Repair Fund
A mandatory reserve fund for routine repairs and maintenance of common areas, as distinct from the Sinking Fund which covers capital expenditure.
What is Repair Fund?
Repair Fund (also called Repairs & Maintenance Fund) is collected monthly from members specifically for ongoing maintenance and repair of common areas — lifts, water pumps, external painting, plumbing, electrical systems in common areas.
Bye-Law 47 prescribes the minimum contribution rate. Unlike Sinking Fund, Repair Fund can be used for recurring maintenance without a General Body resolution for each expenditure.
Why it matters
Separating Repair Fund from general maintenance charges gives the auditor and members a clear view of how much is being set aside for future repairs versus spent on administration. It prevents misuse of reserves for operating expenses.
A healthy Repair Fund balance means the committee can authorize urgent common-area repairs quickly, without waiting for a special levy or member vote.
Legal & regulatory context
Bye-Law 47 mandates Repair Fund contributions. The rate is typically 0.75% of the construction cost per annum per flat under Maharashtra Model Bye-Laws.
The annual audit (Form J) requires the auditor to confirm Repair Fund is maintained and that withdrawals were used only for permitted repair purposes.
How SocietyBee handles it
SocietyBee maintains Repair Fund as a separate ledger head. When maintenance bills are generated, the Repair Fund contribution line appears separately from other charges. Monthly and annual Repair Fund statements can be exported for audit.
Try SocietyBee free →Frequently asked questions
What is the difference between Sinking Fund and Repair Fund?
Sinking Fund is for major capital expenditure (structural repairs, asset replacement). Repair Fund is for routine ongoing maintenance of common areas. Both are mandatory but serve different purposes.
Can Repair Fund be used to pay staff salaries?
No. Repair Fund must be used only for repairs and maintenance. Staff salaries come from the general maintenance collection.