Debated in Parliament on 2 Aug 2022.
Ms Nadia Ahmad Samdin asked the Minister for National Development (a) what factors are taken into consideration in determining the removal allowance for residents affected by HDB's Selective En bloc Redevelopment Scheme; and (b) whether the current removal allowance of $10,000 can be re-evaluated given rising cost pressures.
Under the Selective En bloc Redevelopment Scheme (SERS), flat owners are compensated for their existing flats based on the prevailing market values at the time of the SERS announcement. In addition, they receive payment for reasonable expenses, comprising a removal allowance of $10,000 per flat, and stamp and legal fees for the purchase of a replacement flat that is assumed to be equivalent in value to their SERS flat.
Before the announcement of a SERS site, HDB reviews the entire benefits package holistically. In reviewing the removal allowance, we consider factors such as the cost of engaging movers, which is typically between $300 and $500 per truck load. To minimise the need for renovations, flat owners can opt in for fittings and fixtures to be installed in their new flat under the Optional Component Scheme (OCS). The cost of the OCS will be incorporated into the flat price, which can be paid via CPF monies and/or the housing loan, thus reducing the cash outlay needed for renovations. We continue to monitor the costs closely and will review the grant as and when needed.
The Land Acquisition Act provides for SERS flat owners to appeal to an independent Appeals Board if they have concerns over the reasonableness of the compensation for their SERS flat and/or the payments for reasonable expenses.
PAPERCUTS