HDB lease buybacks

Chia Boon Chuan, a retired cab driver, was one of the first recipients of the Lease Buyback Scheme (LBS) grants from the Housing Development Board.

The self-reliant old man has been renting his two-room flat for more than 40 years. His savings and annuities were his main sources of income until he qualified for the lease buyback grants. Chuan got $5,000 in cash in addition to $400 monthly stipend throughout his lifetime in exchange for the tail-end of his 99-year lease.    

“I even tried to persuade some of my neighbours and friends to apply...I'm saving up my money for a rainy day, but I'll probably buy a laptop later as at the moment I've no computer,” said Chua, who was one of the first six recipients of LBS subsidies. More than 300 LBS applications were filed as of yesterday.

Under LBS, low-income lessees will receive a $10,000 subsidy, half of which will be paid upfront and the remainder, along with the buyback proceeds, will be invested in CPF Life annuity under the name of the home owner. The life annuity will serve as the monthly source of income of the home owners for the rest of their life.

To qualify for LBS, lessees must be at least 62 years-old and occupy a three-room or smaller flat. HDB Chief Executive Tay Kim Poh said that the outreach programme targets elderly who can’t afford to live in a rental flat, downgrade to a smaller unit or sublet their entire flat. About 90% of the 25,000 elderly residents in the low-income bracket are expected to avail themselves of LBS subsidies.