Page 31 - Urban Renewal Authority 2023-24 Annual Report

New Strategy on Building Rehabilitation (NSBR) Chairman’s Statement
The study on NSBR in 2020 identified three major obstacles for owners to organise building repair and
maintenance works: the lack of (i) professional knowledge in procurement of consultants/contractors, (ii) financial
reserves and (iii) organisational capabilities. Since then, the URA has worked together with professional institutes
and practitioners to implement specific strategies and measures using a multi-pronged approach. This is aimed
at helping building owners overcome challenges and encouraging them to take charge of building maintenance
and management, while also increasing their awareness of preventive maintenance. Progress made in the last
year are outlined below: Managing Director’s Statement

New Initiatives to Encourage Preventive Maintenance
In April 2024, the URA launched the new Preventive Maintenance Subsidy Scheme (PMSS) to motivate owners of
residential and composite properties to carry out preventive maintenance for their buildings. The URA-funded
scheme provides owners with subsidies to cover the costs associated with the preparation of the building
maintenance manual (MM), which includes a maintenance schedule for common areas and facilities of the
building, along with an estimation of maintenance costs for the next 10 years.
To facilitate the setting up of financial reserves for building rehabilitation, PMSS also offers incentive subsidy, Operating Review
equivalent to 10 percent of the owners’ total contribution to the Special Fund as recommended by the MM over
a period of the first three years (subject to maximum limits based on the number of units of the building), as
incentives for building owners to make regular contributions to the building’s maintenance fund.
In addition, the URA has completed a trial version of the Guidelines and Templates for preparing Maintenance
Manual for Residential and Composite Buildings (GTMM). Subject to the refinement after consultation with
various stakeholders, including Government departments, professional institutions and trade associations in
2024, GTMM will provide a framework to help owners’ committees/corporations and building professionals
develop effective building maintenance and financial plans for preventive maintenance. The GTMM is currently Corporate Sustainability
being trialled by a large private estate in the Southern District to prepare its maintenance manual and plan. Upon
their successful application, the case will be used as an example of best practice of preventive maintenance for
building owners and the property management industry.
The URA undertakes research and studies to analyse the owners’ obligations in building maintenance and
property management with the objective of strengthening the regulatory regime. Following the Government’s
approval in August 2023 of the clauses proposed by the URA for carrying out preventive maintenance and
enhancing the property manager’s right to handle water seepage problems in the Deed of Mutual Covenant
(DMC) of eResidence Tower 3, the URA conducted 14 mass briefings with the property management companies
and trade associations to introduce the new DMC clauses in fostering preventive maintenance and water
seepage handling measures. Recommendations have been submitted to the Lands Department (LandsD) and
Home Affairs Department (HAD) for their consideration to incorporate in the Government’s DMC Guidelines and
Codes of Practice. Management Discussion and Analysis

Property managers join URA’s briefing session to understand the new DMC clauses which foster the Projects at a Glance
implementation of preventive maintenance. Corporate Governance

URA ANNUAL REPORT 2023-24 29