Residents of the Haoshi Yingyuan residential community in Minhang District have raised serious concerns over a recent owners' assembly vote, questioning whether their public funds are being misused. In August, the community held an owners' assembly to vote on 11 proposals totaling approximately RMB 1.631 million in expenditures, with multiple projects slated to be funded from the community's public revenue. Residents suspect that several of these projects fall within the routine maintenance scope already covered by the property management contract, potentially disguising normal operating costs as special projects.
Out of the 11 spending proposals, 9 have sparked controversy among the roughly 900 households in the community, which is divided into southern and northern sections at 3566 and 3588 Dushi Road. Starting in July, the owners' committee gradually published details of each proposal, including budgets and funding sources. The proposals cover wall repairs, termite control, fire lane widening, and tree pruning, with a combined budget exceeding RMB 1.631 million.
Residents highlighted specific items they believe are problematic, including RMB 280,000 for termite prevention, RMB 108,000 for tree crown pruning, RMB 8,000 for removing dead trees, and RMB 120,000 for landscape repairs. "At least nine of the 11 proposals appear to shift routine property maintenance costs onto public funds, which is unreasonable," one resident stated.
The community is currently serviced by Shanghai Yongsheng Property Management Co., with a contract starting in October 2025 for a three-year term. The existing service contract explicitly includes obligations for green space maintenance, including semi-annual lawn mowing, annual tree and shrub pruning, and pest control with defined quality standards. A supplementary agreement adds performance evaluation metrics for tree pruning plans and pest management, complete with scoring systems.
Despite these clear contractual obligations, the 11 proposals include similar items at significant costs. The tree pruning proposal cites safety concerns related to overgrown trees interfering with electronic fencing systems, allocating RMB 108,000 from public funds to trim 385 trees. The termite control proposal, budgeted at RMB 280,000, addresses severe termite infestations damaging tree roots. An additional RMB 8,000 is requested for removing 50 dead trees, including camphor, metasequoia, and plane trees, citing storm-related safety risks.
The owners' committee director, Mr. Huang, defended the proposals, stating they address actual community conditions, resident concerns, and safety hazards identified by property inspections. He confirmed the committee reported to local housing authorities and neighborhood committees, maintaining compliance with procedural requirements. The final vote results rejected 4 of the 11 proposals, including termite control and tree crown pruning.
Property management legal expert Huang Youjian provided clarification on the division of responsibilities. According to Shanghai's residential greening adjustment regulations, property management companies must handle routine green maintenance, including regular pruning, dead branch removal, and fertilization, funded from the property fee greening budget. However, major tree crown reduction work, due to its technical complexity and higher costs, can legitimately draw from public funds, with additional funding requiring owners' approval or maintenance fund use if insufficient.
For termite control, Huang explained that routine pest management under property services covers only standard pests and treatments. Termite control requires specialized expertise beyond typical property management capabilities. For shared green areas in residential communities, property companies can arrange professional termite control services, with costs borne by relevant owners. For common areas such as lobbies and elevators in commercial or former public housing, professional extermination costs likewise fall to the affected owners.
The Haoshi Yingyuan dispute reflects a broader pattern of conflicts over public fund usage in Shanghai communities. The core issues involve the blurry boundary between "routine maintenance" and "special projects," combined with insufficient transparency and standardization. Resident recommendations include requiring owners' committees to thoroughly review each proposal's nature before public disclosure, mandating that contractual maintenance items be funded from property fees, ensuring proposals include corresponding contract clauses, necessity justifications, and price comparisons, strengthening oversight by street housing departments, and establishing a negative list for public fund usage to prevent routine maintenance cost shifting.
Public revenue represents every owner's collective assets, and ensuring each expenditure withstands scrutiny has become a critical governance challenge. The situation continues to develop as stakeholders seek clearer accountability and more robust oversight mechanisms.