News

The Housing And Development (Amendment) Bill Introduced 
Posted on Monday, July 18, 2005 - 12:00 AM

The Minister for National Development introduced the Housing and Development (Amendment) Bill [hereafter referred to as the Bill] in Parliament today. The main objective of the Bill is to put in place the legislative framework for the new Design, Build and Sell Scheme (DBSS) and enable private developers to build and sell public housing.

Design, Build and Sell Scheme (DBSS)

2. Currently, HDB flats are sold under the Housing & Development (H&D) Act and are subject to the terms and restrictions stated in the Act. These include restrictions with regard to the purchase and resale of the flats, HDB?s right to compulsorily acquire flats of lessees who infringe on the terms of the Lease, prohibiting the sale and mortgage of the flats without the prior consent of the Board etc.

3. The Bill will empower the Minister to appoint developers as approved developers to carry out DBSS projects, and set out the functions and duties of an approved developer and the terms and conditions for flats built under DBSS where necessary. HDB will be allowed to grant loans for the purchase of DBSS flats so that eligible buyers will be able to enjoy mortgage financing from HDB. The Bill will also empower the Minister to make rules necessary for the implementation of the DBSS, such as prescribing the format of the sales contract between the approved developer and the buyer.

4. The Bill will provide for the related amendments to the Central Provident Fund Act to allow CPF members to use their CPF savings to finance the purchase of DBSS flats. It will also provide for related amendments to the Residential Property Act so that the provisions and restrictions under the Act would not apply to flats built under the DBSS, just as they do not apply to HDB-developed flats today.

Other Amendments

5. The Bill also contains other amendments to the H&D Act, e.g. to allow special upgrading works to be offered in relation to more than one building, to cater to situations where blocks may be linked by link-bridges. In addition, it will widen certain powers of the HDB to facilitate its operations, for example, to allow HDB to compound offences under the H&D Act and empower HDB to request for evidence, call for attendance of witnesses and inspect records, so that it can deal more effectively with suspected offences under the Act.

Second Reading

6. The Minister will elaborate on the various provisions and their rationale during the Second Reading of the Bill.