Al-Ahram Weekly   Al-Ahram Weekly
1 - 7 June 2000
Issue No. 484
Published in Cairo by AL-AHRAM established in 1875 Issues navigation Current Issue Previous Issue Back Issues

 
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Residents unite!

By Gamal Essam El-Din

After almost two months of intensive debate, the People's Assembly approved in principle on Saturday a new bill providing for the establishment of "unions of residents" in all residential buildings. The objective is to obligate residents, as well as building owners, to share the cost of maintenance, thus preventing buildings from cracking and, possibly, collapsing with the passage of time.

According to its explanatory note, the bill is a long-awaited step in the direction of preventing the further deterioration of housing conditions in this country. "It is a vital law for preserving the wealth of real estate and ensuring that residents live in a secure place. It is also meant to put an end to the rapid growth of construction offences," the note said.

A 1977 law regulating the relationship between real estate landlords and tenants stipulated that "unions of owners" be formed in residential buildings to take on maintenance responsibilities. This, however, was exclusively applied to owners of housing units in condominiums, not to tenants. According to the new law, the "unions of owners" will be replaced by "unions of residents." The law, however, will not apply to residential units governed by Law No 4 for 1996 -- which floated rents of new housing units, leaving them to be determined by the civil code -- and accommodation units in hotels and tourist villages.

The bill states that a union of residents should be formed in buildings which include more than five residential units and are occupied by more than five persons. This union, the bill added, will be responsible for carrying out the necessary maintenance work, guaranteeing the building's safety and managing its condition on a permanent and systematic basis.

To achieve these objectives, the bill states that residents must place a deposit of five per cent of a housing unit's price in a special fund. The money in this fund will be used to defray the cost of maintenance, security and restoration. "The deposit, however, can be increased or decreased subject to the approval of the union of residents," the law's explanatory note said.

While applauding the new bill, MPs agreed that it should be implemented in stages. Zakaria Azmi, MP and chief of the presidential staff, argued that the deposit amount was very high. "The amount should be determined by the financial ability of each resident or else the deposit should be paid in instalments," Azmi said.

Assembly Speaker Fathi Sorour argued that the bill might be considered a preliminary step towards modifying the law that governs relations between landlords and tenants. "This bill establishes a balance between owners and tenants in defraying maintenance costs. It is a step towards creating a general balance in the relationship between the two," said Sorour.

The bill's 16 articles will be discussed in detail by parliament when it reconvenes at the beginning of next month.

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