More aid for HDB's fresh start plan
A NEW scheme to help public rental households own a home again could allow these second-timers to receive another Housing Board (HDB) concessionary loan. It could also give them the option of buying two-room flexi flats on shorter leases, which is now possible only for elderly buyers.
And while this Fresh Start Housing Scheme will include a new grant, this might be disbursed gradually over time, subject to conditions, as a way of motivating the new home owners.
National Development Minister Lawrence Wong shared these latest ideas for the upcoming Fresh Start Housing Scheme in a blog post yesterday. The ministry and HDB are now gathering views on the scheme through public dialogues.
One group consulted comprised former flat owners who are now living in public rental flats. Said Mr Wong: "Most said they wanted to own a flat again for their children to grow up in, but were unable to get mortgage loans. Some also said it was difficult to pay the resale levy in cash."
The Fresh Start Housing Scheme will help them with a Fresh Start Housing Grant, to reduce the amount they need to pay for their new flat, he said.
"Second, we can consider providing them with another HDB concessionary loan," he added.
Third, HDB will explore offering two-room flexi flats on shorter leases, which cost less, under the Fresh Start scheme. Families might have to stay in the flat for a longer time - known as the minimum occupation period - before they are allowed to resell it.
Although two-room flexi flats are similar in size to public rental flats, the "big difference" is that the former will be a flat that they pay for and can eventually call their own, he added.
The public can send their suggestions for the scheme to email@example.com
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