RES exam question on HDB Policies: A household that previously enjoyed a housing subsidy buys a second subsidised flat
Case study — A household that previously enjoyed a housing subsidy buys a second subsidised flat. They took a grant/subsidy on their first flat. They are now buying another subsidised flat. Evaluate the statements: (i) A resale levy may be payable to reduce the subsidy on the second flat (ii) HDB eligibility and income conditions can apply (iii) The Ethnic Integration Policy can affect the resale (iv) No levy is ever payable on a second subsidised flat Which statements are CORRECT?
- A(i), (ii) and (iv) only
- B(ii), (iii) and (iv) only
- C(i), (ii) and (iii) only
- D(i), (ii), (iii) and (iv)
Show answer & explanation
Answer
C. (i), (ii) and (iii) only
Explanation
(i) is correct because a resale levy may be payable to reduce the subsidy when buying a second subsidised flat, (ii) HDB eligibility and income conditions can apply, and (iii) the Ethnic Integration Policy can affect the resale. So C is right.
Why the other options are wrong
- (iv) is wrong: a levy can indeed be payable on a second subsidised flat, so 'no levy is ever payable' is false.
Study the concept behind this question: HDB Ethnic Integration Policy (EIP) & SPR Quota
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