Objectives, Powers and Duties of The Apartment Owners Association

Download UP Apartment laws eManual

Registration of an association of apartment owners is important for the uninterrupted maintenance of any housing society. It provides a platform to the apartment owners to raise their grievance regarding any issue in the society. Uttar Pradesh government has made it compulsory to register an Apartment Owners Association (hereinafter referred as AOA) under section 14 of The Uttar Pradesh Apartment (Promotion of Construction, Ownership and Maintenance) Act, 2010.

The Association derives its power from Section 14 of ‘the 2010 Act’, which lays down the provisions for framing Model Bye-Laws under which rules regarding Objectives, Powers, Functions and Duties of the Association, Board and Apartment Owners have been laid down.

Objectives of Association:

1. To be and to act as the Association of Apartment Owners of the building.
   
2. To invest or deposit money.
   
3. To provide for maintenance, repair and replacement of common areas and facilities by contributions from the apartment owners and if necessary, by raising loans for that purpose.
   
4. To retain and rent out on license suitable portions of the common areas to outsiders for commercial purposes if all the members agree and give written
   consent after obtaining the permission of the concerned authority and to
   accumulate the same for making a reserve fund; to be used for major repairs
   of the building.
   
5. To provide for and do all or any of the matters provided in sub-section (7) of
   section 14.
   
6. To advance with the consent of the apartment owners, any short-term loan to
   any apartment owner(s) in case of any emergent necessity and to provide for
   the repayment thereof in a lump sum or in instalments.
   
7. To establish and carry on, on its own accord or jointly with individuals or
   institutions, educational, physical, social and recreative activities for the
   the benefit of the apartment owners.
   
8. To frame rules with the approval of the general meeting of the Association and after consulting the Competent Authority and to establish a provident fund and gratuity fund, if necessary, for the benefit of the employees of the Association.
   
9. To do all things necessary or otherwise provide for their welfare expedient for the attainment of the objects specified in these bye-laws.
   

Powers and Duties of Association-

The Association shall have the responsibility of administering the condominium, approving the annual budget, establishing, and collecting monthly assessments and arranging for the management of the condominium in an efficient manner.

Place of meetings and date of Annual/Special meetings shall be decided by the association and shall be held at place convenient to the apartment owners.

Notice of meetings shall be send to the apartment owners through mail or notice by the Secretary which shall contain Timing, Place and Purpose of the meeting at least two days prior to the meeting.

Powers and Duties of the Board-

The affairs of the association are governed by the board of management constituted and elected through simple majority in general body meeting. The board shall not comprise of less than 4 and more than 10 members.

1. The President shall be the Chief Executive Officer of the Association. He shall preside over all meetings of the Association and of the Board. He shall have all the general powers and duties which are usually vested in the office of the President of an Association, including the power to appoint committees from amongst the owners from time to time.
   
2. In the absence of the President, the Vice-President shall perform the duties of the President and in case both the President and the Vice President are absent, the Board shall appoint some other member of the Board to act as President on an interim basis. The Vice-President shall also perform such other duties as may from time to time assigned to him by the Board.
   
3. The Secretary shall keep two separate minutes books, one for the Association of the Apartment Owners and the other for the Board, pages of each of which shall be consecutively numbered and authenticated by the President of the Association of Apartment Owners and shall record in the respective minutes books, the resolutions adopted by the Association of Apartment Owners or the Board, as the case may be. He shall have charge of such books and papers as the Board may direct and he shall perform all duties incidental to the office of the Secretary.
   
4. The Treasurer shall be responsible for Association funds and securities and shall also keep full and accurate accounts of all receipts and disbursements in the books.
   

In addition to the above noted functions, the board shall also be responsible for the following duties-

1. maintenance, repair and replacement of the common areas and facilities,
   
2. Collection from apartment owners share of common expenses.
   
3. resignation and removal of persons employed for the maintenance, repair and replacement of common areas and facilities.
   
4. to provide for the manner in which the audit and account of the Association shall be carried out.
   
5. to inspect the accounts kept by the Secretary/Treasurer and examine the registers and account books and to take steps for the recovery of all sums due to the Association,
   
6. to see that cash book is written up promptly and is signed daily by one of the members of the Board.
   
7. to specify the times at which and the manner in which the annual general meetings and special general meetings of the Association shall be held and conducted.
   

Along with the powers and duties of the Board, the Act has also laid down some obligations for the apartment owners for the efficient functioning of the condominium, which are as follows-

1. All the repairs of internal installations of the unit such as water, light, gas, power, sewerage, telephone, air-conditioners, sanitary installations, doors, windows, lamps, and all other accessories, shall be at the expense of apartment owner concerned.
   
2. The Owner shall re-imburse the association for any “expenditure” incurred in repairing or replacing any common area and facilities damaged due to his fault.
   
3. The apartment owner shall obtain police verification report of the proposed tenant from the concern police station while letting out the apartment on rent to ensure that the proposed tenant is not a criminal or troublesome.
   
4. If a building requires major repairs for its structural safety or other sufficient reason, a detailed estimate thereof shall be got prepared by the association through an engineer to be appointed by the Board and thereupon, after the approval of the estimate by the Board, the members shall contribute their share for carrying out such repairs.
   
5. No owner shall undertake any work that affects the external facade of the building from any angle i.e. covering of balconies and terraces, change of colour, etc.
   
6. An apartment owner of a residential unit shall use it for only residential purpose and similarly, an apartment owner of a non-residential unit use it for nonresidential purposes alone.
   
7. No apartment owner would exempt himself from liability for his contribution towards the common expenses by waiver of the use or enjoyment of any of the general and/or limited common areas and facilities, or by the abandonment of his dwelling unit.
   
8. The apartment owners shall use their apartments in a manner which does not spread any smell while cooking food etc. from their apartment to cause any irritation or annoyance to their neighboring apartment owners.
   
9. An owner shall not place or cause to be placed in the lobbies vestibules, stairways, elevators and other areas of facilities of a similar nature both common and restricted, any furniture, packages or objects of any kind. Such areas shall be used for no other purpose than for normal transit through them.
   

Effect of violation of duties: In case of violation of any duties by the apartment owners, the association has the right to levy and collect fine for such violation. It shall also cover the expenses incurred in restoring the defects caused, if any. These damages are payable within 30 days.

Conclusion

Apartment Owners Association constituted under Section 14 of the Act have been entrusted with widespread powers to maintain the condominium. These powers must be exercised within the limits prescribed by the rules and bye-laws of the Act. Apart from the exercise of the rights by AOA in the common areas, in case of emergency, it also has the right of entry into an apartment whether the owner is present at the time or not.

The owner of an apartment shall also be responsible for the acts of its guests and visitors, and the damage caused by them shall be recovered by the AOA from the owner.