15 SEPTEMBER 2009

Question No. 161
Question by: Mr Terry

Mr Terry Lee asked the Minister for National Development (a) what is the public response since the launch of the Lease Buyback Scheme on 1 March 2009; (b) how many applicants were rejected and what were the main reasons for the rejections; (c) how will the Ministry help these rejected applicants; and (d) what is the total payout to the home owners to date.

Answer

1      In conjunction with the launch of the Lease Buyback Scheme (LBS) in March this year, HDB has embarked on an extensive outreach programme targeting the eligible group of elderly HDB lessees in 2-room and 3-room flats.  To date, HDB has received more than 2,000 public queries on LBS.  This indicates good interest in the scheme.  It also shows that lessees are finding out more so as to make a considered decision whether the LBS is suitable for them.

2      As at end August, HDB has received 409 applications for LBS.  So far, 82 applications have been approved.  All these 82 approved applicants have received their upfront LBS payout of $5,000.  They will also be receiving a lifelong stream of monthly annuity payouts.  Their average monthly payout is $570.

3      7% of the 409 applications have been rejected.   Most of the rejected applicants have either enjoyed more than one housing subsidy, or they have previously owned bigger flat types or private properties.   As such, they do not meet the eligible criteria for the LBS, which is a subsidised scheme targeted at the less well off elderly.

4      Another 17% of applicants have been asked by HDB to delay their LBS application until after the upgrading works in their blocks or estates are completed.  This is to ensure clarity in the flat valuation, which affects the payout quantum, and is in the interest of the applicants.  However, if they need the LBS payout urgently, HDB will be flexible so long as they understand the implication of their decision.

5      The LBS is a new scheme.  HDB will continue with its p ublic education programme to reach out to the eligible elderly lessees so that they can make informed decisions.  Going forward, HDB will review whether the LBS target group should be expanded .  In the meantime, HDB will consider appeals on a case-by-case basis.

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