SOME strata management bodies in Selangor want the authorities to consider introducing a legal aid fund to help them recover maintenance fee arrears from defaulters.
This was following Subang Jaya assemblyman Michelle Ng’s move to introduce such a fund in her constituency.
Supporting the move, Dallas Villa Pandan Heights joint management body (JMB) chairman Haresh Vikram Vijayakumar said management bodies were often discouraged from taking legal action against defaulters due to the cost and time incurred.
Dallas Villa Pandan Heights JMB says lack of maintenance funds, because of defaulters among owners, has delayed repairs such as for these walls. — Photos: LEW GUAN XI/The Star
“A legal aid fund could alleviate this burden, allowing the management bodies to enforce maintenance fee collections more effectively and ensuring that all residents contribute fairly to the property’s upkeep,” he said.
He noted that currently about 38% of the units in his condominium in Pandan Perdana were defaulting on their maintenance fees, contributing to an estimated total debt of RM700,000.
“This significantly impacts our monthly collections, which are often insufficient to cover our operational expenses.
Lafite Apartments MC prefers negotiation over legal action when dealing with defaulters of maintenance fees. — Photo courtesy of Lafite Apartments
“It also limits the funds available for essential services like security, cleaning and repairs, leading to a decline in the property’s overall condition,” he said.
In July, Ng announced an allocation of RM20,000 in a legal aid fund aimed at supporting JMBs and management corporations (MC) in Subang Jaya, specifically to address overdue maintenance fees at low- and medium-low-cost flats.
Dallas Villa Pandan Heights JMB says lack of maintenance funds, because of defaulters among owners, has delayed repairs such as for these walls. — Photos: LEW GUAN XI/The Star
The fund covers 50% of legal fees up to a maximum of RM3,000 for a year.
Each JMB and MC can select their legal representation and must fill up an application form to access the fund.
Flats located within SS12 to 19, USJ1 to 22, and PJS7, 9 and 11, are eligible to apply to the fund under Ng’s constituency.
Permata Residence JMB chairman Tan Kuan Kit said the legal aid fund could ensure every strata building was protected and could collect sufficient maintenance fees from residents.
He also called for the state government to be more proactive in supporting the management bodies’ efforts to pursue outstanding maintenance fees.
“The management bodies should be able to send the lists of defaulters to the local councils to enable them to issue official documents demanding the defaulters to settle outstanding fees.
“Local councils should also create more awareness about the importance of paying maintenance fees.
The majority of Permata Residence apartment owners pay their maintenance fees promptly. — Photo courtesy of TAN KUAN KIT
“I personally encountered many owners who don’t know the fees’ usage,” he said.
Tan added that 80% to 90% of owners in his apartment building in Kajang paid their maintenance fees regularly, so the JMB was currently not in dire shortage of funds.
Mediation prevents conflict
However, some strata organisations said mediation should be prioritised when dealing with defaulters.
Strata Owners Association Malaysia honorary secretary Kelvin Chong said interventions in the form of legal aid funds could fuel conflicts between the management bodies and the defaulters.
“Such allocations will encourage the management bodies to bring the cases to court, which is very costly for them and the defaulters.
“Though they can choose to file a case at the Strata Management Tribunal (tribunal), which is cheaper, the process can be time-consuming and it may take up to six months for an award to be issued,” he said.
Chong called for the establishment of a strata mediation centre in Selangor, like the Kuala Lumpur Strata Community Mediation Centre (PMKS WPKL).
PMKS WPKL was formed by Kuala Lumpur City Hall through its Commissioner of Buildings Section and Assessment and Asset Management Department, in collaboration with the Unity and National Integration Department under the Prime Minister’s Department.
It aims to resolve the conflicts among strata owners and act as the alternative dispute resolution, especially when the disputes are outside the Strata Management Act’s (SMA) 2013 parameters.
While welcoming the fund, Lafite Apartments MC chairman Patricia Kang said negotiation with the defaulters was still preferred instead of collecting arrears by legal enforcement.
“The management body is encouraged to offer repayment schemes to property owners who are facing financial difficulties.
“Only when the defaulters fail to uphold their obligations to pay the maintenance fees then the management bodies are left with no choice but to take legal action, as permitted by the Strata Management Act,” she said.
Kang said Lafite Apartments MC in Subang Jaya provided instalment plans for defaulters to help them settle their arrears.
“The lump sum is split into monthly payments and included in their monthly maintenance charges and sinking fund.
“We are also open to other payment proposals suggested by defaulters,” she said.
When contacted, Ng said she supported mediation, but it was currently not legally enforceable.
“There is a need to do something within the current framework while waiting for other options to take shape, which is why we introduced the legal aid fund,” she said.
She also encouraged JMBs and MCs to offer repayment schemes to property owners facing financial difficulties, before pursuing legal action.
Authorities’ initiatives
In a statement to StarMetro, Subang Jaya City Council (MBSJ) expressed its support for Ng’s legal aid fund, while explaining a few initiatives it is undertaking to help management bodies tackle outstanding maintenance fees.
Some of the initiatives are issuing letters to defaulters to remind them of their arrears, and door-to-door maintenance fee collection together with management bodies, according to MBSJ.
The city council advised management bodies to bring the cases to the tribunal or confiscate the defaulters’ movable properties if they still failed to pay maintenance fees on time.
It added that Selangor government has been providing aid for the management bodies of low- and medium-low-cost strata properties to address critical damage on their facilities, through the Caring Government for Residential Improvement Aid (Ceria) scheme.
To apply for the scheme, the original purchase price of the units under low-cost properties must be RM42,000 and below. Meanwhile, for medium-low-cost properties, the price must be between RM42,001 and RM72,000, according to the scheme’s portal.
The state government will fully subsidise the maintenance costs for low-cost properties, while medium-low-cost properties have to bear 10% of the costs, according to the website.
Properties that are less than 10 years old are not eligible to apply.
Some of the maintenance work covered by the scheme are painting work as well as repairing lifts, roofs, water tanks, and reticulation systems (see graphic).
Selangor housing and culture committee chairman Datuk Borhan Aman Shah was previously reported as saying that RM5.4mil had been disbursed to low-cost strata residences in the state for maintenance works under the scheme.
He said 12 out of 41 applications, mostly for repainting residential buildings, had been approved so far.
Ng introduced a legal aid fund in her Subang Jaya constituency to help JMBs recover maintenance fee arrears from unit owners.
Chong calls for the establishment of a strata mediation centre in Selangor.
Kang says the Lafite MC offers maintenance fee repayment schemes to property owners who are facing financial difficulties.
Tan says a legal aid fund can enable JMBs and MCs to collect sufficient maintenance fees.
Haresh says a legal aid fund will ultimately ensure all residents contribute fairly to the property’s upkeep.
