Monday, April 27, 2015

Of Sinking Fund and Special Projects...

When we buy strata properties, we know we have to pay a monthly maintenance fee and a sinking fund. We often get told that the sinking fund is for major uplift of the place such as repainting the interior and exterior of the building, changing the water pipes etc. What really irks me is, as the building gets older, maintenance quality goes down the drain and then we get told there isn't enough money to pay for uplift and refurbishment works. 

So, before you know it, a so-called AGM or EGM which you did not attend passed some motion to collect some SPECIAL PROJECT FUND to pay for refurbishment works. And to rub salt to it, the sinking fund still remains!!

So what is the rationale of having a sinking fund when after over years of collecting, it is still insufficient to be used for its' purpose?

Maintenance fees has indeed become some sort of a cash cow for building managers. Strata property owners should really be blamed because attendance at condo meetings are always very appalling. Most people don't care. And when this happens, accountability goes out the window and you get a lot of nonsense happening


OS said...

The funds shld be audited ..

Patch said...

The funds are audited.
As a member of a Resident Management Committee of an old condominium, most residents do NOT join the Committee and participate in the management. The criticism and complains of residents (NOT in the committee) makes the situation worse because why volunteer and get complained/scolded/car scratched?
Without enough participation in the Committee, the Building Manager can line his pockets. The Building Management Company often looks after their own interests (especially if they are also the developer).
Sometimes, dubious projects are carried out and vast amounts of money is squandered.