Owners of plots allocated under the Home Ownership Scheme are required to pay a fee equivalent to 25% of the land's value if they intend to redevelop the plots into multiple units. However, if the newly developed residential units will be retained by the owner or their children, the development fee may be waived.
For plots that satisfy the established criteria, a hypothec is issued on the redeveloped properties instead of a cash payment.
>18Y
Age of applicant
25%
Maximum development fee waived
Owners of HOS Plot
Frequently Asked Questions
If a property was originally acquired through the HOS scheme or other similar schemes and the beneficiary, or any subsequent owners, plan to develop the property into more than one residential unit, or although retained as one residential unit, it will exceed two storeys, a PDA Form should be submitted. This is because restrictive clauses limiting development in the original deed with the Authority remain applicable to the current owners unless the policy is adhered to.
In this case, the applicant should not fill in the PDA form. However, if the property is to be developed in the future, the PDA form needs to be submitted before the property is developed.
The following parties can submit this form:
- Plot owner
- Notary appointed by the plot owner
- Notary appointed by both the plot owner and the potential buyer
The form will be reviewed by the Housing Authority.
- If only a development fee is required, a valuation of the plot is carried out. The development fee is then communicated to the applicant/Notary accordingly. If applicants wish to proceed with the development fee, their Notary is requested to contact the Housing Authority.
- When one or more residential units are retained, a valuation of the plot together with the calculation of hypothecs is carried out. Applicants are then contacted by the Housing Authority to inform them of how to proceed.
The development fee and/or hypothecs are required to exonerate (or, in the case of a hypothec, defer the payment of the fee to a future date when the property, or part of it, will be sold) the owner from the restrictive clauses limiting the development.
Yes, the owner of the plot is entitled to one hypothec on one residential unit. If that residential unit is sold at a later stage, the owner will need to settle their proportionate fee with the Housing Authority.
Yes. Children of the plot owners are entitled to one hypothec on one residential unit each, provided they do not already own a residential property. If the child later decides to sell their respective unit, they will need to settle their proportionate fee with the Housing Authority.
In this case, the children do not have a right to a hypothec. Therefore, the proportionate fee will need to be settled.
No documents need to be prepared. However, information such as the file number, plot address and personal information must be submitted.
A copy of the proposed plans is required whenever plot owners wish to retain one or more residential units for themselves and/or for their children.
The notarised searches are required when the plot owners wish to retain one or more units for their children who do not already own a property that may be used for residential purposes.
The development fee is calculated as 25% of the value of the developable plot area.
The valuation of the plot is valid for two (2) years, starting from the date of valuation.
The development fee may either be settled by the seller or the buyer – it is up to the parties to agree between themselves. The most important thing is that it is settled before any development occurs.
Yes, please fill in Sections 1 & 2 of the PDA Form.
If the plot has already been developed, you are still required to complete the form to regularise your position and be exonerated from any restrictive clauses limiting development. If the plot owner continues to disregard and fail to cooperate with the Housing Authority, legal action will be initiated, , which can result in the property being reverted to its original state as originally approved by the Authority or rescind the contract as a result of the violation of this clause.