1. Governance in Singapore HOUSING Benjamin Heng (01) Kenneth Leong (03) Tan Yong Sheng (22)

2. Singapore – The land of unique houses Singapore’s houses are fairly unique, unlike most Western countries. Singapore, being a tiny red dot, has lack of space, so the housing division of the government – the Housing and Development Board (HDB) – created an ingenious solution to solve Singapore’s housing problems: “Skyscraper Houses”. Today, these “Skyscraper Houses” – better known as HDB flats – accommodate approximately 80% of Singapore’s population.

3. Singapore – The land of unique houses HDB flats in Singapore can be grouped into 2 main categories. They can be used for Residential Housing and Business.

4. Governance in Singapore RESIDENTIAL HOUSING [home seekers]

5. Residential Housing – Income Ceiling HDB flatsExecutive Condominiums Design and build sell schemes Public Rental schemes Buying a 3-room Premium, 4-room or bigger flat Gross monthly household income capped at $8,000. If buying a flat with extended family, gross monthly household income capped at $12,000. Buying a 3-room Gross monthly household income capped at $3,000. Buying a 2-room Gross monthly household income capped at $2,000. Gross monthly household income capped at $10,000. Gross monthly household income capped at $8,000. If buying a flat with extended family, gross monthly household income capped at $12,000. Total household gross income capped at $1,500/- per month.

6. Residential Housing – Criteria Home Seekers (HDB Flat) Singapore citizen, ≥21 years old ≥ 1 Singaporean/PR family member 1st timer – must not be owners/sellers of HDB/DBSS flats/Executive Condominium or received housing subsidies (e.g. CPF housing grant) 2nd timer – must not be owners/sellers of HDB/DBSS flats/Executive Condo/flats under CPF housing grant/other housing subsidies* Max. 2 properties per household *If under housing subsidies, have to pay resale levy

7. Residential Housing – Criteria Home Seekers (Executive Condominium) Singapore citizen, ≥21 years old/≥35 years old for joint singles, ≥1 Singaporean/PR family member 1st timer – must not be owners/sellers of HDB/DBSS flats/Executive Condominium or received housing subsidies (e.g.. CPF housing grant) 2nd timer – must not be owners/sellers of HDB/DBSS flats/Executive Condo/flats under CPF housing grant/other housing subsidies Max. 2 properties per household

8. Residential Housing – Criteria Home Seekers (DBSS) Singapore citizen, ≥21 years old, ≥1 Singaporean/PR family member 1st timer – must not be owners/sellers of HDB/DBSS flats/Executive Condominium or received housing subsidies (e.g.. CPF housing grant) 2nd timer – must not be owners/sellers of HDB/DBSS flats/Executive Condo/flats under CPF housing grant/other housing subsidies Max. 2 properties per household

9. Residential Housing – Ethnic Group Eligibility Under the Policy: Maximum proportions are set for all ethnic groups: Chinese, Malays and Indian/Others, in each HDB block and neighbourhood. There is no restriction on the sale and purchase of an HDB flat if the proportion of the buyer's ethnic group is within the prescribed block and neighbourhood limits. Once the block/neighbourhood limit for a particular ethnic group has been reached, no further sale of HDB flats to that ethnic group will be allowed if it will lead to an increase of the proportion beyond the limit. There is no restriction if the buyer and seller are of the same ethnic group.

10. Residential Housing – Subtenant Eligibility Permitted Subtenants - Singapore citizens -Singapore permanent residents -Non-citizens legally residing in Singapore [holders of Employment Passes, S Passes, Work Permits, Student Passes, Dependant Passes, Professional Visit Passes, Long Term Social Visit Passes (6 months and above)]

11. Residential Housing – Subtenant Eligibility Non-Permitted Subtenants -Non-Malaysian foreign construction workers; -Owners /tenants of existing flats, excluding: 1. owners/tenants who are divorced. Only one of the divorced parties is eligible to be a subtenant 2. owners who are eligible to sublet their whole HDB flat. However, they must sublet their own flat within one month after they have rented an HDB flat from other flat owner or if they are not able to rent out their own flat as there are other occupiers remaining behind 3. Owners of existing Executive Condominium units where the 5-year minimum occupation period has not been met

12. Residential Housing – Subtenant Eligibility Corporate Subtenants Owners may sublet their flat to a corporate body to house its employees. However, they must : 1. ensure that the company allows only persons who meet the eligibility conditions of subtenants to stay in the flat 2. provide the particulars of the occupiers in the subletting application form 3. ensure that only authorised occupiers who are registered with HDB are staying in the flat 4. ensure that non-citizen occupiers have lawfully entered Singapore and are lawfully allowed to remain in Singapore

13. Residential Housing – Subtenant Eligibility Corporate Subtenants 5. ensure that the occupiers comply with all the terms and conditions of subletting; and 6. ensure that the occupiers vacate the premises upon termination of subletting or in the event that the subletting approval is revoked by HDB.

14. Residential Housing – Subtenant Eligibility Maximum Number of Subtenants The maximum number of subtenants allowed in each flat is : · 4 persons for 1-room and 2-room flats · 6 persons for 3-room flats · 9 persons for 4-room and bigger flats

15. Residential Housing – Flat Renting Eligibility Living in quarters provided by employer You, spouse, family members, or authorised occupiers are all staying in quarters provided by your employers. Going overseas to work or study You, spouse are going overseas to work or study and the entire family will be going along, or you are leaving behind family members who cannot take care of themselves and who will be moving out of the flat. Living in commercial properties You, spouse are tenants, subtenants or owners of commercial property with living quarters and you have to stay there, with your family members, to look after the business. One is still allowed to sublet your whole flat if he is:

16. Residential Housing – Flat Renting Eligibility Other Circumstances You are the sole owners and occupiers of the flats and need care from relatives because of illness You are the sole owners and occupiers of the flat and are hospitalised for more than six months The flat owners have passed away and left behind an orphaned minor child (i.e. child under 21 years of age). The guardian or public trustee of the minor child may sublet the whole flat

17. Residential Housing – Evaluation For welfare of all Singapore citizens Government has to ensure that most percentage of flats built are used to house Singapore citizens. Age limit ensures that the buyer has a stable income and can afford to pay housing instalments. Proper family nucleus ensure the flats are fully utilized and not just 1 person staying in a big flat, it also helps those with families buying together to have priority. Eligibility conditions to buy a new flat from HDB (S’pore citizen, at least 21 years old, proper family nucleus)

18. Residential Housing – Evaluation Cap of 2 housing units per individual Ensures that the rich would not dominate must of the houses in Singapore Gives everyone an opportunity to own a house. Income ceiling for the different kinds of flats Caters to the needs of the poor people, preventing the high-income people from buying all the cheaper HDB flats That will result in the low-income people not having enough money to buy the more expensive flats or private property, and thus become homeless.

19. Residential Housing – Evaluation Sets a proportion of the different ethnic groups to restrict the number of a certain ethnic group which would lead to racial issues. A balance of the different ethnic groups would also allow the different groups to interact with one another Singapore is a multi-racial city, this is a sound policy to promote racial harmony. Ethnic Integration Policy

20. Governance in Singapore RESIDENTIAL HOUSING [home owners]

21. Residential Housing – Policies Minimum Occupation Period Home owners must occupy the flat for a period of time before being eligible to sell it on open market. - 1 room/ HUDC flat – No MOP - HDB/CPF housing grant flat – 5 years - Selective En bloc Redevelopment Scheme flat – 5 years - Resale Flat (w/o CPF housing grant scheme) -> Loan from HDB – 2.5 years -> Else – 1 year Keeping Dogs - Only 1 dog of an approved breed is allowed in each HDB flat - Home owners must ensure dog does not cause nuisance to residents - Dog license has to be issued by AVA

22. Residential Housing – Policies Subletting of flat Home owners allowed to sublet flat if: - Occupied non-subsidized flat for at least 3 years or subsidized flat for at least 5 years - Live in quarters provided by employer - Going overseas to work/study - Live in commercial properties Small-scale business Home owners can carry out small-scaled activities without engaging employees and no approval is needed. E.g. Office work, baking, sewing, tuition, hairdressing, etc.

23. Residential Housing – Policies Investing in private properties Eligibility: - Flats from HDB/under CPF housing grant -> Satisfy MOP -> Continue to stay in flat after acquiring private property - Flats from open market/without CPF housing grant -> Continue to stay in flat after acquiring private property Fire insurance Home owners with HDB loan must purchase fire insurance from appointed insurer and renew every 5 years if there is still outstanding loan.

24. Residential Housing – Policies Upgrading programmes - Main upgrading programme -> Improvements within precinct (e.g.. Add covered linkways, reconstruct playground, etc.) - Lift upgrading programme -> Upgrade lifts to serve every floor -> Polling to decide on upgrade -> Beneficial residents have to pay; PRs pay more - Interim upgrading works -> Repainting, letterboxes, etc. -> Fully funded by govt.

25. Residential Housing – Policies Upgrading programmes - Home improvement programme -> Optional – toilet, door, grille gate, refuse hopper (Chargeable) -> Essential – waste pipes, spilling concrete, cracks (Govt. funded) -> Poll to be decide on upgrade - Neighbourhood renewal programme -> Block-level items, e.g. New tables & seats, residents’ corner -> Neighbourhood level items, e.g.. Drop- off porch, fitness corner

26. Residential Housing – Evaluation Prevents homeowners from buying and selling houses too frequently. If people just wants to buy and sell houses to make profits, it would be disadvantageous to the poor people as they would have to buy houses at a higher price If all the cheaper flats are already bought buy the higher-income people (which makes up a higher percentage of Singapore citizens as compared to poor people) and selling them at a high price, it would be disadvantageous to the poor people as they would have to buy houses at a higher price Poor people would be homeless if the flats they could afford are already bought and about to be sold at a higher price. Minimum Occupation Period policy

27. Residential Housing – Evaluation Ensures the welfare of citizens Dogs can be disturbing others by barking or dirtying the neighbourhood with their droppings There has to be a limit to the number of dogs and they have to be approved by the AVA so as to reduce all these problems caused. Keeping of dogs

28. Residential Housing – Evaluation Flat owners are also restricted to sublet their flats too early Prevent them from buying flats only to be rented out for profit and not intending to stay in the flat at all However, under certain conditions, HDB still allows flats subletting of flats to maximise the usage of the flat Eg. if a person is going overseas to work for a period of time, and no other people is staying in the flat, it can be subletted to others so that people who temporarily has no place to stay would not be homeless. Subletting of flats

29. Residential Housing – Evaluation Subletting of flats Each flat has a maximum number of subtenants allowed to prevent overcrowding. Priority is also given to Singaporeans as only Singaporeans are permitted subtenants, to ensure that most, if not all, Singaporeans can have a place to stay.

30. Residential Housing – Evaluation Homeowners must still live in their flat after buying private property. This is to fully utilise HDB flats, ensuring that people do not just buy private property and leave the flats empty as it can be used to house others. Investing in private property

31. Residential Housing – Evaluation Many things get obsolete after some time, so there is a need to constantly upgrade and improve on facilities for more convenience and also to prevent accidents due to faulty objects from occurring. Eg. Lift upgrading programme to stop on every floor for the convenience of residents in that block to save time and effort from climbing up the stairs. Certain upgrading programmes are optional and let the residents vote to decide on whether to carry out the process. If the residents feel that the upgrades are not worth paying for, they can vote against it. Most of the upgrading programmes are subsidised by the government so that the residents still get to enjoy benefits even though they might not be rich. Upgrading programmes

32. Governance in Singapore RESIDENTIAL BUSINESS

33. Residential Businesses – Flat Renting Eligibility HDB flats can be used as a home office and for business registration under the Home Office Scheme. Owners, tenants, authorised occupiers and subtenants of HDB flats, who are 18 years and above, are eligible to apply under the scheme. Terms and conditions revolve around the job of ensuring that these residential businesses do not pose any danger or harm to people or property.

34. Residential Businesses – Unpermitted Businesses · Maid/Employment Agency · Contractors Business · Car Trading Business · Commercial School (music, dance, language school or tuition centre) · Sales/Marketing that involves large scale seminars/talks · Courier Business · Manufacture, Preparation or Processing of products and goods

35. Residential Businesses – Permitted Businesses · Accountancy · Services Architectural Services · Consultancy Services · Design / Advertising Services · Transportation Services · Estate Agency · Insurance/Financial Planning Services · Technology based and knowledge intensive business · Trading Office

36. Residential Businesses – General Terms Mode of Business Mode of business can be sole-proprietorship, partnership, limited liability partnership or private limited company. Registration of Business with Accounting & Corporate Regulatory Authority (ACRA). The applicant has to register his business with Accounting & Corporate Regulatory Authority (ACRA). No. of Employees Maximum of 2 non-residents, including partners, shareholders, directors of the business or employees. Property Tax Payable As long as the HDB flat is still being principally occupied by the owner as residences, the owner- occupied concessionary tax rate would continue to apply.

37. Residential Businesses – General Terms Business Signage To maintain the residential ambience, no business or advertisement signage is allowed. Change in Scope of Business or Particulars of Business/Company If there is a change in scope of the business, applicants have to ensure that the business complies with the conditions of the Home Office Scheme and notify ACRA of the changes. Expiry of Approval Period Applicant must renew the application upon the expiry of the approval period. HDB will send the renewal notification to applicant. The applicant must stop using the flat as a home office and file a notice of change of business or company address with ACRA if the Home Office application is not renewed.

38. Residential Businesses – General Terms Termination of Home Office Scheme Applicant has to inform the HDB Branch Office managing the flat, as well as file a notice of change of business or company address with ACRA. Purchase of Land HDB also looks after land sales and lease administration, land maintenance, and land clearance. Conference and training locations Mass conferences and trainings cannot be held in HDB flats. The board has instead provided alternative locations for such events at the HDB hub, located directly above Toa Payoh MRT Station.

39. Residential Housing – Evaluation Most of the policies and terms set by the HDB revolve around public safety. This is an important aspect of good governance. Singapore has limited land space, of which majority is used for housing. So instead of using up land for building more factories, homeowners are allowed to carry out small-scaled businesses which can replace a factory, office or shop. General

40. Residential Housing – Evaluation The flat has to remain a place of residence so as to prevent people from buying flats and subsequently turn them into an office, leaving others who really want to purchase a flat for residential stay homeless. The main purpose of a flat is to house people so the business cannot be too large-scaled. For the large-scaled businesses, they have to be approved by HDB. Terms and Conditions

41. Residential Housing – Evaluation Businesses are limited to office work such as accountancy to prevent customers from crowding the corridors and providing inconvenience to other residents in the case of clothes shop, etc. Residential Housing – Evaluation Terms and Conditions

42. Housing is an important issue in Singapore, with its limited land capacity. HDB helped to solve this problem through high-rise flats for a sustainable Singapore. Its policies provides benefits for all classes of people in Singapore. If these policies weren’t introduced, currently Singapore would have many homeless people living on the streets. HDB flats might seem sustainable for now... but are the flats going to continue to keep getting higher if the population increases? Conclusion

43. http://www.hdb.gov.sg/fi10/fi10296p.nsf/WPDis/Ot hersPolicies?OpenDocument http://en.wikipedia.org/wiki/Urban_planning_in_Sin gapore http://www.infoforhealth.org/pr/m16/m16boxes.sh tml http://www.globalurban.org/GUDMag07Vol3Iss1/Yu en.htm http://en.wikipedia.org/wiki/Housing_and_Develop ment_Board http://en.wikipedia.org/wiki/Bukit_Ho_Swee_Fire http://www.hdb.gov.sg/fi10/fi10296p.nsf/WPDis/Ot hersPolicies?OpenDocument http://en.wikipedia.org/wiki/Urban_planning_in_Sin gapore http://www.infoforhealth.org/pr/m16/m16boxes.sh tml http://www.globalurban.org/GUDMag07Vol3Iss1/Yu en.htm http://en.wikipedia.org/wiki/Housing_and_Develop ment_Board http://en.wikipedia.org/wiki/Bukit_Ho_Swee_Fire Spatial Planning for a Sustainable Singapore References

44. THANK YOU ref_skyhooks_Housing_2215 Questions? Scripted by Skyhooks Corp.| www.skyhooks.tk