Illegal subletting: 4 lost flats

FOUR home owners have lost their flats in five months after the Housing Board found they had illegally sublet their apartments.

Six others were fined as a results of 2,600 checks done from January to May this year - four times the number of checks in the preceding five months. Of the 300 cases still under investigations, 59 are suspected to have infringed subletting rules.

The figures was revealed in a HDB statement released on Wednesday morning. In March, the HDB said it would enforce strictly against flat owners who illegally sublet their flats.

Flat owners have to fulfil minimum occupation periods of up to five years before the
y can sublet their whole flats, and obtain approval before doing so. Those who sublet rooms must register their tenant details with the HDB within seven days. Those who flout the rules face fines and compulsory acquisition of the flats.

One of the four cases of home owners whose flats were re-possessed involved a loanshark debtor who allowed the creditor to sublet his flat in order to repay the loan. He sought HDB's help to regain access to the flat, but did not move in after that.Neither did he evict the sub-tenants despite repeated warnings.

'We wish to emphasise that HDB flats are meant for owner occupation,' said the HDB in its statement. Those who want to report suspected cases of illegal subletting can call 1800-555-6370.

Cases of unauthorised subletting

Case 1 : Blatantly flouted subletting rules

* Mr G was locked out of his own 3-room flat in the western part of Singapore, which he bought with a CPF housing grant. The locks of the main door and letter box were all changed after the flat was sublet illegally. He sought HDB's help to regain entry into his flat.

* Upon further investigation, Mr G then divulged that he had used his flat as collateral for his loan and needed to pay back the moneylender. As a result, he allowed his moneylender to sublet his flat to repay his loan.

* Despite regaining entry into his flat, Mr G did not resume occupation. He also did not evict the subtenants, despite HDB's repeated reminders and even an extension of grace period for him to do so.

* Mr G not only blatantly flouted the subletting rules, but also did not regularise the infringement despite being given various opportunities to do so. He also had no intention of staying at his flat. As such, HDB proceeded to take CA action.

* We wish to emphasize that HDB flats are meant for owner occupation. They are not meant to be used as collateral or security for repayment of debts or loans, except for financing the flat purchase.

* We would also advise residents not to enter into agreements with moneylenders to illegally sublet their flats as a form of repayment.

Case 2 : Flouted rules after one year of flat purchase

* Months of investigation showed that Miss R sublet the flat without HDB's approval a year after she purchased the flat. Miss R did not fulfill the minimum occupation period, and she also did not obtain approval from HDB to sublet her flat. HDB informed that she had to evict the subtenants and resume occupation of her flat. While the subtenants were evicted, she did not move back to her flat. As a result, HDB had no choice but to take action to CA the flat.

Case 3 : Bought flat to sublet while overseas

* Madam P jointly purchased a flat with her husband but stayed overseas all this while. She flouted the rules by subletting the flat illegally without meeting the minimum occupation period or getting approval from HDB. Interviews with the subtenants confirmed that the utilities bills were paid by them. When her marriage broke down, her foreigner ex-husband wrote in to HDB and confirmed that the flat was never intended as their matrimonial home and he has never seen the flat before.

* When Madam P returned to Singapore, she did not resume owner occupation but chose to stay with her family. In view that the flat was illegally sublet and was never intended for owner occupation, HDB proceeded to CA the flat.

Case 4 : Owner did not stay in flat at all, but sublet

* Evidence showed that Mdm C has been staying with her family elsewhere while her flat was illegally sublet to a religious group. The flat was compulsorily acquired on the grounds that the flat was sublet without HDB's approval and owner did not resume occupation.