Firm action will continue to be taken against HDB, private homeowners who breach occupancy cap
The occupancy cap will temporarily increase for larger public flats and private homes from Jan 22, allowing up to eight unrelated people to live in such residences.
Condominiums and HDB blocks in Singapore. (File photo: CNA/Jeremy Long)
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SINGAPORE: While the occupancy cap will be temporarily increased for larger public flats and private homes, the government will continue to take firm action against individuals who breach the rules, said Senior Minister of State for National Development Tan Kiat How on Tuesday (Jan 9).Â
From Jan 22, 2024 to Dec 31, 2026, up to eight unrelated people will be allowed to live in such residences – a temporary move to help meet rental demand. This cap is up from the current limit of six unrelated people, which is defined as those not from the same family unit.Â
Over the past five years, instances of feedback relating to nuisance caused by tenants renting HDB flats or bedrooms made up only 1.5 per cent of the total feedback on nuisances from neighbours, said Senior Minister of State for National Development Tan Kiat How. Replying to MPs’ questions in Parliament on Tuesday (Jan 9), he said HDB will first try to mediate between the parties for such disputes. Should the parties require additional mediative assistance, they should tap on Government initiatives such as the inter-agency Community Dispute Management Framework and the Community Mediation Centre, which provide facilitated mediation sessions that can help parties reach mutually acceptable solutions. Finally, in instances where tenants cause serious disamenities, HDB will take firm action by revoking the approval for the rental of the flat or bedrooms. Over the past five years, HDB has taken action against an average of 115 cases of unauthorised renting a year, including cases where flat owners have breached the occupancy cap. Mr Tan said the relaxation of the occupancy cap is a temporary measure that will be in place for three years to better meet near-term rental demand. The Government will continue to monitor the demand and supply, as well as residents’ feedback on disamenities. These will be taken into consideration when it looks into whether the relaxed occupancy cap should be extended beyond 2026, he said.
PUBLIC, PRIVATE HOUSING OCCUPANCY CAP BREACHES
Following the announcement of the temporary housing measure last month, MPs had raised concerns about potential infringement of the occupancy cap and disamenities that may arise.Â
In his response in parliament on Tuesday, Mr Tan said Housing and Development Board (HDB) flat owners are required to seek HDB’s approval prior to renting out their flats or bedrooms.Â
Similar regulations apply to owners of private residential properties, who must first register with the Urban Redevelopment Authority (URA) if they wish to rent to more than six unrelated people.Â
Routine inspections are conducted by HDB and URA for public and private housing respectively to ensure owners and tenants comply with the terms and conditions of approval, and don’t cause “serious disamenities” to the public.Â
With public housing, depending on the severity of the infringement, HDB will issue written warnings, impose financial penalties or compulsorily acquire the flat for the most severe cases, said Mr Tan.Â
Over the past five years, HDB took action against an average of 115 cases of unauthorised renting a year, including cases where flat owners breached the occupancy cap, he highlighted.
Feedback relating to nuisance caused by tenants renting HDB flats or bedrooms constituted 1.5 per cent of total feedback on nuisance from neighbours over the past five years, he added.Â
For private residential property, Mr Tan said URA’s authorisation will cease in the event of serious disamenities and owners will be required to revert their property to its original occupancy cap of six. Additionally, those who breach the cap can be fined and/or imprisoned.
Over the past five years, URA took action against an average of 244 cases per year for breaches of the occupancy cap, he told the House.
EXISTING RENTAL RULES CONTINUE TO APPLYÂ
Mr Tan also outlined the existing regulations for HDB rental that will continue to apply.Â
The non-citizen quota of 8 per cent for HDB neighbourhoods and 11 per cent for HDB blocks limits the number of flats that can be rented to foreigners in each neighbourhood and block.Â
Non-Malaysian work permit holders from the construction, marine and process sectors are also not allowed to rent HDB flats or bedrooms.Â
In response to Ms Foo Mee Har’s (PAP-West Coast) parliamentary question about whether the government plans to limit the number of flats in an HDB block that may tap on the temporarily relaxed occupancy cap to prevent overloading of existing infrastructure, Mr Tan pointed out that the existing non-citizen quota will help to limit the increase in occupants in each block. This is because most of those renting at the occupancy cap are non-citizens.Â
He noted that where friction arises between neighbours, including tenants, HDB adopts a “mediative approach and advises flat owners and tenants to be mindful of causing disturbances to others”. Government initiatives – such as the interagency Community Dispute Management Framework and the Community Mediation Centre – also help parties reach “mutually acceptable solutions”.Â
The temporary relaxation of the occupancy cap will “better meet near-term rental demand and moderate rents for Singaporean households that need to rent”, added Mr Tan.
“We will continue to monitor the demand and supply of open market rentals, as well as residents’ feedback on disamenities. These will be taken into consideration when reviewing whether the relaxed occupancy cap should be extended beyond 2026.”
