About 70 flats taken back by HDB for flouting minimum occupation period rules, unauthorised rentals
HDB took action against flat owners in about 800 cases of lease infringements from 2019 to 2023.
HDB flats in Singapore. (File photo: CNA/Jeremy Long)
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SINGAPORE: About 70 flats were taken back by the Housing and Development Board (HDB) from 2019 to 2023 for breaking minimum occupation period (MOP) rules and unauthorised rentals.
HDB announced on Wednesday (Jul 24) that it had taken action against flat owners in about 800 cases of lease infringements in the same period.
These included renting out HDB flats and bedrooms without authorisation, not occupying the flat during the MOP and buying or investing in private property during the MOP.
Of these 800 cases, about half were issued written warnings, while another 330 were issued fines of up to S$50,000 (US$37,000), HDB said in a press release.
"Compulsory acquisition action was initiated against around 70 cases for committing severe infringements," said the statutory board.
It did not specify what these severe infringements were but cited three cases where flats were taken back by HDB.
Flats taken back by HDB
Case 1: Not staying in BTO flat
A couple bought a five-room Build-to-Order (BTO) flat in 2015 but left it unoccupied after collecting their keys. They stayed at a landed property owned by the wife's parent instead.
They also put the flat up for sale, marketing it as vacant.
HDB was notified that the flat was being advertised for sale and photos showed that it was in a "bare condition". An inspection also confirmed that the flat was untouched.
"Non-occupation of the flat during the MOP is a serious lease infringement. As the owners did not occupy the flat and had alternative accommodation, HDB compulsorily acquired the flat," said the Housing Board.
Case 2: Unauthorised rental
A woman who bought a three-room HDB flat from the resale market in 2018 with her children applied for approval to rent out one bedroom.
It was stated in the terms and conditions of the approval that the owner and authorised occupiers must continue staying in the flat during the rental.
However, HDB later received feedback that the whole flat had been rented out.
Investigations revealed that the woman and her children had never lived in the flat. She had bought the unit solely to generate rental income and did not need it for accommodation.
Case 3: Private property purchased in trust for son
A couple bought an executive apartment in 2017 and their son and daughter were listed as authorised occupiers.
In December 2020, the husband and his father purchased a private residential property in trust for the younger man's son, who is a minor.
Flat owners are not allowed to buy private property during the MOP, including buying one in trust for another person.
HDB suggested that the husband either relinquish the trusteeship and transfer ownership of the private property to his father, or sell the private property.
However, he told HDB that he was not keen on either option and took no further steps to regularise the infringement, despite repeated reminders from the Housing Board.
Under the Housing and Development Act, owners whose flats are taken back by HDB will be debarred from buying a subsidised flat. That means they cannot buy a flat from HDB or purchase a resale flat with a CPF Housing Grant.
They will also not be allowed to take over a flat by changing the flat's ownership and they cannot rent a public rental flat from HDB. These individuals also cannot be included as occupiers in the application of such flats.
From 2019 to 2023, HDB carried out 29,000 flat inspections randomly across Singapore – about 500 inspections per month.
It detects potential infringement of the rules through a range of methods, including monitoring flat listings, conducting inspections and investigating feedback from members of the public and property agents.
In that same period, HDB carried out investigations into 4,400 reports of suspected cases of lease infringements.
MOP REGULATIONS
According to HDB rules, flat owners must live in their unit for the MOP before they are allowed to sell their flat on the open market or rent out the whole flat.
The MOP for Standard HDB flats is five years, while that for Prime and Plus flats is 10 years.
Owners, their spouses and authorised occupiers are also not allowed to buy or invest in private residential property during the MOP.
Acquiring private residential property to hold on trust for another person is also not permitted during the MOP.
Those who wish to rent out their flat or its bedrooms during or after the MOP must obtain HDB’s approval.
"Flat owners who are renting out bedrooms must continue to live in the flat throughout the rental period – locking up a room and renting out the rest of the flat without the owners physically staying in it is treated as whole flat rental instead of bedroom rental," HDB said.
According to the Housing Board’s website, more than 80 per cent of Singapore’s residents live in HDB flats.
The MOP policy "safeguards HDB flats for households with genuine housing needs," said HDB.
It added that the policy seeks to strike a balance by reinforcing the objective of owner-occupation while not "unduly hampering" those who want to move when their family circumstances or life needs change.
Flat owners who cannot stay in their unit during the MOP due to genuine circumstances, such as being posted overseas for work, should write to HDB to seek a waiver of the MOP rule.
“HDB will assess such appeals on a case-by-case basis,” said the statutory board.
