SINGAPORE — At the 30-unit mixed-use development of Beng Tong Mansion at Tanjong Katong Road, the upkeep of common stairwells and lights could soon become a problem, some residents fear.

The estate’s maintenance fund is dwindling and fresh funds are not coming in, residents and shop owners told TODAY. Some subsidiary proprietors have backed out of contributing to the fund — a pickle caused by an unusual management model instituted by the developers of the strata titled property.

While most buildings are managed by a single management corporation — often known as Management Corporation Strata Title, or MCST — Beng Tong Mansion is under the purview of 10 MCSTs, numbered 1 to 10 on the Building and Construction Authority’s (BCA) database. 

Each MCST oversees three units — making up a three-storey “column” in the walk-up apartment block — including one shop unit at ground level and two double-storey maisonette units.

Proposed changes to the Building Maintenance and Strata Management Act (BMSMA) tabled in Parliament earlier this month have been largely welcomed by affected private property owners. 

They are aimed at enhancing transparency and governance, and giving owners more leeway to decide what is in their best interests, especially where safety is concerned.

But the amendments to the law, if passed, will do little to resolve the challenges faced by a small group of so-called mini-MCSTs such as Beng Tong Mansion.

Some proposed changes, like barring double-hatting in management corporations, may even introduce new problems to such developments.

According to the BCA, there are close to 400 MCSTs with five or fewer lots, comprising residential, commercial, industrial and mixed developments, which were formed since the 1960s.

Beng Tong Mansion’s framework, which the BCA said was the developers’ decision, makes it difficult for residents to make decisions affecting the entire property and resolve disputes.

“No point calling for a vote with only three voters in a MCST. There can be cases where people gang up or bear grudges against each other,” said a resident, who did not want to be identified.

To add to their woes, each MCST shares a staircase in front, and a fire escape at the back, with two different neighbouring MCSTs.

“So if one MCST wants to upgrade or repaint common areas both at the front and back, it will have to liaise with the MCST on its right as well as the one on its left,” said the long-time resident.

To manage the situation, owners came together some 10 years ago to set up a society, using it as an avenue to raise funds and make joint decisions, such as a makeover of the building in 2012 that resulted in its current unified black-and-white facade.

However, some owners wanted out of contributing to the management fund. Some of the society’s members also resigned last year.

“They do not have any interest or incentive in ensuring the building’s overall appearance and maintenance,” said Mr William Ng, who owns a shop unit that is rented out to a traditional chinese medicine practitioner.

“To some, it may be a rather self-centred way of thinking, but different people have different needs. Not everyone looks at the bigger picture. And the society is not empowered to compel them to contribute funds,” said the 68-year-old.

The resident, who wanted to remain anonymous, estimates that the current pool of funds can last for a maximum of two more years, if tapped “only for small upkeep works”.

Yet, it would be “unfair” to continue soliciting funds from the other owners if some refuse to contribute, he said.

Under the MCST scheme, all subsidiary proprietors have to contribute to a management fund used for maintaining the common property and footing ancillary expenses. This money is paid to the management corporation.

Some Beng Tong Mansion owners previously approached the authorities to amalgamate the 10 MCSTs into one, but later abandoned the idea because of “high legal fees”, said a resident who wanted to be known only as Mr Wong.

According to the BMSMA, amalgamation may proceed if the individual MCSTs pass special resolutions (when owners who vote for the resolution make up at least 75 per cent of the share value of all the valid votes cast) to do so and make an application at the Singapore Land Authority.

Lawyer Toh Kok Seng, who has represented various stakeholders in strata disputes, said the amalgamation “shouldn’t be too difficult” if the units and common areas are similar in size.

Subsidiary proprietors will also need to engage a surveyor to prepare a Strata Title Plan and allocate share values, said Mr Toh, a senior partner at Lee & Lee.

While an amalgamated MCST can help owners to cut costs and achieve economies of scale, the sub-divided framework gives subsidiary proprietors more “freedom” in handling his or her own property.

“An owner who owns all three units in his MCST can even terminate the strata title scheme, and this becomes his three-storey building, (which is) more valuable (and normally fetches a higher price) than a strata unit,” said Mr Toh.

Another Beng Tong Mansion resident, Mr Ricky Tay, called for the authorities to set guidelines for managing the common areas of buildings with peculiar MCST arrangements like theirs.

“Whether it is one MCST, or many MCSTs, the objective should be to keep the common areas neat and tidy. Right now, it is hard to get everyone to collaborate, because every one has varying agenda and objectives,” said Mr Tay, who has been living there for five years.

Owners who have rented their units out may not have a vested interest in maintenance, he said.

But given Tanjong Katong’s status as a conserved area and Beng Tong Mansion’s status as a conserved building — according to the Urban Redevelopment Authority’s conservation portal — there should be greater impetus to keep the building spiffy, said a resident who wanted to be known only as Mr Wong.

“Keeping this block and the area lively is especially important because Tanjong Katong is a conserved area well-known for its heritage,” he said.