The price of illegal subletting
Source: TODAY Online
The couple’s four-room flat was repossessed after they were found to have sublet it out illegally – but that’s not the only thing the Housing and Development Board (HDB) discovered.
The couple, identified as Mr Poh Boon Kay and his wife Madam Khoo Kim Cheng, also owned five private properties. Mr Poh, a registered real estate agent, had bought the flat from the open market on June 1, 2007, for $150,000 without any loan.
This case was highlighted as the HDB gave an update on Friday on its enforcement action against illegal subletting: 56 such flat owners faced penalties that ranged from fines of $1,000 to $21,000, and in the Pohs’ case, repossession of their flat.
It is understood that HDB will return Mr Poh his $150,000 less penalties, which were not disclosed. Property agents told MediaCorp the flat could have fetched about $320,000, at today’s market prices.
Mr Poh is the first to have his flat compulsorily acquired since the HDB tightened rules against unauthorised subletting in February, which require flat owners who sub-let rooms in their HDB flats to register with the board within seven days of doing so. They are also required to notify the HDB when they renew or terminate the sub-letting of rooms. Prior to Feb 1, there was no need to seek prior approval for subletting of rooms.
Mdm Khoo was listed as the flat’s occupier when,in fact, it was illegally rented out to three Burmese couples for $1,900 a month.
When the HDB learned of this in November, it told Mr Poh to evict his tenants immediately, otherwise his flat would be seized. But the Pohs allowed their tenants to remain.
A Notice of Board’s Intention was served on Dec 23 to compulsorily acquire the flat.
The next day, the Pohs appealed to the HDB against the acquisition.
When the HDB interviewed the Pohs on Jan 5, they claimed that they did not know that they needed HDB’s approval for subletting.
The HDB found out that Mr Poh is linked to two other cases of unauthorised subletting: One, as an agent for his wife’s aunt, whose flat in Bukit Batok had been sublet to Burmese monks for use as a meditation centre at a monthly rent of $1,400 since July 2009. Mrs Poh’s aunt was not living in the flat.
In the second case, Mr Poh’s daughter had sublet her Telok Blangah flat without approval, for $900 a month. She too did not live there.
According to the HDB, the cases belied Mr Poh’s claims of being unaware of its rules. He also showed a “persistent disregard” of its rules. As such, the HDB said it would be taking legal action to compulsorily acquire both flats.
