Time-limited Rental Subsidy for Applicants who Qualify for Parenthood Provisional Housing Scheme and Public Rental Scheme
Ministry of National DevelopmentSpeakers
Summary
This question concerns a proposal for time-limited rental subsidies for Parenthood Provisional Housing Scheme (PPHS) and Public Rental Scheme applicants who cannot find temporary housing. Minister for National Development Desmond Lee stated that there are no plans to provide such subsidies because they would likely induce demand and drive up open market rents. He noted that HDB is increasing PPHS supply to 1,800 units by 2023 and prioritizes Public Rental allocations for applicants with urgent medical or exceptional circumstances. For low-income households lacking family support and other temporary options, Minister for National Development Desmond Lee mentioned that HDB may offer Interim Rental Housing on a case-by-case basis. Ultimately, the Government focuses on expanding housing supply and targeted interventions rather than market-wide subsidies that could worsen rental affordability for all.
Transcript
30 Mr Chua Kheng Wee Louis asked the Minister for National Development whether the Government will consider providing a time-limited rental subsidy for rental flat applicants who qualify for the Parenthood Provisional Housing Scheme and Public Rental Scheme respectively, provided that they are unable to find alternative temporary housing arrangements and have been unsuccessful in obtaining a flat from HDB after a pre-defined time period.
Mr Desmond Lee: For the Public Rental Scheme, all applicants who meet the eligibility criteria will be placed in the queue and allocated a flat when their turn is due. HDB will expedite the allocation for applicants who are in urgent need of a flat, such as those with medical grounds or other exceptional circumstances.
The Parenthood Provisional Housing Scheme (PPHS) provides an additional temporary housing option for households awaiting key collection for their new HDB flats. While we are progressively increasing the PPHS supply from 800 units in 2021 to 1,800 in 2023, the supply remains limited.
Currently, families looking for temporary housing may turn to the open rental market. Providing subsidies or grants for renting flats in the open market is likely to induce demand and drive up market rents, which would compound rather than help solve matters. As such, we have no plans to provide such rental subsidies.
For low-income households with no family support and no other temporary housing options, HDB may offer them Interim Rental Housing on a case-by-case basis.