Housing societies require regular upkeep to maintain their infrastructure and common areas. For this, they establish a dedicated repairs & maintenance fund to finance these ongoing maintenance activities as a financial reservoir for addressing routine repairs and upkeep needs.
This fund represents a collective effort from all society members. Contributions are collected at a rate determined by the General Body Meeting (GBM), which may adjust the rate periodically based on maintenance requirements and financial planning considerations.
According to the Model By-Laws of Maharashtra, the contribution rate should not fall below 0.75 percent per annum of each flat’s construction cost. This minimum threshold ensures adequate funding for normal recurring repairs throughout the society’s premises. The specified percentage helps standardize contributions while accounting for variations in apartment sizes and values.
The management committee holds the authority to utilize this fund for specific purposes related to property maintenance. These include meeting expenditures on general maintenance of society property and handling necessary repairs and renewals. The fund provides financial stability for addressing predictable maintenance needs without requiring special assessments or unexpected contributions from residents.
Proper management of the Repairs & Maintenance Fund requires careful planning and transparent administration. The committee should maintain detailed records of all fund transactions, including contributions received, expenses incurred, and the current balance. Regular reporting to members about the fund’s status helps build trust and ensures accountability.
Well-maintained common areas and infrastructure contribute significantly to residents’ quality of life and property values within the society. By establishing and properly managing a Repairs & Maintenance Fund, housing societies create a sustainable approach to property upkeep that distributes costs fairly among all members.
Additionally, the fund offers financial stability to deal with the inevitable deterioration that happens in any residential complex. Societies with adequately financed maintenance accounts may handle problems quickly, preventing small difficulties from becoming large ones, as opposed to rushing to collect money when repairs become essential.
Housing society members should understand the importance of their regular contributions to this fund. While it might seem like an additional expense, these contributions represent an investment in maintaining the community’s infrastructure and preserving property values over time.
