During the circuit breaker period, tenants have been given rent reprieves to cope with the downturn. With the worsening of Singapore’s GDP (-13.2% for Q2 yoy), there is an on-going second round of retrenchments and pay-cuts. Some condo owners are finding themselves in financial difficulties. They have been asking for a reduction in MCST maintenance fees, which can amount to $250-$800 per month (depending on development size and facilities).

Council members review contributions and expenses continuously. I would say this is their biggest concern and main responsibility. Once a year, all owners are informed during AGM and given the opportunity to voice out regarding this matter. Therefore such contributions should either be sufficient or with a small buffer (in older and more conservative condos).

So before asking for a reduction, the question to consider should be

Is your condo fund running out of funds?

Should the condo suddenly find itself short of funds for major repair works (e.g. Roofing, water pumps, lift replacements), owners will likely vote in an EOGM to cough up the additional monies per unit. One can imagine the emotions and unhappiness that erupts. Failure to come to an agreement will result in an impasse.

Well if the swimming pool pumps have failed, then the impasse will lead to a closure of the pool indefinitely. Non-essential, I guess.

What if the lifts to 15-storey apartment blocks are due for replacement? It will not pass the safety inspection. All affected lifts must cease operating. This will likely blow up to the Commissioner of Buildings, who will place the MCST under official management when there is a failure in the management and operation.

It is easy to conclude. Lift operators will be called to bid for the contract. All necessary replacements and repair to be done immediately. Thereafter all associated costs will be slapped on the owners. In other words, the additional monies per unit will now be decided on owner’s behalf and mandatory.

Needless to say, you won’t like the veggies forced down your throat. Why come to this?

3 thoughts on “Is your condo running out of funds? (part 1)

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.