Housing Development Board takes action against 800 errant flat owners for lease infringements

The Housing & Development Board (HDB) has announced that it has taken enforcement actions against 800 flat owners over the past five years for violating lease agreements.

From 2019 to 2023, HDB addressed various lease infringements, highlighting the misuse of public housing.

Of the 800 cases, approximately 400 flat owners received written warnings, while about 330 were fined up to $50,000.

In around 70 severe cases, HDB compulsorily acquired the flats, demonstrating the seriousness of the infringements.

HDB employs several methods to detect and investigate potential infringements. These include monitoring online advertisements of flat listings, conducting routine inspections, and investigating feedback from the public and property agents. Over the five-year period, HDB carried

out approximately 29,000 routine flat inspections, averaging 500 inspections per month, and investigated 4,400 pieces of feedback on suspected lease infringements. Collaborations with other agencies also play a crucial role in sharing information relevant to these investigations.

The enforcement actions illustrate the importance HDB places on adherence to its rules, particularly during the Minimum Occupation Period (MOP). Flat owners are required to physically occupy their HDB flat during the MOP before they are allowed to sell or rent out the entire flat. Additionally, owners and authorized occupiers are prohibited from acquiring any interest in private residential properties, both local and overseas, during this period.

Case Examples of Compulsory Acquisitions

One notable case involved Mr T and Ms P, who purchased a 5-room Build-to-Order (BTO) flat in 2015. Instead of occupying the flat, they resided at Ms P’s parents’ property and advertised their flat for sale in its bare condition. Due to their failure to occupy the flat during the MOP, HDB compulsorily acquired the flat.

Another case involved Mdm J, who bought a 3-room resale flat in 2018. Although she received approval to rent out one bedroom, she rented out the entire flat while living elsewhere. This unauthorized action led HDB to compulsorily acquire the flat.

In a third case, Mr S and Mdm M purchased an Executive Apartment in 2017. During the MOP, Mr S and his father bought a private residential property in trust for Mr S’s son. Despite HDB’s advice to rectify the situation, Mr S failed to comply, resulting in the compulsory acquisition of their flat.

Requirements for Flat Owners

To ensure compliance, flat owners must adhere to several key requirements. Approval from HDB is mandatory before renting out the entire flat or bedrooms. Flat owners renting out bedrooms must continue living in the flat with their tenants. Additionally, owners must adhere to the occupancy cap, which allows up to four persons in a 1/2-room flat, six in a 3-room flat, and eight in a 4-room or larger flat. Prospective tenants must meet eligibility conditions, including holding valid Employment, Student, Dependent, or Long-term Social Visit passes. Tourists are not permitted to rent HDB flats or bedrooms for short-term stays.

Unauthorized actions, such as renting out flats or bedrooms without approval, can result in significant penalties, including fines, written warnings, or compulsory acquisition of flats.

HDB emphasizes that the MOP policy is designed to ensure public housing remains accessible to genuine homeowners and to deter speculative purchases. Flat owners facing genuine circumstances that prevent them from occupying their flat during the MOP are encouraged to seek a waiver from HDB, which will assess appeals on a case-by-case basis.