HDB Annual Report 2020/2021

HOUSING RESULTS The Home Ownership segment covers the development and sale of flats to eligible buyers under the various home ownership schemes for public housing. The Home Ownership segment reported a deficit of $1,953 million in FY2020 as compared with $2,232 million in FY2019. HDB recorded a lower gross loss of $356 million for the sales completed (i.e. keys issued to buyers) in FY2020. The number of sales completed in FY2020 was 8,124 units as compared with 11,609 units in FY2019, due to the suspension of construction activities during the Circuit Breaker period in 2020 and gradual resumption of works thereafter. The provision for foreseeable loss of $376 million that was made in the previous years was released on the completion of the sale of flats in FY2020. On the other hand, $1,089 million of additional foreseeable loss was provided, mainly for the new building contracts awarded as well as for the costs co-shared with HDB’s building contractors due to delays in building works caused by the COVID-19 pandemic. As a result, there was a net increase of $713 million in the provision for foreseeable loss. HDB also disbursed $791 million of CPF housing grants to eligible buyers of resale flats and Executive Condominiums (ECs) in FY2020 as compared with $631 million in FY2019. The Upgrading segment reported a deficit of $242 million in FY2020, as compared with $440 million in FY2019. The programmes include the NRP, HIP, and various lift upgrading programmes. The decrease in the deficit was due to a lower expenditure for the HIP. There were fewer units undergoing HIP upgrading in FY2020 as compared to FY2019, due to the suspension of construction activities during the Circuit Breaker period and gradual resumption of works thereafter. The Residential Ancillary Functions segment includes lease administration, provision and management of ancillary facilities such as car parks in housing estates, and planning and building administration. It reported a deficit of $307 million in FY2020. As part of the Government assistance measures to help households that have financial di culties, rental rebates were given to households living in rental flats. HDB also suspended late payment charges on rent arrears. Hence, the Rental Flats segment recorded a higher deficit of $125 million in FY2020. Similarly, to help flat owners who face di culties in paying their HDB loans on time, HDB suspended late payment charges on mortgage arrears. The Mortgage Financing segment therefore recorded a higher deficit of $31 million in FY2020. RESULTS OF OTHER ACTIVITIES The segment on Other Rental and Related Businesses focuses on the provision, tenancy, and management of commercial properties and land. It reported a lower surplus of $279 million in FY2020, as compared with $454 million in FY2019. This is due mainly to the rental rebates given to qualifying tenants in HDB shops, social-communal facilities and o ces to help the operators and businesses cushion the impact of the COVID-19 pandemic. 54 HDB ANNUAL REPORT 2020/21