27 APRIL 2010

Question No. 378
Question by: Ms Audrey Wong Wai Yen

Ms Audrey Wong Wai Yen: To ask the Minister for National Development (a) whether there is an estimate of the number of HDB flats that have been sublet without permission from HDB; and (b) what is the cost to the Government in terms of rebates on service and conservancy charges given to owners who illegally sublet their flats.

Answer

1      Subletting HDB flats without HDB’s approval is an infringement of the lease conditions.  We take a serious view of this, as HDB flats are primarily meant for owner-occupation.  Flat owners caught subletting their flats without approval may have their flats compulsorily acquired by HDB or incur a financial penalty.  HDB will also recover the rebates on Service and Conservancy Charges given during the period of unauthorised subletting.

2      However, we recognise that some flat owners need to sublet their flats for supplementary income.  They may obtain HDB’s permission to do so if they meet the required Minimum Occupation Period (MOP). Today, 3% (or 27,300 units) of the total stock of HDB flats have obtained approval for subletting.

3      The number of subletting transactions increased by about 69% from 3,902 cases in 4th Quarter 2009 to 6,606 cases in 1st Quarter 2010.  Some of the increase in approvals may be due to increased publicity of HDB’s enforcement against unauthorised subletting.  However, we are unable to estimate the number of unauthorised subletting or cost to Government in terms of rebates on service and conservancy charges given to such owners.

4      Between Jan 2008 and Mar 2010, 59 flat owners were found to have sublet their flats without HDB’s approval.  Of these 59 cases, HDB repossessed 7 flats and imposed fines of between $1,000 and $21,000 on the rest.

5      HDB has stepped up enforcement on unauthorised subletting.  Besides routine inspections and spot checks, HDB also seeks the assistance of residents to call its dedicated Toll-Free hotline to report suspected cases of unauthorised subletting.  HDB lessees who have sublet their flats without authorisation should regularise it immediately by seeking HDB’s approval.

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