Honourable Members may wish to know that most Members of the Home Ownership Committee considered that the new limit should be $4,500 per month. The view was also expressed that a higher level, say $5,000 per month would be appropriate but no additional arguments were advanced to support this view.
Household Size
9
The experience under Phase I of the scheme is that it is possible for a large and comparatively well-off family to split itself "artificially" into several eligible households of two persons even if their total income is well above the limit. In this way, the family increases its chances of obtaining a Home Ownership flat, into which the whole family could move later on.
10
The results of a survey conducted on 2, 780 applicants from the private sector show that the number of family members occupying present accommodation differed from the number of persons included in the application for m. The difference was most marked in small households, in that the average number of persons sharing existing accommodation declared by 2-person households (as shown in their application forms) was four; and by 3-person and 4-person households, the average number was 3. 9 and 4.6 respectively. The majority (53%) of 2-person households were found to have under- reported their family size.
11
It is believed that some applicants under report their family size or split their families in order to:
(a)
avoid over-income by deleting certain wage earners; or
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Private notes are available after approval.