HDB Flat Owners Illegally Acquiring Another Property within Minimum Occupancy Period and Selling Their HDB Flat Thereafter
Ministry of National DevelopmentSpeakers
Summary
This question concerns whether the Housing and Development Board (HDB) will update its powers under the Housing and Development Act to take enforcement action against owners who illegally acquire another property during the minimum occupation period. MP Murali Pillai inquired about preventing such owners from selling their flats to avoid compulsory acquisition under section 56(1) of the Act. Minister Lawrence Wong stated that such acquisitions are infringements punishable by compulsory acquisition or financial penalties. He explained that safeguards prevent flat owners from selling until investigations are completed and appropriate action is taken. Minister Lawrence Wong concluded that HDB currently has sufficient legislative powers to monitor and take enforcement action against these flat owners.
Transcript
22 Mr Murali Pillai asked the Minister for National Development whether HDB will update its powers under the Housing and Development Act to enable it to take enforcement action against flat owners who, within the minimum occupancy period, acquire an interest in another property in contravention of HDB regulations and thereafter sell their HDB flat to prevent the flat from being acquired under section 56(1) of the Act.
Mr Lawrence Wong: Housing and Development Board (HDB) flats are public housing and are meant for owner occupation. The purchase of another property by an HDB flat owner within the minimum occupation period is an infringement under the Housing and Development (H&D) Act. The penalty for such infringements is the compulsory acquisition of the HDB flat under section 56 1(b) of the H&D Act, or the imposition of a financial penalty on the flat owners under the Housing and Development (Financial Penalties) Rules 2015.
HDB monitors and takes enforcement actions against flat owners who acquire an interest in another property in contravention of HDB regulations. In addition, there are safeguards in place to prevent such flat owners from selling their HDB flat, to prevent the flat from being acquired under section 56 (1) of the Act. The flat owner will only be allowed to sell the HDB flat after investigations on any suspected infringements are completed and the appropriate action taken. At this juncture, HDB has sufficient legislative powers to take action against such flat owners.