The story of how a residential community in Shandong province turned its financial situation around, moving from a significant deficit to distributing substantial dividends to its residents, is a compelling case study in local governance and financial transparency.
In early July 2026, the public notice board at the Huaihai Dongcheng Yujing (South District) community in Jinan displayed the second-quarter financial statement for public revenue: income exceeding 89,000 yuan, expenses around 31,900 yuan, and a surplus of over 170,000 yuan. Every transaction, from large parking lot rental fees to small office supply purchases, was recorded in clear detail. Not far away, homeowners in the Shangpin Yanyuan community also review their public revenue status every six months. In a few months, they will receive another dividend payment. However, this was not always the case. "Where did the money go?" was a question homeowners in Jinan's Shangpin Yanyuan community persistently asked for seven years.
Turning Financial Losses into Surplus
The first dividend distribution for Shangpin Yanyuan homeowners occurred on September 24, 2023. "I was quite surprised when notified by the homeowners' committee about receiving money, as I had never received any before," said a homeowner surnamed Jin, who received over 300 yuan for her two properties based on a distribution rate of approximately 1 yuan per square meter. "I voted for the committee's establishment back then, and it was the right choice." The community's west section was delivered in late 2014, and the east section in June 2015, comprising 2,047 households. Over seven years, elevator advertisements changed frequently, several parcel lockers were installed, and public parking spaces were almost always occupied, yet the public revenue statement presented by the property management showed a deficit exceeding 500,000 yuan.
"How could public revenue be negative?" Wang Lei, deputy director of the Shangpin Yanyuan homeowners' committee, shook his head while recounting this. Homeowners questioned where the money had gone, but no clear answers were provided. "The former property management only gave us a slip of paper stating a deficit of over 500,000 yuan, with no detailed breakdown or supporting evidence," Wang added. During those years, conflicts between homeowners and the property management escalated—frequent elevator breakdowns, faulty unit doors, unrepaired lobby lights—with the property management consistently citing a lack of funds.
A turning point came in 2022 with the establishment of a homeowners' committee. Its first major action was to replace the property management company and take over the management of public revenue. The committee negotiated with potential new property managers, stipulating in the new contract that public revenue belonged to the homeowners and requiring the new company to bring capital. Subsequently, the committee thoroughly reviewed the community's assets—collecting rents from commercial spaces, elevator advertisement fees, and site fees for milk and water stations. The committee committed to publishing financial statements every six months. Within over a year, the community's public revenue turned from deficit to a surplus of over 300,000 yuan.
"After discussion, the committee decided to benefit all homeowners with the public revenue by distributing red envelopes," Wang Lei explained. Since 2023, the community has distributed dividends annually: 147,000 yuan in 2023, approximately 160,000 yuan in 2024, and 220,000 yuan in 2025, totaling over 500,000 yuan in three years. "The committee not only distributes dividends but also allocates funds for maintaining public facilities and upgrading hardware. Our account book is growing thicker, and homeowner satisfaction is increasing," Wang said. "From 2023 to now, I receive 120 yuan every year. Regardless of the amount, it feels good knowing the public revenue is genuinely reaching homeowners," said homeowner Mr. Zhao, who only realized the community had such a significant fund when he first received his share.
Meticulous Financial Management
Compared to Shangpin Yanyuan, the financial records of the Huaihai Dongcheng Yujing (South District) homeowners' committee are even more detailed. "Our community's public revenue mainly comes from rooftop base station site fees, peripheral parking fees, elevator advertisements, and milk locker site fees, with annual income ranging from 150,000 to 200,000 yuan. Income and expenditure details are published quarterly," said Li Shen, the committee director. "Look, the account book records major income items like over 30,000 yuan, while expenses as small as 50 yuan for computer repairs are also meticulously recorded."
When the committee was established in 2024, it published the previous public revenue statement, showing a deficit of around 500,000 yuan. The committee then identified all potential revenue sources within the community. Public revenue is managed separately by the committee. "Our community is small, with only over 700 households, so the surplus is limited. But what belongs to the homeowners should go to them," Li Shen stated. Around the Mid-Autumn Festival in 2024, the community distributed 50 yuan per household for the first time, followed by another 50 yuan at year-end. In early 2025, the distribution increased to 100 yuan per household, repeated in early 2026. Over three years, four distributions totaled over 200,000 yuan.
Besides cash distributions, the committee used public revenue to improve community facilities: installing an anti-tailgating pedestrian gate at the west entrance, adding facial recognition systems at unit entrances, and setting up a large slide for children. "My son recently wrote an essay titled 'The Community Environment Is Getting Better and Better,' based on his own observations," said homeowner Ms. Du, noting that public revenue here truly follows the principle of "from the community, for the community."
Ownership and Legal Framework
Jinan's cases are not isolated. According to reports, communities in cities like Changsha, Leshan, and Guangzhou have also started returning public revenue to homeowners through cash distributions or property fee deductions, with total amounts ranging from over 100,000 yuan to millions. These communities vary in size but share a common goal: allowing homeowners to reclaim what rightfully belongs to them.
Public revenue essentially refers to income generated from using communal areas for business activities, including public parking fees, advertisement fees for corridors, elevators, exterior walls, and barriers, fees for stalls and parcel lockers, communication base station site fees, and rents from property management and commercial spaces. These scattered "fragments" collectively form a significant sum. Article 282 of China's Civil Code stipulates that income generated by developers, property service enterprises, or other managers from using owners' common areas, after deducting reasonable costs, belongs to the owners collectively.
Yang Dengji, a partner at Guangdong Hebang Law Firm, explained that the home purchase price already includes the cost of common areas like elevators, parking spaces, and corridors. Public revenue is essentially income generated from homeowners' own assets—"not a handout from property management or the committee, but a statutory property right of the homeowners." In 2025, provinces like Fujian, Hubei, and Henan introduced management measures for residential property public revenue, clarifying its ownership by all homeowners. Cities like Hangzhou and Zhengzhou also issued specific guidelines and trial measures, emphasizing standardized, transparent management. However, for most communities, this remains a "paper right," and for most homeowners, public revenue dividends are merely "something that happens to others."
Challenges in Implementation
The path to distributing dividends faces several hurdles. The first is lack of homeowner awareness. "We see elevator ads every day and use parcel lockers frequently, but how much money could that generate?" said Ms. Zhang, a homeowner in a Zhengzhou community, who had never heard of public revenue or seen any disclosures from property management. Ms. Liu from a community in Hanzhong, Shaanxi, similarly stated, "We never know how much public revenue the community has or where it's used." In reality, most homeowners are unaware of public revenue, let alone actively asserting their rights. According to a China Consumers Association report from July 14, over 70% of surveyed communities did not disclose property fee income/expenditure or public revenue information, and nearly 60% of residents were unaware of how public maintenance funds were used.
"Property service providers should regularly disclose maintenance fund usage and income from common areas to homeowners and report to homeowner assemblies and committees. Concealing income or refusing disclosure constitutes a violation," Yang Dengji analyzed. The misappropriation of public revenue stems not from unclear legal ownership but from weak homeowner self-governance awareness and rare assertions of the right to know.
The second hurdle is the absence of effective homeowners' committees. Data shows that in Guangzhou, only about 20% of communities have established functioning committees. In Nanjing, among approximately 6,000 residential communities, only over 900 have committees. Industry insiders note that nationwide committee coverage is low, and homeowner self-governance capacity remains weak. Without a committee, homeowners lack a statutory organization to "settle accounts" with property management. Establishing a committee itself is a challenging battle. According to the Civil Code, decisions on common matters require participation by owners representing over two-thirds of both the proprietary area and total number. This "double two-thirds" threshold is nearly impossible in communities with low occupancy or high rental rates. Factors like cumbersome procedures, resistance from property companies, and low homeowner participation make committee establishment exceptionally difficult.
"Several previous attempts failed mainly because homeowner votes never met the required threshold," recalled Li Shen, director of the Huaihai Dongcheng Yujing committee. Operating a committee is equally fraught with difficulties. "It's been extremely tough; our experience could be made into a TV series," Wang Lei said frankly. Initially, the committee aimed to supervise the property management and coordinate community matters, but faced non-cooperation. "The former property management sent people to harass us at our workplaces and homes, even threatening children. We experienced blockades, tire punctures, and tailing. That's why we were determined to replace them," Wang added.
The third hurdle involves practical operational challenges. Even after overcoming the first two, issues persist in sustainably accumulating and allocating public revenue. First, not all communities have "gold mines" to tap. Communities with parking spaces, elevator ads, and public spaces naturally have income-generating potential. Older communities without these "innate conditions" can still create revenue by utilizing idle spaces and optimizing resources, but success depends heavily on the committee's diligence and homeowner consensus. Distribution methods also vary. "Each community's situation is different, requiring tailored approaches. In our community, parking fees and public space rentals constitute the largest revenue share. I know some communities with public revenue don't distribute cash but transfer it into maintenance funds, which homeowners accept," Wang Lei noted.
A more significant challenge lies in the legal term "reasonable costs." While public revenue belongs to all homeowners, its generation—from road parking and elevator ads to stall rentals—involves property management companies, incurring certain costs. The Civil Code states that income from using common areas, after deducting reasonable costs, belongs to all homeowners. "But what constitutes 'reasonable costs,' and who determines it? There's a lack of unified standards and supervision mechanisms. This is the root of the 'muddled accounts' in public revenue," Lawyer Yang Dengji pointed out.
Broader Implications and National Trends
Therefore, community dividend distribution is not merely about handing out red envelopes. Making financial records transparent is essentially a micro-experiment in grassroots governance, a significant matter concerning people's livelihood and the rule of law. In March 2025, China's Central Commission for Discipline Inspection included "rectifying issues like inadequate property service performance and encroachment on homeowners' public revenue" among 16 specific tasks to address public concerns through systematic governance. Local governments are also accelerating actions. Reports indicate that since 2025, Ningbo has promoted the establishment of dedicated accounts for all 2,531 residential communities with public revenue potential, achieving full coverage of public revenue management systems. Huaian completed audits for 110 communities by November 2025, depositing a surplus of 7 million yuan into dedicated accounts. Shanghai regulations effective April 1, 2026, require that public income from every elevator, parking space, and advertisement board be directly deposited into supervised accounts, managed separately with transparent accounting.
From "muddled accounts" to "clear accounts," from "others' affairs" to "our own affairs," this community-level transformation, starting with an account book, is redefining the fabric of urban life. When more people understand "where the money comes from" and "where it goes," the gears of grassroots governance truly begin to turn.
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