HOUSING AND DEVELOPMENT BOARD FLATS (Review of subletting policy)

Mr S. Vasoo asked the Minister for National Development whether his Ministry will review the subletting policy for Housing and Development Board flats.

The Minister of State for National Development (Mr Lim Hng Kiang) (for the Minister for National Development): Mr Speaker, Sir, HDB flat owners can sublet rooms in their HDB flats. However, they need to seek prior approval from HDB if they wish to sublet their entire flat. HDB allows subletting of the entire flat only under special circumstances, such as when flat owners have to study or work overseas for extended periods, or when they reside in quarters provided by their employers. HDB's restrictions on the subletting of HDB flats are necessary to ensure that subsidised public housing is used for owner-occupation, and not as an investment for rental income.

My Ministry reviews the subletting policy from time to time. Where justifiable, and without compromising the owner-occupation policy, subletting rules have been relaxed. I am pleased to inform the House that HDB will be relaxing its rules to allow three new categories to sublet their flats. First, HDB will allow flat lessees who are owners or tenants of HDB sold shops with dwellings to sublet their whole flats, as long as they stay in their shops to look after their business. This relaxation will bring our policy for such lessees in line with that for tenants of HDB rented shops, who are currently allowed to sublet their whole flats.

HDB will extend this relaxation to lessees of HDB flats who are also owners or tenants of private commercial properties with dwellings, and have to stay in their shops to look after their business.

Second, HDB will allow the subletting of the whole flat if a lessee has to go overseas for work or study, leaving behind household members, like children or aged parents, who cannot take care of themselves. Currently, the whole household has to be overseas to be eligible for subletting the whole flat.

Third, HDB will allow sick or physically unfit single lessees to sublet their entire flat, if they move in with their children or relatives.

Lessees of HDB flats who wish to sublet their entire flats are still required to seek approval from HDB, giving grounds for the application.