MPs: Plug loopholes for rental flats

Aug 23, 2008
MPs: Plug loopholes for rental flats
One idea to reduce non-desperate cases: Make applicants show proof of
their needy status
By Goh Chin Lian

WHEN it comes to nipping the problem of the not-really-needy applying
for rental flats meant for the truly needy, the health sector offers
some answers.

Eye surgeon and MP Lim Wee Kiak (Sembawang GRC) said the crucial
question asked of applicants for Medifund, which helps the needy pay
for medical expenses, was whether their family can support them
financially.

This meant producing documents to prove family members have little or
no money in their Medisave and bank accounts.

Currently, people who apply for subsidised HDB rental flats do not
need to give such details.

They need only show that their household income is not more than
$1,500 and that they had not sold their property within 30 months of
applying for a rental flat, noted Dr Lim.

Five other MPs who spoke to The Straits Times also gave suggestions
on how to deal with this problem.

These include educating applicants on alternatives to rental flats
and giving concessionary loans to those who want to downgrade to a
smaller flat.

The MPs were responding to Prime Minister Lee Hsien Loong's worry
over the tripling in the number of people seeking HDB rental flats
and his call for those who were not really in need to look for
alternatives, such as moving in with their children or renting a room
in the open market.

In his National Day Rally speech on Sunday, Prime Minister Lee cited
the case of three children asking the HDB to give their mother a
rental flat, even though two of them lived in private property and
they had the money to hire a maid to look after her.

MPs who have seen such cases believe the underlying problem is often
that elderly parents cannot get along with their daughters-in-law or
their own children.

Madam Ho Geok Choo (West Coast GRC) believed the solution was to
counsel such families.

She recalled persuading a man to rotate among his siblings the care
of their elderly parents, instead of putting his old folks in the
queue for a rental flat.

She said: 'The family should always be the first line of defence.
People should not take the easy way out.'

Mr Zaqy Mohamad (Hong Kah GRC) wanted more public education, focusing
in particular on middle-aged parents with children and parents who
live with their grown-up children.

'Educate them on the alternatives to rental flats and go on the
positives, that you should be more caring to your parents,' he said.

And when the HDB comes across such cases, it should refer them to the
community development councils which can mediate among the family
members, instead of just rejecting the application.

He added: 'If you give a straight no, you will get more and more re-
appeals.'

Housing policies also need to change to cater to the high demand for
rental flats, said MPs Liang Eng Hwa (Holland-Bukit Timah GRC) and
Charles Chong (Pasir Ris-Punggol GRC).

They noted that those seeking rental flats may genuinely want to
downgrade to smaller, less costly accommodation.

Mr Liang reckoned that these people who earn more than $1,500 a month
may not mind paying a little more than those renting the flat at a
subsidised rate.

To cater to them and others who are needy, more rental flats should
be built, he added. This would be over and above the current plan to
raise the supply by 20 per cent to 50,000 in the next few years.

Mr Chong homed in on the policy of granting HDB concessionary loans
only to people moving to bigger flats.

He argued that the HDB should allow people who cannot afford to live
in four- or five-room flats and who want to downgrade to also qualify
for these loans. That way, they can look for a smaller flat in the
open market and do not need to apply for a rental flat.

While the HDB has approved requests on a case-by-case basis, Mr Chong
believed it should be 'a matter of policy, not exception'.

One sure change is the eligibility criteria for rental flats. They
are under review, with an eye on tightening them and keeping out
people who are not in need.