Good Practices and Innovations in Public Governance 2003-2011

Good Practices and InnovATIONS in Public Governance
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types and sizes are provided within each precinct and block, so that households
of different income and social profiles can live together and interact with each
other. Common spaces and shared facilities, e.g., open spaces and children’s
playground, are provided for residents to mingle. The Ethnic Integration Policy,
implemented in 1989, seeks to prevent the formation of racial enclaves by
setting the maximum allowable proportion for each ethnic group in every HDB
neighbourhood and block. Today, every public housing estate is a microcosm
of multi-racial Singapore; and
• Physical Design: To build an inclusive society, public housing accommodates
various groups of people. Flats built in the early years were utilitarian, comprising
uniform blocks of mainly 1-room, 2-room, and 3-room flats (from 35 to 60 sqm).
Progressively, in response to changing lifestyles and growing affluence, bigger flat
types, 4-room, 5-room and Executive flats (90 sqm to 145 sqm) were introduced
in the 1970s and 1980s, and Premium flats with better quality finishes in the
1990s. To encourage private sector participation in public housing and to inject
greater variety for flat buyers, the Design, Build & Sell Scheme (DBSS) was introduced
in 2005 whereby private developers undertake the entire public housing
development process – from tendering for the land, design and construction, to the
pricing and sale of the units to eligible buyers. The government continued to provide
housing grants to eligible flat buyers of DBSS flats.
With an ageing population and a widening income disparity in Singapore, greater
attention is now paid to elderly and low-income flat buyers, through the provision of
Studio Apartments, a special form of public housing customized for elderly living
and sold on shorter 30-year leases for affordability; and the construction of more
smaller flat types.
As home purchase requires long-term financial commitment, it is important that flat
buyers are credit worthy and purchase flats within their means, so that they can sustain
long term ownership of their homes. HDB carries out credit assessment on home
buyers, taking into account the buyers’ age, income and other financial commitments.
Flat buyers are also required to make full use of their CPF savings first before
HDB grants them an HDB mortgage loan. For borderline cases, HDB conducts financial
counselling sessions so that flat buyers are aware of their financial commitments
before the flat purchase. Home buyers are also required to take up Home Protection
Insurance to help family members pay off the mortgage loan in the event of demise
of the flat buyers. Those who face temporary financial difficulties in repaying their
mortgage loan due to a reduction or loss of income, retrenchment or business failure
etc., are assisted through various financial assistance measures.
With 95% of flat dwellers owning their flats, it is important that the asset value of
public housing is sustained and enhanced where possible. Since the 1990s, HDB