Consideration of Partnership with HDB Flat Lessees for Subsidised Rental Flats
Ministry of National DevelopmentSpeakers
Summary
This question concerns MP Gerald Giam Yean Song’s proposal for HDB to partner with lessees moving overseas or facing financial hardship to provide subsidized rental flats before their Minimum Occupation Period (MOP) concludes. Minister for National Development Desmond Lee explained that while flats are for owner-occupation, HDB facilitates time-limited appeals for overseas workers and allows financially distressed owners to rent out bedrooms or access financial aid. He clarified that requiring owners facing financial difficulties to subsidize their tenants' rent is inappropriate and instead focused on doubling the Parenthood Provisional Housing Scheme (PPHS) supply to 4,000 units by 2025. Furthermore, Minister for National Development Desmond Lee noted that PPHS-eligible families renting in the open market can utilize the PPHS (Open Market) Voucher from July 2024 to help defray their expenses. The response underscores HDB's commitment to supporting families with temporary housing needs through existing schemes rather than altering the core purpose of owner-occupation during the MOP.
Transcript
36 Mr Gerald Giam Yean Song asked the Minister for National Development whether the Housing and Development Board (HDB) has considered partnering with HDB flat lessees who are moving overseas to work or are facing financial difficulties, to rent out their HDB flats before the end of their Minimum Occupation Period (MOP) on the condition that they agree to provide tenants with the subsidised rental rates set by HDB so as to increase the supply of subsidised rental flats.
Mr Desmond Lee: Housing and Development Board (HDB) flats are primarily for owner-occupation. Therefore, all flat owners are required to physically occupy their flat during the Minimum Occupation Period (MOP), before they may sell it or rent out their whole flat in the open market.
Nevertheless, we recognise that some flat owners may face unexpected changes in life circumstances during their MOP, such as moving overseas to work. Today, HDB already facilitates appeals by such flat owners to rent out their flat during their MOP on a case-by-case and time-limited basis, where there are extenuating circumstances.
HDB also allows flat owners who face financial difficulties to apply to HDB to rent out bedrooms in their flat during the MOP, while continuing to occupy their flat. They may also approach HDB for other forms of assistance, such as financial assistance for those in arrears or to right-size to a smaller flat. As these families are already facing financial difficulties, it is inappropriate to require them to subsidise the rent of their tenants.
Families who require temporary housing while awaiting the completion of their booked flats can consider applying for the Parenthood Provisional Housing Scheme (PPHS). HDB is on track to double the supply of PPHS flats from 2,000 units today to 4,000 units by 2025, to better support such families. In the interim, PPHS-eligible families who are renting HDB flats or bedrooms in the open market may tap on the PPHS (Open Market) Voucher from July 2024 to defray their rental expenses.