Also called: Sinking fund contribution, Repair fund
A fund a housing society builds up from members' contributions for major repairs or rebuilding the structure in future.
How it works and what to check
Co-operative housing societies, especially in Maharashtra, collect a sinking fund contribution with maintenance at a rate set by their bye-laws, usually linked to construction cost. It is kept separately and used only as the general body decides.
When buying a resale flat, the society's no-dues letter should cover sinking fund contributions as well as maintenance.
Common questions
Is sinking fund refundable when I sell?
No. It belongs to the society, not the member.
How much is sinking fund?
It is set by the society's bye-laws and general body. Check your maintenance bill.