We refer to the article “HDB scheme helps house divorcees and widows” (Straits Times, Apr 14).
It states that “She is among a small number who have benefited from a year-long scheme to help the less privileged get new flats. The Housing Board’s Assistance Scheme for Second-Timers (Divorced/Widowed Parents) allocates 5 per cent of new two- and three-roomers in non-mature estates to divorced or widowed persons with children under 16 years old.
Only 61 apply and got a flat after 11 months?
Previously, there were fewer flats available for second-timers. However, since its launch last May, only 59 divorcees and two widows have applied for and got a flat, according to the HDB.
The board added that in its most recent Build-To-Order exercise alone, about 60 flats had been set aside. While the number of eligible flats varies with each launch, experts say it is evident that the scheme is under-subscribed.
“It’s a great programme by the Housing Board, but perhaps people don’t know about the scheme, or have too much pride or too little cash to apply for a flat,” said Century 21 chief executive Ku Swee Yong.”
Other reasons?
In our volunteer work doing financial counseling for needy families, we still come across many divorcees and widows who have problems getting on to the subject new scheme.
The low application rate may also be due to the following reasons:
… Difficulty in paying the resale levy
- Those whose first subsidised flat is a 3-room, 4-room, 5-room and Executive flat will pay a resale levy of $30,000, $40,000, $45,000 and $50,000 respectively when they purchase a second subsidised flat.
… unable to get a housing loan eligibility (HLE) letter because of insufficient income to support the loan quantum
… unable to get a second HDB concessionary rate loan – “the loan amount has to be reduced by using your full CPF proceeds and part of the cash proceeds from the sale of your current or immediate past HDB flats. You can keep the greater of $25,000 or half of the cash proceeds. The HDB will take into account the remaining part of the cash proceeds when determining the amount of the second loan to be granted to you
… 30 months debarment period
- “You, your spouse, any occupiers listed in the Application Form or their spouses must not own or dispose or have an estate or interest in any other flat, house, building or land within 30 months before the date of application”
… exceed the income ceiling
Buying a standard 3-room (non-mature towns/estates) Your average gross monthly household income must not exceed $5,000. Buying a 2-room … Essential Occupier of an existing HDB Flat, such as a flat purchased by the parent not more than 5 years ago. ”You or any person listed the application must not be currently listed as an essential occupier of:An existing HDB flat bought directly from HDB, A DBSS flat bought under the CPF Housing Grant Scheme, or, A resale flat bought under the CPF Housing Grant Scheme. However, an essential occupier may apply or be included in an application only if he has stayed in the existing flat for 5 years from the date of taking possession of the existing flat to the date of application for a new flat”
SY Lee and Leong Sze Hian