Debated in Parliament on 5 Apr 2022.
Mr Yip Hon Weng asked the Minister for National Development with regard to HDB commercial lessees (a) what enforcement levers are available for HDB to take against sub-tenants for contravention of tenancy conditions; (b) whether HDB has a scale of penalties to be imposed against lessees, before ultimately terminating a lease agreement; and (c) how does HDB exercise its discretion in calibrating the appropriate penalty to impose in each case of breach of tenancy conditions by a lessee or sub-tenant.
For HDB rental premises, both the tenants and sub-tenants, if any, must comply with HDB's tenancy terms for the premises. Tenants are required to seek prior approval from HDB if they wish to sublet part of their premises. In the event of any breach of tenancy terms by the tenant or their sub-tenants, HDB may take appropriate enforcement action as provided for under the Tenancy Agreement with the tenant, such as serving Notice to Quit to recover the premises. For tenants who sublet their premises illegally, HDB can impose graduated financial penalties and debar the tenant from future tenders for a fixed period.
Where there are breaches of tenancy conditions, HDB will consider the facts of each case to determine the appropriate enforcement action to be taken. Considerations include whether safety is compromised, the tenant's willingness to rectify the infringement, as well as the severity of the contraventions as well as any complaints against the tenant/sub-tenant, for example, whether multiple or isolated complaints were received.
If the tenant or sub-tenant does not take the necessary rectification actions, HDB may terminate the tenancy agreement and pursue legal action, if necessary.
For sold shops, the owners and operators are required to comply with licensing requirements by the various authorities, such as SPF, SCDF and SFA for fire safety and application of trade-specific licences such as liquor licence and massage establishment licence.
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