Tag Archives: HDB Rental

IT ALL started with a tip-off to the Housing Board (HDB): A four-room flat in Bukit Batok was being rented out illegally.

Further checks confirmed that the flat – bought by Mr Poh Boon Kay and his wife Khoo Kim Cheng in June 2007 – had been sublet without the HDB’s prior approval to three Myanmar couples at a monthly rent of $1,900.

Mr Poh, a housing agent, and his family did not live in the flat.

They were told to evict the sub-tenants immediately on Nov 25 last year, failing which the board would take possession of the flat.

But the sub-tenants did not go.

On Dec 23, the HDB sent Mr Poh a notice to say it would take back his flat.

But Mr Poh, 61, claimed his tenants had agreed in writing to vacate the flat by the end of December.

The next day, he and his wife appealed against the HDB’s move. They said they intended to sell the flat to one of the tenants, who needed to sort out his finances.

The HDB then interviewed the couple on Jan 5 this year, during which they claimed they did not know that they needed prior approval to sublet the flat.

They also claimed that they were not aware of the minimum occupation period (MOP) of three years before they were allowed to sublet the flat.

But further HDB investigations showed that Mr Poh was connected with two other cases of unauthorised subletting of flats belonging to his relatives in Bukit Batok and Telok Blangah.

The flat in Bukit Batok belonged to his aunt, aged 91, and had been sublet to Myanmar monks since July last year for a monthly rent of $1,400.

The monks used it as a meditation centre, and the rent was paid to Mr Poh, who acted as his aunt’s housing agent.

The Telok Blangah flat, meanwhile, was owned by his daughter.

It had been rented out for $900 monthly since May.

Checks with neighbours confirmed that Mr Poh’s daughter was not living there.

Both flats were also sublet without obtaining the HDB’s prior consent, and the board said that it would be taking steps to acquire them compulsorily.

In a statement yesterday, the HDB said that the additional cases of illegal subletting by Mr Poh showed that his claims of being unaware of the HDB’s rules cannot be substantiated.

‘These regulations are publicly available from many sources,’ it said, adding that ‘there is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains’.

It concluded: ‘As he has blatantly flouted HDB’s rules, there are no grounds for leniency.’

See Also : Illegal subletting: HDB to repossess man’s flats

Source : Straits Times – 13 Mar 2010

Mr Poh Boon Kay shows the compulsory acquisition notice for his Bukit Batok flat, which had been rented out illegally.

Mr Poh outside his flat, one of three belonging to him and his family members which the HDB intends to take back. Following investigations, he may be compensated to the tune of $125,000 for his flat. He says he paid $155,000 for it. — ST PHOTOS: AZIZ HUSSIN

IN A clear warning to those who sublet their flats illegally, the Housing Board (HDB) has moved to take back three apartments linked to a real estate agent who owns five private properties.

One flat to be repossessed belongs to the real estate agent, Mr Poh Boon Kay, 61, and his wife, Madam Khoo Kim Cheng, 52, who had illegally sublet their four-room flat in Bukit Batok.

The other two flats in Telok Blangah and Bukit Batok are owned by the couple’s daughter and Madam Khoo’s 91-year-old aunt respectively. Both flats were also illegally rented out.

He acted as agent for the elderly woman and collected rent on her behalf.

The HDB said it is taking legal action to take back the units.

It is the most serious case of illegal subletting in the last two years. Only three other flats have been compulsorily acquired in that time.

In November last year, the HDB checked and found that Mr Poh had sublet his flat to three Myanmar couples without HDB approval.

The Pohs, who were not living there at that time, had also breached the Minimum Occupation Period (MOP) of three years. This rule states that buyers who purchase resale flats without a housing grant from the Central Provident Fund Board have to live in the flat for three years before they can rent out the whole unit.

The HDB then told Mr Poh this was unauthorised, and that they were intending to repossess his flat. On Dec 23, the HDB pasted a notice of intention to compulsorily acquire his flat.

The HDB told The Straits Times yesterday that Mr Poh will continue to hold the title deeds until investigations are complete. It will then decide whether to take back the title deeds officially and compensate him to the amount of $125,000.

Mr Poh, who claims he paid $155,000 for the house, can lodge an appeal against the notice. When asked, he said he was intending to appeal.

Mr Poh, an ordinary member of the Institute of Estate Agents (IEA), pleaded ignorance of the three-year MOP; he said he had been told by the HDB’s counter staff that he could sublet the flat after a year. He could not name the HDB employee.

But the HDB said that because of Mr Poh’s links to the other illegal subletting cases, his claims of ignorance could not be substantiated.

‘There is clear evidence that Mr Poh, a housing agent by profession, has been intentionally abusing HDB flats for monetary gains,’ said the HDB spokesman.

Mr Poh said he had not seen the acquisition coming. He added: ‘I can’t believe a notice can be served within a month of the HDB giving a warning letter.’

He said it was more usual for the HDB to send a second warning, or even fine an errant owner first.

The Housing and Development Act says, however, that the HDB can compulsorily acquire a flat once it ascertains that the owner is illegally subletting it.

‘HDB takes a stern view of unauthorised subletting, and will not hesitate to take strong action against those who flout the rules,’ it said.

The Board added that it will bring Mr Poh’s case to the attention of the IEA.

Mr Poh, who claims his daughter is stuck in the United States with marital problems, declined to discuss the cases involving her and his wife’s aunt.

He said he did not know for sure when they bought their flats.

The HDB has taken action against 56 such owners in the last two years, dishing out punishments ranging from fines of $1,000 to $21,000, to repossessing the flats involved.

HDB added that there was no discernible upward trend.

Flat owners who wish to rent out their flats must obtain approval from the Board and fulfil the MOP. The current MOP for subletting flats is five years for flats bought directly from the HDB or resale flats purchased with a CPF Housing Grant, and three years for resale flats bought without the CPF grant.

About 682,000 flats are eligible for subletting, but only 3per cent of these flats are sublet.

See Also : HDB started checks after getting tip-off

Source : Straits Times – 13 Mar 2010