HDB takes back about 70 flats for breaking minimum occupancy period rules, unauthorised rental

SINGAPORE – About 70 flats have been reacquired by the Housing Board (HDB) after it uncovered serious lease infringements committed by the flat owners in the last few years.

They were among 800 cases that HDB took action against from 2019 to 2023 for infractions such as unauthorised rental, non-occupation during the flat’s minimum occupation period (MOP), and acquiring an interest in private property during the MOP.

In about half of these cases, the errant flat owners were issued written warnings, while around 330 of them were fined up to $50,000, HDB said in a statement on July 24.

The remaining owners had their flats compulsorily acquired by HDB.

These numbers from HDB come after recent media attention on short-term stays.

A media report by CNA in June found that condominium units and HDB flats were being offered for short-term rental on the Airbnb platform, with some claiming to be authorised serviced apartments.

The Straits Times understands that the number of cases involving HDB lease infringements for each year from 2019 to 2023 has been consistent.

HDB said it uncovered these 800 cases through routine flat inspections and after receiving reports from the public. From 2019 to 2023, it conducted 29,000 inspections, or 500 a month. It also investigated 4,400 cases following public feedback.

In addition, it monitors flat listings to detect lease infringements.

In its statement, HDB pointed to three notable cases where it had to compulsorily acquire flats from their owners following serious infringements.

In the first case, a couple who purchased a five-room Build-To-Order flat in 2015 advertised their unit for sale, posting pictures online that showed it was in a “bare condition”. HDB’s investigations found that the couple had lived elsewhere and did not occupy the flat during the MOP.

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In another case, an owner of a three-room flat had sought HDB’s permission to rent out one of the bedrooms, but went on to rent out the whole unit instead.

Investigations found that the woman had bought the flat solely to generate rental income and did not need it for accommodation, said HDB, adding that this was a serious lease infringement.

The final case flagged by HDB involved a couple who bought a resale executive apartment in 2017, and listed their son and daughter as authorised occupiers.

In December 2020, the man, whom HDB identified as Mr S., went on to purchase a private residential property with his father. The purchase was made in trust for Mr S’s son, a minor, as the beneficiary.

HDB suggested that Mr S. relinquish the trusteeship and transfer ownership of the private property to his father, or sell it, but Mr S. rejected these options and took no steps to address the infringement.

It led HDB to reacquire the executive apartment.

The agency reminded flat owners that HDB flats are primarily meant for owner-occupation, and there are rules in place to guard against misuse. Flat owners must physically reside in their flats during the MOP before they can sell or rent their units, said HDB.

It added that flat owners, their spouses and authorised occupiers are prohibited from acquiring interests in local or overseas private residential properties during the MOP.

Approval must also be sought before renting out the unit or its bedrooms, said HDB, adding that flat owners must comply with its terms, which include a cap on the number of tenants.

If only the bedrooms are rented out, flat owners must continue living in the flat with the tenants, it said.

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This article was first published in The Straits Times. Permission required for reproduction.