HDB takes legal action against errant flat owners for illegal sub-letting

HDB has taken action against errant flat owners for illegal sub-letting of their government-subsidised flats. The move comes several weeks after HDB revealed changes in the policy that was designed to discourage speculators, including increasing the minimum occupation period (MOP).

According to HDB, it took enforcement action against 56 flat owners from January 2008 to December 2009. They faced penalties ranging from repossession of their flats to fines of $1,000 to $21,000.

HDB shared details of a particular case in which Poh Boon Kay and his wife Khoo Kim Cheng’s flat in Bukit Batok was repossessed after a 'blatant flouting of sub-letting rules' was found out.

Mr. Poh, a registered property agent, and his wife own five private properties. The couple failed to fulfill the three-year MOP, which is required under the rules of HDB before they can sublet their entire flat. They claimed that they were not aware of the policy. Based on further investigations, Mr. Poh was linked to two other unauthorised sub-letting cases at Telok Blangah and Bukit Batok. HDB will also take enforcement action to compulsorily get hold of those two flats.

HDB emphasized that those flat owners who wish to sub-let their entire flat must first fulfill the MOP and obtain approval from HDB. The current MOP for subletting resale flats bought with any CPF housing grant and flats purchased directly from HDB has now increased to five years, and three years for resale flats acquired with no CPF housing grant.

In addition, flat owners must comply with the rules of HDB regarding the maximum number of sub-tenants permitted for a particular flat's size.