HOUSING AND DEVELOPMENT ACT (Review of Section 48A (1) (b))

Mr P. Selvadurai asked the Minister for National Development if he will review the workings of section 48A (1) (b) of the Housing and Development Act (Chapter 271) with the view to exempting from the provisions of the said section - (a) an owner of a Housing and Development Board flat, his spouse or any authorised occupier who acquired, whether by operation of law or otherwise, a minor share in other living accommodation insufficient to entitle such owner, spouse or authorised occupier to live in such living accommodation; and (b) an owner, his spouse or any authorised occupier who has purchased or acquired any commercial property which is used or intended to be used for business purposes only.

Mr Teh Cheang Wan: Section 48A (1) (b) of the Housing and Development Act empowers the HDB to compulsorily acquire a flat if the owner, his spouse or any authorised occupier has acquired any other property. This section is necessary because public housing is subsidised and in high demand. It is therefore logical to restrict applicants to only those in genuine need of public housing and who cannot afford private housing.

However, the HDB has been flexible and reasonable in the application of section 48A(1) (b). Three categories of property-owners have been exempted from the provisions of the section, ie -

(i) A person who owns a rent-controlled property and is unable to recover possession for his own use, provided the value of his interest does not exceed $100,000. He is required to divest himself of his interest in that private property upon exemption being granted.

(ii) A person who owns an interest in a residential property provided his share does not exceed 50% and he is unable to recover possession of the property for his own use, subject to the value of his interest in the property not exceeding $100,000. He is also required to dispose of his interest upon exemption being granted.

(iii) A person who purchases a commercial property with prior written consent of the HDB provided the value of his interest in the commercial property does not exceed $250,000 and the commercial property required is intended for his own business purpose.