Mr Speaker, Sir, I beg to move, “That the Bill be now read a second time.”

Context and Objectives of Upgrading

2 Our public housing programme, which houses over 80% of our people, has won us the envy and admiration of many foreign visitors. Beyond just providing a roof over our heads, HDB flats are attractive and affordable. HDB estates are well planned and constructed to offer our residents a conducive environment to live, work and play in. They help build bonds and community ties. They are where our children grow up, where different races mingle, and where shared memories are formed.

3 One characteristic of our public housing programme is that even as we build new HDB estates, we do not neglect the older ones. We bring the benefits of newer designs and improvements to these estates through our upgrading programmes so that they can continue to attract new families and maintain their vibrancy.

4 Upgrading also plays an important role in sustaining the value of the HDB flat. The HDB flat has become an integral part of the life story of many Singaporean families. First, we help young families buy their first flat by selling new flats at subsidised prices. If they wish to buy a resale flat, we help them with a housing grant. We provide financing at subsidised interest rate to help them buy their first flat. The lower-income are given an additional lift through the Additional Housing Grant scheme. When the family is better off and wishes to upgrade to a bigger or better flat, we offer them another subsidy and financing to assist them. At the later stage, when it is time for the resident to retire, we offer options to monetize the flat and unlock its value for old age. Throughout this cycle, we enhance the value of the HDB flat through our upgrading programmes.

New Upgrading Programmes and Heartware Forum

5 At the National Day Rally last year, the Prime Minister announced two new upgrading programmes – the Home Improvement Programme (HIP) and the Neighbourhood Renewal Programme (NRP). The HIP focuses on improvements within the flat while the NRP focuses on improvements outside of the flat, at the block and precinct-level.

6 The HIP and NRP are the result of residents’ feedback on our existing upgrading programmes. Last year, the Forum on HDB Heartware, which I chaired, conducted many public dialogues and discussions to solicit ideas on ways to build more cohesive communities in HDB towns. During these sessions, residents told us that they wanted greater flexibility in flat upgrading and to opt out of certain items if they have recently carried out renovation works. Others have asked for greater consultation and less duplication for block- and precinct-level facilities. The HIP and NRP are the outcome of these feedback. So while improving our estates and upholding their value, our new upgrading programmes also allow greater flexibility in the provision of improvement items, and involve the residents more proactively. The aim is to create homes and neighbourhoods that they can call “their own”.

7 The HIP and NRP will benefit more flats. Around 300,000 flats will be eligible for the HIP, compared to around 100,000 flats previously eligible for the Main Upgrading Programme (MUP). For NRP, around 200,000 flats will be eligible, compared with the roughly 80,000 previously eligible for the Interim Upgrading Programme Plus (IUP Plus).

Need for Legislative Amendments

8 The NRP can be implemented within our existing legislative framework, but the HIP requires legislative changes. The Housing and Development (Amendment) Bill 2007 will amend the Housing and Development Act to allow the HIP to take place.

Home Improvement Programme

9 Allow me to recap the HIP for the Members of this House. The HIP addresses common maintenance problems in ageing flats such as spalling concrete and ceiling leaks. It also offers other useful improvement items within the flat. The improvement items under the HIP can be classified into two categories – Essential Improvements and Optional Improvements.

10 Essential Improvements are items required to comply with the current statutory or technical requirements, mainly for safety and environmental health reasons. These include the repair of spalling concrete, replacement of waste pipes and replacement of pipe sockets (“bamboo pole holders”). They will be fully funded by the Government and if the residents collectively vote in favour of the upgrading programme; they cannot opt out of Essential Improvements.

11 Optional Improvements are items that are good to have but may not be essential to all residents. They include the replacement of entrance door and grille gate, and toilet upgrading. We have taken the public’s suggestions and designed the HIP to allow residents to opt out of individual Optional Improvements with a corresponding reduction in their co-payments.

12 Optional Improvements will be highly subsidised, with lessees paying 5% to 12.5% of the cost, depending on flat type.

13 The HIP will proceed for a block if at least 75% of the eligible lessees in the block vote in favour of it.

Housing and Development (Amendment) Bill 2007

14 To facilitate the implementation of the HIP, three key amendments are to be made to the Housing and Development Act. Firstly, the definition of the upgrading works under the HIP will be introduced in the Act, and consequential amendments made to various other definitions. This is the purpose of Clause 2 of the Housing and Development (Amendment) Bill.

15 Secondly, the Act will be amended to allow polling for the HIP to be carried out on a block basis, rather than on a precinct basis, which is the case for the MUP. Clause 3 of the Bill will allow HDB to conduct the HIP poll and proceed with the works if 75% or more of the residents in a block vote in favour of the programme.

16 Lastly, to complement the introduction of these upgrading works, Clause 4 of the Bill will allow HDB to carry out the flat upgrading works and recover the co-payments that are not funded by Government.

Conclusion

17 Mr Speaker Sir, the HIP will be an integral part of our upgrading programmes to rejuvenate our heartlands. Together, with the NRP, the HIP will enable us to tailor the works for HDB estates according to their specific needs. To allow the HIP to proceed, the legislative amendments I outlined above will need to be enacted.

18 Sir, I beg to move.

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