67.— (1) Before the end of the period specified in section 63 (1), and thereafter before the end of the first month of each financial year, the management company shall prepare an estimate of the amount to be raised, in respect of the financial year concerned, by way of an annual charge or charges (in this Part referred to as the “apartment complex service charge”) payable by apartment owners, being the amount required to discharge ongoing expenditure reasonably incurred on the insurance, maintenance (including cleaning and waste management services) and repair of the common areas, structures, works and services of the designated apartment complex concerned and on the provision of common or shared services to the apartment owners and occupiers of the designated apartment complex.

(2) The management company shall prepare the estimate referred to in subsection (1) by reference to the actual or projected expenditure for the financial year in respect of which the service charge is to be levied.

(3) The estimate referred to in subsection (1) shall include the following categories:

(a) insurance;

(b) general maintenance;

(c) repairs;

(d) waste management;

(e) cleaning;

(f) gardening and landscaping;

(g) security services;

(h) legal services and accounts preparation; and

(i) other expenditure anticipated to arise in connection with the maintenance, repair and management of the common areas anticipated to arise.

(4) The apartment complex service charge for each financial year shall not be levied by the management company unless it has been considered by a general meeting of the members called for purposes which include the consideration of the estimate referred to in subsection (1).

(5) The general meeting referred to in subsection (4) shall take place within reasonable proximity to the designated apartment complex and at a reasonable time (unless otherwise agreed by a 75 per cent majority vote of the members).

(6) (a) The proposal in relation to the setting of the apartment complex service charge may be amended at the meeting referred to in subsection (4) with the approval of a 60 per cent majority vote of the members present and voting at the meeting.

(b) Where the apartment complex service charge proposed to the general meeting is disapproved of by not less than a 75 per cent majority vote of the members present and voting at the meeting, the proposed apartment complex service charge shall not take effect but the apartment complex service charge applying to the previous financial year shall continue to apply pending the adoption of an apartment complex service charge in respect of the financial year concerned.

(7) The amount of the apartment complex service charge shall as soon as practicable after its adoption under this section be levied by the management company as a charge on each apartment in the designated apartment complex, the proportion of the apartment complex service charge attributable to any apartment being the same as the proportion which the floor area of that apartment, determined in the prescribed manner, bears to the aggregate floor area of all apartments in the designated apartment complex.

(8) (a) In the case of a designated apartment complex where the housing authority has sold one or more than one apartment under section 90 of the Principal Act, whether before or after the coming into operation of this Part, the management company shall—

(i) determine the net amount of the apartment complex service charge by deducting from the amount of the apartment complex service charge for the financial year concerned the amount of its estimated service charge receipts for the current financial year from the apartment owners of the apartments so sold under the terms and conditions of the transfer orders in respect of the sales of those apartments,

(ii) excluding the apartments so sold from the calculation and subject to the prior approval of the Minister, apportion the net amount of the apartment complex service charge between each of the other apartments in the designated apartment complex by the method of apportionment provided for in the said transfer orders, and

(iii) levy the amount so apportioned in respect of each of those other apartments in the designated apartment complex as a charge on such apartment.

(b) The Minister shall not approve the method of apportionment referred to in paragraph (a) (ii) where he or she is not satisfied that such method is equitable as between the apartments referred to in paragraph (a) (iii).

(c) Where the Minister does not approve the method of apportionment referred to in paragraph (a) (ii), the management company shall, excluding the apartments so sold under section 90 of the Principal Act from the calculation, apportion the net amount of the apartment complex service charge between each of the other apartments in the designated apartment complex by the method of apportionment specified in subsection (7).

(9) (a) To the extent that any part of the apartment complex service charge is not required for the year concerned, any excess shall be taken account of in setting the apartment complex service charge for the following year.

(b) To the extent that the apartment complex service charge is inadequate for the expenditure in the year concerned, the extent of such inadequacy may be added to the apartment complex service charge otherwise payable in respect of the following year.

(10) The management company shall maintain sufficient and proper records of expenditure incurred by it to enable appropriate verification and audits to be undertaken.

(11) The apartment complex service charge levied pursuant to this section shall be applied for the purposes specified in subsection (1) but any excess may, notwithstanding subsections (2) or (9), be applied on expenditure which may be incurred by the sinking fund.

(12) The Minister may make regulations prescribing the class or classes of items of expenditure which may be the subject of the apartment complex service charge.