Payment of Service/Conservancy Charges by New BTO Flat Owners

Mr Patrick Tay Teck Guan asked the Minister for National Development (a) when do new BTO flat owners have to begin paying the service/conservancy charges; (b) what is the rationale for the time of commencement of this payment; and (c) whether there can be a waiver or reduction of the service/conservancy charges during the interim period when the flat is unoccupied.

Mr Khaw Boon Wan: Owners of new Build-to-Order (BTO) flats will begin paying the service & conservancy charges (S&CC) to their Town Councils from the day they complete their flat purchase and collect the keys to their new flat. This is because this is the date that they assume complete ownership of the flat. Prior to key collection, HDB pays for the S&CC for the vacant completed units.

Under the Town Councils Act, Town Councils are empowered to vary the S&CC from time to time, or remit or refund the charges in whole or in part. Town Councils can decide if the S&CC can be waived or reduced during the period when the flat remains unoccupied. However, if the Town Council does so, residents of occupied flats would effectively be subsidising the unoccupied flats.