Dear Shanghai Municipal Party Committee, Municipal People’s Government, and all relevant units:
We are Tahoe Dacheng Courtyard (hereinafter referred to as "Changxing Island Dacheng Courtyard") in Changxing Town, Chongming District (Lane 1088 and 888, Phoenix Highway) with more than 2,000 households and over 10,000 owners. Most of our families settled in Shanghai through the introduction of talents. Currently, the developers of the property - Shanghai Hezhen Real Estate Development Co., Ltd. and Shanghai Xinghong Real Estate Development Co., Ltd., the holding subsidiaries of Tahoe Group, have been suspended for nearly a year due to a break in the capital chain, and Tahoe Group itself has serious debt problems.Due to the lack of early fund supervision and the misappropriation of construction funds, there is a huge risk of unfinished business in Dacheng Yard in Changxing Island. There is no hope of house delivery. The interests of citizen owners are being infringed. Panic has spread to all citizen owners, seriously affecting normal work and life order.Recently, we have repeatedly reported the situation to Changxing Town and Chongming District and expressed our basic demands. Although relevant local departments are also involved in coordination,But so far we have not seen any effective measures to provide us with clear, credible solutions and satisfactory answers.The construction of houses in small courtyards in Dacheng is still at a standstill. There has been no positive progress on the issues that all owners are concerned about. The helplessness of the group continues to intensify. In view of the foreseeable crisis conditions that currently exist,We sincerely request the Municipal Party Committee and Municipal Government to consider the reasonable demands of citizens and property owners and set up a special working group to thoroughly investigate the problems of developers and local regulatory authorities.The real estate risk incident in Dacheng Xiaoyuan on Changxing Island should be resolved as soon as possible, and the legitimate rights and interests of more than 2,000 citizen owners should be protected to avoid unnecessary contradictions and conflicts, which would then affect social harmony and stability.
According to the commercial housing pre-sale contract signed between the developer and the owner, the developer should apply for a property certificate and settle all claims and debts related to the land and buildings before March 30, 2020, and release the mortgage on the land and some buildings. The first batch of houses should be delivered before July 30, 2020. However, as of today, the South District of Dacheng Xiaoyuan (Lane 888, Fenghuang Highway) has entered a state of suspension in September 2019 due to a break in the capital chain and other reasons. Although the North District (Lane 1888, Fenghuang Highway) has not completed the shutdown registration, the construction progress of the housing construction project has been slow and sluggish. From September 2019 to the present, there is almost no construction on site.
① Construction has been stalled for a long time, and the delivery of houses is far from expected.Recently, many owners have complained to relevant government departments many times and actively contacted the developers many times. However, the answers given by the developers have changed day by day and are inconsistent (the owners have kept the vouchers and reserved the right to explain). There is still no sign of full resumption of work, and there is no date when the houses will be delivered.
② The recent high-level turmoil within Tahoe Group has continued to intensify risks.The Xingdao Dacheng Courtyard project will inevitably be affected by this, leading to continued intensification of risks.
③ Developers are facing a serious credit crisis and have many problems with fund management.During the pre-sale process of houses in Dacheng Xiaoyuan on Changxing Island, there were acts of interception and misappropriation of pre-sale funds and illegal sales.
During the pre-sale commercial housing sales process, the developer did not comply with the requirements of the Ministry of Housing and Urban-Rural Development (Ministry of Housing and Urban-Rural Development) for pre-sale funds.Jianfang [2010] No. 53) Article 9 stipulates that all the property will enter the supervision account, but the huge amount of pre-sale funds will be intercepted and misappropriated through the following means: first, setting up a POS machine with a non-supervised account at the sales office, hiding the account account information, and requiring the home buyer to swipe his card at this POS machine to transfer money; second, at the beginning of the sale, During the period, the house purchasers were provided with the same account name as the supervised account but a deposit account number in a different bank, so that the purchase money was transferred to the non-supervised account without the buyer's knowledge; third, the personal mortgage bank was asked to modify the lending account to a non-supervised bank account without applying to the Housing Authority.Evidence of the above violations has been collected collectively.
The developer not only misappropriated pre-sale funds in violation of regulations, but its South District project company also charged large amounts of intention money for sales without obtaining a pre-sale certificate. Some single intention funds were as high as 5 million yuan. Some owners were unable to recover the intention money in the short term. There are no less than 100 similar owners, and the estimated amount may exceed 200 million, which is a huge amount, and the illegal sales behavior continues and has never stopped.
The developer of Changxing Island Dacheng Courtyard was introduced by the local government of Chongming District and received a land transfer fee of 4.64 billion, which accounted for more than 50% of the value of the entire community. The bank supervision account was originally established under the supervision of the government's financial department, but the money in the supervision account disappeared under the supervision in name only. During this period, the unreasonable behavior of changing creditors to supervise the bank occurred, allowing risks to occur until the funds were completely broken, which directly resulted in the purchase money of citizen owners not being effectively used for housing construction. The Chongming District and Changxing Town governments should bear unshirkable responsibility for the occurrence of this serious lack of supervision.
Establish a preliminary construction investigation team for the Dacheng courtyard project:
① Investigate Tahoe Group, Shanghai Hezhen Real Estate Development Co., Ltd., and Shanghai Xinghong Real Estate Development Co., Ltd. in accordance with the law to find out their illegal and illegal behavior of obtaining project construction funds.
② Investigate the relevant lending banks and early supervision banks in accordance with the law.
③ Recover the construction funds arbitraged in the early stage.
Establish a tripartite communication platform among representatives of the government, developers, and owners. Communicate project progress in a timely manner.
Before the project construction gets on track, the sales office will be sealed and illegal sales activities will be stopped.
In order to promote the above-mentioned reasonable demands and effectively ensure the effective resolution of the problem. Citizen owners suggested to the Shanghai Municipal Government to consider the feasibility of the following options:
① Completely liquidate the assets of Shanghai Hezhen Real Estate Development Co., Ltd. and Shanghai Xinghong Real Estate Development Co., Ltd.If necessary, consider implementing bankruptcy reorganization of two engineering companies, Shanghai Hezhen and Shanghai Xinghong, in accordance with the law. Strip away non-performing mortgages and loans to protect owners’ construction funds and land release funds.
② Improve the standards and requirements for developers to issue pre-sale certificates for subsequent unsold properties, and supervise their strict implementation of the improved approval standards, that is, no pre-sale certificates for unsold properties are currently issued.
③ Subsequent pre-sale funds will be given priority to repay special livelihood loans.
④ Protect the legitimate rights and interests of customers who have delivered the intention money.
⑤ Implement the comprehensive resumption of work in the North and South Districts as soon as possible.
The above suggestions come from the voices of the citizens, first of all, based on trust in the government, and secondly, because of the developer's continuous breach of trust for more than a year. Citizen owners have learned from multiple channels that Tahoe Group has become insolvent and that many real estate properties have been hit by thunderstorms. News has repeatedly spread that the remaining assets of Dacheng Courtyard on Changxing Island will be used to pay for other projects. This has made people extremely worried and angry. Citizen owners are extremely worried that the developer will again use the previous method to misappropriate the housing funds of Dacheng Courtyard on Changxing Island for other purposes. They are extremely worried that the developer will maliciously ignore the Shanghai citizen owners. However, the current communication with Chongming District and developers has not made positive progress. In the process of the formation of this serious risk, the competent authorities in Chongming did not regard "people's livelihood as the biggest political issue", lacked awareness of the overall situation, failed to implement local management responsibilities, neglected supervision, and even cooperated with developers and cooperated with each other to deceive citizen owners. It does not solve actual problems and does not effectively protect the legitimate interests of citizen owners from being harmed. It has seriously affected the good image and reputation of Chongming District in building a world-class ecological island and successfully hosting the 2021 China Flower Expo. It is also incompatible with the efforts of the Shanghai Import Expo and the municipal party committee and government to improve the international business environment.
We fully believe that the government is the government of the people and will definitely safeguard the legitimate interests of the people and jointly make their due contributions to the development of Chongming and Changxing Island. Ultimately, the most harmonious community on Changxing Island in Chongming District will be built. At that time, the people will be grateful to the government and, as masters, contribute to the vigorous development of Changxing Island in the future.
Owner of Tahoe Dacheng Courtyard, Changxing Island, Shanghai
May 14, 2020
Dear owner friends, if you have not joined us yet and after reading this article, please take the initiative to join the organizational family. Let us safeguard our rights and interests together and handle the uncertain future together.
Machine-translated from the Chinese original 上海长兴岛泰禾大城小院购房者写给上海市委、市政府的信 (published 2020-05-17). WeChat original ↗