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ON FRIDAY
NOVEMBER 21, 2014
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BY
PRETAM SINGH DARSHAN SINGH
M
AKING
rules are quite easy
but keeping to them is tough.
Still, rules mean nothing if not
followed through. Worse still,
if those creating the rules and ensuring it is
complied to are the ones bending it. The
consequence: people will lose faith in those
making and enforcing the rules, sooner or
later resulting in chaos as people take things
into their own hands to resolve matters the
way they deemproper.
Last week, we ran through the roles of the
auditors and bankers while discussing the
Housing Development Account (HDA).
Today, we list out the purposes for which
monies in the HDAmay be withdrawn:
(a) the payment of all outgoings including
quit rent, rates, taxes, assessments and other
charges levied in respect of the land on which
the housing development is carried out;
(b) the payment of stamp duty payable on
a charge, caveat, debenture, guarantee or
memorandumof deposit of title to secure
any loan for the construction of housing
accommodation in the housing development;
(c) the payment of legal fees in respect of a
charge, caveat, debenture, guarantee or
memorandumof deposit of title to secure any
loan for the construction of the housing
accommodation; and any other matters
relating to the housing development;
(d) the payment of — insurance premiums;
and architect’s fees, engineer’s fees, quantity
surveyor’s fees and consultant’s fees, for the
housing development;
(e) the cost of carrying out —
(i) soil investigations;
(ii) earthworks;
(iii) foundation works
(iv) building works;
(v) external works;
(vi) site and boundary survey for each lot;
(vii) infrastructure works;
(viii) relocation of squatters;
(ix) works related to infrastructure
preparation instructed by the appropriate
authorities; and other works, relating to the
housing development in proportion to the
housing accommodations that have been
approved under the licensed housing
developer’s licence;
(f) the payment of monies for the
contribution towards the supply of water
and electricity to the housing development
and any other fees payable thereof to the
relevant authority responsible for the supply
of water and electricity in respect of the
housing development;
(g) the payment of any lawful charges to any
government department or other bodies in
respect of the housing development;
(h) any refund of the progress payment
pursuant to the sale and purchase agreement
of a housing accommodation in the housing
development;
(i) the payment of interest and such other
charges to the banks or finance companies on
any loan taken for the housing development;
(j) the payment of any capital sum to
redeem, in full or in part, the loan for the
purchase of land for the housing
development in proportion to the housing
accommodation that have been sold;
(k) the payment of cost of land where no
loan is taken for the purchase of land for
the housing development, to be made
as follows —
(i) an amount equal to ten per centum
(10%) of the purchase price pursuant to the
sale and purchase agreement in respect of
price has been paid,
provided that payment of
such amounts shall be in
proportion to the housing
accommodation that has
been sold;
(l) the payment of any capital sumto redeem,
in full or inpart, the loan for the construction of
housing accommodation in the housing
development;
(m) any administrative expenses (including
marketing and advertising expenses)
incurred on the housing development,
subject to a maximumof ten per centum
(10%) of the total cost of construction of the
housing development as certified by the
architect or engineer in charge of the housing
development in respect of the relevant
progressive payment;
(n) the payment for tax imposed on the
licensed housing developer in respect of that
housing development by the IRB;
(i) any cost and expenses incurred by
persons specified by the minister in carrying
out the minister’s direction or decision under
subsection 11(1A) of the Act;
(ii) the payment of any liquidated damages
pursuant to the housing development;
(iii) the payment of any defect, shrinkage or
other fault pertaining to the project during
the defect liability period; and
(o) any other expenses reasonably incurred
in relation to the housing development but
such amount shall only be released by the
bank or finance company with whom the
Housing Development Account is
maintained upon receipt of the prior
approval in writing of the controller.
Looking at the above, there is certainly no
roomfor payments relating to donations,
director advances, legal fees or inter-company
transfers and such, as shown in some audit
reports. If bankers and auditorswere to strictly
followthe rules andpermissiblewithdrawals,
there is noway a project can become
“abandoned” and this social legislationwould
have played itsmeaningful role in ensuring
protection of the purchaser.
a housing accommodation in the housing
development where up to fifty-five per
centum (55%) of the purchase price has been
paid; and
(ii) a further amount equal to the amount
referred to in subparagraph (i) where up to
sixty-five per centum (65%) of the purchase
PART2
REPUTABLE
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Star Residences
Enforcing
rules
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>Legal reasonsHousingDevelopment
Accountmonies canbewithdrawn