Use of Town Councils' Sinking Fund for Commercial Properties

Mr Sitoh Yih Pin asked the Minister for National Development whether his Ministry can consider allowing the reserves in Town Councils' sinking fund for commercial property to be utilised for residential property.

Town Councils are responsible for the management and maintenance of common property in HDB estates. These include residential and commercial properties. Residential properties comprise HDB residential blocks. Commercial properties comprise HDB shops, markets and food centres.

Under the Town Councils Act, Town Councils are legally required to establish and maintain separate sinking funds for improvements to and the management and maintenance of residential property and of commercial property. This ensures separate accountability for the respective property types and safeguards the sinking funds for their earmarked uses. For this reason, we are unable to allow sinking fund that has been set aside

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for commercial property to be used for residential property.