Housing Developers (Project Account) (Amendment) Rules 1996

Status:

Published in Subsidiary Legislation Supplement
on 07 Jun 1996

No. S 259

Housing Developers (Control and Licensing) Act

(Chapter 130)

Housing Developers (Project Account) (Amendment) Rules 1996

In exercise of the powers conferred by section 22 of the Housing Developers (Control and Licensing) Act, the Minister for National Development hereby makes the following Rules:

1. These Rules may be cited as the Housing Developers (Project Account) (Amendment) Rules 1996 and shall come into operation on 7th June 1996.

2. Rule 3 of the Housing Developers (Project Account) Rules (referred to in these Rules as the principal Rules) is amended by inserting, immediately after the words “purchase money” in the second line, the words “(including the booking fee)”.

[R 2.]

3. Rule 5 of the principal Rules is amended —

(a)

by deleting paragraph (l) and substituting the following paragraph:

“(l)

the payment of any capital sum to redeem in full or partially any loan for the building project, other than a loan referred to in paragraph (k), according to the following formula the computation of which is to be certified in writing by an auditor:

”; and

(b)

by deleting the full-stop at the end of paragraph (m) and substituting a semi-colon, and by inserting immediately thereafter the following paragraphs:

“(n)	the payment of goods and services tax on the supply of any goods or services to the licensed housing developer in respect of the building project; and
(o)	any forfeiture or refund of the moneys pursuant to the provisions of the Executive Condominium Housing Scheme Act 1996.”.

[Act 10of 1996.]

4. Rules 6 and 7 of the principal Rules are deleted and the following rules substituted therefor:

“Release of money from Project Account

6. The bank or finance company with whom the Project Account is maintained shall not release any money from the Project Account —

(a)	for the purpose mentioned in paragraph (e) or (i) of rule 5 unless the request for the release of that money is supported by a certificate from the qualified person in charge of the building project stating that payment is due to be made for that purpose; and
(b)	for the purpose mentioned in any of the other paragraphs of rule 5, unless the request for the release of that money is supported by documentary proof that payment is due to be made for that purpose.

Withdrawal of money in Project Account after grant of temporary occupation permit

7. After the grant of the temporary occupation permit by the Building Authority for all units in a building project, the licensed housing developer may withdraw any surplus money in the Project Account of the building project after deducting —

(a)	the amount required to complete the building project with certificate of statutory completion to be issued by the Building Authority for the occupation of the building project and the sale and purchase under all the sale and purchase agreements in respect of the building project, as certified by the qualified person in charge of the building project;
(b)	the amount required to redeem in full all loans for the building project;
(c)	other fees, charges or expenses incurred on the building project; and
(d)	20% of the amounts referred to in paragraphs (a), (b) and (c) for contingencies and inflation.”.

5. Rule 8 of the principal Rules is amended —

(a)	by deleting the word “architect” in the sixth line and substituting the words “qualified person”; and
(b)	by deleting the words “the units” in the seventh line and substituting the words “all units” .

6. Rules 9 and 10 of the principal Rules are deleted and the following rules substituted therefor:

“Withdrawal of all moneys in Project Account when building project completed

9. A licensed housing developer may withdraw all moneys remaining in the Project Account of a building project and close the Project Account when the certificate of statutory completion for occupation of the building project has been issued by the Building Authority and the sale and purchase under all the sale and purchase agreements in respect of the building project have been completed.

Banker’s guarantee in lieu of money and amounts referred to in rule 7

10. Notwithstanding the provisions of these Rules, a licensed housing developer may withdraw moneys in the Project Account if he has furnished to the Controller a banker’s guarantee of an amount equivalent to the amount to be withdrawn and has obtained the approval in writing of the Controller.”.

7. Rule 11 of the principal Rules is amended —

(a)	by inserting, immediately after the word “mortgage” in the second line, the words “or charge”; and
(b)	by deleting the words “by the competent authority for the unit, redeem the mortgage in respect of the purchaser’s unit” in the sixth and seventh lines and substituting the words “by the Building Authority for the unit, discharge all mortgages and charges in respect of the purchaser’s unit and shall not further encumber it”.

8. Rule 12 of the principal Rules is deleted and the following rules substituted therefor:

“Certificate of auditor

12. An auditor shall certify in the annual balance-sheet and accounts of the licensed housing developer whether —

(a)	all instalments of purchase money referred to in rule 3 and all loans for the construction of the building project referred to in rule 4 have been deposited into the Project Account in accordance with these Rules; and
(b)	the moneys in the Project Account have been withdrawn in accordance with these Rules.

Offences

13.—(1) Any person who refuses or neglects to comply with or acts in contravention of any of the provisions of these Rules shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding 6 months or to both.

(2) Any person who knowingly and wilfully aids, abets, procures or instigates the commission of an offence under paragraph (1) shall be guilty of an offence and shall be liable on conviction to be punished with the punishment provided for the offence.”.

Made this 21st day of May 1996.

LAM CHUAN LEONG

Permanent Secretary,
Ministry of National Development,
Singapore.

[ND 202/1-57 Vol. 5; AG/SL/20/93]

(To be presented to Parliament under section 22(5) of the Housing Developers (Control and Licensing) Act).

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