It is hereby promulgated that the Decision of Wuhan Municipal People’s Government on Amending the Measures of Wuhan Municipality for the Administration of Special Residential Maintenance Funds has been adopted at the 56th Executive Meeting of Wuhan Municipal People’s Government on May 2, 2018, and shall be implemented as of July 1, 2018.
Mayor: Wan Yong
May 12, 2018
Decision of Wuhan Municipal People’s Government on Amending the Measures of Wuhan Municipality for the Administration of Special Residential Maintenance Funds
The Municipal People’s Government decides to amend the Measures of Wuhan Municipality for the Administration of Special Residential Maintenance Funds as follows:
1. In Article 1, the “Property Management Regulations (Order No. 504 of the State Council)” is amended to the “Property Management Regulations”, and is followed by the “Regulations of Hubei Province on Property Service and Management”.
2. The third paragraph of Article 5 is amended to “The competent departments of finance, audit, land planning, and quality supervision, and the fire departments under the public security organs are in charge of the management of the special residential maintenance funds in line of their respective functions and duties.”
A new paragraph is added as the fourth paragraph: “The people’s governments at the district level (incl. the administrative committee of Wuhan East Lake High-tech Development Zone, the administrative committee of Wuhan Economic and Technological Development Zone, and the administrative committee of Wuhan East Lake Eco-tourism Scenic Spot, the same below) are in charge of the overall coordination over the management of the special residential maintenance funds within their respective district. The sub-district offices and the people’s governments at the township level are in charge of the specific work related to the management of the special residential maintenance funds under their respective jurisdiction.”
3. A new article is added as Article 9: “The special residential maintenance funds deposited by developers and owners shall be owned by owners.
The special residential maintenance funds drawn from the sales of public-owned houses shall be owned by the sellers of public-owned houses.”
4. The original Article 9 is amended to: “Article 10 The municipal competent administrative department of housing shall, in an open, fair and just manner and with consideration of such factors as the service quality of commercial banks, determine the best management banks of the special accounts for the special residential maintenance funds (hereinafter referred to as “the management banks”) of this Municipality jointly with the departments concerned according to law, and shall make the result public.
The management banks are in charge of the opening, deposit, use, interest settlement, transfer, settlement, adjustment, verification and enquiry related to the accounts for the special residential maintenance funds. The municipal competent administrative department of housing shall sign an agreement of special account management with the management banks to specify the aforesaid services provided by them and the third-party supervision service involved in the use of the special residential maintenance funds.”
5. The original Article 10 is changed to Article 11, and the “initial registration” in the second and third paragraphs is amended to the “initial registration of real estate”.
6. The original Article 12 is changed to Article 13. In the second paragraph, the “competent administrative department of housing” is amended to the “registration authority of real estate”, and the “registration of housing ownership” is amended to the “registration of real estate”.
7. The original Article 13 is changed to Article 14. The second paragraph is amended to: “For commodity residential houses, the special accounts for the special residential maintenance funds deposited by owners shall use a property management area as a unit, under which sub-accounts are established for each households, and without delimitation of a property management area, the special accounts shall use a building as a unit, under which sub-accounts are established for each households; the special accounts for the special residential maintenance funds deposited by developers shall use a property management area as a unit, under which sub-accounts are established for each building, and without delimitation of a property management area, the special accounts shall use a building as a unit.”
8. The original Article 17 is amended to: “Article 18 With respect to the transfer of special residential maintenance funds, an owners’ committee shall sign a letter of authorization with the opening bank, the local sub-district office or people's government at the township level, which shall state that in case of the emergencies described under these Measures, the local sub-district office or people's government at the township level may organize the maintenance on behalf of the owners’ committee and pay the corresponding costs from the special residential maintenance funds involved in the maintenance works.”
9. The original Article 24 is amended to: “Article 25 Where it is necessary to use the special residential maintenance funds before transferring them to an owners’ corporation, the following procedures shall be gone through:
(1) The property service enterprise shall propose the utilization scheme based on the maintenance, renovation and reconstruction works. Where there is no property service enterprise but the owners’ corporation instead, the owners’ committee shall proposes the utilization scheme; where there is no owners’ corporation established, the residents' committee shall organize relevant owners to propose the utilization scheme; the utilization scheme shall cover the reason for applying for the special residential maintenance funds, part, cost and organizational mode, etc. of maintenance, renovation and reconstruction;
(2) The owners’ committee or the residents' committee shall organize the owners to vote on the utilization scheme and obtain the consent from the owners who account for two thirds or more of the total number of owners and whose proprietary area within the scope of disbursement of the special residential maintenance funds accounts for two thirds or more of the total floor area within such scope. Before voting, the utilization scheme shall be publicized for not less than seven days to the owners within the scope of disbursement of the special residential maintenance funds;
(3) After the utilization scheme is adopted, the owners’ committee or the residents' committee shall, with the application form of use of the special residential maintenance funds, the voting result of relevant owners and its certificate, the utilization scheme and budget, the construction contract and other documents, file the application for use to the competent administrative department of housing of the district;
(4) If the application materials are complete, the competent administrative department of housing of the district shall register the application within three work days and send the management bank a notice of transferring the special residential maintenance funds; and the amount transferred shall not exceed 50% of the budget;
(5) The owners’ committee or the residents' committee shall organize the implementation of maintenance, renovation and reconstruction works in accordance with the utilization scheme;
(6) Upon the acceptance of the works, the owners’ committee or the residents' committee shall apply to the competent administrative department of housing of the district for allocation of the balance of maintenance, renovation and reconstruction costs with the following documents:
1. acceptance form of maintenance, renovation and reconstruction;
2. balance ticket of maintenance, renovation and reconstruction;
3. invoices of maintenance, renovation and reconstruction; and
4. other relevant documents.
(7) If the application materials are complete, the competent administrative department of housing of the district shall, within three work days, send the management bank a notice of transferring the remaining sum for maintenance, renovation and reconstruction.”
10. A new article is added as Article 27: “An owners’ corporation is encouraged to provide in its management rules and the owners’ corporation’s rules of procedure the following voting methods concerning the use of special residential maintenance funds and other matters:
(1) Entrusted vote: An owner entrusts in writing his/her voting power on the use of special residential maintenance funds to an owners’ committee or an owner within a given period and a given amount;
(2) Collective vote: An owners’ corporation, after approving by a single collective vote the use of special residential maintenance funds within a specific scope, authorizes the owners’ committee or the property service enterprise to use the funds in parts;
(3) Implied vote: An owners’ corporation agrees to deem the failure of participation in voting a consent to the use of special residential maintenance funds and to count the number of voting rights into the affirmative votes;
(4) Negative vote: If the owners who have objection against the use of special residential maintenance funds account for one third or less of the total number of owners and their proprietary area accounts for one third or less of the total floor area, it is deemed adoption.”
11. The original Article 26 is amended to: “Article 28 A third-party supervision and service system shall be practiced for the audit of project costs and for the project supervision during the use of special residential maintenance funds. The specific measures shall be formulated separately by the municipal competent administrative department of housing.”
12. The original Article 28 is amended to: “Article 30 In emergencies that endanger the safe use of residential houses and the personal and property safety and that seriously affect the owners’ normal living, where instant maintenance, renovation or reconstruction to the common parts or common facilities of houses is needed, an owners’ committee or a residents’ committee shall publicize the utilization scheme for not less than seven days to the owners within the scope of disbursement of the special residential maintenance funds. If the owners have no objection, an owners’ committee or a residents’ committee shall, on the strength of the application materials for the use of special residential maintenance funds, file an application for registration to the competent administrative department of housing of the district and use the special residential maintenance funds according to the following provisions:
(1) Before the special residential maintenance funds are transferred to the owners’ corporation for management, the owners’ committee or the residents' committee shall go through the procedures provided in Article 25 from Items (4) to (7);
(2) After the special residential maintenance funds are transferred to the owners’ corporation for management, the owners’ committee shall go through the procedures provided in Article 26 from Items (4) to (5).
The emergencies as mentioned in the preceding paragraph include:
(1) serious leakage of roofs and external walls;
(2) failures of elevators;
(3) risks of falling off on the external facade of a building;
(4) failures of fire facilities and equipment;
(5) failures of secondary water supply facilities, not including those within the scope of responsibilities of water supply enterprises as provided by law or contracts;
(6) functional failures of shared sewerage facilities and equipment due to collapse, blockage or burst;
(7) failures of the facilities and equipment of power supply and distribution system; and
(8) other emergencies that endanger the safe use of residential houses and the personal and property safety and that seriously affect the owners’ normal living.
Where a critical situation may seriously endanger the safe use of residential houses and the personal and property safety and requires prompt elimination, the competent administrative department of housing of the district may accept the emergency in advance, and may, jointly with the owners’ committee or the residents' committee, organize relevant entities to conduct site survey on the same day. If the situation is true, a project fund of not more than 50% of the budgetary estimate shall be allocated within a work day. After completion of the works, the owners’ committee or the residents' committee shall organize acceptance and work out a final account of the project costs, and shall, after seven days’ publicity to the whole owners within the scope of disbursement, put it on records within three work days and allocate the remaining project fund accordingly.”
13. The original Article 29 is amended to: “Article 31 If an emergency endangering the public safety occurs before the special residential maintenance funds are transferred to the owners’ corporation for management, and the property service enterprise or the owners’ committee fails to maintain, renovate or reconstruct the common parts or common facilities as provided, the local sub-district office or people's government at the township level may organize the maintenance in accordance with the following procedures, and the maintenance costs shall be disbursed from the related owner’s sub-account of special residential maintenance funds:
(1) The sub-district office or the people’s government at the township level organizes relevant specialized departments to conduct an appraisal and issue an appraisal report;
(2) The residents' committee issues a certificate of project works;
(3) A construction entity with corresponding qualifications makes the project cost budget which is subject to review and approval by a project cost consulting agency;
(4) The sub-district office or the people’s government at the township level organizes the construction entity to conduct emergency maintenance;
(5) After acceptance of the maintenance works jointly with relevant owners, the sub-district office or the people’s government at the township level publicizes the project costs in the property management area for seven days; and
(6) The management bank transfers the special residential maintenance funds needed to the maintenance entity.
If an emergency endangering the public safety occurs to a residential house after the special residential maintenance funds are transferred to the owners’ corporation for management, and the property service enterprise or the owners’ committee fails to maintain, renovate or reconstruct the common parts or common facilities as provided, the local sub-district office or people’s government at the township level may organize the maintenance in accordance with the procedures specified in the preceding paragraph based on the authorization letter of emergency maintenance, and the maintenance costs shall be disbursed from the related owner’s sub-account of special residential maintenance funds.”
14. The original Article 33 is amended to: “Article 35 If the ownership of a house is transferred, the balance of the special residential maintenance funds in the sub-account of such house shall be transferred simultaneously. Whoever fails to deposit the special residential maintenance funds shall make up the arrears as provided.”
15. The original Article 34 is amended to: “Article 36 Where a house has been destroyed, the special residential maintenance fund shall be returned in accordance with the following provisions when the registration for cancellation is handled:
(1) the special residential maintenance fund belonging to the owner shall be returned to the owner;
(2) the special residential maintenance fund belonging to the public-owned house seller shall be returned to the house seller; if the house seller does not exist, such fund shall be levied to the national treasury at the same level in accordance with the house seller’s financial affiliation.”
16. The original Article 37 is changed to Article 39, and the Item (3) of the first paragraph is deleted.
In addition, the order and wording of relevant articles are adjusted and amended correspondingly. The Measures of Wuhan Municipality for the Administration of Special Residential Maintenance Funds shall be promulgated anew after being revised in accordance with this Decision.
Measures of Wuhan Municipality for the Administration of Special Residential Maintenance Funds
(Promulgated by Order No. 216 of Wuhan Municipal People’s Government on March 25, 2011;
Revised in accordance with the Decision of Wuhan Municipal People’s Government on Amending the Measures of Wuhan Municipality for the Administration of Special Residential Maintenance Funds on May 12, 2018)
Chapter One General Provisions
Article 1 With a view to strengthening the administration on the special residential maintenance funds, guaranteeing the normal use of common parts and common facilities of the residential houses and protecting the legitimate rights and interests of the owners of the special residential maintenance funds, these Measures are formulated in accordance with the provisions of the Property Law of the People's Republic of China, the Property Management Regulations, the Regulations of Hubei Province on Property Service and Management, the Regulations of Wuhan Municipality on Property Management and the Measures for the Administration of Special Residential Maintenance Funds (Order No. 165 of the Ministry of Housing and Urban-Rural Development and the Ministry of Finance) as well as other laws, regulations and rules, and in the light of the actual situation of this Municipality.
Article 2 These Measures are applicable to the deposit, use, administration and supervision of special maintenance funds for commodity residential houses (including indemnificatory houses such as affordable houses and low-rent houses) and sold public-owned houses.
The “special residential maintenance funds” as used in these Measures refers to the funds dedicated for maintenance, renovation and reconstruction of common parts and common facilities of residential houses after expiry of the warranty period.
Article 3 The “common parts of a residential house” as used in these Measures refers to the common parts shared by the owners of a single residential house or the owners of a single residential house and the owners of a non-residential house structurally connected hereto in accordance with laws, regulations and the housing purchase and sale contract.
The “common facilities of a residential house” as used in these Measures refers to the ancillary facilities shared by the owners of a residential house or the owners of a residential house and the owners of a non-residential house related in accordance with laws, regulations and the housing purchase and sale contract.
Article 4 Administration for the special residential maintenance funds shall adopt the principle of deposit in special accounts, special fund for special purpose, decision-making by owners and supervision by governments.
Article 5 The municipal competent administrative department of housing is in charge of the guidance and supervision over the special residential maintenance funds in this Municipality, whilst the municipal management agency of special residential maintenance funds shall bear the responsibility for the daily management work.
The competent administrative departments of housing at the district level are in charge of the management of deposit and use of the special residential maintenance funds for residential houses under their respective jurisdiction.
The competent departments of finance, audit, land planning, and quality supervision, and the fire departments under the public security organs are in charge of the management of the special residential maintenance funds in line of their respective functions and duties.
The people’s governments at the district level (incl. the administrative committee of Wuhan East Lake High-tech Development Zone, the administrative committee of Wuhan Economic and Technological Development Zone, and the administrative committee of Wuhan East Lake Eco-tourism Scenic Spot, the same below) are in charge of the overall coordination over the management of the special residential maintenance funds within their respective district. The sub-district offices and the people’s governments at the township level are in charge of the specific work related to the management of the special residential maintenance funds under their respective jurisdiction.
Chapter Two Deposit
Article 6 The developers and owners of the following properties shall deposit the special residential maintenance funds in accordance with the provisions of these Measures:
(1) residential houses, excluding those owned by one owner without sharing any common parts or common facilities with other properties; and
(2) non-residential houses within the residential areas, or non-residential houses structurally connected to single residential houses outside the residential areas.
Even if the properties mentioned in the preceding paragraph belong to sold public-owned houses, the house seller shall also deposit the special residential maintenance funds in accordance with the provisions of these Measures.
Article 7 The initial payment for the special residential maintenance funds of commodity residential houses (including non-residential houses within the residential areas, or non-residential houses structurally connected, similarly hereinafter) shall be deposited in accordance with the following provisions:
(1) a developer shall deposit at 1.5% of the total construction and installation cost of a property (at 2.5% if equipped with elevators); and
(2) a house purchaser shall deposit as per the floor area of the property owned, at 5% of per square meter’s construction and installation cost for per square meter’s floor area.
The municipal competent administrative department of housing shall determine and promulgate the specific rates of the initial payment for the special residential maintenance funds in accordance with the construction and installation costs promulgated by the municipal competent department of construction, and shall make adjustments timely.
Article 8 The initial payment for the special residential maintenance funds of the sold public-owned houses shall be deposited in accordance with the following provisions:
(1) a house purchaser shall deposit as per the floor area of the property owned, at 2% of the cost price for the house under the housing reform of this Municipality per square meter; and
(2) a house seller shall withdraw the special residential maintenance funds in a lump sum at not less than 20% of the house sale payment for multi-storey residential buildings, or not less than 30% of the house sale payment for high-rise residential buildings.
Article 9 The special residential maintenance funds deposited by developers and owners shall be owned by owners.
The special residential maintenance funds drawn from the sales of public-owned houses shall be owned by the sellers of public-owned houses.
Article 10 The municipal competent administrative department of housing shall, in an open, fair and just manner and with consideration of such factors as the service quality of commercial banks, determine the best management banks of the special accounts for the special residential maintenance funds (hereinafter referred to as “the management banks”) of this Municipality jointly with the departments concerned according to law, and shall make the result public.
The management banks are in charge of the opening, deposit, use, interest settlement, transfer, settlement, adjustment, verification and enquiry related to the accounts for the special residential maintenance funds. The municipal competent administrative department of housing shall sign an agreement of special account management with the management banks to specify the aforesaid services provided by them and the third-party supervision service involved in the use of the special residential maintenance funds.
Article 11 The purchaser of a commodity residential house shall deposit the initial payment for the special residential maintenance funds before going through the formalities for house delivery. The time and mode of deposit shall be agreed by the purchaser and the developer in their sales contract for commodity houses.
A developer shall deposit the special residential maintenance funds based on the total scale of the property before going through the initial registration of real estate for the project.
For a house unsold before the initial registration of real estate, the developer shall deposit the initial payment for the special residential maintenance funds as its owner; after the house is sold, the purchaser shall pay such special residential maintenance funds to the developer.
Article 12 The purchaser of a sold public-owned house shall deposit, or authorize the house seller to deposit the initial payment for the special residential maintenance funds before going through the formalities for the housing reform.
The seller of a public-owned house shall, within 30 days as of receiving the house sales payment, deposit the withdrawn special residential maintenance funds into the special account for the special residential maintenance funds for public-owned houses.
Article 13 Where a purchaser fails to deposit the initial payment for the special residential maintenance funds in accordance with the provisions of these Measures, the developer shall not deliver the house to the purchaser.
Where a developer and a purchaser fail to deposit the initial payment for the special residential maintenance funds in accordance with the provisions of these Measures, the registration authority of real estate shall not process the registration of real estate.
Article 14 Before an owners’ corporation is established, or if an owners’ corporation has been established but has not required the transfer of special residential maintenance funds, the special residential maintenance funds shall be in escrow of the municipal management agency of special residential maintenance funds by opening special accounts at a management bank, and shall be earmarked for the specified purpose only.
For commodity residential houses, the special accounts for the special residential maintenance funds deposited by owners shall use a property management area as a unit, under which sub-accounts are established for each households, and without delimitation of a property management area, the special accounts shall use a building a unit, under which sub-accounts are established for each households; the special accounts for the special residential maintenance funds deposited by developers shall use a property management area as a unit, under which sub-accounts are established for each building, and without delimitation of a property management area, the special accounts shall use a building a unit.
With respect to the opening of special accounts for special residential maintenance funds for sold public-owned houses, a house seller shall be set as an account with different buildings as its sub-accounts, and under the sub-account of a building, different household numbers are set further as its sub-accounts.
Article 15 The management banks and the public-owned house sellers who are commissioned to collect the special residential maintenance funds shall use the special receipts uniformly printed by the departments of finance for the special residential maintenance funds.
Article 16 Where an owners’ corporation requests a transfer of the special residential maintenance funds after its establishment, consent shall be obtained by vote from the owners whose areas owned account for two thirds or more of the total building area and from two thirds or more of the overall owners, and meanwhile, a vote shall be taken on the following matters simultaneously:
(1) selection of the management bank;
(2) the measures for the use of special residential maintenance funds and for the account management;
(3) the resolution on designating the director of the owners’ committee as the person in charge of management of the special residential maintenance funds;
(4) the letter of authorization on emergency maintenance; and
(5) other matters related to the special residential maintenance funds that need to be determined by the owners’ corporation as considered by the municipal competent administrative department of housing.
After an owners’ corporation adopts the resolution on the aforesaid matters, an owners’ committee shall open the owners’ committee’s special account for the special residential maintenance funds at the designated management bank.
Article 17 An owners’ committee shall, within 10 work days as of the date when an owners’ corporation has adopted the resolution on transfer, apply for going through the formalities for transferring the special residential maintenance funds at the competent administrative department of housing of the district, and submit the owners’ committee’s resolution on matters listed in Article 16 hereof and the account opening certificate of the management bank.
If the application documents are complete, the competent administrative department of housing of the district shall, within 10 work days as of the date of acceptance, report it to the municipal management agency of special residential maintenance funds; the latter shall, within 10 work days as of the date of receiving the report, notify the management bank of transferring the book balance in the account of the property management area to the special account of the owners’ corporation, and shall hand over relevant accounts to the owners’ committee.
Article 18 With respect to the transfer of special residential maintenance funds, an owners’ committee shall sign a letter of authorization with the opening bank, the local sub-district office or people's government at the township level, which shall state that in case of the emergencies described under these Measures, the local sub-district office or people's government at the township level may organize the maintenance on behalf of the owners’ committee and pay the corresponding costs from the special residential maintenance funds involved in the maintenance works.
Article 19 The special account for the special residential maintenance funds shall be settled by transfer and shall not be withdrawn in cash. The special residential maintenance funds for maintenance, renovation and reconstruction works shall only be paid to the accounts of the appointed construction entities or the property service enterprises; whilst the funds for assessment, supervision and so on shall only be paid to the accounts of the appointed assessment and supervision entities.
An owners’ committee shall not change the opening bank without authorization. If a change is really needed, it shall be decided by the owners’ corporation; the original bank’s special account shall be canceled and the new special account shall be opened, which shall then be submitted to the competent administrative department of housing of the district for the record.
Article 20 Where the balance of the special residential maintenance funds in an owner’s sub-account is less than 30% of the payable amount of the initial payment, the owner shall deposit more special residential maintenance funds in accordance with the scheme for follow-up deposits decided by the owners’ corporation. If the owners’ corporation has not been established, the specific administrative measures for follow-up deposits shall be formulated by the municipal competent administrative department of housing jointly with the municipal department of finance.
Chapter Three Use
Article 21 The use of the special residential maintenance funds shall conform to the principles of “being convenient and efficient, being open and transparent and the beneficiary being consistent with the encumbrancer”.
Where an owner fails to deposit the special residential maintenance funds, the owners’ corporation may restrict his/her exercise of common management right under the management rules and the owners’ corporation’s rules of procedure.
Article 22 The scope of maintenance, renovation and reconstruction of the common parts of a residential house covers:
(1) damage to the roofing waterproof layer and seepage in the top rooms;
(2) rainwater seepage in the external walls of a building, resulting in soak of the inside surface of the external walls;
(3) cracking, falling off or hollowing rate in the decorating layer of the external walls of a building is more than the specified value of the corresponding national standards and specifications;
(4) damage or falling-off in the thermal insulation layer of a building, or moisture, dew formation, frost formation or mildew in the inside surface of external wall due to poor thermal insulation of the building;
(5) cracking, rust stain, blistering, peeling off, falling off or being polluted to the painting layer in external walls as well as staircases and public aisles;
(6) damage to windowsills, porch cornices, stair steps and handrails, protecting walls and gates of yard, etc. in the public area;
(7) damage to doors, windows or window screenings in the public area; and
(8) other circumstances that need maintenance, renovation and reconstruction of public parts of a residential house.
Article 23 The scope of maintenance, renovation and reconstruction of public facilities of a residential house covers:
(1) maintenance or renovation of elevators and main components;
(2) the lightning-protection facilities can’t meet the safety requirements;
(3) malfunction occurs to monitoring facilities or fire control system, or part of equipment or components are damaged badly;
(4) malfunction occurs to the drainage (pollution discharge) facilities in the building, drainage pipes leak or rust seriously, sewage pumps rust or other facilities are damaged;
(5) secondary water supply facilities such as water tanks and pump houses are damaged and need maintaining, renovating and reconstructing; but excluding those that should be borne by the water supply enterprise according to law or as specified in the contract; and
(6) other circumstances that common facilities of residential houses need maintaining, renovation and reconstructing.
Article 24 The costs for maintaining, renovation and reconstructing common parts and common facilities of residential houses shall be shared in accordance with the following provisions:
(1) for the common parts and common facilities which belong to all the owners, the costs shall be shared by all the owners based on the proportion of the floor area of house they own respectively;
(2) for the common parts and common facilities in a single building, the costs shall be shared by all the owners of the building based on the proportion of the floor area of the house they own respectively;
(3) for the common parts and common facilities in an entrance shared by the owners, the costs shall be shared by the owners in the entrance based on the proportion of the floor area of the house they own respectively; for the common parts and common facilities belong to the owners of the house on one side, the costs shall be shared by the owners of house on one side based on the proportion of the floor area of house they own respectively;
(4) the maintenance of common parts shared by the abutters shall be borne by the abutters based on the proportion of the floor area of the house they own respectively; and
(5) the maintenance of garage conjoint with the house structure shall be borne by the owners who share the garage based on the proportion of the parking place they own respectively.
Where the amount in the sub-account of private maintenance fund of an owner is insufficient to pay the cost shared in the maintenance works, the amount of the shortfall shall be borne by such owner.
Article 25 Where it is necessary to use the special residential maintenance funds before transferring it to an owners’ corporation, the following procedures shall be gone through:
(1) The property service enterprise shall propose the utilization scheme based on the maintenance, renovation and reconstruction works. Where there is no property service enterprise but the owners’ corporation instead, the owners’ committee shall proposes the utilization scheme; where there is no owners’ corporation established, the residents' committee shall organize relevant owners to propose the utilization scheme; the utilization scheme shall cover the reason for applying for the special residential maintenance funds, part, cost and organizational mode, etc. of maintenance, renovation and reconstruction;
(2) The owners’ committee or the residents' committee shall organize the owners to vote on the utilization scheme and obtain the consent from the owners who account for two thirds or more of the total number of owners and whose proprietary area within the scope of disbursement of the special residential maintenance funds accounts for two thirds or more of the total floor area within such scope. Before voting, the utilization scheme shall be publicized for not less than seven days to the owners within the scope of disbursement of the special residential maintenance funds;
(3) After the utilization scheme is adopted, the owners’ committee or the residents' committee shall, with the application form of use of the special residential maintenance funds, the voting result of relevant owners and its certificate, the utilization scheme and budget, the construction contract and other documents, file the application for use to the competent administrative department of housing of the district;
(4) If the application materials are complete, the competent administrative department of housing of the district shall register the application within three work days and send the management bank a notice of transferring the special residential maintenance funds; and the amount transferred shall not exceed 50% of the budget;
(5) The owners’ committee or the residents' committee shall organize the implementation of maintenance, renovation and reconstruction works in accordance with the utilization scheme;
(6) Upon the acceptance of the works, the owners’ committee or the residents' committee shall apply to the competent administrative department of housing of the district for allocation of the balance of maintenance, renovation and reconstruction costs with the following documents:
1. acceptance form of maintenance, renovation and reconstruction;
2. balance ticket of maintenance, renovation and reconstruction;
3. invoices of maintenance, renovation and reconstruction; and
4. other relevant documents.
(7) If the application materials are complete, the competent administrative department of housing of the district shall, within three work days, send the management bank a notice of transferring the remaining sum for maintenance, renovation and reconstruction.
Article 26 Where it is necessary to use the special residential maintenance funds after transferring them to an owners’ corporation, the following procedures shall be gone through:
(1) The property service enterprise shall propose the utilization scheme based on the maintenance, renovation and reconstruction works;
(2) The owners’ corporation shall adopt the utilization scheme according to law;
(3) The owners’ committee shall, with the record-filing form of the use of the special residential maintenance, the utilization scheme and budget and other documents, report to the competent administrative department of housing of the district for the record; and the latter shall order the former to make corrections when discovering any inconformity with the provisions of relevant laws, regulations and rules;
(4) The owners’ committee shall organize the implementation of maintenance, renovation and reconstruction works in accordance with the utilization scheme recorded at the competent administrative department of housing of the district, and shall notify the management bank of transferring the special residential maintenance funds needed to the maintenance entity; and
(5) After the completion, the owners’ committee shall publicize the quality acceptance report of the works and the final account of maintenance cost in the property management area.
Article 27 An owners’ corporation is encouraged to provide in its management rules and the owners’ corporation’s rules of procedure the following voting methods concerning the use of special residential maintenance funds and other matters:
(1) Entrusted vote: An owner entrusts in writing his/her voting power on the use of special residential maintenance funds to an owners’ committee or an owner within a given period and a given amount;
(2) Collective vote: An owners’ corporation, after approving by a single collective vote the use of special residential maintenance funds within a specific scope, authorizes the owners’ committee or the property service enterprise to use the funds in parts;
(3) Implied vote: An owners’ corporation agrees to deem the failure of participation in voting a consent to the use of special residential maintenance funds and to count the number of voting rights into the affirmative votes;
(4) Negative vote: If the owners who have objection against the use of special residential maintenance funds account for one third or less of the total number of owners and their proprietary area accounts for one third or less of the total floor area, it is deemed adoption.
Article 28 A third-party supervision and service system shall be practiced for the audit of project costs and for the project supervision during the use of special residential maintenance funds. The specific measures shall be formulated separately by the municipal competent administrative department of housing.
Article 29 The owners who share the special residential maintenance funds may recommend representatives or employ professionals to participate in the supervision and management over the formulation and implementation of maintenance, renovation and reconstruction schemes, and over the final acceptance.
Article 30 In emergencies that endanger the safe use of residential houses and the personal and property safety and that seriously affect the owners’ normal living, where instant maintenance, renovation or reconstruction to the common parts or common facilities of houses is needed, an owners’ committee or a residents’ committee shall publicize the utilization scheme for not less than seven days to the owners within the scope of disbursement of the special residential maintenance funds. If the owners have no objection, an owners’ committee or a residents’ committee shall, on the strength of the application materials for the use of special residential maintenance funds, file an application for registration to the competent administrative department of housing of the district and use the special residential maintenance funds according to the following provisions:
(1) Before the special residential maintenance funds are transferred to the owners’ corporation for management, the owners’ committee or the residents' committee shall go through the procedures provided in Article 25 from Items (4) to (7);
(2) After the special residential maintenance funds are transferred to the owners’ corporation for management, the owners’ committee shall go through the procedures provided in Article 26 from Items (4) to (5).
The emergencies as mentioned in the preceding paragraph include:
(1) serious leakage of roofs and external walls;
(2) failures of elevators;
(3) risks of falling off on the external facade of a building;
(4) failures of fire facilities and equipment;
(5) failures of secondary water supply facilities, not including those within the scope of responsibilities of water supply enterprises as provided by law or contracts;
(6) functional failures of shared sewerage facilities and equipment due to collapse, blockage or burst;
(7) failures of the facilities and equipment of power supply and distribution system; and
(8) other emergencies that endanger the safe use of residential houses and the personal and property safety and that seriously affect the owners’ normal living.
Where a critical situation may seriously endanger the safe use of residential houses and the personal and property safety and requires prompt elimination, the competent administrative department of housing of the district may accept the emergency in advance, and may, jointly with the owners’ committee or the residents' committee, organize relevant entities to conduct site survey on the same day. If the situation is true, a project fund of not more than 50% of the budgetary estimate shall be allocated within a work day. After completion of the works, the owners’ committee or the residents' committee shall organize acceptance and work out a final account of the project costs, and shall, after seven days’ publicity to the whole owners within the scope of disbursement, put it on records within three work days and allocate the remaining project fund accordingly.
Article 31 If an emergency endangering the public safety occurs before the special residential maintenance funds are transferred to the owners’ corporation for management, and the property service enterprise or the owners’ committee fails to maintain, renovate or reconstruct the common parts or common facilities as provided, the local sub-district office or people's government at the township level may organize the maintenance in accordance with the following procedures, and the maintenance costs shall be disbursed from the related owner’s sub-account of special residential maintenance funds:
(1) The sub-district office or the people’s government at the township level organizes relevant specialized departments to conduct an appraisal and issue an appraisal report;
(2) The residents' committee issues a certificate of project works;
(3) A construction entity with corresponding qualifications makes the project cost budget which is subject to review and approval by a project cost consulting agency;
(4) The sub-district office or the people’s government at the township level organizes the construction entity to conduct emergency maintenance;
(5) After acceptance of the maintenance works jointly with relevant owners, the sub-district office or the people’s government at the township level publicizes the project costs in the property management area for seven days; and
(6) The management bank transfers the special residential maintenance funds needed to the maintenance entity.
If an emergency endangering the public safety occurs to a residential house after the special residential maintenance funds are transferred to the owners’ corporation for management, and the property service enterprise or the owners’ committee fails to maintain, renovate or reconstruct the common parts or common facilities as provided, the local sub-district office or people’s government at the township level may organize the maintenance in accordance with the procedures specified in the preceding paragraph based on the authorization letter of emergency maintenance, and the maintenance costs shall be disbursed from the related owner’s sub-account of special residential maintenance funds.
Article 32 The following costs shall not be disbursed from the special residential maintenance funds:
(1) the cost for maintenance, renovation and reconstruction of common parts and common facilities of a residential house that shall be borne by the developer or the construction entity according to law;
(2) the cost for repair and maintenance of water supply, electric power supply, gas supply, heat supply, communications, cable television and other pipes and lines as well as facilities borne by the relevant entities according to law;
(3) the cost for restoration of common parts and common facilities of a residential house that are artificially damaged and shall be borne by the parties concerned; and
(4) the cost for repair and maintenance of common parts and common facilities of a residential house that shall be borne by the property service enterprise as specified in the property service contract.
Article 33 The special residential maintenance funds may, on the premise of guaranteeing their normal use, be used to purchase national debts as provided by the State.
It is not allowed to misappropriate the special residential maintenance funds to repurchase national debts or receive financial service, or to use the national debts purchased by the funds for mortgage, pledge or other guaranty acts.
Article 34 The following funds shall be transferred into the special residential maintenance funds for accumulated use:
(1) the deposit interests of the special residential maintenance funds;
(2) the valued-added income from national debts purchased with the special residential maintenance funds;
(3) the income from business operation taking advantage of the common parts and common facilities of the residential houses; except as otherwise decided by the owner’ corporation; and
(4) residual value from recovery of common facilities of residential houses after their being discarded as useless.
Chapter Four Supervision and Administration
Article 35 If the ownership of a house is transferred, the balance of the special residential maintenance funds in the sub-account of such house shall be transferred simultaneously. Whoever fails to deposit the special residential maintenance funds shall make up the arrears as provided.
Article 36 Where a house has been destroyed, the special residential maintenance fund shall be returned in accordance with the following provisions when the registration for cancellation is handled:
(1) the special residential maintenance fund belonging to the owner shall be returned to the owner;
(2) the special residential maintenance fund belonging to the public-owned house seller shall be returned to the house seller; if the house seller does not exist, such fund shall be levied to the national treasury at the same level in accordance with the house seller’s financial affiliation.
Article 37 The municipal management agency of special residential maintenance funds shall, during the period of escrow before the special residential maintenance funds are transferred to an owners’ corporation, and an owners’ committee shall, during the period of its independent management after the special residential maintenance funds are transferred to an owners’ corporation, check at least once a year the accounts of the special residential maintenance funds with the management bank.
Article 38 A management bank shall periodically submit the statements of accounts of the special residential maintenance funds to the municipal management agency of special residential maintenance funds and the owners’ committees.
In case of any dispute on the change of an account, the municipal management agency of special residential maintenance funds and the owners’ committee may request a recheck with the management bank.
A management bank shall establish an inquiry system for the special residential maintenance funds, allowing the owners and the public-owned house sellers to inquire the use, incremental benefits and book balances of their sub-accounts.
Article 39 The municipal management agency of special residential maintenance funds shall, before the special residential maintenance funds are transferred to an owners’ corporation for management, and an owners’ committee shall, after the special residential maintenance funds are transferred to an owners’ corporation for management, publicize at least once a year the following information to the owners and the public-owned house seller:
(1) the total amount of deposit, use, value-added income and balance of the special residential maintenance funds;
(2) the disbursed items, cost and their allocation; and
(3) other information about use and management of the special residential maintenance funds.
In case of any disputes on the publicized information, the owners and the public-owned house seller may request a recheck.
Article 40 The management and use of the special residential maintenance funds during the escrow before the special residential maintenance funds are transferred to an owners’ corporation shall receive audit and supervision from the audit department according to law.
After the special residential maintenance funds are transferred to an owners’ corporation for management, and adopted by an owners’ corporation through voting, an owners’ committee may employ a professional agency to audit and supervise the management and use of the special residential maintenance funds, for which the cost may be disbursed from the special residential maintenance funds.
Article 41 Financial management and accounting of the special residential maintenance funds shall be performed as provided by the departments of finance.
The departments of finance shall strengthen the supervision over the financial management and accounting system of the special residential maintenance funds.
Article 42 The withdrawal, use, storage and verification management of the receipts for the special residential maintenance funds shall conform to the provisions of the departments of finance and receive supervision and inspection of the departments of finance.
Article 43 The municipal competent administrative department of housing shall, jointly with the municipal department of finance, organize entities concerned to inspect the deposit and use of the special residential maintenance funds for the commodity residential houses and sold public-owned residential houses, and gradually standardize and improve the use and management of the special residential maintenance funds.
Chapter Five Legal Responsibilities
Article 44 A developer who delivers a house to a house purchaser in violation of the provisions of these Measures shall be ordered by the competent administrative department of housing of the district to make corrections within a time limit; otherwise, a fine of not less than RMB5,000 but not more than RMB30,000 per house shall be imposed.
Article 45 Whoever, in violation of the provisions of these Measures, misappropriates the special residential maintenance funds shall be dealt with in accordance with the provisions of the Measures for the Administration of the Special residential maintenance funds (Order No. 165 of the Ministry of Housing and Urban-Rural Development and the Ministry of Finance).
Article 46 Whoever violates the provisions on the management of receipts of the special residential maintenance funds shall be dealt with in accordance with the provisions of the Regulations on Punishments and Sanctions on Financial Violations (Order No. 427 of the State Council).
Article 47 Where a management bank, in violation of the provisions of these Measures, fails to issue the vouchers for deposit of the special residential maintenance funds, or fails to disburse the funds by performing the specified procedures for the fund disbursement, or fails to report to the municipal competent administrative department of housing timely after discovering its violation against the provisions of these Measures on fund disbursement, the municipal competent administrative department of housing may cancel the fund escrow agreement with the management bank unilaterally; where the circumstance is serious, legal responsibilities shall be investigated to the management bank according to law.
Chapter Seven Supplementary Provisions
Article 48 The municipal competent administrative department of housing may formulate the implementing rules in accordance with these Measures.
Article 49 These Measures shall come into force as of May 1, 2011.
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People’s governments at the district level, departments of the Municipal People’s Government.
Office of Legislative Affairs of the Provincial People’s Government.
General Office of the Municipal Party Committee, Wuhan Garrison Command, people’s organizations, Democratic Parties.
General Office of the Standing Committee of the Municipal People’s Congress, General Office of CPPCC Wuhan Committee, Municipal People’s Court and Procuratorate.
News agencies, enterprises and institutions affiliated to ministries.
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| General Office of Wuhan Municipal People’s Government
Printed and Distributed on May 17, 2018
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