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[4th January 1985]

Arrangement of Provisions

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1 Citation
2 Definition
3 Developer to deposit purchase money into Project Acccount
4 Developer to deposit loans into Project Account
5 Application of moneys in Project Account for specified purposes
6 Release of money from Project Account
7 Withdrawal of money in Project Account after grant of temporary occupation permit
8 Withdrawal of surplus money in Project Account where there is no subsisting mortgage
9 Withdrawal of all moneys in Project Account when building project completed
10 Banker’s guarantee in lieu of money and amounts referred to in rule 7
11 Redemption of subsisting mortgage upon grant of temporary occupation permit
12 Certificate of auditor
13 Penalties

[4th January 1985]

Citation
1. These Rules may be cited as the Housing Developers (Project Account) Rules.

Definition
2. In these Rules, “Project Account” means the Project Account maintained under section 9 of the Act.

Developer to deposit purchase money into Project Acccount
3. A licensed housing developer shall deposit forthwith upon receipt all instalments of purchase money (including the booking fee) payable by a purchaser towards the purchase of a unit in a building project prior to the grant of the temporary occupation permit by the competent authority for the unit, including any instalment of purchase money payable by the purchaser towards the purchase of the unit upon the grant of the temporary occupation permit, into the Project Account of the building project.

Developer to deposit loans into Project Account
4. A licensed housing developer shall deposit any loan for the construction of a building project into the Project Account of the building project.

Application of moneys in Project Account for specified purposes
5. No moneys in a Project Account of a building project shall be withdrawn by a licensed housing developer except for all or any of the following purposes:

(a) the payment of property tax levied in respect of the land on which the building project is carried out;

(b) the payment of stamp duty payable on a mortgage to secure any loan for construction of the building project;

(c) the payment of legal fees in respect of —

(i) the sale and purchase of the units in the building project;

(ii) any mortgage to secure loans for construction of the units in the building project; and

(iii) any other matters relating to the building project;

(d) the payment of insurance premiums, architect’s fees, engineer’s fees, quantity surveyor’s fees and consultant’s fees for the building project;

(e) the cost of carrying out —

(i) foundation works;

(ii) soil investigation;

(iii) earth works; and

(iv) providing site supervision,

in respect of the building project;

(f) the payment of moneys for the supply of electricity and water and installation charges and other fees and deposits to the Public Utilities Board in respect of the building project;

(g) the payment of deposits and charges, other than development charges, payable to the Commissioner of Buildings and any Government department or statutory body in respect of the building project;

(h) any refund of booking fee or progress payments pursuant to any agreement for the sale and purchase of any unit in the building project;

(i) the payment of the cost of construction of the building project;

(j) the payment of interest and other charges on any loan for the building project;

(k) the payment of any capital sum to redeem in full or partially any loan for the construction of the building project;

(l) the payment of any capital sum to redeem in full or partialy any loan for the building project (including any loan for the payment of development charges or differential premiums in respect of the building project), other than a loan referred to the paragraph (k), subject to a maximum of 50% of the total purchase money deposited in the Project Account unless the qualified person in charge of the building project has certified that the roofing and internal plastering of all the units in the building project have been completed;

(m) any administrative expenses (including marketing and advertising expenses) incurred on the building project subject to a maximum of 5% of the total cost of construction of the building project as certified by the architect in charge of the building project;

(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 (Cap. 99A).

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.

Withdrawal of surplus money in Project Account where there is no subsisting mortgage
8. Notwithstanding rule 7, where the land on which a building project is carried out is not subject to any subsisting mortgage, the licensed housing developer may withdraw any surplus money in the Project Account of the building project after deducting the amounts referred to in that rule after the qualified person in charge of the building project has certified in writing that the roofing and internal plastering of all units in the building project have been completed.

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.

Redemption of subsisting mortgage upon grant of temporary occupation permit
11. Where the land on which a building project is carried out is subject to any subsisting mortgage or charge, the licensed housing developer shall, upon payment by a purchaser of a unit in the building project of the instalment of purchase money payable towards the purchase of the unit upon the grant of the temporary occupation permit 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.

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.

Penalties
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.

[G.N. Nos.S 3/85; S 259/96; S 169/97]