Transition Period for HDB Dwellers on Welfare Assistance to Adjust to Higher Rent from Salary Increase

Ms Joan Pereira asked the Minister for National Development for HDB dwellers who are under welfare assistance and who may have received some salary increase from their employment, whether a transition period can be given to them to help them make adjustments before they are asked to pay a higher rent based on their new salary.

Mr Lawrence Wong: HDB already provides a rent transition period to public rental tenants when their income increases. Households with monthly income below $800 pay the lowest rent tier which starts at $26 for a 1-room flat, or $44 for a 2-room flat. At tenancy renewal, HDB waives the rent increase for one tenancy term 1 if the household’s income crosses the $800 threshold but remains within the income ceiling of $1,500. At the subsequent tenancy renewal, even if the household’s income increases further, HDB will waive the rent increase for another tenancy term if the increase in income is low relative to the rent increase and the household remains within the income ceiling.

HDB works closely with Social Service Offices to support families placed on ComCare schemes under the Ministry of Social and Family Development (MSF). For households receiving Short-to-Medium Term Assistance (SMTA), HDB will determine the rent payable based on an individual assessment of their financial situation. Those receiving ComCare Long Term Assistance will automatically qualify for the lowest rent tier.

Note(s) to Question No(s) :

1 Tenancy terms are 2 years long, other than for elderly households where all members are above age 60, for whom tenancy terms are 3 years long.