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."
