HDB Flat Owners Who Sell Their Flats to Pay off Mortgage Arrears

Mr Muhamad Faisal Bin Abdul Manap asked the Minister for National Development (a) what were the number of cases in 2010 and 2011 respectively where owners of HDB flats had to sell off their units to enable them to pay off their HDB mortgage arrears; and (b) whether HDB has any schemes or plans in place to facilitate such cases of displacement to acquire a shelter after the sale of their flat.

Mr Khaw Boon Wan: In 2010, about 7,400 households sold their flats to resolve their HDB mortgage arrears. In 2011, the number was 3,300 households. These households formed 1.8% and 0.9% of all outstanding HDB loan cases in 2010 and 2011 respectively.

For these households who can no longer afford to keep their flats, HDB will try to render practical help. For low-income households who have no family support or other housing options, HDB can help them with a public rental flat. If they want to buy a smaller flat, HDB can offer them another loan. In some cases, HDB has helped to directly allocate a flat to them at market rate. If necessary, there is also the Interim Rental Housing which offers them temporary rental accommodation, as they work out longer term options with the help of HDB and social agencies, such as the Community Development Councils and Family Service Centres.

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