The Issues And Resolutions For China's Residential Special Maintenance Funds System

Residential special maintenance funds system has been developed as a result of the building ownership distinction system and is an important and integral part of the property management system. With oversimplified housing ownership system in the past and late start of property management business and ordinance, the development of residential special maintenance funds system has been very slow. Following the reform of residential housing system, commercialized residential housing units have been constructed at unprecedented scale and the occupancy rate has been improving steadily, which leads to issues for the maintenance, improvement, and renovation of shared areas, facilities, and equipments. Hence, it is imperative to conduct research on the residential special maintenance funds system.As of today, the legislation on the residential special maintenance funds is significantly lagging and lacks unified standards, which leads to serious issues in the industry and threatens the safety of the property management personnel and happiness and security of the people as well as the stability of the society. This paper attempts to combine theory with practice in the area of residential special maintenance funds system and propose resolutions to address issues from the practice. Furthermore, this paper proposes suggestions to improve the "Residential Special Maintenance Funds Management Approach" (Draft, for solicitation of opinions).There are three components in this paper: Preface, Main Section, and Conclusions.Preface section introduces the rationales for writing this paper as well as background, approaches, and significance of this paper. The author hopes to attract the attention of people to the importance of this topic with this section.The Main Section has five chapters.The first chapter conducts research on the historical background for the residential maintenance funds system from global perspective and briefly introduces several legislative cases. Also analyzed are several legal and regulatory documents in the history of China's residential special maintenance funds system. Moreover, this chapter examines the nature of residential special maintenance funds and the principles for its use and management. The second chapter focuses on the practice of Fujian province in the areas of the funds' generation, management, spending, and balance maintaining and examines issues associated with each area with the hope of bringing attention to these issues.The third chapter explores reasons associated with above mentioned issues, such as issues with laws and regulations, rights enforcement structure and consciousness, government administration, and supervisory mechanism.The fourth chapter builds upon the study done in previous chapters, proposes how to improve residential special maintenance funds system, including legislative improvement at the macro level, system standardization at the micro level, enhancing supervision from all aspects, and better enforcement of laws and regulations and folly punishing any criminal behavior.The fifth chapter provides personal suggestions to improve "Residential Special Maintenance Funds Management Approach" (Draft, for solicitation of opinions), including standardized terminology, fonds ratio, funds subjects, timing, principles of utilization, legal liabilities, complaint settlement, and civil lawsuits.The Conclusions section summaries the main conclusions of this paper and explores the fotures of theory and legislation for residential special maintenance funds system.