Town Councils to get sharper teeth
By Tor Ching Li, TODAY
To hasten the lift upgrading process in Housing Development Board (HDB) estates, Town Councils will soon have the power to seize and sell homeowners' moveable property or flats to recover such improvement costs from recalcitrant residents who refuse to pay up.
Sound drastic? Town Council chairmen and members of Parliament don't think so.
The amendment to the Town Council Act, which may be passed in the parliamentary session which begins today, will also allow Town Councils to use their sinking funds for lift upgrading work.
It effectively extends the Town Council's duty to include lift-upgrading work - similar to what the HDB does in its Lift Upgrading Programme (LUP), which the Government launched in 2001 and aims to complete within the next 10 years, instead of the projected 10 to 15 years. However, it does not increase the Town Council's powers to any degree, say Town Council chairmen and MPs.
Dr Amy Khor, Southwest CDC mayor and Government Parliamentary Committee chairman for National Development, said: "The existing provisions in the Act already allow Town Councils, with the prior approval of the HDB, to sell the resident's flat if he is not able to pay his service and conservancy (S&C) charges."
Hence, the amendment grants Town Councils the same powers that the HDB has in the recovery of such arrears - defined as contributions left unpaid after three months. As of last January, town councils were owed a total of $24.7 million in S&C arrears.
So, just how much more in terms of LUP arrears can Town Councils expect to chalk up and chase residents for?
The HDB told Today that it had billed three LUP precincts at the end of June after the upgrading work was completed, hence it has no outstanding LUP arrears.
But there is another issue. Unlike monthly S&C charges - which range from $18 to $80 per household for maintenance services such as grass cutting, cleaning and lift-maintenance - not everyone may be in favour of the LUP, or benefit from it. The maximum co-payment cost for the Town Council LUP will range from $263 to $714 for residents, depending on the type of unit.
At least 75 per cent of residents must vote in favour of lift upgrading work before it can proceed. So what if the remaining 25 per cent don't want to pay up or can't afford to?
Dr Teo Ho Pin, Holland-Bukit Panjang Town Council chairman, said: "All PAP Town Councils have an arrears recovery system where we work closely with our community partners such as grassroots organisations or voluntary welfare organisations to assist needy residents who face difficulty in paying their fees or charges."
The procedure, he said, starts with a notice of reminder to house visits. Then a claim is lodged with the small claims tribunal. A writ of seizure and sale of moveable property - such as television or hi-fi sets is issued. The sale of the flat is a final step, to be taken only if all efforts at recovering the arrears fail.
Mr Chew Heng Ching, East Coast Town Council chairman and coordinating chairman for PAP Town Councils, said: "This provision is basically the last resort by the Town Council for those who have defaulted on their payments for improvement contributions. The Act serves to empower the Town Council to take action against residents who can afford to pay but are not doing so."
Or, as some Town Councillors call them, chau kuan homeowners - a Hokkien phrase referring to someone with a bad attitude.
Dr Khor agreed: "As Town Councils are familiar with the profile of the flat dwellers, such a sale would only be resorted to after all other avenues have been explored and exhausted."
Some observers note that the Town Council's function, role and relationship with residents will change.
Said one: "With HDB as the landlord, Town Councils have hitherto just managed and maintain common property in HDB estates. It remains to be seen how this enlarged function will change its relationship with the residents it serves."
