ST : Life's a beach but it's no holiday

Mar 9, 2010

Life's a beach but it's no holiday

Parents' irresponsibility, greed and policy are depriving kids of homes

By Radha Basu

MR I.B. YUSOF, a father of four young children, sold three Housing Board flats in nine years, netting $90,000 in profits.

Flush with cash after the first two sales, Mr Yusof, 44, took out a hefty bank loan and upgraded to a four-room flat in 2005. At the time, the sole breadwinner, who has a hearing-impaired wife, earned only $800 per month. He hoped to get a better job to pay for the new flat.

Then his fortunes dived. He lost his job as a technician in early 2006 and was unemployed for the next nine months. Living expenses ate up most of his savings. Unable to pay his loans, he was forced to sell his home in 2007.

The family stayed with relatives for nearly two years before being thrown out last June after his 13-year-old daughter was accused of theft. The beach became their home.

On Feb 21, Prime Minister Lee Hsien Loong advised Singaporeans not to sell their flats to make a quick buck. Days after his comments, two MPs told Parliament last week how, going by the cases they have handled, many families end up homeless because they sell off their flats and spend the cash.

The number of homeless people being picked up at beaches, void decks and parks has doubled in two years, with about 300 such individuals and families seeking help from the Ministry of Community Development, Youth and Sports last year alone.

Unlike in some countries, where people are often too poor to rent - let alone buy - their first home, homelessness in Singapore is often the result of personal irresponsibility, stemming from avarice or divorce and dysfunction.

Some, like Mr Yusof, commit to homes more expensive than they can afford. Others sell their homes for cash to settle gambling or credit card debts, and end up on the beach.

The HDB's move last week banning buyers of resale flats from selling them within three years of purchase will no doubt prevent some cash-strapped folk from churning their homes to pay off debts. But further changes - both at the personal and policy level - could help nip this nascent trend of homelessness in the bud. As the sorry sagas of Mr Yusof and others show, personal prudence is paramount.

Some wealthier folks who have alternative housing still try their luck at a highly subsidised rental flat, clogging up the queue for those genuinely without a roof over their heads. Some time ago, HDB discovered that one retired couple in the rental flat queue had no income, but owned nine private properties worth $6 million. Such people delay the truly needy from getting shelter.

At the systemic level, better credit assessment on the part of those who disburse loans can help weed out potential home buyers aiming to spend beyond their means. For instance, Mr Yusof was given a bank loan large enough to buy a four-room flat when his $800 a month was the only income for his family of six.

It's also time to ensure that irresponsible home sellers with no alternative accommodation don't fritter away profits - and waste the housing subsidies they receive from the HDB. For instance, those earning below a certain limit who have made use of HDB subsidies could be barred from selling their flats even after they have satisfied the HDB-stipulated minimum occupation period unless they can prove they have another place to live in the long term. The flats, after all, were subsidised by the Government so that they could be homes first, not assets to be pawned on a whim.

Meanwhile, families who are already homeless or on the verge of losing their homes also need more help.

The only two temporary shelters for such folk are packed, with dozens of families on the waiting list. More shelters are needed so that the children of the homeless, in particular, have a home, as social workers sort out the mess in their parents' lives.

The allocation of rental flats could also be made more flexible and fast for those who lose homes through no fault of their own - such as the elderly, divorced mothers and, above all, children. Contrary to popular belief, not all those in danger of losing their homes are feckless folk caught in an endless cycle of over-consumption.

One 27-year-old divorcee, who earns $800 a month and has never taken an HDB loan, was repeatedly denied the chance to rent or buy a resale flat with her six-year-old daughter because the child was born out of wedlock.

The duo shared a one-room flat with her siblings for a year. But the others drank and smoked heavily and brought home strangers at night. After this newspaper inquired about her plight with the HDB, she was told she would be given a rental flat on 'compassionate' grounds. She faces a year-long wait for a home - no thanks to those who could find some other place to stay but who try their luck for a rental flat.

The Government has so far shied away from automatically granting rental flats to mothers with young children for fear that the move will cause an explosion in divorce rates or illegitimate births. This fear is not unfounded. Britain, which offers the most generous welfare benefits for single mothers, also has the highest divorce rate in Europe. In a case that made headlines in Britain last month, a single mother of six rented a mansion in a London suburb for £7,000 (S$14,800) a month - fully paid for by taxpayers.

No one wants such excesses. But Singapore is probably near the other end of the scale at present, in terms of help for unwed or divorced mothers and their children. Shifting a step closer to the middle ground - like building more shelters for the homeless - would help.

A parsimonious approach that restricts help for the homeless for fear of moral hazard or 'abuse' actually creates problems in the long run if the children in homeless families do not get a chance to straighten out their lives.

Take the Yusof family. The elder daughter sat her Primary School Leaving Examination twice while the family shuttled between relatives' homes. She failed both times. I asked the reticent teen if the lack of a proper home had contributed to her poor performance. Her tears were the only answer.

Policies penalise parents for their reckless misdeeds. But their innocent children should be spared the consequences.

radhab@sph.com.sg