70.— (1) Subject to subsection (3), on the first sale of an apartment in a designated apartment complex to the tenant thereof under this Part, the housing authority shall establish, maintain and account for a fund (referred to in this Part as an “apartment complex support fund”) for the purposes set out in subsection (4).

(2) (a) The housing authority shall, on the establishment of the apartment complex support fund, pay into the fund an amount fixed in accordance with paragraph (b).

(b) The amount referred to in paragraph (a) shall be calculated as the sum of the prescribed proportion of the purchase price on the date of the first sale referred to in subsection (1) of each apartment in the designated apartment complex, including community apartments and any apartments sold to tenants under section 90 of the Principal Act whether before or after the coming into operation of this Part, which proportion shall not exceed the greater of—

(i) 5 per cent of such purchase price, or

(ii) such amount as may be prescribed for the purposes of this section having regard to the number and size of the apartments comprised in the designated apartment complex concerned.

(3) The moneys referred to in subsection (2) in respect of one or more than one designated apartment complex may be held in, managed and accounted for by a housing authority in a single apartment complex support fund, provided that the funding for each such apartment complex is capable of being separately identified.

(4) The housing authority, in accordance with this section, on a request being made in that behalf by the management company and subject to there being sufficient moneys in the apartment complex support fund, may decide to transfer moneys from the apartment complex support fund to the company’s sinking fund to meet expenditure by, or on behalf of, the management company on any of the works referred to in section 68 (1) (a) to (c).

(5) (a) Where a request is made under subsection (4), the management company shall, as the housing authority may reasonably require for the purpose of deciding whether to transfer moneys from the apartment complex support fund to the sinking fund—

(i) provide details (including drawings and estimated costs) of the proposed works,

(ii) provide financial and other information (including the company’s records relating to management, maintenance and repair of the common areas, structures, works and services), and

(iii) carry out, or facilitate the housing authority in carrying out, inspections, surveys and tests.

(b) The reasonable costs incurred by the management company in meeting the requirements of a housing authority under this subsection shall be paid by the housing authority.

(6) A housing authority may refuse to transfer moneys under subsection (4) where it is of the opinion that any of the following applies:

(a) the works proposed are not in the interest of good estate management;

(b) the management company is not in a position to meet the cost of the works, from its own resources, including the sinking fund, moneys which it has requested under subsection (4) from the apartment complex support fund and borrowings;

(c) the works proposed are necessary because of the management company’s failure to discharge its obligations under section 63 (3), whether this failure is attributable to the company’s failure to levy or collect an adequate apartment complex service charge in one or more than one financial year, or otherwise;

(d) the moneys may be used by the management company for purposes other than the carrying out of the works proposed, including eliminating or reducing any excess of expenditure over income (but not including the sinking fund) on the management company’s accounts.

(7) Where a housing authority decides to transfer moneys under subsection (4) it may do all or any of the following—

(a) transfer from the apartment complex support fund the amount requested by the management company under subsection (4) or an amount less than that so requested;

(b) attach such conditions as it considers appropriate to its decision including conditions specifying—

(i) the works to be carried out,

(ii) the works not to be carried out,

(iii) the standard of the works to be carried out, and

(iv) the timing and content of reports to be given to the housing authority in relation to the works carried out;

(c) transfer same to the sinking fund of the management company in such instalments and at such times as the housing authority considers reasonable having regard to the progress of the works concerned.

(8) The management company in carrying out any of the works referred to in section 68 (1) (a) to (c) shall comply with such conditions if any as may be attached under subsection (7) (b) to the decision to transfer moneys under subsection (4).

(9) (a) The housing authority may, for the purpose of establishing that the moneys transferred under subsection (4) were used for the purpose for which they were intended and in compliance with the conditions attached under subsection (7) (b) to its decision to transfer moneys, carry out such further inspections, surveys and tests of the works concerned as it considers necessary.

(b) The management company shall facilitate the housing authority in the carrying out of the inspections, surveys and tests referred to in paragraph (a) and, if requested by the authority, shall itself carry out such inspections, surveys and tests of the works concerned, as the housing authority considers necessary, the reasonable cost of which shall be paid by the housing authority.

(10) (a) The management company shall be liable to repay to the housing authority—

(i) in case of its failure to use all or any of the moneys transferred under subsection (4) for the purpose for which they were intended, the entire of such moneys or such part thereof, as the case may be, or

(ii) in case of a breach of one or more than one condition attached by the authority under subsection (7) (b) to its decision to transfer moneys under subsection (4), that proportion of the amount of the transferred moneys corresponding to the cost of complying with the condition or conditions concerned expressed as a proportion of the total cost of carrying out the works in respect of which the authority agreed to so transfer moneys.

(b) Any moneys due and owing to the housing authority under paragraph (a) shall, subject to section 71, be repaid by the management company not later than 2 months after the date on which the authority demands repayment from the management company by notice in writing specifying the matters giving rise to the demand for repayment and the amount concerned.

(c) Any moneys repaid by a management company to a housing authority under this subsection shall be paid into the apartment complex support fund.

(11) The housing authority may recoup from the apartment complex support fund such reasonable expenses as it may incur in the exercise of its functions under this section.

(12) The apartment complex support fund shall consist of a current account (in this section referred to as the “current account”) and an investment account (in this section referred to as the “invest ment account”).

(13) The housing authority shall pay into the current account, from time to time, the amount that the authority determines is required for the purposes of—

(a) transferring moneys to a sinking fund under this section, and

(b) defraying the costs incurred by the authority—

(i) under subsection (5) (b), (9) or (11), as the case may be, and

(ii) in the performance of its functions under this section relating to management of the apartment complex support fund.

(14) All other moneys standing to the credit of the apartment complex support fund shall be paid into the investment account.

(15) Whenever the moneys in the current account are insufficient to meet the liabilities of the apartment complex support fund specified in subsection (13), there shall be paid into that account from the investment account the moneys that are necessary to meet those liabilities.

(16) Moneys in the investment account that are not required to meet current and prospective liabilities of that account shall be invested and the investments shall be realised or varied from time to time as occasion requires and the proceeds of any such realisation, and any dividends or other payments received in respect of moneys invested under this paragraph, shall be paid into the investment account or invested under this subsection.

(17) An investment under subsection (16) shall be invested in the State and in the currency of the State—

(a) in the securities (other than shares in a company) that the housing authority considers appropriate, or

(b) by way of deposit of moneys with any credit institution, or the investment of moneys in short term financial products, such as certificates of deposit or commercial paper, issued by any person.