In response to a series of cases in which condominiums lack reserve funds for repairs, the Ministry of Land, Infrastructure, Transport and Tourism has released a draft proposal regarding the estimated amount of reserve funds to be collected.
The policy is to set a minimum limit on the monthly collection amount and require systematic savings from the beginning.
According to a survey by the Ministry of Land, Infrastructure, Transport and Tourism, the percentage of condominiums with insufficient repair reserves has approximately doubled in the five years up to fiscal 2018, and one reason for this is that condominium developers are making it easier to sell when newly built. It has been pointed out that this is because in many cases the initial collection amount is kept low.
In response to this, the Ministry of Land, Infrastructure, Transport and Tourism has released a draft guideline for the amount to be collected.
According to this, based on the repair plan, the total amount of reserve funds required will be divided by month to create a ``standard amount,'' and at least 60% of the standard amount will be required to be collected even at the time of new construction.
On the other hand, even if the amount to be levied is subsequently increased as the building ages, the policy is to keep it within 1.1 times the standard amount and to systematically accumulate the necessary funds.
There are an increasing number of cases in which repair costs for condominiums are rising more than originally expected due to soaring material prices, but the Ministry of Land, Infrastructure, Transport and Tourism says that even in such cases, it will be easier to deal with them if you plan ahead and save money from the beginning.
This draft plan will be presented at an expert meeting of the Ministry of Land, Infrastructure, Transport and Tourism to be held soon.