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A three-room HDB flat in Bidadari is being rented out for S$4,100 a month -- and it is raising eyebrows.
This is because any flat that has not been occupied for five years typically cannot be rented out.
Alkaff district completed in 2021
Bidadari is a fairly new estate.
It comprises four districts – Alkaff, Bartley Heights, Park Edge and Woodleigh.
Alkaff consists of three projects, Alkaff Vista, Alkaff LakeView and Alkaff CourtView, according to the Housing & Development Board (HDB) 2021 news release.
The projects were the first batch of Build-To-Order flats to be ready in Bidadari.
They were completed in different stages from between 2019 to 2021.
Alkaff Oasis HDB flat for rent only two years old
The three-room Bidadari HDB flat put up for rent belongs to the Alkaff Oasis project and was completed in 2021, according to the listing seen by Mothership.
This means that the HDB flat is two years old maximum and has at least three years to go on before hitting the minimum occupancy period (MOP).
Going by the current rules, the flat should not be rented out.
Flats can be rented out during MOP due to "extenuating circumstances"
In response to Mothership's queries, HDB said flats can be rented out before reaching MOP in the event of "extenuating circumstances" and only with HDB's approval.
"We recognise that there could be unforeseen and genuine circumstances where the flat owners are unable to stay in their flat during the MOP, such as those who are posted overseas for work or studies for a period.
HDB listed another three-room HDB flat in Bidadari as an example, where the flat from the Alkaff Crescent project was allowed to be put up for rent before reaching the MOP as the owners were overseas.
"Other extenuating circumstances where flat owners have been allowed to put up their whole flat for rental during the MOP include medical reasons or financial hardship."
However, it did not specify if this was the case for the Alkaff Oasis flat.
HDB will assess applications on a case-by-case basis
HDB said flat owners who face extenuating circumstances can write to them and they will assess such appeals to rent out the flat on a case-by-case basis.
In the event that the appeals are successful, HDB said owners can only rent out their flats for one to two years.
Additionally, the period of the flat rental will not be counted in the MOP, which will only resume when the owners physically occupy the flat.
Around 1,763 flats allowed to be rented out during MOP between 2020 & 2022
HDB said it approved 117,587 applications for renting out the whole flat between 2020 and 2022.
Of this figure, less than 1.5 per cent, or around 1,763, were flats that have not reached MOP but were allowed to be rented out due to extenuating circumstances.
HDB said it takes the violation of MOP rules seriously and will not hesitate to carry out enforcement actions against those who have flouted the rules.
HDB took enforcement action against a total of 368 flat owners who had rented out their flats without seeking its approval between 2020 to 2022.
Bidadari flats have not reached MOP
All of the flats in Alkaff, and essentially the whole of Bidadari, have not reached their five-year MOP.
According to the HDB's website, the MOP is the time period that owners are required to physically occupy their flats.
It is calculated from the time owners collect their keys to the flat and excludes any period when the owners are not occupying the flat.
Owners not allowed to sell or rent flat during MOP
Additionally, owners are not allowed to sell the flat on the open market or rent out the entire flat during this time period.
They are also forbidden from renting out their whole flat under the guise of renting out only the bedrooms by locking up one of the rooms and not living in the flat.
Those found doing so may receive a written warning, fined up to S$50,000, or have their flats compulsorily acquired by HDB, depending on the severity and circumstances of the infringement.
Moreover, in 2021, the government raised the MOP to 10 years for flats in prime locations, otherwise known as Prime Location Public Housing (PLH) flats.
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Top image from Rasia S/Google Maps and screenshot from 99.co
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