RES exam question on HDB Policies: his agent tell him
A landlord wants to rent out his whole HDB flat to four non-Malaysian foreign workers. A neighbour warns him that the block has reached its Ethnic Integration Policy limit for his ethnic group. What should his agent tell him?
- AThe EIP does not govern renting out; he must check the Non-Citizen Quota instead
- BThe EIP applies, so he may rent only to tenants of an ethnic group under its limit
- CThe EIP applies to both resale and whole-flat renting, and HDB checks it at approval
- DNo quota applies, because a tenancy is a private matter between owner and tenant
Show answer & explanation
Answer
A. The EIP does not govern renting out; he must check the Non-Citizen Quota instead
Explanation
Issue: which quota governs a whole-flat rental. Rule: the Ethnic Integration Policy, together with the SPR quota, controls who may buy and own an HDB flat in a block and neighbourhood. It does not apply to renting out. Renting out a whole flat to non-Malaysian non-citizens is controlled by the Non-Citizen Quota introduced in March 2014, which caps such flats at 8% of a neighbourhood and 11% of a block (hdb.gov.sg). Application: the block's EIP position has no bearing on this tenancy. What matters is whether the block and neighbourhood still have room under the Non-Citizen Quota, and that HDB approves the tenancy. D goes too far the other way: a quota does apply, just not the EIP. Conclusion: check the Non-Citizen Quota, not the EIP.
Study the concept behind this question: Renting Out an HDB Flat or Room: Approval, Quota, Tenants
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