HDB RENTAL FLATS

HDB RENTAL FLATS: **

(Arrears): **

32.

Mr Lim Biow Chuan asked the Minister for National Development whether the Ministry will consider (a) allowing tenants of HDB rental flats more time to pay their rental when they fall into arrears due to economic hardship; (b) allowing existing tenants to retain their rental flats when one of the co-tenants or occupiers has passed away; and (c) the number of dependants of the tenant of a HDB rental flat before adjusting the rental for tenants whose income has exceeded $800.

Mr Mah Bow Tan: HDB’s public rental flats are highly subsidised. Eighty-three percent of rental households pay $30 per month for a 1-room flat, and $60 for a 2-room flat. These rents have remained unchanged since 1979.

Despite the very low rents, some households in severe financial difficulty fall into rent arrears. HDB will exercise patience and give them more time. If necessary, HDB will also refer them to the Community Development Councils for help under the ComCare schemes. Households with family or other social issues may also be referred to Family Service Centres and other welfare organisations for help.

The rental rates are calibrated to provide subsidy where it is most needed. Rental households earning below $800 per month pay $30 per month for a 1-room flat. Those with monthly income between $800 and $1,500 pay 30% of market rent or $110 per month for a 1-room flat. Tenants with monthly incomes exceeding $1,500 pay 50% of market rent or $180 per month for a 1-room flat*. They are strongly encouraged to consider home ownership.

Nonetheless, we recognise that some rental households earning more than $800 per month cannot afford the higher rents. They may have a large household size, or they have family members suffering from chronic illnesses. HDB will take into account the circumstances of such cases and be flexible in considering such cases. If they have genuine financial difficulty, HDB will not impose higher rents on them.

When a tenant or occupier of a rental flat passes away, the remaining family member is allowed to stay on. However, flats let out under the Joint Singles Scheme (JSS) are meant for two single persons to flat share. Hence, HDB would require the remaining tenant to include another eligible occupier. This is to ensure that our limited supply of rental flats is optimised to help the truly needy.

*The corresponding rates for 2R flat are: $150 (30% MR) and $240 (50% MR).

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