Bookmark & Share
The Housing and Development Board (HDB) on Monday (9 May) announced that it will provide bigger upgrading budget for HDB shops following the review of the Revitalisation of Shops (ROS) Scheme.
Under the enhanced scheme the upgrading budget for each shop will be raised by 75 percent from S$20,000 to S$35,000 so that owners can opt for a wider scope of upgrading works.
To encourage more businesses to participate in the ROS scheme, the shop owners’ share of the upgrading cost will reduced from 50 percent to 20 percent and capped at S$5,000. The remaining 80 percent will be jointly funded by the Housing Board and the Town Councils. Meanwhile, for rental shops, both the HDB and Town Councils will continue to bear the full cost of upgrading.
HDB will also give a new funding of up to S$10,000 for Merchants Associations (MA) to appoint a consultant to help shop owners in their ROS upgrading.
Should shops not have an MA, the housing board will introduce a new Start-up Fund of S$10,000 to encourage them to form one.
To help these associations in organising promotional events to attract shoppers, HDB will also continue to co-fund up to 50 percent of the expenditure for such activities, subject to an annual limit of S$500 per shop sold and S$1,000 for each rental shop.
Furthermore, eligible tenants will continue to enjoy a rent-free period of up to one month, when the HDB shop they are leasing undergoes renovation under the ROS scheme. To qualify for the rent exemption, the entrepreneur must be a member of an MA and have leased the shop for at least six years.
Due to the higher amount to be borne by the authorities, the government plans to allocate about S$15 million for the implementation of the enhanced ROS Scheme.
Since its introduction in 2007, the programme has benefitted a total of 4,684 shops from 54 HDB Town and Neighbourhood Centres. Of these, 16 centres have completed upgrading and another 8 are at various stages of renovation.
Nikki De Guzman, Editor at CommercialGuru, edited this story. To contact her about this or other stories email nikki@propertyguru.com.sg
Related Articles:
Shops will return to HDB after 30-year lease expires: Wong