RENTING OUT OF HDB FLATS BY OWNERS

RENTING OUT OF HDB FLATS BY OWNERS: 11.

Mdm Halimah Yacob asked the Minister for National Development (a) between 2008 and 2010 (i) how many HDB flat owners had rented out their entire flats; and (ii) what is the average duration of the rental; (b) what measures are in place to ensure that owners do not operate their flats as dormitories for foreign workers; and (c) whether the Ministry has received complaints of such activities from other flat dwellers.

Dr Mohamad Maliki Bin Osman (for the Minister for National Development): Mr Speaker, Sir, HDB flats are primarily meant for owner occupation. Flat owners who wish to sublet their flats must meet the Minimum Occupation Period (MOP)

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and obtain HDB's approval before they can do so or sublet their flats. They must also comply with HDB's terms and conditions for subletting, for example, ensuring that the sub-tenants do not create disturbances to the neighbours, and that the number of sub-tenants do not exceed the maximum number allowable for the different flat types. About 34,800 flats or 5% of the total HDB flats eligible for subletting are being sublet today. The average subletting period is about 20 months. HDB receives a small number of complaints from residents on subletting of flats. The complaints usually concern the disamenities caused by sub-tenants such as noise nuisance. Lessees of these flats were warned by HDB to ensure that their sub-tenants stop the nuisance. HDB takes a very serious view of unauthorised use of HDB flats, including overcrowding.

It conducts regular inspections and spot checks to ensure that flat owners do not infringe the subletting rules. Members of the public are also encouraged to call HDB's dedicated hotline to report suspected cases of unauthorised subletting or overcrowding. In 2010, 6,700 flats inspections were conducted. HDB has taken action against 98 flat owners for unauthorised subletting and seven flat owners for overcrowding. They include warnings, imposition of financial penalties and even compulsory acquisition of the flats.

Mdm Halimah Yacob: I would like to ask the Senior Parliamentary Secretary one follow-up question. Other than just waiting for residents to make complaints, what other measures or processes are put in place to ensure that flats are not converted into foreign worker dormitories? Because the number of complaints seems to have increased whereas the figures cited by the Senior Parliamentary Secretary seem to be rather low – only

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seven have been warned for overcrowding. So, I would like to hear the Senior Parliamentary Secretary's response, please.

Dr Mohamad Maliki Bin Osman: Sir, there are several measures that HDB has put in place to ensure that disamenities arising from subletting of flats are reduced. First, HDB requires owners to seek HDB's approval prior to subletting and there are certain conditions for approval and there are certain groups of people or sub-tenants who are allowed to sublet the flats. Secondly, the approval to sublet is given for a maximum of three years, subject to subsequent extension and renewal. Therefore, HDB will continue to monitor those cases that had been approved. Thirdly, there are half-yearly inspections conducted by HDB and HDB continues to conduct these inspections, over and above the feedback given by the residents. What is important really is a combination of both HDB's ongoing inspections on the approved cases as well as the feedback that are given by the members of the public. We encourage the members of the public and the grassroots organisations to continue to work with the branch offices, and the branch offices will certainly inspect every feedback that is given by the members of the public to ensure that the lessees do not violate any of the sub tenancy rules.