in Kildare (400 or so homes with some apartments), it was been built over the last 18 years with several years of a pause following the crash in 2008 and the final properties sold in the last 12 months. The estate was never taken in charge and now the developer has filed for voluntary liquidation. From inquires to the managing agent the developer claims to have started the process of requesting KCC take the estate in charge however KCC deny this or claim that they cannot discuss the process.

There are numerous issues in the estate and the fear is that the developer is attempting to "disappear" through this liquidation rather than rectify these issues leaving the residents to foot the bill. In the past when issues are brought to the agent they are down played or ignored by the directors(developers) and nothing happens. Recently for example almost 30% of the public lighting was out of action and when repaired this bill has been passed to the residents via a management fee hike and from inquires we're now liable for the ESB costs too.

Can the developer disappear like this? Should the estate have been taken in charge by now? Who typically pays the public lighting and maintenace bill in an estate?
 
The Taking in Charge ("TIC") process is very difficult for many developers to navigate.

Councils are very wary of taking on developments, and carry out detailed surveys involving CCTV surveys of sewers etc. Some developments that have their own Waste Water Treatment Plants can be particularly problematical if the WWTP has not been properly maintained.

In your case the developer would have provided a performance bond which the Council should use to complete the TIC process. Any solicitor acting for a purchaser of the house should have assessed the TIC issues before completion. If you access the online planning files maintained by KCC you should see correspondence between solicitors acting for house purchasers and KCC which should provide you some guidance as to the current status of the TIC process.

You should also contact your local councillor and ask them to assist.

Jim Stafford
 
I don't know that much about voluntary liquidation but I think it can only be accomplished if a company is solvent, so can pay its debts and meet its obligations.

I don't know who can challenge it - is it KCC or can any interested party, e.g. residents? Worth looking into I think. Good luck.
 
Now is a good time to go and talk to your local councillors with the elections next year. There is a process for taking estates in charge but as someone else said, it takes time.
 
time to plan said:
I don't know that much about voluntary liquidation but I think it can only be accomplished if a company is solvent
Click to expand...
In my capacity as Receiver and Liquidator of insolvent companies I have agreed TICs where there was a sufficient bond in place. In some cases I was able to complete the TIC and obtain a refund of some of the bond. In other cases there was insufficient bond monies or funding available so the TIC did not take place.

Jim Stafford
 
Thanks for the replies I've reached out to one councilor but will spread the net and contact several more and see if they can assist. The fear is that KCC won't challenge it and whatever bond is in place would be insufficient to cover outstanding works.
Can an estate be partially taken in charge? I ask as a small amount of street lighting is maintained by Enerveo on behalf of KCC its about 1/3 of a link road to a school that runs through the estate and some of the residential streets off it.
Does anyone know is it normal/typical for residents to cover the lighting and maintenance costs and not the developer prior to it been TIC?
Thanks for taking the time to read and for the responses!
 
Jim Stafford said:
The Taking in Charge ("TIC") process is very difficult for many developers to navigate.

Councils are very wary of taking on developments, and carry out detailed surveys involving CCTV surveys of sewers etc. Some developments that have their own Waste Water Treatment Plants can be particularly problematical if the WWTP has not been properly maintained.

In your case the developer would have provided a performance bond which the Council should use to complete the TIC process. Any solicitor acting for a purchaser of the house should have assessed the TIC issues before completion. If you access the online planning files maintained by KCC you should see correspondence between solicitors acting for house purchasers and KCC which should provide you some guidance as to the current status of the TIC process.

You should also contact your local councillor and ask them to assist.

Jim Stafford
Click to expand...
Thanks for the tip re the planning files I've found letters indicating that the bond is still in place though it seems small just 400k.
 
tnegun said:
Thanks for the tip re the planning files I've found letters indicating that the bond is still in place though it seems small just 400k
Click to expand...
If the bond was put in place 18 years ago then construction inflation may have dwarfed it.

The duly appointed liquidator/receiver will review it and see if he can finish the site and recover some of the bond. The liquidator/receiver should be particularly interested in reviewing the bond if he needs to sell remaining sites etc, as a "completed" estate makes the remaining sites more valuable.

Jim Stafford
 
If KCC are stating that there is no TIC applied for by the developer, then the homeowners can request the estate to be taken in charge by way of a plebiscite and the legislation states that where more than 50% of the homeowners vote in favour of this, the Council SHALL take the estate in charge, i.e. they have no choice.

The Council in this situation will use the bond money to carry out the works needed to get the estate up to TIC standard. In the event the bond is insufficient to do all the works, they will prioritise what is most important and then either (a) find funds elsewhere to finish the works now or (b) take it in charge as is and then the outstanding works will be transferred over to the operations section who will put it on their capital works programme to be done at some future time.

For a plebiscite you need the names and addresses of each homeowner (not occupier). GIve this to KCC and ask them to initiate the plebiscite. SO long as the number of owners saying "yes" to TIC is >50% then KCC have to TIC>.
 
You must log in or register to reply here.
Back
Top