HUDC PHASE 3 FLATS (Lifting of income ceiling)

The following Question stood in the name of Dr Koh Lam Son -

Dr Koh Lam Son: To ask the Minister for National Development whether the Housing and Development Board will consider lifting the income ceiling and other qualifications for the purchase of HUDC phase 3 flats in view of the recent no-buy-back decision.

Mr Leong Horn Kee (Thomson): Question No. 2, Sir.

Mr Chiam See Tong: Sir, I think this is important. May I ask a supplementary question?

Mr Speaker: You can raise that after the question has been answered. Mr Teh.

Mr Teh Cheang Wan: Mr Speaker, Sir, the present income ceiling for HUDC applicants of $6,000/- a month is based on the survey of household incomes in Singapore. 95% of families in Singapore qualify to purchase HUDC flats under the present income ceiling. As practically all families in Singapore qualify under the present income ceiling, there is no necessity to review the income ceiling condition for HUDC flat applicants.

As HUDC housing provides long-term accommodation for middle-income families unable to afford private properties, it is necessary to impose other eligibility conditions such as requirements for citizenship, family nucleus and non-ownership of private residential property. These additional conditions preclude families who can afford private residential accommodation from enjoying the privilege of HUDC housing and ensure proper utilization of the HUDC flats.

The HDB has, therefore, no intention of lifting the income ceiling or the other eligibility conditions for the purchase of HUDC flats. This is also in line with the Government's policy not to compete with the private sector in the property market.

Mr Chiam See Tong: Sir, a supplementary question as regards the previous Question which you have allowed me to ask.

Mr Speaker: I am saying your supplementary question for the second Question.

Mr Chiam See Tong: But we have not completed it.

Mr Speaker: I am sorry to say it is completed. If you ask a supplementary question on the second Question, I will allow you. Do that please.

Mr Chiam See Tong: I will ask a supplementary question. The Minister has conceded that HUDC policy is under the HDB rules. Is it not HDB's rule that the HDB purchases flats back from HDB house owners within five years? Is that not a rule?

Mr Teh Cheang Wan: Mr Speaker, Sir, as I have explained very clearly and repeatedly just now, a lot of HDB and HUDC rules are similar but they are not identical.

Mr Chiam See Tong: Sir, can the Minister please tell the House that the rule governing HUDC policy is, in fact, not completely governed by HDB rule. Is that what he is saying now? You are making so many exceptions.

Mr Teh Cheang Wan: Mr Speaker, Sir, I think the Member for Potong Pasir is confused. Both the HUDC flat and HDB flat are governed by HDB rules.

Mr Chiam See Tong: Correct.

Mr Teh Cheang Wan: It is correct. But HDB has made various rules governing, for example, the 1-room flat which has separate rules.

Mr Chiam See Tong: We are talking about the purchasing of flats back now.

Mr Speaker: The Minister is answering the question.

Mr Teh Cheang Wan: I am answering the question. I am just explaining that in all Housing Board flats, each flat type has its own rules. For example, the 1-room flat rules are different from the 2-room flat rules; the 2-room flat rules are different from other types of flats. Let me just quote an example.

Mr Chiam See Tong: Answer the question.

Mr Teh Cheang Wan: HDB flats, the 1-room, 2-room and 3-room flats, are offered for sale and they are also offered for rental. For the rental flats, the rules are different from the rules for sale of the flats, and I just ---

Mr Chiam See Tong: Mr Speaker, Sir, this is wasting the House time. Please answer whether you have a rule to purchase back within five years.

Mr Speaker: Mr Chiam, will you please sit down!

Mr Teh Cheang Wan: Sir, there is no such rule to purchase HUDC flats back in five years.

Mr Chiam See Tong: HDB.

Mr Teh Cheang Wan: Yes, HDB. I have explained.

Mr Chiam See Tong: All right. Now he concedes that there is an HDB rule which the HDB purchases HDB flats back in five years. Now we go back to your previous policy.

Mr Speaker: Let us have your supplementary question, Mr Chiam.

Mr Chiam See Tong: Is there not a clause in your lease, which you so much would like to refer to, the legality of it? Is there not a clause in your lease which says that if there is a requirement for the house owner, the HUDC owner, to resell it back, they have to resell it back only to the HDB? Is that not so?

Mr Teh Cheang Wan: Mr Speaker, Sir, I think this has already been answered and I do not wish to repeat.

Mr Chiam See Tong: Therefore, if the HDB has got this ruling, that ruling should cover HUDC flats. We are talking of legality now. Why is the HDB not ---

Mr Speaker: Are you asking a supplementary question or not?

Mr Chiam See Tong: Yes, all right. Why is the HDB not buying back HUDC flats within five years under your rules and under the agreement of lease? Clause 12 for your information.

Mr Teh Cheang Wan: There is no such agreement in the HUDC clause that says HDB has to buy back HUDC flats.

Mr Speaker: Let us call this End of Question Time since the Member for Potong Pasir seems to be a bit confused.