In May 2023 two draft bills for the amendment of the Condominium ownership management act were submitted to the National Assembly for discussion, both of which were adopted on the first vote. That lead to the creation of a joint Bill for amendment and supplement of the Condominium ownership management act based on them, that was adopted on the second vote by the Parliament on 15.09.2023.
The adopted Act for amendment and supplement of the Condominium ownership management act (“the Act”) introduces changes, that are required in order to synchronize the legal regulation with the reform envisioned in the National Recovery and Resilience Plan of the Republic of Bulgaria, regarding the increase of investment in energy efficiency.
One part of the results, pursued by the amendments in the Act, are achieving better communication between the condominium owners; facilitating the decision-making process at general meetings; achieving an equal distribution of the costs for the management and maintenance of the common areas; creating a detailed regulation of the activity of persons who carry out condominium management by profession, etc.
In order for these objectives to be achieved, the specific legislative changes include:
1 Regarding the conduct of the condominium ownership general meeting:
- The Act reduces the required quorum for representation from the owners from a minimum of 67 percent of ideal shares, to a minimum of 51 percent of ideal shares, as well as the required quorum for holding the meeting after adjournment;
- When one person is the owner of more than 51 percent of ideal shares of the common parts of the condominium ownership, the general meeting is conducted if the owners of at least 75 percent of ideal shares of the common parts of the condominium ownership are present;
- The Act envisions a procedure for a hybrid mode of operation of the general meeting – in person and online via videoconference, that should be regulated in the condominium’s internal rules of procedure;
- A mechanism for conducting absentee voting is envisioned. The voting should be carried out within a 7-day period after the date of the general meeting by everyone with voting rights, that had been unable to participate in the meeting in person or online.
2 Regarding the condominium book:
- The Act introduces the possibility for the condominium book to be kept either on paper or in electronic form;
- It is provided that the submission of a declaration from the owner or the user for entry in the condominium book within 15 days of acquiring the right of ownership or use, or in the case of renting, respectively upon a change of circumstances, can also be accomplished via the e-mail address of the Manager / the Management board.
3 Regarding the funds for the management and maintenance of the common parts of the condominium
- The Act introduces the possibility for the costs for the management and the maintenance of the common parts of the condominium to be divided in one of the ways listed in the Condominium ownership management act, by decision of the general meeting;
- It is provided that for the uninhabitable apartments in the condominium, the costs that are due are equal to those determined for one owner / user;
- The possibility to collect management funds in an individual bank account with a special purpose under the name of the condominium.
4 Regarding the creation of a unified information system
- The creation of a unified information system under the Ministry of Regional Development and Public Works is envisioned. It should unify a Register of Professional Condominium Managers and a Condominium Register;
- The Act for amendment and supplement of the Condominium ownership management act provides that the entry in the Register of Professional Condominium Managers should be a necessary condition for carrying out the respective activity on the territory of Bulgaria;
- According to the Act, the owners’ associations as well as the management boards (managers) of buildings or separate entrances in the mode of condominium ownership on the territory of the country shall be registered in the Condominium Register.
It remains to be seen yet what the impact of the introduced legislation will be and whether it will succeed in achieving the objectives, in pursuant of which it was created, as well as how the condominium management activities will actually change.
The amendments have entered into force on the day of their publication in the State Gazette – 29.09.2023, except for certain provisions, most of which concern the creation of the unified information system and shall enter into force on 31.12.2024.
