Fresh Start scheme open for application

This post came out from The Straits Times (2 December 2016)

Applications to be on the Fresh Start Housing Scheme are now open for families who once owned a flat but now live in public rental units. The scheme allows the families, who must have at least a child below the age of 16, to apply for a new Housing Board flat with a grant of up to $35,000, the Ministry of National Development and HDB announced in a statement yesterday.

After getting on the scheme, families have a year to apply for a new flat in the HDB's regular Build-To-Order or Sale of Balance Flats launches. The scheme was first mentioned in last year's National Day Rally, with details given in this year's Committee of Supply debate. During the rally, Prime Minister Lee Hsien Loong said he was concerned about the future of a group of families who, without help, may be permanently out of reach of getting their own flat.

The scheme has several conditions. For instance, at least one of the applicants must have been in stable employment for the previous 12 months. The family must also be assessed by the Ministry of Social and Family Development (MSF). The MSF and HDB will do regular checks to ensure the families are on track.

In a blog post, National Development Minister Lawrence Wong said: "Some second-timer public rental families are ready and hoping to own a home again - they are in stable employment, manage their finances well, and have a stable home environment."

But they might find it challenging to buy a flat, he added. The scheme helps by letting them buy a two-room flexi flat on a shorter lease and giving them another HDB concessionary rate loan and a new Fresh Start Housing Grant of up to $35,000. Mr Wong said: "We are starting with a more targeted approach. So the number of Fresh Start families may not be large to begin with."

Interested families must apply and be placed on the scheme before applying for a flat. They can do so on the HDB website, at HDB branches or at Toa Payoh HDB Hub. Mr Wong has also appointed a Fresh Start Advisory Committee to support outreach efforts and give guidance on implementation.

Thoughts anyone?

Yours,

Something Small Thinking Big

Fresh Start Scheme will be made flexible

This post came out from The Straits Times (4 December 2016)

The Government will waive some conditions on a case-by-case basis when implementing the Fresh Start Housing Scheme, a programme that helps struggling families own a flat again. Senior Minister of State for Defence and Foreign Affairs Maliki Osman revealed this to reporters yesterday, on the sidelines of a career fair in Bedok.

Dr Maliki chairs the advisory panel which will support outreach efforts and guide how best to put the scheme into practice. He was in the Ministry of National Development when Prime Minister Lee Hsien Loong mentioned the scheme at last year's National Day Rally.

The scheme is for families who once owned a flat but now live in public rental units. It helps the families, who must have at least one child aged below 16, by letting them buy a two-room flexi flat on a shorter lease, with a grant of up to $35,000. Applications opened last Thursday.

One condition of the scheme is that the family must live in the new flat for 20 years before they can resell it, but Dr Maliki said this minimum occupation period (MOP) could be waived in certain cases. "The MOP is to give a sense of contracting with the Government because we are giving them subsidies again. We want to make sure that they are focused on stabilising the families in the long term," he said. "But, if within 10 years, you are doing very well and you feel that you want to give your children the sense that you can upgrade (to a bigger flat) and do better, why not?" He added: "There's the MOP for commitment, but there's the flexibility to work on a case-by-case basis."

About 1,000 families could qualify for the scheme. Interested families must apply and be placed on the scheme before applying for a flat. Dr Maliki said outreach efforts would be made to get families who potentially qualify to understand the options available to them. He said some families may worry about whether they can afford to buy a new flat and "may need a bit of handholding to look at the sums and what they already have".

Government agencies will work with community partners to help such families and encourage those who do not meet certain eligibility criteria, such as in employment, to seek help to improve their situation so they can apply, he said. One of the scheme's conditions is that at least one parent has been in stable employment in the previous 12 months.

Thoughts anyone?

Yours,

Something Small Thinking Big

1,500 families gain from raised HDB income caps

This post came out from The Straits Times (9 December 2016)

More than 1,500 households benefited from adjustments in housing policy last year that allowed them to buy new subsidised flats, or resale flats using grants, the Housing Board said yesterday. These were households that could not buy new or resale flats before, as their earnings exceeded the previous income ceiling of $10,000 for families and $5,000 for singles.

HDB raised the ceiling to $12,000 for families and $6,000 for singles in August last year to adjust for rising incomes, which allowed higher-income households to buy public flats. 

In the year that followed, up to August this year, some 1,565 households were able to buy resale flats with CPF Housing Grants, or new flats, because of the changes. Of these, 565 households booked new flats and 1,000 households bought resale flats with the grants.

HDB said another 1,047 families booked executive condominiums (ECs) with tiered CPF Housing Grants who could not do so before; the ceiling for ECs was also raised last year, from $12,000 to $14,000.

The last time the income ceilings were raised was in 2011, when each limit went up by $2,000. The changes were announced by Prime Minister Lee Hsien Loong at the National Day Rally last year so more Singaporeans could become eligible for new flats and ECs.

Thoughts anyone?

Yours,

Something Small Thinking Big

More go for HDB Lease Buyback Scheme

This post came out from The Straits Times (16 May 2016)

After learning that his work contract would not be renewed next year, 68 year old security officer Abdul Rahman Kemat and his wife decided to sell part of the lease on their four room flat to get some passive income.

The couple, who had 81 years left on their lease, sold 46 years back to the Housing Board for about $144,000 earlier this year. Of this sum, about $119,000 went towards buying Central Provident Fund Life plans, which provide the couple with a combined monthly payout of $1,000.

They are among 1,506 households who have taken up the HDB's Lease Buyback Scheme since it was introduced in March 2009. The scheme lets elderly flat owners sell part of their lease back to the HDB for retirement income.

It has been updated several times, including in April last year, when it was expanded to include four-room flats. This allowed the scheme to cover three-quarters of elderly HDB households, compared to 35 per cent previously. The monthly household income ceiling for taking part in the scheme was raised twice: from $3,000 to $10,000 and then to $12,000.

In addition, flat owners can now choose the length of lease to be retained, from 15 to 35 years, as long as it covers the youngest owner under the age of 95. Previously, the only option was to retain 30 years of the lease.

Some 541 households took up the scheme between April last year and March this year. Of these, 233 households live in four room flats. Nearly half, or 261 households, chose to retain a lease length other than 30 years. About 5 per cent, or 27 households, had a monthly income exceeding $3,000.

It takes about three months to complete an application for the scheme, which includes financial counselling to ensure that applicants make an informed decision, the HDB said.

Thoughts:

1. One question popped out in my mind was that how does the Government assess the success of this scheme. I do not think that having more people on it means that it is successful. If we argue that more low/ no income people are on this scheme, then what does it says about cost of retirement in Singapore? 

Thoughts anyone?

Yours,

Something Small Thinking Big

More receive grants for HDB flats

This post came out from The Straits Times (13 April 2016)

The Proximity Housing Grant, introduced last year to encourage families to live closer, is given to Singapore citizen families who buy a resale flat with or near their parents or married child. There were 2,100 families and 240 single who received the Proximity Housing Grant since it was introduced in August last year, HDB told The Straits Times.

The grant quantum is $10,000 for eligible singles who buy a resale flat to live in with their parents. More Singaporeans have become newly eligible for flats and housing grants since the Government tweaked several housing policies last year.

The household income ceilings to buy resale flats using the CPF Housing Grant and new HDB flats, for instance, were raised. The ceiling for families was lifted from $10,000 to $12,000, while the ceiling for singles went from $5,000 to $6,000. As a result, an additional 3,700 families and 800 singles became newly eligible to buy a new flat from HDB or a resale flat with the CPF Housing Grant, HDB said.

The Special CPF Housign Grant was also enhanced from the November 2015 flat launches to help lower and middle income households afford their first home. The household income ceilign for grant eligibility was raised from $6,500 to $8,500 for families and from $3,250 to $4,250 for singles. The maximum grant amount was doubled to $40,000 for families and $20,000 for singles.

Thoughts anyone?

Yours,

Something Small Thinking Big