On 24 July, HDB announced that it had taken action against flat owners for some 800 cases of lease infringements between 2019 and 2023.
For approximately half of these cases, flat owners were issued written warnings, with fines of up to $50,000 issued to 330 other owners, according to HDB.
Of those cases, 70 flats were taken back by HDB, for breaking minimum occupation period (MOP) rules and unauthorised leasing.
This announcement comes after a CNA report in June found more than 15 Airbnb listings in Singapore offering short-term stays, both in condominiums and HDB flats.
What did the 70 owners do?
According to HDB, the owners of the 70 taken back flats had committed severe infringements.
While the agency did not list the exact infringements, they provided three cases which resulted in re-acquisition by HDB.
Case 1:
In 2015, a couple had purchased a Build-to-Order (BTO) flat but instead lived in a private property owned by the wife’s family during the MOP.
Thereafter, they proceeded to list the flat for sale, labelling the property as “vacant” and with accompanying pictures showing the house in bare and “untouched” condition.
According to HDB, non-occupation of a flat during the MOP is a serious lease infringement. As the owners did not occupy the flat and had alternative accommodation, HDB compulsorily acquired the flat.
Moral of the story, fight so hard with other people for BTO then just stay theree lah.
Case 2:
A woman had purchased a three-room flat with her children in 2018, and sought approval to rent out one of the bedrooms.
As per HDB rules, the owner and authorised occupiers must continue to stay in the flat during the lease term.
It was later revealed that the entire flat was rented out and that there was no intention to live in the flat. The flat was bought with the sole purpose to generate income.
Case 3:
In 2017, a couple bought an executive apartment, listing their son and daughter as authorised occupiers.
The husband and his father in 2020 then purchased a private residential property in trust for the younger man’s son, a minor.
As per HDB rules, flat owners are not allowed to buy private property during the MOP, including buying in trust for another.
Ultimately, the husband did not make any amends for his infringement, despite repeated reminders from HDB.
What’s next for the 70 owners?
Despite having their flat taken back, HDB will still offer them a compensation, with the amount to be determined appropriately by the board.
HDB has stated that such a compensation policy takes into account various factors, like the severity of the infringement and the circumstances of the case. This, according to HDB, is to ensure that flat owners who infringe the rules will not enjoy undue financial gains.
This compensation is notwithstanding the penalty that would have come their way for their infringement.
HDB has reminded the public that regular checks are carried out on flats that have been approved for renting out.
For HDB flats, a minimum of six month’s tenancy is required for renting out of either the flat or a bedroom (so yes, AirBNB is illegal).
With regard to MOP, flat owners must live in their unit for the MOP before they are allowed to sell their flat, or rent the entire unit out.
Neither owners or authorised occupiers are allowed to purchase private property during this time.
HDB has repeated that such regulations are for the safeguarding of HDB flats for households with genuine housing needs.
In the event that there is an valid and urgent reason for not keeping to the MOP, an application can be made to HDB, who will assess the application on a case-by-case basis.
