Stricter rules for PRs to sublet HDB flats
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By Julia Ng | Posted: 11 July 2012 1013 hrs
SINGAPORE: Singapore permanent residents (PRs) will now face stricter rules when they want to sublet their HDB flats.
With immediate effect, PRs will only be allowed to sublet their flats for one year, upon HDB's approval.
When the one-year period expires, application to extend the approval will be assessed on a case-by-case basis, and HDB said approval will be granted only if there are extenuating reasons.
Previously, PRs were allowed to sublet their flats for three years.
The total period of subletting during the flat owners' entire duration of the flat ownership is now capped at five years. Previously, there was no cap.
Singapore PR flat owners are allowed to sublet their flat only after meeting the minimum occupation period (MOP), and if they have not sublet the flat before.
HDB said the revised rule is to reinforce the policy intent of providing HDB flats as homes to the PRs, and to deter those who are buying the flats for rental yield or investment.
And while HDB allows PR owners who have met the minimum occupation period to sublet their flats, the subletting should be on a temporary basis.
If the PR families no longer need the flats for their own occupation, they should sell the flat instead of subletting them.
There is no change to the subletting rules for flat owners who are Singapore citizens.
As of April this year, HDB said 2,142 PR owners currently sublet their flats. They form about five per cent of the total approved sublet cases.
Key Executive Officer of ERA, Eugene Lim, said: "If you are a PR, why are you renting out your flat? You are here to stay, to work. If you have ability to buy another house, then you actually don't need a public flat and you should not be owning one."
Separately, HDB is also stepping up enforcement against unauthorised subletting.
In 2011, HDB carried out 7,000 flat inspections and took action against 56 flat owners for unauthorised subletting.
Of these, HDB has initiated compulsory acquisition action against 18 flat owners for blatantly infringing subletting rules.
- CNA/ck/al -
permanent residence? hmm - -got temporrary residence one meh?
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Before election squeeze Singaporeans.
After elections, squeeze the PRs.
Life is surreal.
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After election, squeeze from everything.