HDB compulsorily acquired 202 flats from January 2012 to December 2014, the Ministry of National Development (MND) said in Parliament yesterday.
The main reasons behind the compulsory acquisition of these HDB flats include major lease infringements committed by flat lessees, such as unauthorised subletting of flats.
Media reports in September 2014 said HDB investigated 184 cases of short-term HDB rentals in 2013, compared to 106 cases from 2012. Those found guilty of renting out their flats for less than six months may be fined or lose their flats.
On the other hand, some flats were repossessed due to financial issues.
“Compulsory acquisition (CA) action is also taken, as a last resort, against HDB mortgagors who persistently refuse to resolve their arrears, or work towards a sustainable solution, despite the assistance given,” MND said.
Households affected by compulsory acquisition due to mortgage arrears receive some help from HDB to find alternative accommodation. “For those who can afford smaller flats, HDB will help them buy one and may offer them another loan for the purchase, if necessary. Those who are unable to afford another flat, and have no family support or other housing option, are allocated rental flats.”
Muneerah Bee, Senior Journalist at PropertyGuru, wrote this story. To contact her about this or other stories email muneerah@propertyguru.com.sg
