Written Answer by Ministry of National Development on former HDB homeowners on HDB Public Rental Scheme appealing for lower rentals

Jul 4, 2017

Mr Leon Perera: To ask the Minister for National Development in respect of residents on the HDB Public Rental Scheme who have sold a HDB flat before:

(a) for how long is the fact of this sale considered in deciding on appeals for lower rentals due to fluctuations in income and economic circumstances; and

(b) whether the share of sale proceeds which divorcees receive is taken into consideration in deciding such appeals.

Answer:

HDB’s public rental rates are highly subsidised.  To ensure that rental flats are provided to households who are most in need, one of the considerations that HDB takes into account in assessing applications for public rental flats is the sales proceeds from their last flat sale.  If the applicants’ housing budget, which includes their balance sales proceeds, CPF savings and loan quantum, is sufficient for them to buy a flat, they will not be eligible for a rental flat.

For households who are in public rental flats, HDB considers appeals for lower rentals taking into account the households’ prevailing circumstances, such as the current household income, expenses for medical needs and the number of dependents.  HDB will work with social agencies to offer assistance where necessary, and reduce the rentals if these households face genuine financial difficulty.  Sale proceeds from the sale of previous flats are not considered in assessing such appeals.