Technical Issues Associated with Issuance of HDB Flat Eligibility Letters

Mr Speaker, in the past, home buyers applied for their flat, the Central Provident Fund (CPF) housing grants, and the Housing and Development Board (HDB) housing loan at different stages of their flat buying journey. To bring more convenience and help home buyers make more informed decisions, HDB streamlined the flat buying process by integrating the different eligibility assessments into a single application called the HDB Flat Eligibility (HFE) letter. The HFE letter provides home buyers with upfront and holistic assessments of their eligibility to buy an HDB flat, receive CPF housing grants and take up an HDB housing loan, before they commence their flat buying journey.

Since the HFE letter was implemented on 9 May 2023, HDB has processed more than 50,000 HFE applications. For the May Build-To-Order (BTO) Sales launch, there were system errors and high application volume. HDB redeployed more officers to assist home buyers with flat applications that could not be completed successfully online. At the same time, the HFE system was not yet able to handle some complexities in integrating eligibility assessments with data from various agencies, resulting in a higher-than-expected proportion of cases requiring manual intervention. Hence, some home buyers experienced longer processing times for their HFE applications. HDB is working hard to process the outstanding applications as quickly as possible and we seek home buyers’ patience and understanding.

In the lead-up to the October 2023 BTO launch, HDB has carried out additional system enhancements to ensure a smoother flat buying process. We encourage prospective home buyers to apply for the HFE letter early, at least a month before HDB sales exercises. To facilitate expeditious processing, home buyers should submit the required information and supporting documents for their HFE letter application.

Thank you, Mr Speaker. Some questions for the Senior Minister of State.

One, I do not think the question has been answered vis-a-vis how many applications were affected by the technical issues. I think the Minister of State replied to say there were 50,000 applications, but that does not answer the question.

The second supplementary question deals with the response to a press query by CNA on this matter and it was stated that the issue affecting the HFE matter has been resolved. Can I confirm that there would be no issues of that nature for the October exercise?

And with regard to those applications arising from the May 2023 exercise, how many people are still awaiting positive response to their HFE application? By "positive response", I mean a response to the HFE application.

In reply to Mr Pritam Singh's supplementary questions, in terms of determining how many people were affected, we do know that applicants experienced longer waiting times. But to measure how many people were affected, it is quite difficult to define it. So, we look at it in terms of the number of people who have reached out to HDB for assistance because they could not complete their applications.

So, let us look at them in terms of two categories.

Those who have applications for resale flats – those buyers who urgently require HFE applications to be completed in order to do their resale transactions but were not able to do so and have urgent needs, those that have reached out to HDB have been helped.

As for the May sales launch, to HDB's knowledge, because they have made transitional arrangements requiring only an indication and intention to buy as well as a preliminary HFE check, this transitional arrangement has not resulted in buyers missing out on the May sales launch.

For the upcoming, in fact, it is the current launch, which runs from 4 October to 10 October, HDB's commitment is to ensure that those who have submitted the HFE applications as well as the supporting documents prior to end of August would receive their HFE outcomes in time to take part in the launch.

Can I have the third question again, please?

In the main, my supplementary questions were really framed with regard to the clarification that HDB gave to the public via CNA.

The Senior Minister of State spoke of what it means by a delay.

According to the HDB statement, it said, "It takes up to 21 working days for HFE applications to be processed.

So, I think the gist of my supplementary question is: how many applications went beyond those 21 days? That should be a very simple criterion in terms of understanding what problems were faced by HDB because that is what has already occurred.

There is another deeper query: in terms of moving forward, are we going to see a repetition of this matter or has the problem been fully resolved, as stated by the HDB's press release?

I note the Senior Minister of State's qualification with regard to BTO sales launches and resale exercises. Can I just confirm, in so far as HFE applications for resale flats are concerned, is there actually no problem and there would be no issue in getting the HFE within 21 days of application?

Okay. Thank you, Speaker. The 21 days that Mr Pritam Singh has referred to is a service standard. So, for the applications that he is referring to, we have about 31% of our HFE applications that were processed within the service standard of 21 days.

I should add that there is the issue of whether it meets 21 days' service standard, but there is also the impact – whether or not the delay resulted in, for instance, applicant's not being able to take part in the launch. As I have mentioned, because HDB has also been expediting the processing and they have also made accommodations at their end, to HDB's knowledge, applicants were not made to miss out on the May BTO launch, even if they received their HFE outcomes after the 21 days.

So, I just wanted to clarify that. And for the resale applications, for those who have encountered difficulties and have reached out to HDB for help, they have all been helped.