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World Cities Summit Issue, Jun 2008
The Twin Pillars of
Estate Rejuvenation
Tay Kim Poh
MAIN UPGRADING PROGRAMME
The most comprehensive form of upgrading implemented by HDB is the Main Upgrading Programme (MUP). Launched in 1989, the MUP is targeted at blocks more than 20 years old and aims to improve the interior and exterior of the flats to standards comparable to those in newer estates.
Under the MUP, the improvement items comprise a Standard Package of basic works that help to lengthen the lifespan of the flat, such as upgrading toilets/bathrooms, repairing spalling concrete, and improvements to the blocks and precinct, such as lift upgrading and the provision of linkways and drop-off porches. For certain blocks, residents can also opt for additional space or room of about 6 square metres, to be attached to each flat (Figure 1).
As of March this year, 137 precincts involving 946 blocks and a total of about 136,800 flats have been announced for MUP. The acceptance rate of the programme has been high. Of the 137 precincts, 129 have already conducted polling exercises, where 127 precincts or 98.4% have opted for the upgrading programme.
Whether a precinct is upgraded is a collective decision made by the residents. At least 75% of flat owners in a precinct must agree to the programme before upgrading can proceed. This high support threshold is necessary as the MUP requires significant financial commitment from residents and may take up to 21/2 years to complete, during which residents will have to bear with noise, dust and other forms of inconvenience.
To ensure affordability, a large share of the cost of upgrading is borne by the Government. Flat owners are asked to bear a small portion, ranging from 10% to 25% of the total cost, depending on flat type. The cost-sharing policy helps to moderate the demand for improvement works and ensures that only essential works are undertaken. To ensure that even those with limited financial means can afford upgrading, flat owners are allowed to make use of their CPF savings to pay for their share of the cost of upgrading and to stretch their payments over a 10-year period.
As upgrading is done with residents continuing to live in their flats, ensuring their comfort and convenience is an important factor in the implementation stage. The latest construction technologies are employed to reduce the negative impact of upgrading works. Pre-cast or dry construction techniques are used wherever possible to hasten construction works and keep noise and dust levels within tolerable ranges. Additional measures are taken to provide alternatives for residents when the upgrading works are done within their flats; for example, temporary air-conditioned study rooms and rest areas, toilets and washing facilities are provided on site for their use.
At the point of inception, the Government noted that the programme would substantially increase its expenditure on public housing over the next 20 years. Nevertheless, it supported the programme, viewing its share of the upgrading cost as a transfer of its budget surplus to the flat owners. It also recognised that the upgrading programme would enhance the market value of the flats—the single biggest asset for most citizens. The programme is also an investment in housing infrastructure that enhances the environment and provides a better quality of life for residents.
The most important element for the success of the upgrading programme is the commitment by both the Government and residents. Firstly, the Government must be prepared to provide the necessary funding support for the programme to be carried out. Although the pace of MUP is dependent on the economic performance of the country and the availability of budget surpluses to fund the programme, the Government ensured that the programme did not grind to a halt when the country was facing an economic slowdown. When the economy improved, it stepped up the programme to enable more residents to benefit from upgrading. Up until 2007, it has spent about S$2.7 billion on MUP.
Secondly, residents must get a real sense that upgrading is meeting their needs. Feedback on their needs and preferences is imperative so that the programme can be tailored accordingly. A working committee for each MUP precinct oversees the project to ensure that the upgrading package is aligned with residents’ expectations before taking it to the poll. HDB also carries out regular surveys of completed MUP precincts to gauge residents’ satisfaction and identify improvement areas. The feedback is used to further fine-tune the programme in subsequent reviews to ensure continued support for the programme.
Finally, for the programme to be sustainable over the long term, consideration has to be given to the costs involved. The costs must be affordable to both the residents and the Government. Over the years, HDB constantly reviews the MUP budget and scope of works to ensure that only essential items that meet the needs of the residents are included. Non-essential items are omitted. The tight control over the improvement items under MUP not only meets the Government’s goal of fiscal prudence but also benefits the residents who co-pay the upgrading costs. It also stretches every dollar of the upgrading budget, so that as many residents as possible can benefit from the programme.
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