HDB RENTAL FLATS

HDB RENTAL FLATS

**

(Household income ceiling and eviction): **

32.

Mr Lim Biow Chuan:

Mr Lim Biow Chuan asked the Minister for National Development (a) how many HDB tenants have been evicted from HDB rental flats for the past 12 months due to illegal subletting or inability to pay rental; and (b) what are HDB's plans to provide alternative housing for such evicted tenants if they are unable to find alternative accommodation.

**

**

Mr Lim Biow Chuan asked the Minister for National Development whether his Ministry will review the household income ceiling for rental flats to take into account inflation and the increased cost of living, before pegging rental rates at 30% or 50% of the market rate.

Mr Mah Bow Tan: In the past 12 months, HDB has terminated the tenancies of 185 tenants who illegally sublet their rental flat. They were living elsewhere and had sublet their rental flats illegally. They have abused Government subsidy and deprived the truly needy of a rental flat. We need to send a clear signal that such behaviour is not acceptable.

Rental flats are already heavily subsidised. There is no need to revise the rent structure as the rates are low and are affordable to even the very low income. Households with less than $800 in monthly income pay only $30 per month for a 1-room flat. Those earning between $800 and $1,500 per month pay 30% of market rate. Their rents have been frozen at $110 per month for a 1-room flat since 2005. This is a very significant subsidy. Some of those caught for illegal subletting rented out their 1-room flat for as high as $1,000 per month.

For rental households in severe financial difficulty, HDB will extend more help, as appropriate. For example, an instalment plan can be worked out to help those in rental arrears. For those earning more than $800 per month but are in hardship due to large family size or medical bills, HDB will not impose the higher-tier rents on them. HDB will also refer needy cases to Community Development Councils (CDCs) or Family Service Centres for help. For example, CDCs offer Public Assistance to severe hardship cases that need long term assistance. Public Assistance covers basic living expenses such as rent.