BEGINNING today, Shenzhen's municipal and district governments will set up task forces to recover billions of yuan in maintenance fees owed by developers of all housing estates built after 1994, when the fee became compulsory.

Under a regulation promulgated in 1994 and revised in 1999, all developers are required to pay 2 percent of their total investment, excluding the land price, to the committee of home owners for a maintenance fund. However, few developers have paid the fee till date.

As the city's buildings become older, the need for maintenance and repair grows. Although home owners pay a monthly fee for building maintenance, the amount is insufficient.

The municipal government promulgated a new rule March 13 this year, detailing how the fees should be collected and used. On June 1, the government issued a circular, calling for the establishment of organizations at the municipal and district government levels to oversee the recovery of the fees and supervision of the fund.

The June 1 circular also stipulates that for new projects, developers should pay the fee upon registering a new construction project with the land and housing administration bureau, before work on the project starts.

The move is to ensure there is sufficient money for buildings and public facilities attached to the project to be maintained and repaired.

The bureau will first collect the fund from developers for construction projects finished on or after March 13.

Developers of older projects are also required to pay the fee as soon as possible or face revocation of their licenses.

However, a spokesman for the bureau said the fund will not increase the city's real estates price as it should be considered as part of the investment. "Developers are not allowed to pass down the maintenance fund to buyers and ask for an extra charge besides the housing price."

The fund will be kept under the name of the housing estate and managed by the six district bureaus of land and housing administration. Property management companies are allowed to used the fund to repair and maintain the building after it is approved by the home owners' committee.

According to the bureau, developers of more than 1,579 projects in Longgang District have failed to pay the fee. The bureau said it will collect the fee from 109 developers before December.

Editor: Yan