TENANTS OF HDB SHOPS AND FLATS (Rental arrears)

Mr Peh Chin Hua asked the Minister for National Development how many tenants of Housing and Development Board shops and flats were unable to pay their rental arrears in 1987 and 1988; what course of action was taken by his Ministry; and how many of these tenants eventually returned their shops or flats to the HDB.

The Senior Minister of State for National Development (Dr Lee Boon Yang) (for the Minister for National Development): Mr Speaker, Sir, at the end of 1988, 11,467 HDB flat tenants and 4,715 shop tenants were owing rent arrears as compared to 15,218 and 3,826 respectively at the end of 1987.

When a tenant falls into arrears, HDB first checks whether the tenant, who is unable to pay rent or other charges, is a hardship case. Once identified as a hardship case, he will be referred to the Ministry of Community Development for assistance.

HDB commences legal action to recover a tenant's rent arrears in the tenant's second month of arrears. Reminders are sent to such tenants to ask them to settle arrears by instalments or a lump sum payment. As many as five reminders are sent before further action is taken. If there is no response to the reminders, HDB then files an application for a Writ of Possession to evict the tenant and recover possession of the flat or shop.

In FY 1987/88, 1,060 Writs of Possession were obtained from the Court. Of this number, only 73 were rental premises voluntarily surrendered by the tenants prior to execution of the Writs of Possession, or recovered by the court bailiff and returned to HDB. The remaining Writs of Possession were not executed because the tenants were able to put forward a credible instalment payment plan. For such cases, HDB withholds further legal actionto allow the tenants to repay their arrears in instalments.

Out of the 73 premises returned to HDB, 43 were families in rental flats while the remaining 30 were shop and industrial tenants.

Mr Chiam See Tong (Potong Pasir): Sir, may I just be allowed to make a comment?

Mr Speaker: No.

Mr Chiam See Tong: I asked a similar question --

Mr Speaker: Mr Chiam, are you making a comment or asking a question? If it is a comment, please sit down unless you are asking a question.

Mr Chiam See Tong: Sir, I was just going to comment --

Mr Speaker: This is Question time. If you have no questions, please resume your seat.

Mr Chiam See Tong: -- to praise the Minister for answering this question because once I asked a similar question the former Minister said it would cost $200,000 to answer this question.

Mr Speaker: We will move to the next Question. Dr Vasoo.