In the labyrinth of modern residential living, housing societies stand as pillars of community cohesion. These vibrant microcosms are woven together by a shared desire for comfort, security, and a sense of belonging. However, behind the scenes of serene walkways and bustling common areas, lies a crucial aspect that ensures the seamless functioning of these societies – the management of necessary funds. In this blog, we embark on a journey to unravel the layers of financial prudence that housing societies must embrace. From maintenance to emergencies, we explore the array of essential funds that safeguard the harmony and sustainability of these shared living spaces.
NECESSARY FUNDS FOR THE CO-OPERATIVE HOUSING SOCIETIES
The specific requirements for necessary funds that a cooperative housing society must have in India can vary depending on the state and the rules of the cooperative society. However, generally speaking, cooperative housing societies are required to maintain several types of funds to ensure proper functioning, maintenance, and financial stability. These funds may include:
Reserve Fund (Bye-law No.12a): This fund comprises of all entrance fees received by the Society from its Members; all transfer fees received by the Society from its Members on transfers of the shares, along with the occupancy rights; all premium received by the Society from its Members on transfers of their interest in the capital or property of the Society; the amounts carried to the said fund, from year to year, out of the net profit / surplus of that year; all donations received by the Society, except those received by it for the specific purpose.
burdening members at once.
Repairs & Maintenance Fund (Bye-law No.13a) : This fund is specifically meant to cover routine maintenance and minor repairs of the society’s common areas and facilities.
Major Repair Fund (Bye-law No.13b): This fund is set up to cover major repairs, renovations, and replacements of common facilities and amenities over time. Members contribute to this fund on a regular basis, and it helps the society manage large maintenance expenses without
Sinking Fund (Bye-law No.13c): This fund is set up to account for the depreciation of the society’s assets and to provide for their replacement when needed.
Education and Training Fund (Bye-law No.13d): This fund covers the costs of organizing training programs, workshops, and educational activities for the members and staff of the cooperative society.
It’s evident that these funds are the lifeblood that keeps the heart of communal living beating steadily. Just as a tapestry requires various threads to create a masterpiece, a housing society requires a spectrum of funds to weave a secure and thriving environment for its residents. From the steady accumulation of share capital to the strategic allocation of repair and maintenance funds, each facet plays a crucial role in upholding the essence of cooperative living. As we reflect on the intricate balance between prudent management and nurturing community spirit, it becomes clear that these necessary funds are not just financial assets; they are investments in a shared vision of harmonious living.