Longer waiting time for flat eligibility letters due to 'system glitches', HDB says

SINGAPORE: System glitches were behind longer processing times for some flat buyers who applied for a newly implemented eligibility letter, the Housing and Development Board (HDB) said.

Technical problems on the HDB portal also affected “a small group” of buyers who were unable to view their applications for this letter. This issue was resolved earlier this month, the housing authority told CNA on Friday (Jul 21).

It was responding to queries about complaints of long waiting times for the new HDB flat eligibility (HFE) letter – with the longest being 31 working days among buyers CNA spoke to – as well as applications that were submitted but “disappeared” from the portal.

The new HFE letter has been a requirement since May 9 for both new and resale flat buyers. HDB said then that the letter would simplify the home-buying process by consolidating eligibility assessments for flat purchases, housing grants and loans.

It takes up to 21 working days for HFE applications to be processed, HDB said in its reply to CNA. This is “expected to be longer during peak periods, such as in the months of and before a sales launch, in view of the higher volume of applications received”.

HDB did not provide figures when asked how many flat buyers had to wait beyond 21 days.

But it acknowledged that “some applicants” for its May sales launch “may have experienced longer processing times … due to system glitches and resources being deployed to resolve these technical issues”.

“We would like to assure applicants of the May 2023 sales launch that HFE letter approvals, where applicable, will be granted before their flat booking appointment, and their flat applications will not be affected.” 

LONG WAITING TIMES, TECHNICAL ISSUES

CNA spoke to three flat buyers who described the wait for their HFE letters as “unnerving” and peppered with “frustration”.

All of them had applied within the first week of the HFE letter being implemented but waited 30 or more working days before their applications were approved.

For Mr Christopher Chan, it was radio silence after he submitted his application on May 14. 

“I was checking on the status every week and it’s always pending … even long after the 21-day period and I did not hear anything from HDB,” said the 38-year-old who is getting married next year and hopes to purchase a flat before that.

Others said they were asked to submit additional documents between five days and two weeks of their applications and did so promptly. But they still waited for weeks after that with no updates in between, leaving them unsettled about what to do next.

Technical issues added to the anxiety.

Ms Simin Soh, 29, recounted how she received a text message from HDB asking for more documents.

“I went into the portal immediately, but I didn’t know what documents were outstanding and there was nowhere that said something was missing or for me to submit anything,” the first-time home buyer told CNA.

“I was very confused, and I started worrying whether this was a delay that I might be causing but I am not aware and not seeing on my end.”

Ms Soh said she called the HDB hotline several times regarding her application and waited for as long as half an hour before being able to speak to a customer service agent.

“When I finally got through, I spoke very briefly with a customer service representative who said she’d take down my details and get an officer to call me back.”

All three home buyers were also unable to view their applications from mid- to end-June. Instead, they were directed to a new application page when they logged on to the HDB portal.

Mr Chan said it first happened to him around Jun 24 and persisted for a few days.

“It was a shock at first, and I was thinking do I have to apply all over again? But ... what if I apply again and it cancels my existing application?” he said.

Mr Chan, who was working overseas at the time, sent in queries via HDB's online feedback form. But he received no replies until Jun 27 when he was told his application had been approved.

“It was just frustrating because I didn't know what was going on before that,” he said.

Another home buyer who wanted to be known only as Ms Keong experienced the same issue around mid-June.

The 31-year-old called HDB after she could not find her HFE application on the portal. But "the hotline was a chore to call in”, she said, citing multiple attempts over two days and waiting for as long as 30 minutes before getting through to a customer service agent.

“I was told not to worry because she could still see my application on her end and it’s still pending after more than 21 days.”

HDB, in its reply to CNA, described this as a technical glitch that “arose from an earlier deployment of a system fix” and affected a "small group" of buyers.

“For applicants who had contacted us, we have reassured them that there is no need to reapply for an HFE letter and kept them updated on their application status.” 

DELAYS FOR RESALE BUYERS

The new HFE letter has caused delays for resale home buyers, in particular those who do not intend to take an HDB loan, property agents told CNA.

In the past, this group of buyers would only need to register their intent to buy with HDB. Approvals for these were “almost instant”, said ERA marketing director Marcus Law.

“There’s a significant downtime if you compare with before,” he said. “After waiting for the HFE letter, the house that they like might not be (available) anymore.”

Propnex Realty’s associate group director Jowell Lim said one of his clients who wanted to buy a resale flat faced this issue. It caused much anxiety for the client, whose rental lease was coming to an end. 

“Previously, ‘ready’ resale buyers only need to do an intent to buy before the issuing of an option to purchase. They must wait for a longer period under the new changes,” said Mr Lim.

Resale flat buyers who require an HFE letter urgently can approach HDB for assistance, the Housing Board said.

APPLY FOR LETTER EARLY: HDB

HDB said it will look into how it can "fine-tune" the process to reduce the surge in HFE letter applications close to and during sales launches.

It encouraged those who plan to purchase a flat to apply for the letter early – at least a month before the HDB sales exercises. Buyers should also ensure that their applications and supporting documents are in order before submitting them.

“We seek the patience and understanding of flat applicants as we do our best to process the HFE letter applications as quickly as possible for their flat buying journey,” HDB said.

Home buyers told CNA they understand that glitches in new processes may be unavoidable. But they urged HDB to improve its communication with applicants.

“If there’s a delay, I think it would have been a really nice gesture by HDB to trigger an email or any form of communication to say something like, 'We are experiencing high volumes and (applications) will take longer to process'. Something like that would have been assuring to hear,” said Ms Soh.

In an update to CNA after this article was published on Monday, HDB said it has been "progressively informing" HFE applicants since last Thursday about the longer time required to process their applications.

Ms Keong, who eventually received her HFE letter on Jun 27 after first applying for it on May 13, said the new eligibility letter was “actually very useful” as it laid out all the grants that she and her fiance were eligible for.

The couple realised they were eligible for substantially more grants if they bought a resale flat instead of a new flat. This gave them a backup plan as they had assumed a resale flat would be too expensive.

“In this case, I think the HFE is better than the HDB loan eligibility letter because you get to see exactly how much grants you have and what’s the loan amount to do a better calculation. So this is good,” said Ms Keong.

“I understand this is still in the pilot process, but it has given us a lot of difficulties and I hope the whole process can be improved.”