In recent years, China has faced significant challenges in managing and maintaining its rapidly growing urban infrastructure. As residential buildings age and require upkeep, the Chinese government has implemented a system known as "Housing endowment fund" to address these needs. This system aims to construct a long-term mechanism for whole-life-cycle housing safety management, which will be piloted in 22 cities, including Shanghai. This article explores the key features, benefits, and challenges associated with China's Housing endowment fund. This article explores the key features, benefits, and challenges associated with China's Housing endowment fund.
Background
As China's real estate market gradually enters the era of inventory, as of the end of 2022, China's cities and towns in the existing housing in the year of completion of more than 30 years of housing accounted for nearly 20%, the need for maintenance, renovation of the proportion of old housing is rapidly increasing, relying only on residential special maintenance funds has been difficult to meet the demand for community maintenance and renovation, the need for incremental funds to enter the market.
Introduction
The housing endowment fund consists of two parts, the personal account and the public account. The personal account is the residential special maintenance fund deposited by the owners, which is used for the maintenance, renewal and remodeling of the common parts of the house and the common facilities and equipment after the expiration of the warranty period. This part of the money, according to the "Civil Code of the People's Republic of China" should be borne by the owners, according to the current system design, in the purchase of commercial housing or housing reform housing owners have prepaid.
The public account is the focus of this system update, the government will take this account, which did not exist before, to establish, this time the government is responsible for the establishment of funds, which are mainly used for the maintenance, repair, renewal and renovation of the common parts of the residential common facilities and equipment after the expiration of the warranty period.
For example, the community elevator and other common part of the bad on the use of personal account that residential special maintenance funds; but such as the earthquake after the need to test the relevant areas of the housing, or a building appeared to involve the people's lives and property safety of the major hidden dangers or public safety, this part of the funds need to be out of the public account.
Benefits and potential risks
1. Improved building maintenance: By establishing a housing endowment fund, we can ensure that residential buildings are kept in good condition and reduce the risk of safety hazards.
2. Financial Stability: Housing endowment funds provide a stable source of funding for major repairs, easing the burden on individual homeowners to pay large unexpected costs.
3. Contribution disputes: The source of funding for public accounts is currently not clearly communicated, and determining a fair contribution amount and handling disputes among owners can be challenging.
4. Transparency of funds: The public has the right to know how funds are being held in the account, and regular reports are needed to ensure transparency in the management of funds and to reduce the risk of mismanagement or abuse.
The introduction of the Housing endowment fund System marks a significant advancement in the maintenance and management of residential buildings in China. By establishing the Housing endowment fund Fund, the system aims to improve the safety, functionality and value of residential properties. As with any new system, continuous evaluation and refinement is required to meet the challenges and ensure that the fund is effective in achieving its objectives.
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