Source : Straits Times – 16 Sep 2009
THE Housing Board has so far approved 82 applications out of 409 received for its Lease Buyback scheme.
Some applicants have been asked to delay their application while a small percentage have been rejected as they do not meet the criteria.
National Development Minister Mah Bow Tan gave the update – the figures are up to the end of last month – in a written reply released yesterday.
Mr Mah was responding to Nominated MP Terry Lee, who asked about the public response to the scheme and how many applicants were rejected.
Under the scheme introduced in March, the HDB will buy back the tail-end of a flat’s lease at market rate, leaving a 30-year lease for the household.
It pays market valuation for the lease and this money goes to the new CPF Life annuity scheme in the flat owner’s name. A $10,000 subsidy is also given – half in cash and half into CPF Life.
Mr Mah noted that there is plenty of interest in the scheme, with the HDB receiving more than 2,000 queries.
He said all 82 approved applicants have received their upfront payout of $5,000, and will also be getting a lifelong stream of monthly annuity payouts. Their average monthly payout is $570.
Seven per cent of the 409 applications have been rejected.
Mr Mah noted that most of the rejected applicants have either enjoyed more than one housing subsidy or have previously owned larger flat types or private property. This meant they did qualify for the scheme.
Another 17 per cent of applicants have been asked by HDB to delay their application until after the upgrading work for their flats is completed.
Mr Mah said this is to ensure clarity in the flat valuation, which affects the payout quantum, and is in the applicants’ interest.
However, if they need the payout urgently, HDB will be flexible as long as applicants understand the implication of their decision, he added.
Mr Mah said HDB will review whether the target group for the scheme should be expanded, and consider appeals on a case-by-case basis.
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