Common Amenities Board (Amendment) Act 2003

This Act may be cited as the Common Amenities

Board (Amendment) Act, No. 24 of 2003.

The Long Title to the Common Amenities Board Law,

No. 10 of 1973 (hereinafter referred to as the “principal enactment”) is hereby amended by the substitution for the words “As the Common Amenities Board for the control,

Management, Maintenance and Administration of the

Common Amenities and Common Elements of Units of

Accommodation” of the words “As the Condominium

Management Authority for the Control, Management,

Maintenance and Administration of the Condominium

Property, Semi Condominium Property and Provisional

Condominium Property”.

“Common Amenities Board Law”, and “Common Amenities Board”, and “Board” to be known as the “Condominium Management Authority Law”, “Condominium Management Authority” and “Authority”

In the principal enactment and in any other written law, there shall be substituted –

Every reference to the “Common Amenities Board

Section 4 of the principal enactment is hereby repealed and the following section substituted therefor :–

4. This Law shall apply to any building or buildings having two or more stories on alienated land, held as one land parcel capable of being subdivided into parcels, and to any building or buildings having only one storey on the same land capable of being subdivided into parcels, (hereinafter referred to as

“Condominium Property”), any building proposed to be or in the process of being erected on alienated land, held as one land parcel and which shall be capable of being subdivided into parcels (hereinafter referred to as “Provisional

Condominium Property”) and any partly completed building in which there are more than one completed condominium parcels fit for human habitation shown in the registered

Provisional Condominium Plan (hereinafter referred to as “Semi Condominium Property”).’.

Section 5 of the principal enactment is hereby repealed and the following section substituted therefor :–

5. The objects of the Authority shall be to –

control, manage, maintain and administer the condominium parcels, the common elements and the common amenities of the Condominium Property or Semi

ensure that the common elements and the

ensure that all buildings comprising such condominium parcels are insured against risk of fire, civil commotion and riot or to insure or keep insured, if so requested by the management corporation or by the owners, and to recover such premium or charges from the management corporation or the owners as the case may be ;

remove all such unauthorized constructions erected or carried out by the respective owners or occupiers of such condominium parcels or by any person, contrary to the registered condominium plan of the Condomenium Property or the registered Semi Condominium Plan of the

ensure that the management corporation of the condominium property or Semi

assist the management corporation or the owner or owners or occupiers of the condominium parcels, of the

assist the management corporation to establish and maintain for use by owners or occupiers of such condominium parcels, facilities such as roads, accessways, lawns, gardens, parks, playgrounds and other open spaces, or to be directly involved with such activities, in the event of the management corporation failing to establish and maintain such facilities ;

transfer to the local authority the maintenance of roads, accessways, lawns, gardens, parks, playgrounds and other open spaces for the use by owners or occupiers of the condominium parcels of the Condominium Property or Semi

provide maintenance and repair services to such condominium parcels of the

monitor the progress of the construction of the registered

formulate and submit condominium re-development programmes including capital investment plans to the Minister for approval by the Government ;

call upon the National Housing

undertake the completion of any condominium building shown in the registered Semi Condominium Plan or

develop or re-develop land for carrying out of any of the objects of the

do all such other acts as may be necessary or conducive to the attainment of any or all of the above objects.”.

Section 6 of the principal enactment is hereby repealed and the following section substituted therefor :–

6. For the proper carrying out of its objects the Authority shall exercise any one or more of the following powers :–

acquire by way of acquisition, vesting, grant or purchasing, or to receive by way of gift or otherwise any immovable or

receive donations and bequests from any source whether local or foreign ;

borrow moneys required by it for the discharge of the functions ;

charge rent for any land parcel or buildings or Condominium Property let by the Authority ;

levy fees or charges, for any services rendered by the Authority under this Law or any other written law ;

recover any premia from owners in proportion to their interests in the condominium parcels ;

recover from any person including an owner, expenses incurred in making good any damage caused by him to the common amenities or common elements of the condominium parcels ;

provide to any condominium parcel, any services including its refurbishment, repair, and maintenance at the request of the management corporation or owner or occupier of the condominium parcel and levy charges therefor ;

undertake construction work ;

enter, either by itself or by its duly authorized agents, at all reasonable times, any condominium parcel for the purpose of inspecting, repairing, or renewing pipes, wires, cables and ducts which also serve other condominium parcels or the common elements of the condominium parcels or for the purpose of maintaining, renewing, refurbishing, or repairing the condominium parcel or the common amenities or the common elements, of the

enter either by itself or by its duly authorized agents at all reasonable times, any land parcel of the Provisional

enter into such contracts and to make such arrangements as are reasonably required for the purpose of carrying out any of the objects of the Authority ;

resolve disputes between the management corporation and the owner or owners, and occupier, or owner and purchaser, or owner and mortgagee, or mortgagee and prospective purchaser or mortgagor and mortgagee of the condominium parcels of the Condominium Property, or Semi

employ such officers and servants as may be necessary to carry out the work of the

make rules for the administration of the affairs of the Authority ; and

do all things which in the opinion of the

Section 7 of the principal enactment is hereby repealed and the following section substituted therefor –

7. Notwithstanding anything to the contrary in any other law, the Authority may, on a directive made by the Minister or on a request made by an owner or the owners of all the condominium parcels, or by the management corporation, or by the local authority, or any other public corporation as the case may be, where the Authority is satisfied that the owner or owners or the management corporation, are incapable of properly controlling, maintaining, managing and administering the common elements or common amenities of the condominium parcels of the Condominium

Property or Semi Condominium Property, undertake to control, maintain, manage and administer of the common elements and common amenities, until such time the management corporation is capable of controlling, maintaining, managing and administering such common elements and common amenities of the Condominium

Property or Semi Condominium Property.”.

“Authority to take over the control, maintenance

&c. of the common amenities and common elements of the

Condominium

Property.

Section 8 of the principal enactment is hereby repealed and the following section substituted therefor :–

8. (1) The management and administration of the affairs of the Authority shall be vested in a Board of Management (hereinafter referred to as “the Board”) which shall consist of –

the following ex-officio members namely —

the General Manager of the National

the Director-General of the Urban

The Director-General of the Public

the General Manager of the National

the Municipal Commissioners of

the General Manager of the Authority who shall be the Secretary of the

six persons to be appointed by the

the representative of the Secretary to the Ministry of the Minister in charge of the subject of Finance ;

a representative of the Home

a representative of the Private Sector

a representative of the management corporation ;

a representative of the Ceylon

a person having experience in the area of condominium property management, who shall be the

A person shall be disqualified from being appointed or from continuing as a member of the Board —

if he is or becomes a member of

if he is not or ceases to be a citizen of Sri

The appointed members shall subject to the provisions of subsections (5) and (7) hold office for a term of three years, and shall be eligible for re-appointment.

The Minister may remove from office the Chairman or any member –

if he becomes subject to any disqualifications specified in sub-section (2) ;

if he becomes incapable of performing his duties owing to physical disability or unsoundness of mind ; or

if he does any act or thing which, in the opinion of the Minister is likely to bring the Authority to disrepute.

In the event of the vacation of office by the Chairman or any other member of the

If the Chairman or any appointed member of the Board is temporarily unable to discharge the duies of his office due to ill health or absence from Sri Lanka or for any other cause, the Minister may appoint some other person to act in his place as Chairman or as member.

Any member of the Board may at any time resign his office by written communication addressed to the Minister. Such registration shall be effective from the date of acceptence of the same by the Minister.

The members of the Board shall be remunerated in such manner and at such rates, as may be determined by the Minister with the concurrence of the Minister in charge of the subject of Finance.

The Chairman of the Board, shall, if present preside at all meetings of the Board, in the absence of the Chairman from any such meeting, the members present shall elect one of the members to preside at the meeting.

Any ex - officio member may, at any time by prior notice in writing nominate his deputy to represent him at the Board meeting to be held on a given date, if he is unable to attend such meeting due to unavoidable circumstances.

The quorum for any meeting of the

The Board shall, in the exercise, discharge or performance of its powers, functions or duties under this Act be subject to such general or special directions as may from time to time, be issued by the Minister.

A member of the Board, who is directly or indirectly interested in any business transacted or proposed to be transacted by the

No act or proceeding of the Board shall be invalid by reason only of the existence of a vacancy among its members of any defect in the appointment of a member.”.

Section 9 of the principal enactment is hereby repealed and the following section substituted therefor :––

9. (1) The Authority, may on its own motion, or on the application of a majority of the members of the management corporation or of not less than one-third of the owners of the

Condominium Parcels of the Condominium

Property or Semi Condominium Property, hold an inquiry, or direct a person authorized in writing in that behalf, by the Authority by order to hold an inquiry into the activities and financial stability of the management corporation.

For the purposes of an inquiry under subsection (1), the Authority or any person authorized by to hold an inquiry, shall have the power –

to summon any member of the management corporation,or owner or owners of the condominium parcels ;

to require the production of any book or document relating to the affairs of the management corporation or any cash or security ;

to summon a special general meeting of the owners of the condominium parcels ;

to take into his custody, books of accounts or documents in the possession of the management corporation.

Where an inquiry is held under subsection (1) the Authority or the person authorized by the authority to hold the inquiry shall after due inquiry make order as regards the management corporation and shall communicate the order of the inquiry to all the owners of the condominium Parcels of the

It shall be the duty of the management corporation to abide by any order made under subsection (3).”.

The following new sections are hereby inserted immediately after section 9 of the principal enactment and shall have effect as sections 9A, 9B, 9C and 9D of that enactment :––

9A. (1) Where the Authority receives a complaint or receives information that an unauthorized construction has been erected or is being erected in any registered or unregistered

Condominium Property or Semi Condominium

Property, the Authority shall, cause a notice in writing to be served on the owner of the condominium parcel and a copy of such notice to be served on each occupier of such condominium parcel and the management corporation if any, who is erecting or has erected such unauthorised construction in the condominium parcel, or the common element and direct such owner, occupier or management corporation, as the case may be, to be present at an inquiry on a date, time and place, to be specified in the notice and to show cause –

why the Authority should not prohibit such person from proceeding with the construction ;

why the unauthorised construction should not be demolished and the Condominium

The persons present at the inquiry in persuant to the receipt of a notice issued under subsection (1), shall be given an opportunity of being heard and thereafter where the Authority is of the opinion that such construction is an unauthorized construction, it may direct, such owner or occupier or management corporation or other person, as the case may be —

not to proceed with such unauthorised construction ; or

to restore the condominium parcel or an accessory parcel appurtenant to the condominium parcel or common element to its original condition ; or

to take such other measures for the purpose of compliance with the conditions set out in the permit subject to which the

Where such owner or occupier or management corporation or other person, as the case may be —

fails to be present at the inquiry ; or

after being present at such inquiry refuses to comply with any direction issued under subsection (2) within seven days from the date of issue of such direction, the Authority shall–

take appropriate measures to demolish such unauthorised construction ;

direct the discontinuance of the use of the land parcel or building ;

do all such other acts as the owner or occupier or other person was required to do by such directive under subsection (2).

The Authority may, for the purpose of acting under paragraphs (i), (ii) or (iii) of subsection (3) authorise any officer to enter the

No action or other proceeding shall lie against any person for any act, done within exercise of the powers conferred by subsection (4), and no owner, occupier or person shall be entitled to any compensation for any damage or loss caused by such act.

It shall be the duty of every member of the Police when requested to do so, to render all necessary assistance to the Authority for the purpose of taking action under paragraphs (i), (ii) or (iii) of subsection (3).

The Authority shall be entitled to recover all reasonable expenses incurred by the

The preceding provisions of this section shall not affect any liability incurred by such owner or occupier or other person by reason of his failure to comply with such notice.

On a written complaint made by a purchaser of a condominium parcel of the

Where the registered owner against whom an Order is made under subsection (1)

Upon registration of the provisional condominium plan by the Registrar under the

The progress report to be submitted quarterly shall be submitted in the format as set out in Schedule I.

Where the General Manager is satisfied that the owner is not carrying out the construction of the registered Provisional

Where the owner fails to participate at such meeting, or after participating fails to provide satisfactory explanation for the delay, or provide a satisfactory work programme for the construction of the proposed building upto the level of a partly completed building, so that all existing mortgages securing the land parcel and individual condominium parcel could be redeemed and all commitments made towards the registered prospective purchasers could be settled, the Authority may–

recommend that the mortgagees take action as per the mortgage instruments, and to recover the money due to the mortgagee, and to settle the claims of the registered prospective purchasers, if there is any surplus money with the mortgagee after the sale of the land parcel ; or

recommend the Minister that such land parcel be ested in the Authority where the

the Minister, shall on being satisfied after due inquiry, on a recommendation being made by the

where the Minister makes an Order under paragraph (a), directing the owner of the registered Provisional

the number of provisional condominium parcels in the registered

the period within which such construction needs to be completed ;

the final date by which the application for registration of the

Where the owner of any provisional condominium property in respect of which an order is made under subsection (1) fails to comply with the order

Where the land parcel of the provisional

outstanding dues arising out of the mortgage or mortgages of the property acquired ;

outstanding dues arising out of the agreements for sale of the provisional condominium parcels ;

outstanding dues to any of the government agencies in relation to registered

if any amount remains unsettled to any of the parties mentioned above such unsettled amount will be recovered by the Authority by way of in an action in a court of competent jurisdiction as debt due to it from the relevent defaulting owner.”.

Section 10 of the principal enactment is hereby repealed and the following section substituted therefor :—

10. (1) Where any immovable property is required to be acquired for any specific purpose of the Authority and the Minister by Order published in the Gazette approves the proposed acquisition for that purpose, that property shall be deemed to be required for a public purpose and may accordingly be acquired under the Land

Acquisition Act and transferred to the Authority.

Any sum payable, for the acquisition of any immovable property under subsection (1)