HDB SUBSIDISED RENTAL SCHEME

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HDB SUBSIDISED RENTAL SCHEME

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(Penalties for abuse): **

46.

Dr Ahmad Mohd Magad asked the Minister for National Development whether he will consider (i) increasing the penalties for people who abuse the HDB subsidised rental scheme and sublet these rental flats to their own tenants; and (ii) jail terms for offenders who have been making profits from subletting their rental flats for long periods of time.

Mr Mah Bow Tan: HDB rental flats are heavily subsidised and meant as a last resort for needy families without other housing option. Illegal subletting of HDB rental flats is an abuse of housing subsidies meant for the poor. One rental flat that is illegally sublet means one less unit to house a needy family.

My Ministry takes a serious view on illegal subletting. HDB has stepped up its enforcement since 2007. Where there is evidence of abuse, it will not hesitate to recover the rental flat and re-allocate the unit to a family in need. Tenants who illegally sublet will be barred from buying or renting another flat from HDB for five years. The tenant’s spouse will also be debarred for five years, while all other authorised occupiers will be debarred for 2.5 years.

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HDB will monitor the situation closely. If need be, we will impose stricter penalties to further clamp down on illegal subletting.