Interior Minister Constantinos Ioannou has rejected calls from the District Local Government Organisations (EOAs) for state funding to cover the cost of a new oversight service for management committees in apartment buildings and other jointly owned developments.
In a letter to Parliament, Ioannou urges the swift passage of a proposed legislative framework governing the management, operation and supervision of building management committees, arguing that the current legal regime has left thousands of property owners exposed to chronic problems.
Government pushes for fast approval
The proposed legislation, first discussed by the House Interior Committee in November 2024, is considered both necessary and urgent by the Interior Ministry.
According to the ministry, common problems in jointly owned developments include:
- Failure to establish management committees.
- Mismanagement and lack of transparency by committees or private management companies.
- Non-payment of communal fees.
- Lack of insurance coverage.
- Failure to carry out essential maintenance and repair works.
In many cases, apartment owners refuse to contribute their share of maintenance expenses, leaving buildings in a state of neglect and, in some instances, creating safety risks.
The scale of the issue is significant. According to figures from the Department of Lands and Surveys, Cyprus has approximately 30,000 jointly owned developments, containing around 200,000 residential units. In Nicosia alone, there are an estimated 9,000 to 10,500 such developments, covering between 60,000 and 70,000 homes.
Oversight to remain with EOAs
Despite objections from the EOAs, Ioannou says the government has no intention of changing its decision to transfer oversight responsibilities to local authorities.
The minister rejected suggestions that the task should remain with the Department of Lands and Surveys, arguing that such responsibilities fall outside the department's normal operational role.
In his letter, dated 7 September 2026, Ioannou makes clear that the EOAs will be expected to establish and operate the new supervisory service themselves.
No state grant, says minister
The EOAs have argued that they should receive government funding to cover the cost of creating and staffing the new service.
Ioannou disagrees.
He notes that the EOAs are autonomous local government bodies and says the initial implementation costs can be absorbed through their own budgets.
"Taking into account the existing institutional and fiscal framework, state funding is not provided for the exercise of this responsibility," he writes.
He argues that initial costs during the transition period will be limited and staffing requirements relatively small, allowing EOAs to finance the service from existing resources.
According to the minister, once the legislation is fully implemented, the service should become self-financing through the collection of fees.
New staff expected
The Interior Ministry acknowledges that additional staff will be required.
A study carried out by the Department of Lands and Surveys has already identified the staffing needs of each EOA.
Ioannou says local authorities should submit documented requests for the creation of the minimum number of new positions required. The process could begin during preparation of the 2027 budgets and the 2027-2029 medium-term fiscal framework.
Full staffing, he says, can be completed gradually as the legislation comes into force.
Initially, salary costs could be covered through revenues generated by licensing operations. In the longer term, operating costs would be financed through fees determined by the EOAs themselves.
State to fund software platform
While refusing operational funding, the government has agreed to finance the technological infrastructure required for the new system.
According to Ioannou, the state will fully fund the development of the software platform that EOAs will use to supervise management committees.
The system must be completed before local authorities formally assume responsibility.
EOAs will participate throughout the design and implementation process to ensure the platform meets their operational needs.
The new system will draw information from the Department of Lands and Surveys' databases and will also be linked to the IPPODAMOS planning platform, allowing continuous updates of ownership and property records.
Two-year transition period proposed
The minister considers it reasonable to provide a transition period of up to two years following adoption of the legislation.
The period would allow time for:
- Development of the software platform.
- Creation of necessary registries.
- Establishment of procedures.
- Recruitment and training of staff.
- Preparation of administrative systems.
During the transition period, the existing legal framework will remain in force.
At present, the Department of Lands and Surveys can appoint a management committee where none exists and convene a general meeting upon request by a property owner. However, it has no effective powers to investigate wrongdoing or enforce compliance, powers that would be introduced under the proposed legislation.
Bill returns to Parliament
The proposed law is due to be discussed by the House Interior Committee on Thursday.
The Interior Ministry argues that approval should come as soon as possible, saying the current framework fails to provide effective sanctions against owners who refuse to meet their obligations and continues to create difficulties for thousands of residents living in apartment buildings and housing complexes.
Find the letter here.
