HDB’s annual deficit increases to more than S$4 billion, highest since inception of public housing

HDB's annual deficit increases to more than S$4 billion, highest since inception of public housing

SUPPORT MEASURES FOR HOMEOWNERS

HDB also provided financial assistance to homeowners and shop tenants in FY2021 to “help tide them through the challenging year”.

Financial assistance amounting to S$15 million was offered to those in mortgage and upgrading cost arrears, which included the suspension of late payment charges.

Support was also provided to heartland businesses, with HDB waiving rentals that amounted to S$115 million.

DEFICIT FROM REJUVENATION AND UPGRADING PROGRAMMES

HDB incurred a deficit from rejuvenating towns and flats as well as from the provision and management of facilities, such as carparks in housing estates and works to drains and mechanical works. 

In FY2021, HDB said it incurred a S$392 million deficit for its upgrading programmes, up from the S$242 million deficit in the previous financial year.

The increase in deficit was a result of the higher expenditure on the Home Improvement Programme (HIP) as construction work picked up with the gradual easing of pandemic restrictions. 

A total of 53,792 flats were upgraded under the HIP in FY2021.

Six Neighbourhood Renewal Programme projects were also announced, with another six projects completed.

Another S$352 million deficit was recorded for residential ancillary functions in FY2021, compared to the S$307 million deficit in FY2020. These included the provision and management of facilities such as the carparks in housing estates, and cyclical works like the reconstruction of drains, and repair and replacement of mechanical and electrical works.

MEETING HOUSING DEMAND

HDB said it will continue to provide public housing that is affordable and accessible for Singaporeans.

It also said it is ramping up the supply of BTO flats to meet a “strong housing demand”, with plans to launch up to 23,000 flats per year in 2022 and 2023, which is an increase of 35 per cent from the 17,000 flats launched in 2021.

“This means that not only will more buyers be able to secure their BTO flats, and in a wider range of locations, they will also be able to select from a larger pool of flats that meet their budgets,” HDB said, adding that it is also prepared to launch up to 100,000 flats in total from 2021 to 2025 if needed.