ADMINISTRATIVE FEES FOR APPLICATIONS OF NEW HDB FLATS

ADMINISTRATIVE FEES FOR APPLICATIONS OF NEW HDB FLATS: The following question stood in the name of Mdm Ho Geok Choo –

10. To ask the Minister for National Development (a) what is the total amount of administrative fees collected from applicants of new HDB flats for each year from 2008 to 2010; and (b) whether the Ministry will consider refunding the administration fee to unsuccessful applicants and, if not, whether the Ministry will consider carrying forward the administrative fees to the next and subsequent rounds until the applicant succeeds in selecting a flat.

Mr Arthur Fong: Question No. 10, Sir.

The Senior Minister of State for National Development (Ms Grace Fu Hai Yien) (for the Minister for National Development): Mr Speaker, Sir, HDB collects an administrative fee of $10 for each flat application. From 2008 to 2010, the administrative fees averaged $790,000 per year.

The purpose of the administrative fee is to defray the costs of conducting the sale exercises. These costs are incurred regardless of whether the applicants are eventually successful in their flat application. For example, for each application, HDB will need to verify the eligibility of every person listed in the flat application for subsidised housing. Based on the information gathered, HDB will then need to decide the priority scheme that the applicants are eligible for and assign them their due number of "chances" in the computer ballot. After the ballot to determine the queue order for flat selection, HDB will have to notify all the applicants of their ballot results.

A recent survey by HDB shows that the administrative fee at $10 per

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application is insufficient to cover HDB’s costs incurred in conducting flat sale exercises. Hence, HDB is unable to refund the fees for unsuccessful applicants.