New Bill seeks to tighten rules on gated communities
The era of anything goes in Jamaica’s rapidly expanding gated communities may soon be over, as the long-awaited Shared Communities Act 2026 was finally tabled in the House of Representatives on Tuesday.
Its provisions will have far-reaching effects, both from a monetary and legal standpoint for owners and residents of these communities alike. These range from mandatory maintenance fees, a possible $1-million fine when the by-laws of the governing Community Corporation are breached, and the seizure and possible sale of property to recover outstanding fees.
The Act allows for the establishment of a regulatory framework for shared communities; oversight by the Real Estate Board for the use of and operation of common property; and the regulation of the rights and obligations of the proprietors (owners) and connected matters.
According to the Bill, the Real Estate Board will be responsible for the regulation of community corporations in accordance with the provisions of this Act. The functions of the board shall be to receive and process the initial applications for registration of a shared community and its community corporation; issue certificates of registration; renew the certificates of registration of shared communities and the community corporation; and issue certificates authorising community corporations to exercise their power of sale.
The board will also keep, or cause to be kept, a register to be known as the Register of Community Corporations; facilitate dispute resolution in respect of the same shared community between the proprietors and a community corporation; and issue directions in respect of a dispute.
The board may, in relation to a shared community, order the removal of animals from a lot or common property that remains in contravention of the by-laws of a shared community; declare that a resolution passed by the community corporation shall have no effect when the voting rights of the proprietors have been compromised; and issue a notice to convene general meetings and an annual general meeting to address any issue arising under this Act.
“The owners of all the lots in a shared community shall, upon registration of the shared community plan with the board, become a body corporate by establishing a Community Corporation,” the Bill states.
The community corporation, thereafter, shall establish an executive committee comprised of proprietors that is allowed to exercise the powers and perform the duties of the corporation.
The functions of the community corporation include keeping and maintaining a register of all proprietors in the shared community, which shall include the names and contact details of all the proprietors; keep the common property in a state of good and serviceable repair and properly maintained; insure the common property in accordance with section 15; establish and maintain a long-term maintenance plan for the shared community; establish and maintain the funds of the shared community to cover administrative expenses for payment of insurance and for discharge of any other obligation of the shared community.
While many disputes have taken place inside gated communities, including guns being drawn and people shot over the refusal to pay maintenance fees, the proposed law paves the way for the seizure and sale of the property of the delinquent proprietor.
“For the purpose of executing its power of sale, the community corporation shall be entitled to execute all the relevant instruments and documents necessary to transfer ownership of the lot.
“The Registrar of Titles, upon the production of a transfer made in professed exercise of the power of sale by the community corporation, shall not be concerned or required to make any inquiries in relation to the exercise to the power of sale,” the Bill states.
Prior to the sale of the property, the community corporation would have to satisfy the board that it took all reasonable steps to notify the owner.
Yet the board may direct the community corporation to take any additional action it determines necessary in the circumstances. In this regard, a notice under subsection (2) shall be published by the board in a daily newspaper, printed and circulated in the Jamaica Gazette twice within 30 days of the date that the board gives the direction.
When the board is satisfied that the community corporation has taken all reasonable steps in accordance with section 29, the board shall issue a certificate in the prescribed form to that effect. The community corporation may only exercise a power of sale when it has received a certificate from the board.
Before proceeding to a sale, when maintenance fees are outstanding, the community corporation may apply to the court for an order of possession. This is in cases in which, for a period exceeding 60 days, the owner has not paid contributions in respect of his or her lot; all efforts to locate the proprietor of the lot have been unsuccessful; and the community corporation intends to rent the lot to recover the amount outstanding as contributions to the community corporation until the proprietor or his or her agent is found and has paid all the amount outstanding and has resumed the obligations with respect to the contributions.
The court may order that the rental income is paid directly to the community corporation and the contributions owed deducted from the rent. When the court grants an order of possession in accordance with section 32(2), the community corporation shall keep the proceeds of rental income which remain after the deduction of contributions owed to it and other related expenses in respect of a lot. In such a case, the corporation shall keep the proceeds of rental in an interest-bearing account in the name of the community corporation, on trust for the proprietor, in a bank or other financial institution licensed to accept deposits.
Meanwhile, a community corporation is empowered to fix the date at the annual general meeting on which contributions are due to be paid. The amount of any unpaid contributions, together with any reasonable costs incurred in collecting the contributions, shall be recoverable, without limit, to the amount in a parish court.
The Bill also states that, “If a proprietor owes money to the community corporation for contribution or for any work done by the community corporation in accordance with this Act, simple interest shall accrue in respect of the amount of the debt as remains unpaid.”
The legislation also empowers the community corporation to make additional by-laws to regulate the control, management, administration, use, and enjoyment of the common property contained in every registered shared community plan.
When a proprietor breaches a by-law the corporation may apply to the court for a remedy. When the court is satisfied, on receipt of an application of the community corporation, that a proprietor has contravened any of the provisions of the by-laws under this Act, the court may order the proprietor, the agent of the proprietor, or any person occupying with the consent of the proprietor to pay to the community corporation a pecuniary penalty not exceeding $1 million.
The court may also grant an injunction preventing the proprietor from engaging in conduct in contravention of the by-laws.
Since many owners do not occupy their premises but either lease or rent, the law also makes provision for this. It states that a proprietor shall appoint a person in Jamaica to act as his or her agent if the proprietor is unable to carry out his obligations under this Act by reason of absence from Jamaica or inability to act whether due to illness or otherwise.
A proprietor may appoint an agent but must notify the community corporation and the mortgagee, if any, in writing, stating the period for which the agent is appointed to act.
Although the Bill is in the name of Prime Minister Dr Andrew Holness, he was not in the Parliament on Tuesday and it was instead tabled by Minister Robert Montague. Opposition Member of Parliament Julian Robinson said, based on the far-reaching effects of the Bill, it should first go to a joint select committee of the Parliament for deliberation.