I know that this sounds harsh but it wasn't the government that let this happen, it was the owners of the apartments. IMHO, I can not see the council wanting to get involved. They will say it is for legal reasons but there is obviously budget reasons that would discourage them from taking on more work.
In the scheme I live in, there are security camera's, if you put a bed/ tv/ counch etc. in the bin area, you are tracked down, tod to remove it and the apartment owner is fined €150 - 200 which is added to their fee. They can not sell the apartment until the discharge this debt.
With regards to non payment of fees, interest rates are applied to people who do not pay. These rates of interest are in line with Icelandic interest rates of approx. 15-20% pa. This tends to focus peoples attention.
I would recommend that the management company hold an EGM. They should present to that meeting a costing for returning the development to an acceptable standard.