HDB provides Singaporeans with affordable homes and a quality living environment, through its role as the master planner and developer of Singapore’s public housing towns.
To help Singaporeans become home owners, the Government subsidises HDB flats with price discounts for new flats and by offering a variety of housing grants. HDB also offers housing loans at concessionary interest rates to help eligible Singaporeans own homes. For needy Singaporeans, HDB provides heavily subsidised rental flats.
To ensure that HDB towns continue to be renewed and cater to the changing needs of residents, HDB rejuvenates its towns and flats through programmes such as the Remaking Our Heartland (ROH) Programme, Home Improvement Programme (HIP), Neighbourhood Renewal Programme (NRP), and Lift Upgrading Programme (LUP). In addition, HDB is involved in relevant commercial and industrial property development and management to provide a range of amenities and employment opportunities in HDB towns.
To reflect the full spectrum of HDB’s operations, the financial results are presented under ‘Housing’ and ‘Other Activities’ in the audited financial statements. ‘Housing’ consolidates the results of housing programmes implemented. These comprise the Home ownership, Upgrading, Rental housing, Residential ancillary functions, and Mortgage financing segments. ‘Other Activities’ comprise Other Rental and Related Business, Agency and Others segments which are commercial in nature.
In Financial Year (FY) 2015/ 2016, HDB incurred a net deficit of $1,639 million, before the government grant, as compared with $2,018 million in FY 2014/ 2015. The net deficit comprised the deficit from the ‘Housing’ activities of $2,252 million, offset by the surplus from the ‘Other Activities’ of $613 million in FY 2015/ 2016.
HDB received a grant of $1,636 million in FY 2015/ 2016 from the Government to finance its deficit, and to protect the reserves of the past governments in accordance with the Constitution of the Republic of Singapore. The retained earnings of HDB as at 31 March 2016 remained at zero after the transfers to the capital gains reserve to protect past reserves.