One can apply for a rental flat even if total gross monthly household income exceeds $1,500 threshold
The Housing Board has become more flexible on the eligibility criteria for those wishing to rent its flats under the Public Rental Scheme.
The criteria, listed on its website, no longer state that there is an “income ceiling” which stipulates that an applicant’s total household gross income must not exceed $1,500 per month.
Instead, there is now an “income guideline” that says one can still apply for a rental flat even if one’s monthly household income exceeds the $1,500 threshold, although it should not go above that figure in general.
“We will review your application, taking into consideration whether you have other housing options,” it now states on the HDB website – a line that had been missing from the section on eligibility criteria earlier this year.
Though the maximum income for securing rental housing from the HDB has not been changed since 2003, when it was increased from $800 to $1,500, steps have been taken to allow for more flexibility in the scheme over the years.
Earlier this month, the Ministry of National Development (MND), in response to a parliamentary question from Nominated MP Walter Theseira about whether the income ceiling under the scheme will be reviewed, said the income figure is a guideline and not a hard cap.
“(The figure of) $1,500 is used as an indication of income as first-timer households with this income are able to buy a new flat with the help of housing grants, and we want to encourage them to own their own homes,” said MND in its response.
But those who go above that threshold can also apply, said the MND, adding that there have been 590 households with incomes above $1,500 that received assistance with securing rental housing from 2016 to 2018. The figure was 210 from 2013 to 2015.
Responding to queries from The Straits Times, the HDB said requests from households earning more than $1,500 per month are assessed based on the circumstances of each family, such as household size or expenses such as medical needs.
MPs said many of those who make such appeals do so because they may have fallen into conflict with family members, and find it difficult to live with them.
“Some older residents may have sold their flats to live with their children. Sometimes it doesn’t work out,” said Pasir Ris-Punggol GRC MP Zainal Sapari, who receives one or two such appeals a week.
Nee Soon GRC MP Lee Bee Wah said some could also be in the process of getting a divorce or have been recently divorced, and need a separate place for themselves and their children.
However, chances of success vary, said Mr Zainal, though he does not track the outcomes of all appeals that come to him. This is because HDB also takes other factors into consideration, such as whether the children are financially able to provide other housing options for them, he said.
Ms Lee said cases where HDB may tend to be more flexible would be if there are children who need a home.
Some, said Nee Soon GRC MP Louis Ng, also succeed in their appeals as they have no other alternative housing options.
Associate Professor Theseira welcomed the move by HDB to update its website. The previous way in which the $1,500 criterion was communicated may discourage some from applying for rental flats even when they have extenuating circumstances, he said.
Mr Ng noted that flexibility has also been exercised when it comes to the policy on subsidised housing for single parents under the age of 35.
In July, it was revealed that since 2014, 28 single unwed parents had been allowed to apply to buy a subsidised two-room flexi flat before they turned 35, although HDB rules do not allow them to do so.
Such exceptions were made on a case-by-case basis, taking into account factors such as housing options and level of family support.
But while flexibility is good to have, it does not give those who may be in need enough assurance, said Mr Ng, who suggested that the income criterion for rental housing be reviewed and be assessed on a per capita basis instead.
“(Those in need) can still get housing in the end, but why make them jump through so many hoops?” he asked.
Ms Kanak Muchhal, who is in charge of women and befriender support at charity group Daughters Of Tomorrow, said more can be done to spell out how such flexibility is exercised, beyond just stating it is done on a case-by-case basis with income as a guideline.
“Some of our clients who live in rental housing may worry about not being able to stay on in their flats after we place them in jobs that pay better. While they do want to buy flats eventually, it could take time for them to accumulate enough savings to do so even with the help of various grants and schemes,” she said.
“Source:[HDB more flexible on criteria for securing public rental flats] © Singapore Press Holdings Limited. Permission required for reproduction”
