Approval for Subletting of HDB Flats within Minimum Occupation Period

21 Dr Lim Wee Kiak asked the Minister for National Development (a) over the last three years, how many HDB flats have been approved annually for subletting within the Minimum Occupation Period; (b) what is the duration of the subletting approved by HDB; and (c) how many applicants have been allowed to renew their sublettings after the first approval.

The Minister for National Development (Mr Lawrence Wong): Madam, flat owners have to fulfil the Minimum Occupation Period (MOP) before they can sublet their flats. However, some may have specific reasons to sublet their flats within the MOP, for example, because of full-time work assignments overseas. In such cases, they will have to put up an application to the Housing and Development (HDB), which will then assess the request on a case-by-case basis. Each approval to sublet within the MOP is for short periods of one or two years. And when these flat owners reoccupy the flat, they will have to make up for the period of subletting to fulfil the MOP.

Over the last three years, HDB granted an average of 785 approvals each year to flat owners to sublet their flats within the MOP and this is about 2% of the total subletting approvals each year. Of these approved cases for subletting, an average of about 110 cases were granted an extension each year.

Mdm Speaker: Dr Lim Wee Kiak.

Dr Lim Wee Kiak (Sembawang): Let me thank the Minister for his reply. Frequently, during block visits or even during coffeeshop walks itself, I always hear residents complaining to me that certain units may have been bought by certain residents. When they quote Permanent Residents who bought the units, but never stayed in the unit which has been rented off from day one, I am sure there have been some stories like that coming in, sort of complaints. How many of these cases have come to the Ministry of National Development (MND), and how many of them have been convicted, or, if they are caught, what are the consequences for these owners who flout this MOP ruling?

Mr Lawrence Wong: Madam, if there are indeed cases of infringement, people who have flouted the MOP rulings, and residents suspect that their neighbours may be doing so, please alert HDB and HDB will certainly take enforcement action. Many times, when these cases or when we have had people making representations and we go to check, they are, in fact, legitimate subletting approved by HDB. But if there are cases where Members in the House have feedback from their residents, please encourage them to let HDB know, and we will not hesitate to take enforcement action.

Mdm Speaker: Mr Pritam Singh.

Mr Pritam Singh (Aljunied): Just a supplementary question for the Minister. The Minister identified individuals who essentially take up assignments overseas as one of the reasons which the Ministry assesses when they grant deviations from the MOP policy. What are some of the other common reasons which the Ministry assesses before it allows for the deviation of this policy?

Mr Lawrence Wong: We look at every case on its own merits. In fact, the most common reason for allowing is for work overseas. That is usually the most common reason why HDB would agree to a request to subletting within the MOP period, that means, the person having bought an HDB flat, for some reason, employers request them to work overseas and then that is a valid reason.

There may be other reasons like family circumstances, parents or somebody who has fallen sick for extended periods of time, a resident would appeal on a sympathetic or compassionate basis to want to move to take care of an elderly father or mother and would like to do that for a year or so. So, there could be various other reasons like these. And, like I said, we will look at it case-by-case and, if it is valid, HDB would want to support and provide room and leeway for the residents to be able to do so, on the condition, as I have said, that they would then have to make up for that period after they return to their flat.