The Ministry of Justice is looking at further revising Japan’s Act on Building Unit Ownership (建物の区分所有等に関する法律) which could see a further relaxation of voting ratios and the way votes are counted for missing apartment owners.

In the next 20 years, the number of apartments in buildings over 40 years old is expected to increase four-fold to 4.25 million units. More adequate and expedient measures will be required to encourage and support the maintenance or redevelopment of these buildings as they age.

In recent years, redevelopment discussions in older apartment blocks have often stalled due to missing or uncontactable apartment owners. Typically, a 4/5th vote in favor of redevelopment must be obtained by the owners association, but this can be tricky when some owners cannot be reached to place a vote. Even conducting changes, such as repairs, to an apartment building’s common area requires a 3/4 vote in favor from the apartment owners. Owners that cannot be contacted have their voting rights counted in the ‘against’ faction.

Under consideration is a potential reduction in the voting ratio required for redevelopment and possibly eliminating the voting rights for unreachable apartment owners. Selling off an entire building and land currently requires 100% of apartment owners to agree, but this ratio could also be reduced. For buildings that have been damaged due to the point of being uninhabitable, the current ratio of 4/5ths may be reduced further, and the current timeline of 1 year to obtain the necessary vote could be extended to 3 years. These points will be discussed at a legislative hearing to be held in October. 

Sources:
NHK, September 2, 2022.
TBS, September 2, 2022.
The Asahi Shimbun, September 2, 2022.
Jiji Press, September 3, 2022.

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