HDB to double supply of rental flats for Parenthood Provisional Housing Scheme and refine eligibility conditions to give priority to families in greater need of interim housing

HDB will set aside 800 more flats for rental under the Parenthood Provisional Housing Scheme (PPHS) over the next two years, almost doubling the existing 840 flats under the scheme. The increased supply of flats will better support families in need of temporary housing, while they await the completion of their new Build-to-Order (BTO) flats. In addition, HDB will finetune the eligibility conditions and allocation process for PPHS. From 4 August 2021, we will introduce an income ceiling for families applying for PPHS and give priority to married couples with children aged 18 years and below.

2 The PPHS provides an additional interim housing option for married couples waiting for their new flats to be completed. To qualify for PPHS, the families must have booked an uncompleted flat from HDB. The supply of PPHS flats is limited and depends on the availability of vacant flats not needed for other purposes, such as those in vacated blocks that are not immediately needed for redevelopment. Since its inception in 2013 to support marriage and parenthood, more than 3,000 families have benefited from the PPHS.

Increased Supply of PPHS Flats

3 Since 2020, the demand for interim rental housing from families awaiting their BTO flats has increased significantly. Applications almost doubled to 2,350 in 2020, compared to 1,370 in 2019. To better support flat buyers affected by construction delays, HDB will increase the supply of flats for rental under PPHS. Of the 800 additional flats to be made available, about 200 will be ready this year and progressively released for application from 4Q2021. These additional flats include vacated flats at sites currently undergoing the Selective En bloc Redevelopment Scheme (SERS), flats which are unsold, and possibly vacant staff apartments at various polytechnics that are available temporarily.

Refinements to Eligibility Conditions and Allocation Process

4 Even as HDB increases its stock of PPHS flats, the supply of flats remains limited. Hence, HDB will finetune its eligibility conditions and allocation process from 4 August 2021 to give priority to families in greater need of temporary housing.

Income Ceiling and Priority for Married Couples with Younger Children

5 A household income ceiling of $7,000^[1] will be introduced for the application of PPHS flats. PPHS flats are highly subsidised, and the income ceiling^[2]will help to ensure that the flats are allocated to those who are less able to afford renting a flat on the open market. Priority will also be given to married couples with children aged 18 years and below (including expectant parents), in the selection of a PPHS flat ahead of other eligible applicants.

One-year Wait-out Period

6 While the number of applications for PPHS flats has risen since 2020, about half of the applicants invited to select a PPHS flat eventually did not do so. This could be due to a variety of reasons, such as locational preferences. However, this also suggests that not all applicants may be in urgent need of temporary housing, and some may be able to continue with their current housing arrangements for some time.

7 To allow applicants with more urgent housing needs to secure a flat more quickly, PPHS applicants who do not select a flat after being invited twice to do so will need to wait one year^[3] from the date of the second non-selection before they can apply for a PPHS flat again^[4]. This applies to those who had an opportunity to select a flat but did not proceed with the selection, as well as those who did not proceed with payment after selecting a flat.

Two-monthly Exercises

8 Currently, PPHS exercises are held monthly, during which applicants may submit their applications anytime during the month. Henceforth, PPHS exercises will be held once every two months instead. The consolidation of flats over two months will provide PPHS applicants with a larger pool of flats to choose from. This will improve the applicants’ chances of securing a flat in each selection exercise and reduce the need for repeated applications.

9 From the next PPHS exercise in October 2021, PPHS applicants will have 14 days to submit their application, i.e. the first 14 days of the month in which the PPHS exercise is held. This will allow HDB to process the PPHS applications earlier.

Advice for Flat Buyers

10 Given the limited supply of PPHS flats, we encourage households awaiting the completion of their BTO flats to continue living with their families or consider renting from the open market. Lower-income households without any housing options may contact HDB, and we will assess if we can offer them interim rental housing (IRH) on a case-by-case basis.

11 Potential home buyers are encouraged to account for the waiting time of new flats, and plan ahead for interim housing options before the completion of their BTO flats. Those who want to set up their homes sooner can consider buying a resale flat. HDB has enhanced our housing grants in recent years, and first-timer couples buying resale flats can receive up to $160,000 in housing grants.

12 More information on the PPHS is available on the HDB InfoWEB. For enquiries, members of the public can write in using our e-Feedback form or contact our Branch Service Line at 1800-2255432.

[1] This will be based on the income reflected at the point of sales application for the new flat. Those whose incomes have fallen to $7,000 & below since their sales application may contact HDB.
[2] The $7,000 income ceiling is similarly applied to buyers of new 3-room flats in most BTO projects launched in non-mature estates, with the intent of helping lower income households own HDB flats.
[3] This also currently applies to the selection of public rental flats which are highly subsidised.
[4] This does not apply to those who were invited for flat selection, but could not make a selection due to unavailability of flats.

Greater Supply of PPHS Flats Available for Families in Need of Interim Housing while Awaiting Completion of Build-to-Order Flats