Review of Criteria for Lease Buyback Scheme
Ministry of National DevelopmentSpeakers
Summary
This question concerns the uptake and eligibility criteria of the Lease Buyback Scheme (LBS), as raised by Mr Gan Thiam Poh and Mr Alex Yam. Minister for National Development Lawrence Wong shared that 3,100 households have joined since 2009, comprising 2,030 households in 3-room flats, 830 in 4-room flats, and 240 in smaller flats. While the qualifying age is 65 to align with CPF payouts, flexibility has been granted to approximately 50 households for reasons such as ill health or financial difficulty. The Minister noted that age remains the primary reason for rejection, though the HDB considers unique circumstances and potential exceptions on a case-by-case basis. The Ministry will consider suggestions to review the minimum age requirement and exercise flexibility for spouses as it continues to evaluate its housing schemes.
Transcript
8 Mr Gan Thiam Poh asked the Minister for National Development (a) how many HDB flats have joined the Lease Buyback Scheme since the Scheme was first launched; (b) what is the total number for each flat type; (c) whether there have been younger applicants whose applications were rejected or approved on an exceptional basis; and (d) whether the Ministry will review and lower the minimum age requirement for each application.
9 Mr Alex Yam asked the Minister for National Development (a) since 2009, whether exceptions to the rules for the Lease Buyback scheme have been exercised by HDB for applicants with unique circumstances; (b) if so, how many have been approved; (c) what have been the main reasons for rejection since the scheme's extension to 4-room flats since April 2015; and (d) whether HDB will exercise flexibility when only one of the spouse qualifies under the age criteria.
The Minister for National Development (Mr Lawrence Wong): Mr Speaker, with your permission, I would like to take Question Nos 8 and 9 together.
Mr Speaker: Yes, please.
Mr Lawrence Wong: Mr Speaker, about 3,100 households have taken up the Lease Buyback Scheme (LBS) since it was introduced in March 2009. This comprises 830 households in 4-room flats, 2,030 households in 3-room flats, and the remaining 240 households in smaller flats.
Among those who asked for exceptions to the LBS criteria, the main reason for rejection is that they do not meet the age requirement. The qualifying age for LBS is set at the CPF Payout Eligibility Age of 65 to allow seniors to immediately receive their monthly CPF payouts when they take up the LBS.
That said, HDB has exercised flexibility for applicants based on their individual circumstances, such as ill health or financial difficulty, and has done so for about 50 households since April 2015. This includes households who did not meet the age requirement.
We thank both Mr Gan and Mr Yam for their feedback and will take it into consideration their views and suggestions as we continue to review our schemes.
Miss Cheng Li Hui (Tampines): I thank the Minister. Are the appeals considered at branch or the Toa Payoh HQ level? The reason I ask is because there was an answer in the Forum Page in The Straits Times that HDB will consider some flexibility. But then, last week, I received a third rejection for my resident, who is aged 65 years, and going blind. He cannot work because he can only see shadows. His wife is 62 years old. HDB just said that because she is 62, they cannot do the Lease Buyback Scheme. They have been trying to downsize their flat to a 2-room, but they could not get it because of the balloting system. They never got a queue number for it. So, I just want to know how it is considered.
Mr Lawrence Wong: Mr Speaker, I am not familiar with the specifics of the case, but as I have said earlier, generally, if there are any financial difficulties or medical health issues, HDB would use these as considerations for granting exceptions. We can look at the case in specific, if the Member would raise it to me separately.