Passing Thoughts

A Fresh Start for Families

If you missed the housing-related announcements made at the Committee of Supply debate on 11 April 2016, the Fresh Start Housing (FSH) Scheme was one of them.

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From later this year, second-timer families with young children living in public rental housing can start afresh in their home ownership journey by owning a 2-room (2R) Flexi flat.

Who Can Apply for Fresh Start?

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To qualify for the FSH Scheme, the family must meet these criteria:

• Be a family with parent(s) aged at least 35 and below 55. Parent(s) can be married, divorced or widowed
• Household has at least one Singapore citizen parent and one citizen child below age 16
• At least one parent in stable employment for the past 12 months; and child/ children attending school regularly
• Have occupied a public rental flat for at least the last 2 years, without accumulating rental arrears of 3 or more months in the past 12 months
• Have a Letter of Social Assessment (LSA) from the Ministry of Social and Family Development (MSF)

These criteria help ensure that families are committed and ready for a second chance at homeownership. In addition, families who eventually own a flat as a result of this scheme will need to meet a Minimum Occupation Period of 20 years. There will also be annual check-ins with MSF to renew their LSA until 5 years after key collection.

How Fresh Start Can Help

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The FSH Scheme will help strengthen family resilience by integrating financial assistance, personal responsibility, and social support as it provides eligible families with:

• A more affordable option to purchase a 2R Flexi flat with a shorter lease ranging from 45 to 65 years
• A Fresh Start Housing Grant of up to $35,000 (adjusted downwards for flats with shorter lease)
• An HDB concessionary loan for flat purchase, regardless of the number of HDB loans they received before
• Resale levy capped at $30,000 for a 99-year lease (adjusted downwards based on chosen lease)
• Use of CPF to pay for their flat, instead of paying rental in cash
• Priority allocation, within a quota of up to 10%, for families in HDB sales exercises under the Tenants Priority Scheme

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Click on the image to view the infographic

For more information head over to the HDB InfoWEB 🙂

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