Section 22
Joint management body to establish sinking fund account
of Strata Management Ordinance, 2019
—
A joint management body shall open and maintain a sinking fund account with a bank or financial institution, into which shall be deposited all balances of monies in the sinking fund account transferred by the developer to the joint management body under section 14(1)(a), and all contributions to the sinking fund account paid by the parcel owners to the joint management body.
(2)
The sinking fund account to be used solely for the purpose of meeting the actual or expected capital expenditure in respect of the following matters:
(a)
the painting or repainting of any part of the common property;
(b)
the acquisition of any movable property for use in relation to the common property;
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(c)
the renewal or replacement of any fixture or fitting comprised in any common property;
(d)
the upgrading and refurbishment of the common property; or
(e)
any other capital expenditure as the joint management body deems necessary.
Parcel owners to pay maintenance charge, and contribution to the sinking fund, to the joint management body 23.—
Each purchaser shall pay the maintenance charges and contribution to the sinking fund in respect of his parcel to the joint management body for the management and maintenance of the buildings or lands intended to be subdivided into parcels and the common property of the development.
(2)
The developer shall pay the maintenance charges and contribution to the sinking fund to the joint management body in respect of those parcels in the development which have not been sold.
(3)
The amount of the maintenance charges to be paid under subsections (1) and (2) shall be determined by the joint management body from time to time in proportion to the allocated share units to each parcel or the proposed quantum of provisional share units for each provisional block and any amount so determined, shall be fair and reasonable in meeting the expected and estimated expenditure to properly maintain and manage the building or land intended to be subdivided into parcels and the common property.
(4)
The amount of contribution to the sinking fund to be paid under subsections (1) and (2) shall be determined by the joint management body at a general meeting and such amount shall not at any time be less than ten percent of the maintenance charge.
(5)
A parcel owner shall, within fourteen days of receiving a notice from the joint management body, pay the maintenance charge and contribution to the sinking fund, to the joint management body.
(6)
If any sum remains unpaid by the parcel owner at the expiry of the period of fourteen days specified in subsection (5) –
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(a)
the joint management body may recover the sum in the manner set out in section 32; and
(b)
the parcel owner shall pay interest at the rate to be determined by the joint management body under paragraph 3(d) of Second Schedule but such interest shall not exceed ten per cent per annum.
Duties of joint management body in relation to accounts