HDB RENTAL FLATS

HDB RENTAL FLATS:

(Waiting period and criteria): 10.

Mr Hri Kumar Nair asked the Minister for National Development (a) what is the current average waiting period for the allocation of rental flats; (b) how does the Ministry prioritise applications; and (c) whether there is any requirement for occupiers of rental flats to take active steps to improve their financial position.

The Parliamentary Secretary to the Minister for National Development (Dr Mohamad Maliki Bin Osman) (for the Minister for National Development): Mr Speaker, Sir, about a year ago, the average waiting period for a rental flat was 21 months. I am pleased to inform the Member that the average waiting period currently has dropped to about 13 months. The reduced waiting time is the result of HDB’s multi-pronged approach to manage the rental flat supply and demand.

On the supply side, HDB resumed building rental flats in 2007. Since then, 1,400 flats have been added to the rental stock. By 2012, 8,000 new rental units will be added to the current rental stock of 42,000. On the demand side, in February this year, Members will recall that HDB introduced a set of revised rental eligibility criteria. For those who have enjoyed one housing subsidy, HDB will take into account their assets, including proceeds from the last flat sale. Those who previously owned private property will not qualify for a rental flat. In addition, if the applicant has children who own private property or HDB flat with room(s) that may accommodate him, he would not qualify. Approved applicants are added to the queue according to their date of applications. For those already in the rental queue before February this year when the revised eligibility criteria took effect, they will retain their queue

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positions if they satisfy the revised criteria.

Rental tenants, especially younger households, are encouraged to work towards home ownership. Where appropriate, HDB will refer tenants to the Community Development Centres (CDCs) for employment assistance. Those who have not previously bought a subsidised flat may qualify for the Additional Housing Grant to purchase their first flat. Through these various efforts, some rental tenants will be able to move to home ownership by improving their income over time. HDB also reviews the rental tenancies every two years to ensure that rental flats, which are heavily subsidised, cater to the truly needy.

Mr Hri Kumar Nair: Sir, I would like to thank the Parliamentary Secretary for his response. The rental flats are scarce commodity and generally families or individuals that enjoy them are in difficult circumstances. May I ask, does MND work or share information with CDC and other organisations to bring help to families and individuals staying in rental flats, so that they can help improve their situation in going forward?

Dr Mohamad Maliki Bin Osman: Sir, indeed that is the plan. We recognise that whilst they stay in rental flats, they should not be entrenched in rental flats, especially for work-able individuals or households with work-able individuals. And that is why I said in my response earlier, especially for the younger households, we work with the CDCs. In fact, we also work with the Family Service Centres to refer these cases, who have potential to actually gain better income, to upgrade themselves, so that home ownership becomes the end point for them. And that is why we also put in place the two-year term tenancies, so that every two years, we review the cases to ensure that they continue to work towards upgrading themselves, to ensure that home ownership becomes a

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possibility for most of them. Even for those who have downgraded, meaning that they have sold their flats and they really need rental flats, we do not see rental flats as the end point for them, but it is transitional. Hopefully, they can continue to improve their circumstances and, therefore, move up and go for another home ownership flat.

Ms Denise Phua Lay Peng (Jalan Besar): Can the Ministry consider stepping up some publicity to build awareness for the new tightened criteria for rental flat applications? I am sure many of us have come across applicants who merely want some privacy for themselves or who do not want to impose on their children or who already have children who could take them in but decided not to. So if HDB or MND could consider stepping up some of these new tightened criteria, it will really help manage the expectations of the applicants.

Dr Mohamad Maliki Bin Osman: I thank the Member for the suggestion. We will certainly do more to especially educate rental flat applicants or even current lessees who are thinking of selling their flats because the eligibility criteria have changed quite significantly since February. We will improve on efforts in reaching out to these households and informing them of the new criteria.

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