Revitalisation of Shops Scheme (ROS)

Wednesday, October 01, 2014
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Where HDB retailers or the local Merchants Association (MAs) are keen to organize themselves and take the lead to drive the revitalisation efforts, HDB provides the ROS scheme which aims to help the retailers to upgrade the shopping environment and carry out promotions.

Revitalization of Shops Scheme (ROS)

Where HDB retailers or the local Merchants Association (MAs) are keen to organize themselves and take the lead to drive the revitalisation efforts, HDB provides the ROS scheme which aims to help the retailers to upgrade the shopping environment and carry out promotions.

Features of ROS Scheme

The ROS Scheme comprises three components, viz. co-funding for upgrading of common area, co-funding for promotional events and rent-free periods for tenants to renovate their shops. MAs may choose to take up all or a combination of these measures.

Co-funding for Upgrading of Common Area

Over the years, several local MAs have worked with the Town Councils to carry out physical upgrading works in the common areas of Town Centres and Neighbourhood Centres so as to improve the overall shopping ambience for shoppers. However, shop owners would have to bear the full cost for items that directly benefit their shops e.g. block awnings.

Under the ROS Scheme, shop owners need only pay 50% of the cost while HDB and the Town Councils will bear the remaining 50% or up to $10,000 per shop. For rental shops, HDB and Town Councils will bear 100% of the upgrading cost or up to $20,000 per shop.

The respective Town Councils will carry out such works in tandem with its upgrading works for the entire shopping area. The co-funding for upgrading of common areas and rent-free period at each ROS site will be limited to no more than once in 5 years.

Co-funding for promotional events

MAs have also been actively organising promotional events to attract crowds to their town and neighbourhood centres. To assist the MAs, HDB will co-fund up to 50% of the expenditure for such promotional events. The total funding will be based on the number of MA members, subject to an annual cap of $500 per sold shop and $1,000 per rental shop. MAs are required to plan at least two events per year in order to qualify for the funding. MAs are encouraged to organize more events and the funding can be used to pay for the publicity and logistical costs of the events.

The co-funding for promotional events will be limited to no more than 6 consecutive years (subject to application each year). For the first 3 years of co-funding by HDB, for each event, the funding will be capped at 50% of the expenditure or 50% of the total funding for the year, whichever is lower. For the 4th to 6th years of the co-funding, there will be a gradually-reducing portion of the co-funding by HDB (i.e. 4th year – 40%, 5th year – 30%, 6th year – 20% subject to yearly application). The 6th year will be the final co-funding of promotional events under ROS Scheme.

Rent-free renovation period for tenants

HDB retailers are encouraged to upgrade their shops and business operations to complement the efforts made to upgrade the shopping facade and to carry out promotional activities. To facilitate such efforts, HDB will grant its tenants a rent-free period of up to one month when they renovate their shops. The rent-free period is to be limited to no more than once in every 5 years. This rent-free period will be offered only if renovation is done in conjunction with the overall upgrading/promotional efforts of the ROS scheme. To qualify for the rent-free period, the tenant must be an MA member and have rented the shop from HDB for at least six years.

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