China’s legislative authorities are advancing comprehensive revisions to the national property management regulations, signaling a significant enhancement of legal supervision mechanisms in residential governance. The initiative emerges from systematic reviews conducted by the National People’s Congress Standing Committee’s Legislative Affairs Commission, which identified numerous inconsistencies between local property regulations and national laws.
Recent examinations revealed several problematic provisions in local governance frameworks. In one notable case from 2024, a municipal regulation mandated that 70% of commercial revenue from common areas be allocated to maintenance funds prior to homeowners’ association establishment. Legislative experts determined this violated the Civil Code’s principle that such income belongs collectively to homeowners who must decide its utilization.
Another contentious regulation permitted residential compounds to lease parking spaces to non-residents with only homeowners’ committee approval. The commission emphasized that such decisions involving common areas require collective homeowner consensus under the Civil Code, as they impact property rights, safety, and community order.
Yan Dongfeng, an official with the Legislative Affairs Commission, highlighted that the current property management regulation implemented in September 2009 has become outdated, with many provisions remaining vague and unaligned with newer legal frameworks. The rapid development of China’s property management industry has exposed deficiencies in service quality, fee mechanisms, and oversight systems, leading to frequent disputes and increasing requests for legislative review.
Multiple NPC deputies have joined the call for either substantial revisions to the existing regulation or the enactment of specialized property management legislation. Lawmakers Chen Weiguo from Hubei and Gao Huarui from Jiangsu have specifically advocated for clearer procedures regarding homeowners’ committees, enhanced oversight of property companies, and strengthened legislation on social governance.
The Legislative Affairs Commission has responded by urging relevant State Council departments to expedite the regulatory revision process while considering more comprehensive legislation to address prominent sector issues and better safeguard public interests.