Summary of HDB changes for Budget 2010

HDB has came out with a list of changes designed to prevent HDB speculation and enhance the distinction between Singaporeans and PR, which was what people have been complaining about for the past few years. Is the election coming?

Anyway, the summarised changes are as follows:

• Effective on or after the date of policy announcement, allowing all eligible households to apply for a second concession HDB loan regardless whether they upgrade, downsize or move to the same flat type;
  
  
• Effective on or after the date of policy announcement, tightening the rules of the second concession HDB loan by reducing the quantum of the second concessionary loan by the full CPF proceeds and part of the cash proceeds from the sale of the existing or immediate past HDB flats. Details can be found here;
  
  
• Effective from 1 Apr 2010, the Lease Buyback Scheme (LBS) eligibility criteria are:
  - Citizen household living in a 3-room or smaller HDB flat;
  - All lessees are at least at the CPF draw-down-age, currently at 62 years old;
  - The household must not have enjoyed more than one housing subsidy in the past;
  - The household must have lived in their flat for at least 5 years;
  - The monthly household income must not exceed $3,000;
  - The household must not have owned or currently own a private residential property; and
  - The household must not have any outstanding housing loan on their flat that exceeds $5,000 unless they have minimum proceeds of $60,000 for the purchase of an Immediate Annuity under CPF LIFE.
  
  Those who previously owned 4-room HDB flats and above will enjoy a subsidy of $5,000 while those who previously owned 3 room HDB flats and below will enjoy the same subsidy of $10,000. Details can be found here.
  
  
• Effective to resale transactions on or after the date of policy announcement, the minimum occupation period for resale of non-subsidised flats (i.e. resale flats bought without CPF Housing Grant) will be increased to 3 years, regardless of whether the buyer takes an HDB loan, a bank loan or no loan at all. There are no changes to the minimum occupation period of 5 years for resale of subsidised flats. Details can be found here.
  
  
• Effective on or after the date of policy announcement, the housing subsidies for Singapore Citizens (SC) and Singapore Permanent Residents (SPR) will be the following:
  
  
  

  Household Type*	Buying New Flat from HDB	CPF Housing Grant for Resale/DBSS flats or EC unit		Citizen Top-Up
  		Basic Grant	Higher-Tier** Grant
  SC / SC	No change	Receive $30,000	Receive $40,000	N.A
  SC / SPR	Pay $10,000 Premium	Receive $20,000	Receive $30,000	Receive $10,000

  * Withheld subsidy of $10,000 will be restored when an SPR family member in the SC/SPR household takes up citizenship or if the couple has an SC child while still in ownership of that flat
  ** Not applicable to EC
  
  
• Effective on or after the date of policy announcement, the SPR quota will be set at 5% and 8% at the neighbourhood and block levels respectively, and will apply in addition to the existing Ethnic Integration Policy limits.
  
  Details can be found here.