Building maintenance fund expanded as subsidy scope widens, procedures streamlined

[Photo: Nadia Shaw]

The Executive Council (ExCO) has approved revisions to the city’s Building Maintenance Fund and completed discussion of a draft law to overhaul the leasing of commercial spaces in public housing. The changes come as authorities seek to strengthen incentives for property owners to maintain common areas in aging buildings.

Yesterday, ExCO spokesperson and Secretary for Security Wong Sio Chak, along with Housing Bureau (IH) director Iam Lei Leng, said amendments to Administrative Regulation No. 4/2007 would expand the scope of subsidies to include renovation works and streamline procedures for applicants.

Established in 2007, the Building Maintenance Fund provides subsidies and interest-free loans for repairs, inspections, and management of shared building facilities.

Then, in 2021, the MSAR government consolidated several subsidy schemes, increasing funding limits and simplifying application processes.

Now, the fund operates four schemes covering maintenance, inspections, building management, and targeted support for lower-grade buildings.

According to Iam, the maintenance fund has approved 7,523 applications involving more than 4,600 buildings since its inception. In that time, total subsidies have reached about MOP740 million. Authorities stated that in 2026 they had received roughly 270 applications, representing around MOP28 million.

Under the revised framework, the government will also amend related regulations to raise subsidy ceilings, clarify eligible inspection scopes, and simplify disbursement procedures.

The updated rules will take effect the day after promulgation.

Officials said the changes are expected to increase the fund’s budget by more than MOP8 million, although the number of beneficiaries will depend on individual cases.

“There are currently 145 shops in the city center, of which 68 are rented and open for lease, 23 are being offered for lease on behalf of others, and 54 are still available. We will continue to recruit… we have plans for another round of leasing,” Iam said.

Lease reform for public housing

The ExCo also finalized a draft law establishing a new legal regime for the allocation, leasing, and transfer of commercial premises in social housing, which will be submitted to the Legislative Assembly.

Authorities said the current framework, governed by a 1992 decree-law, no longer reflects Macau’s economic realities, including shifts in consumption patterns and the operating environment for small businesses. Wong added that vacancies and underutilization in some public housing retail spaces have highlighted the need for the reform.

The proposed law introduces public tenders as the default allocation method, while allowing exemptions in cases aligned with government policy or urgent public need. It replaces open bidding with sealed proposals, still awarding contracts to the highest offer.

Lease terms would be extended from six months to three years, with automatic annual renewals if contracts are not terminated. Rents could be adjusted annually in line with changes in the Consumer Price Index, while the Secretary for Transport and Public Works would retain discretion to suspend or modify rent adjustments based on economic conditions.

Additional provisions include replacing advance rent payments with a two-month security deposit, introducing mechanisms for partial or full rent exemptions in exceptional circumstances, and clarifying termination and notice requirements. Transitional arrangements would apply to existing contracts.

At the same briefing, Iam said the reforms aim to better support micro, small, and medium-sized enterprises while enhancing community services within public housing estates.

Iam said expanding the maintenance fund to cover renovation works reflects growing demand from building owners for broader support, particularly as older properties require more comprehensive upgrades.