Second-timer families on the public rental scheme, who get help to buy a new flat, will have to live in it for 20 years before they sell it. This is "to ensure a stable home for the children" said National Development Minister Lawrence Wong yesterday, revealing details of the Fresh Start Housing Scheme.
Families who qualify will also get personalised help even after they get he keys of their flat, he added, during the parliamentary debate on his ministry's budget. Announced last year and set to start by the end of 2016, the Fresh Start Housing Scheme aims to help public rental tenants with young children buy flats of their own.
Currently, about 1,000 families could potentially qualify, Mr Wong revealed yesterday. The scheme will not have a large reach, but "can an will have a meaningful impact on the families we are reaching out to", he added. To keep prices affordable, it is only for two room Flexi flats with leases of 45 to 65 years.
Eligible families will be able to get a Housing Board concessionary loan regardless of how many such loans they have taken before. And the previously-announced Fresh Start Housing Grant will be given in tranches. The grant will range from $31,400 for a 45 year lease to $35,000 for a 60 year or 65 year lease. Families will get $20,00 upon collecting the keys to their flat. The rest will be disbursed annually over the next five years.
But to get these later tranches - and to qualify for the scheme at all - families must show commitment to making a fresh start, said Mr Wong. They must stay employed, manage finances well, and ensure their children attend school regularly. To track and help families in this commitment, the HDB will work with the Ministry of Social and Family Development (MSF).
MSF officers will check on the families regularly, from flat application till key collection, and for five years afterwards. They will also link families up with other partners for social support, where needed. "We will hand-hold the families closely and walk this journey with them," concluded Mr Wong. If families face difficulties along the way, HDB will consider their circumstances and the efforts they are making to meet the conditions of the scheme.
Mr Saktiandi Supaat (Bishan - Toa Payoh GRC) raised concerns about stringent grant conditions. Replied Mr Wong: "I am very mindful that the conditions should not be onerous. "But at the same tie, we are making a major move for these families by giving them another grant. So I think it's fair they must be able to show a certain level of commitment towards home ownership."
Separately, second timer rental families will get priority for new flats from the next Build-To-Order exercise onwards. This is under the Tenants Priority Scheme, which sets aside 10 per cent of new two and three room flats and is currently for first timers. In 2015, 411 two room flats were set aside, far more than the 48 applications received. Extending the scheme to second timers will increase their chances of getting a flat, said Minister of State for National Development Koh Poh Koon.
Fresh Start: Who's eligible
About 1,000 households could qualify for the new Fresh Start Housing Scheme. Here are the eligible criteria.
Applicant status: Second timers who have bought a subsidised flat before.
Rental status: The family must have occupied a public rental flat for at least two years - and not have accumulated three or more months of arrears at any point in the past year.
Demographics: At least one Singaporean parent and one citizen child. Parent or parents must be at least 35, and child below 16. Parents may be married, divorced, or widowed.
Employment: At least one parent in stable employment in the preceding 12 months.
Family situation: Families will be assessed by the Ministry of Social and Family Development. They must be stable, hold down a job, manage their finances well, and the children must attend school regularly.
Thoughts:
- This is an interesting schemes where you see two Ministries working together to ensure that families can have a permanent roof over their heads. One that deals with housing, and the other to deal with financial and family support.
- What I can see here is a conservative attempt by the Government, where they try to take a risk based approach to help those families that are more stable, and to provide them with the grant again to purchase flats. Do note that the flats are of a shorter lease, and this means that they are more affordable in nature.
- It does not escape one's eyes that one of the criteria is where the family must have a child below 16 years old. I think they are also looking at how to help these families so that children can grow up in a more secure environment, and to have a new perspective in life too.
- Lastly, the attempt that this scheme will require regular follow up with MSF officers would ensure that there is someone out there helping to keep a look out for these families, who might seem to be able to cope, but actually might have some long term challenges.
Thoughts anyone?
Yours,
Something Small Thinking Big
No comments:
Post a Comment