New rules for the Dutch Home Owner Association are meant to improve the operation or the Netherlands HOA.
Home Owners Association in the Netherlands
The Dutch Owners’ Association or VvE ensures the property is well maintained and insured and deals with communal expenses. If you buy a apartment Netherlands you are automatically a member of this Owners Association and bound to the applicable rules (reglement). The Association of Owners in the Netherlands is responsible for the communal parts of the building like the halls, roof, pipes, walls, stairs, etc. You pay a contribution to the VvE for maintenance, insurance, communal expenses.
New rules apply as per January 1 2018 on the Dutch Owners Association
- a minimum amount for large scale maintenance should be reserved by the VvE in a separate account
- the VvE should have a large scale maintenance plan
- large scale maintenance plan should stipulate the amount to be reserved
- works to bed and should be budgeted and planned to be done within 10 years
- the VvE can obtain an loan for maintenance work.
Home Owners Association can obtain a loan
The VvE can obtain a bank loan or a loan with a special Fund for large scale maintenance works. The owner of an apartment is only liable for his share in the loan. When the house is sold then the debt and/or liability of the home owner will be transferred to the new owner. The notary who deals with transfer of property in the Netherlands will specify this in the deed of transfer.
Manager of Dutch Association of Owners
The manager (beheerder) of the owners association will conduct the management over the communal sections and the communal property. Decisions of the owners association are taken in meetings, the assembly of the VvE, to be conducted according to the applicable rules. The meetings will take place at least within six months after the end of the financial year. Assemblies can also be arranged as often as necessary. Decisions by the meeting of owners are taken by majority vote. For specific decisions, like changing the deed of the division (splitsingsakte), or not reserving funds for maintenance, 4/5 majority is necessary. Also a separate set of HOA rules may apply (huishoudelijk reglement).