No plans to raise $7,000 income ceiling for Parent Provisional Housing Scheme, says MND

No plans to raise $7,000 income ceiling for Parent Provisional Housing Scheme, says MND
Second Minister for National Development Indranee Rajah addressing the House on Tuesday.
PHOTO: Screengrab/YouTube/MCI

The $7,000 household income ceiling for the Parent Provisional Housing Scheme (PPHS) will stay, said Second Minister for National Development Indranee Rajah in Parliament on Tuesday (April 2). 

She was responding to a parliamentary question from MP Louis Chua about whether the Ministry of National Development (MND) would consider raising the income ceiling for families using the PPHS (Open Market) Voucher to offset rent for a HDB flat or room on the open market. 

But, Indranee added: "Households with incomes above $7,000 but have additional expenses due to exceptional circumstances such as medical expenses may approach the Housing Development Board (HDB) for help. 

"HDB will consider their applications on a case-by-case basis."

The PPHS, launched in 2013, provides interim rental housing for families with an unfinished flat from HDB’s sale exercises.

The (Open Market) Voucher scheme, which will run from July 2024 to June 2025, was announced only during MND's budget debate this year. 

A $300 monthly voucher will be provided to eligible families to support them in renting a HDB flat or room while they wait for their Build-To-Order flats to be completed. 

MND will also not offer rental vouchers of more than $300, said Indranee, in response to a question from MP Joan Pereira.

Indranee — who shared that the average year-on-year increase in open market rents for three, four and five-room HDB flats was 10 per cent in 2023 —  explained that the voucher parameters "have been carefully calibrated" to provide some relief for eligible families, while mitigating the potential inflationary impact on the market. 

"Given the voucher quantum of $300 per month, eligible families will receive up to $3,600 if they qualify for a full year of support," she said.

As the voucher scheme was only announced this year, Indranee added: "We have to give it some time to run." 

MND is also bumping up the supply of interim rental housing, said Indranee. 

In June 2023, HDB announced that it would double the number of such flats from the current 2,000 to 4,000 over the next two years. 

Recently, 2,000 units across 17 blocks in Tanglin Halt were vacated to be rented out under the PPHS. 

These flats will be available for rent from the second half of 2025. 

"By increasing [supply] to 4,000 units, the lower income can access that even if they're not using the PPHS structure," said Indranee. 

READ ALSO: 'Renting on open market is too expensive': Families awaiting BTO flats say $300 rental voucher inadequate

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