On the 22nd, the Ministry of Land, Infrastructure, Transport and Tourism held the second meeting of the "Housing and Land Subcommittee of the Council for Social Capital Development" (Chair: Hiroko Saito, Professor at Yokohama City University, Faculty of International Studies). This meeting focused on discussions regarding points raised in the first meeting, including "further dissemination of the management plan certification system," "addressing the shortage of management association executives," and "responding to diverse rebuilding needs." The committee heard from various condominium-related organizations.
The Japan Condominium Management Association reported that the number of registered associations under its unique "Condominium Management Proper Evaluation System" has reached 6,265. They shared examples of associations that, after receiving low evaluations, took proactive steps to achieve higher ratings, stating that this serves as a motivation to enhance condominium value and management. They also discussed their efforts to promote the external management system among member management companies, including detailed explanations of national guidelines before accepting contracts and conducting opinion exchange meetings prior to general assembly proposals to reflect the opinions of unit owners. In 2024, 113 member companies are expected to undertake external management.
The Japan Federation of Condominium Management Professionals announced that their "Condominium Management Optimization Diagnosis Service," offered since 2018, has been implemented in 21,714 buildings. They stated that condominiums receiving the highest "S" and the next highest "A" ratings benefit from discounts on fire insurance for exclusive areas, serving as an incentive for management evaluation. They also introduced a "Management Association Damage Compensation Payment System," which compensates up to 300 million yen for damages caused by misconduct of the management professional when holding the bank seal of the management association.
The National Federation of Condominium Management Associations, which has consistently opposed the external management system by condominium management companies, reported on their efforts to send directors to management associations facing challenges like a lack of executives and inability to address important issues such as large-scale repairs and amendments to management regulations. Over the past 20 years, they have sent directors to 40 management associations. The dispatched personnel do not handle financial matters or significant regulatory changes, focusing instead on solving the associations' issues while maintaining their autonomy. The 26 associations that successfully stabilized their board operations have concluded their assistance. "It's said that there is a shortage of executives, but the real issue is a growing reluctance to take on these roles. Additionally, most associations that receive dispatched directors have contracts with management companies. The current situation is that we are educating both the management associations and the management companies," stated Yoshitaka Hatajima, the president of the federation.
The Association of Condominium Planning and Repair Execution called for the mandatory reporting of planned repair work histories after completion to ensure that condominiums with proper maintenance receive appropriate evaluations in the existing housing market. Meanwhile, the Real Estate Association urged for a reassessment of obstacles to condominium rebuilding, such as lengthy consensus-building and permit acquisition processes, numerous "form regulations" that hinder rebuilding, and excessive burdens from post-rebuilding unit area requirements that do not align with user needs.
The committee will hold its third meeting on December 20 to discuss the compilation of proposals.
Source: Real Estate Distribution Research Institute, Inc. "R.E.port"
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