Ensuring rental flats go to 'truly needy'

Aug 27, 2008
Ensuring rental flats go to 'truly needy'

TWO-THIRDS of people who apply to rent Housing Board flats are former
flat owners.

And of this group, two-thirds are not in arrears nor are they divorce
cases, whose special circumstances are weighed when they apply for
rental flats.

These people appear to be 'not truly needy', and the Housing Board
does not want them to crowd the rental queue meant for low-income
earners, said Dr Mohamad Maliki Osman, Parliamentary Secretary of the
National Development Ministry.

He was responding to Madam Ho Geok Choo (West Coast GRC), who had
asked why there has been a sudden surge in demand for rental flats.

Dr Maliki said that with high property prices, some people sell their
flats and turn to heavily subsidised rental flats as 'an attractive
option'.

'We are in the process of reviewing the rental applicants to make
sure the subsidies given to rental housing are targeted at the really
truly needy,' he added.

The not truly needy group plus the higher cost of living are among
the reasons for the strong demand for rental flats, he noted. Dr
Maliki does not think those on public assistance form the majority of
families that default on their rent to the Housing Board.

This is because by and large, they receive 'substantial assistance'
from the Ministry of Community Development, Youth and Sports, he
said, adding that he did not have the full profile of defaulters.

People who apply for rental flats must have a household income that
is not more than $1,500, and they must not have sold their property
in the last 30 months.

In his National Day Rally speech, Prime Minister Lee Hsien Loong had
expressed concern over the tripling in the number of people seeking
rental flats.

Those who are not needy can look for alternatives, he said, such as
moving in with their children or renting a room in the open market.