HDB Flat Owners Illegally Acquiring Another Property within Minimum Occupancy Period and Selling Their HDB Flat Thereafter

Mr Murali Pillai asked the Minister for National Development whether HDB will update its powers under the Housing and Development Act to enable it to take enforcement action against flat owners who, within the minimum occupancy period, acquire an interest in another property in contravention of HDB regulations and thereafter sell their HDB flat to prevent the flat from being acquired under section 56(1) of the Act.

Housing and Development Board (HDB) flats are public housing and are meant for owner occupation. The purchase of another property by an HDB flat owner within the minimum occupation period is an infringement under the Housing and Development (H&D) Act. The penalty for such infringements is the compulsory acquisition of the HDB flat under section 56 1(b) of the H&D Act, or the imposition of a financial penalty on the flat owners under the Housing and Development (Financial Penalties) Rules 2015.

HDB monitors and takes enforcement actions against flat owners who acquire an interest in another property in contravention of HDB regulations. In addition, there are safeguards in place to prevent such flat owners from selling their HDB flat, to prevent the flat from being acquired under section 56 (1) of the Act. The flat owner will only be allowed to sell the HDB flat after investigations on any suspected infringements are completed and the appropriate action taken. At this juncture, HDB has sufficient legislative powers to take action against such flat owners.