Newspaper pages, internet forums and the corner coffee-shops were all set abuzz with the latest housing policy announcements delivered by Minister for National Development Mah Bow Tan at the recent Committee of Supply Debate in Parliament.
The suite of new policies reflect the diverse and changing housing aspirations of HDB’s constantly evolving customer base.
Second concessionary loan
There were many enquiries to HDB about the detailed terms for the revised second concessionary loan. Previously, only citizen households who upgrade to a bigger flat type were eligible for a second concessionary loan. Now, the loan is made available to all eligible households, regardless of whether they upgrade, downsize, or move to the same flat type.
This flexibility will certainly make it easier for households in financial difficulty to right-size their loans, and to reduce the likelihood of subsequent mortgage arrears.
Meanwhile, safeguards have been built into the measure to ensure financial prudence and prevent abuse. For example, the CPF refund and a portion of the cash proceeds must be used to reduce the quantum of the second concessionary loan.
Revised Minimum Occupation Period
A key tenet of public housing was also reinforced during the latest policy announcements - that an HDB flat is meant for owner-occupation, and not for speculation or quick profits. As such, the Minimum Occupation Period (MOP) for the resale of non-subsidised HDB flats would be raised from 1 and 2.5 years to 3 years, regardless of the type of loan taken by the buyer.
Revised Lease Buyback Scheme
It was in March 2009 that the Lease Buyback Scheme (LBS) was implemented for elderly households in three-room and smaller flats. It was meant to address the needs of elderly residents who want to age in place, but might not have the financial means to do so.
In a bid to enable more elderly households to unlock the value of their flats, the policy has since been extended to those who previously owned four-room and bigger flats, as well as those with an outstanding housing loan of more than $5,000, but with minimum proceeds of $60,000 for the purchase of an immediate annuity under CPF LIFE.
The policy expansion will see an increase in the number of elderly beneficiaries to 34,800, or an increase of 3,800 households.
SPR differentiation
Singapore Citizens (SCs) and Permanent Residents (SPRs) - all are integral components to the development of a cohesive community. And this nation-wide goal of fostering a harmonious society takes place against the backdrop of public housing on a daily basis.
To reinforce the privilege of citizenship, HDB will withhold $10,000 of the housing subsidies enjoyed by SC/SPR households when they buy a flat until such time when they take up citizenship, or if the family has an SC child while in ownership of the flat.
New quotas
A new SPR quota for non-Malaysian SPR families buying resale flats has also been introduced to facilitate better integration and prevent enclaves forming in HDB estates. Malaysian SPR families are excluded due to their close cultural and historical links with Singaporeans. The SPR quota, set at 5 percent at the neighbourhood level and 8 percent at the block level, will apply in addition to existing Ethnic Integration Policy (EIP) limits.
Singapore’s demographic is constantly changing in response to globalisation demands. HDB will increase the EIP limits for the Indian/Others ethnic group from 10 to 12 percent at the neighbourhood level, and from 13 to 15 percent at the block level. There is currently no change to the ethnic limits for Chinese or Malays.
A continuing commitment
While no policy can meet every need, they still serve an important role in creating greater ownership and social integration amidst changes and challenges.
Noting that the Government has provided high quality public housing for the last 50 years, Mr Mah assured Singapore that it would do no less in the next 50 years to come. “Our mission is clear: HDB is committed to provide an affordable home for first-time Singaporean families. We will provide them with a place to call home, a place that is within their means.”