Source : Straits Times - 27 Aug 2008
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.
LEE SIEW HUA
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