Built Environment Transformation Gross Floor Area Incentive Scheme

Circular No : URA/PB/2021/06-DCG, BCA/ITM GFA/2021-11-ES

Our Ref : DC/ADMIN/CIRCULAR/PB_21, BCA ID 98.4.2

CIRCULAR TO PROFESSIONAL INSTITUTES

Who Should Know:
Building owners, developers, architects, engineers and building specialists

Effective Date:
With effect from 24 November 2021 for a period of five years.

Objective

This circular provides details of the Built Environment Transformation Gross Floor Area (BE Transformation GFA) Incentive Scheme. The scheme aims to encourage the greater adoption of enhanced Construction Industry Transformation Map (ITM) standards in areas of digitalisation, productivity and sustainability (“ITM Outcome Requirements”) in private sector developments. The greater adoption of ITM Outcome Requirements in private sector developments will contribute to the ongoing transformation of the BE sector to one that is more resilient, productive and sustainable.

Details of BE Transformation GFA Incentive Scheme

Background

1. Launched in October 2017, the Construction ITM comprises a series of key strategies and approaches that will transform the entire construction process and value chain. The ITM focuses on key transformation areas which include Integrated Digital Delivery (IDD), Design for Manufacturing and Assembly (DfMA), and Green buildings, while strengthening our local workforce and building the capacities and capabilities of firms in these transformation areas. The national targets under the ITM are to achieve (i) 70% DfMA adoption rate (by GFA) by 2025; and (ii) 80% green buildings (by GFA) by 2030.

2. BE Transformation GFA Incentive Scheme
   To accelerate the adoption of ITM Outcome Requirements, BCA and URA have jointly launched the BE Transformation GFA Incentive Scheme. Under the BE Transformation GFA Incentive Scheme, developers / building owners (hereinafter referred to as “applicants”) can enjoy up to 3% additional GFA allowed beyond the Master Plan Gross Plot Ratio (GPR) for delivering the stipulated ITM Outcome Requirements in their building development on private sites¹ of at least in 5,000 sqm GFA^2,3.

3. The Built Environment Transformation GFA Incentive Scheme is applicable to development proposals for a period of five years from 24 November 2021 to 23 November 2026. Proposals which have obtained planning permission but have not commenced superstructure works may also be eligible for this scheme on a case-by-case basis. Should the applicant’s application be accepted, applicants will need to submit an amendment or fresh submission to URA for planning permission, and include the additional bonus GFA in the development proposal.

4. The BE Transformation GFA Incentive Scheme is also applicable to proposals for new developments on sites launched for public tender under the Government Land Sales (GLS) Programme on and prior to 31 March 2022. Applicants can enjoy up to 2% bonus GFA beyond the maximum allowable intensity stipulated in the Technical Condition of Tender (TCOT) for the respective sale sites. Proposals on GLS sites that have obtained planning permission but have not commenced superstructure works may also be eligible for the BE Transformation GFA Incentive Scheme on a case-by-case basis. Similarly, successful applicants will need to submit an amendment or fresh submission to URA for planning permission to include the additional bonus GFA in the development proposal for such GLS sites. From 2Q2022, enhanced ITM Outcome Requirements will be required for GLS sites as part of the Conditions and Requirements of Relevant Competent Authorities and Public Utility Licensees. When the enhanced requirements take effect, the BE Transformation GFA Incentive Scheme will no longer apply for such sites.

5. The quantum of allowable bonus GFA under the BE Transformation GFA Incentive Scheme is based on the proposed uses, use quantum that complies with the Master Plan zoning, and any additional requirements imposed as part of the endorsement for bonus GFA.

6. The approval of the bonus GFA under the BE Transformation GFA Incentive Scheme is subject to:

   1. Achievement of stipulated ITM Outcome Requirements listed in Appendix 1 [PDF, 790.23 KB] ↗ (opens in new tab) as assessed by BCA;

   2. Compliance with all other planning, development control and urban design requirements for the site;

   3. Compliance with tender requirements if it is a GLS site; and

   4. Payment of Development Charge (DC) and/or Differential Premium (DP), where applicable.

7. The additional GFA granted under the scheme will not form part of the future development potential of the subject site and will be subjected to the overall cap of 10% for additional GFA allowed beyond the Master Plan GPR.

8. The types of developments that are eligible for the BE Transformation GFA Incentive Scheme are shown in the table below.

9. Applicants who take up the BE Transformation GFA Incentive Scheme will not be eligible for other funding schemes with comparable outcomes for the same development. Unless otherwise stated, funding from other schemes with similar requirements may be adjusted accordingly based on the improvements in the outcome deliverables to ensure there is no duplication in funding.

10. Incentive Requirements and Application Process
    Applicants who are interested to participate in the BE Transformation GFA Incentive Scheme can submit an application via this Form ↗ (opens in new tab). Supporting documents such as the ITM Outcome Concept Plan to detail the proposed ITM Outcome Requirements must be included for consideration.

11. If the application is approved by BCA, BCA will issue a Letter of Acceptance (“LOA”) to the applicant and a valid and binding agreement between the applicant and BCA based on the Terms and Conditions of the BE Transformation GFA Incentive Scheme (as set out in Appendix 4 [PDF, 442 KB] ↗ (opens in new tab) herein) (“T&Cs”) will be concluded in respect of the development’s participation in the BE Transformation GFA Incentive Scheme upon the applicant’s receipt of such LOA. The applicant can then proceed to submit their development application incorporating the bonus GFA, alongside with the GFA computation form (see Appendix 5 [PDF, 440 KB] ↗ (opens in new tab)) and the LOA to URA for planning approval.

12. Where development proposals fall within areas with specific planning considerations (e.g. storey height controls) or are unable to fully accommodate the additional intensity due to on-site conditions (e.g. areas with traffic concerns), the bonus GFA approved under the BE Transformation GFA Incentive Scheme may be lower than the endorsed quantum, and/or the bonus GFA may be limited to a particular use or uses.

13. The application of bonus GFA under the BE Transformation GFA Incentive Scheme will be accepted if URA grants in-principle approval for the bonus GFA. For avoidance of doubt, the written permission or provisional permission issued by URA, as the case may be, will have to state that the proposed bonus GFA, and the usage of the proposed bonus GFA under the BE Transformation GFA Incentive Scheme is endorsed.

14. Security Deposit
    When the bonus GFA under the BE Transformation GFA Incentive Scheme is approved, the applicant will need to raise a Security Deposit (SD) which is equivalent to the market value⁵ of the full quantum of allowable GFA approved by URA (in Para 13) within thirty (30) days from the date of the written notice issued by BCA to request for the payment for the SD. The SD will have to remain valid for three (3) years from the projected date of Temporary Occupation Permit (TOP) for a development and will be released when the requisite ITM Outcome Requirements are fulfilled. In the event that the requisite ITM Outcomes Requirements cannot be fulfilled within this period, the applicant will need to extend the validity of the SD until such requirements have been fulfilled.

15. To ease the financial burden on the applicant as economy recovers from the impact of the COVID-19 pandemic, the SD required will be initially set at 50% of the market value of the full quantum of allowable GFA approved by URA. The quantum of the SD will be reviewed and adjusted, when needed, and advance notice will be given to the industry for adjustments to the quantum of the SD.

16. As the BE Transformation GFA Incentive Scheme is tied to ITM outcomes that involve improvements to the design and construction processes of new developments, evidence of compliance with the stipulated deliverables and timeline during the construction phase will be important. As such, the submission of half-yearly progress reports to BCA during the construction life cycle by the applicant will be required.

17. More details on the application and evaluation process, reporting requirements and T&Cs can be found in Appendices 2 [PDF, 188 KB] ↗ (opens in new tab), 3 [PDF, 370 KB] ↗ (opens in new tab) and 4 [PDF, 442 KB] ↗ (opens in new tab). Examples of computation for SD and usage of the bonus GFA under the BE Transformation GFA Incentive Scheme can be found in Appendices 5 [PDF, 440 KB] ↗ (opens in new tab) and 6 [PDF, 70 KB] ↗ (opens in new tab).

18. We would appreciate if you could convey the contents of this circular to the relevant members of your organisation. If you or your members have any queries concerning this circular, please do not hesitate to contact BCA through our online feedback form at https://www2.bca.gov.sg/feedback/ ↗ (opens in new tab) or URA’s Feedback and Enquiry Form at https://eservice.ura.gov.sg/feedbackWeb/ ↗ (opens in new tab).

19. For other information on the Master Plan, urban design guidelines, private property use and approval, car park locations and availability, private residential property transactions, and conservation areas and buildings, use URA SPACE ↗ (opens in new tab) (Service Portal and Community e-Services). This is an online portal packed with useful data and visualisation to help building professionals, business operators and the general public in their decision-making. It consolidates detailed information on land use and private property into a one-stop platform presented on geospatial maps.

Thank You.

ANG KIAN SENG
GROUP DIRECTOR
ENVIRONMENTAL SUSTAINABILITY GROUP
for CHIEF EXECUTIVE OFFICER
BUILDING AND CONSTRUCTION AUTHORITY

GOH CHIN CHIN (MS)
GROUP DIRECTOR
DEVELOPMENT CONTROL
for CHIEF EXECUTIVE OFFICER
URBAN REDEVELOPMENT AUTHORITY

^{1 For avoidance of doubt, the BE Transformation GFA Incentive Scheme will not apply to public sector developments.}

^{2 The qualifying criteria of 5,000 sqm in GFA considers the fact that larger developments tend to achieve sizeable productivity and sustainability outcomes. Smaller developments of less than 5,000 sqm GFA may be considered on a case-by-case basis on agencies’ assessment.}

^{3 To further accelerate adoption of BE transformation measures, applications submitted under the Strategic Development Incentive (SDI) and Central Business District (CBD) Incentive Schemes will have to comply with stipulated outcomes in the areas of digitalisation, productivity and sustainability. The required ITM outcomes will be separately assessed in relation to the context of the proposal, upon submission of the outline application for the SDI/CBDI development proposal. ITM outcomes will be imposed as conditions for planning approval for redevelopment proposals via the SDI/CBD Incentive scheme. SDI/CBDI proposals will not qualify for the additional GFA under the BE Transformation Gross Floor Area Incentive Scheme.}

^{4 The maximum allowable number of dwelling units for residential developments located outside of Central Area is derived from the Master Plan permissible intensity, which excludes any bonus GFA the site is eligible for.}

^{5 The applicable DP/DC rate is pegged to the date of planning submission to URA where the BE ITM Bonus GFA is proposed and leading to a conveyance where the Built Environment Transformation GFA incentive scheme is first endorsed by URA and BCA.}