On Mr Baey Yam Keng’s (MP-Tampines GRC) facebook:3 Dec 2011 –

Baey Yam Keng

I had a session this evening with some residents to explain why their units would not be offered the lift upgrading programme due to cost issues. It was a very difficult situation and I know many of them are disappointed. We have had many meetings with the authorities and architects but we could not come up with alternatives that would meet the budget constraints. We also held two rounds of discussion with the residents to explain the challenges and I hope for their understanding.

Baey Yam Keng

This is a very special case. The blocks involved are only 4 storeys high with fewer than 30 units per block. The challenge is that the blocks are segmented and three separate new lifts will have to be built to serve every unit in the block. There is this particular segment with only 4 units. At $30k budget per unit (where resident will pay only about 10%), $120k is not enough to pay for the lift which costs about $250k, more than twice the budget.

Of course, we can ask the government to give more budget. But should it be limitless? What about cases which cost hundreds of thousands of dollars per unit? Should the government be using taxpayers’ money this way?

During last month’s parliament sitting, Minister Khaw shared that for the 200 odd blocks island-wide which will not have LUP due to various reasons, the ministry is working out another scheme to help them. Details will be shared when ready.

I will do my best to help these residents under this new scheme.

Baey Yam KengThere are three segments in the block, the one with just 4 units unfortunately did not get LUP becos based on the budget of $30k per unit, there is not enough $ to build the lift shaft. For the other 2 segments, there are more units hence the budget was enough and LUP will proceed for these two segments.
6 December 2011
 
On TOC’s posting about my reply on why LUP could not be offered to some units, Dom Su asked a valid question: “With 30 flats at $30k budget, that comes up to $900 k for each block. 3 lifts at $250k each comes up to $750k for each block. So block-wise, the budget should be enough to cover right?”The $250k lift I mentioned referred to a small lift which caters to a small no. of units (in this case 4), but for the other 2 lifts which serve 2 other segments of the same block (10 and 13 units respectively), they are bigger lifts which cost $400k each. So collectively, the budget for 23 units is just enough to pay for the $800k ($30k per unit from B and Town Council plus a small contribution from residents). However, $250k is just too much to be borne by 4 units. Hope this clarifies.

 
 

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Firstly, my apology, the sentence should read “$30k per unit from HDB and Town Council plus a small contribution from residents”. The figures I quoted are ballpark. The share of residents is capped at $3k.

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Also see:
http://www.asiaone.com/Business/My%2BMoney/Property/Story/A1Story20091022-175117.html

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