tisation of the capital cost over 40 years at 5 per cent interest per an- num, with the addition of a small budgeted surplus to add an element of self-finance for future schemes and as a buffer against inflation.
A standard rental per flat is then calculated on a square foot unit, and adjusted in detail depending on rela- tive quality, location, and amenity.
Rents are collected door to door by housing assistants, who at the same time deal with other aspects of management.
For the year ending 31st March, 1965, the gross rental income from completed accommodation was over HK$21 m., and of this sum nothing had to be written off as not recover- able. In the month of September 1965, the rent collection exceeded HK$2 m., and there were no arrears a remarkable state of affairs which has become accepted as normal.
The Authority's properties rated in the usual way and the rates are paid by the tenants as part of the inclusive monthly rental charge. Water and electricity is metered separately to each flat, and paid direct by the tenant.
are
This, however, is not the end of the Authority's activities. It considers that such housing must be managed properly and that the ultimate suc- cess of any housing project rests firmly in the quality of its manage-
ment.
As a public housing body, the Authority must exercise the utmost care in the selection of its tenants, and this aspect of the work is perhaps the most difficult of all.
Tenant Selection
From the outset the Authority has adopted a system of tenant selection which it considers to be fair to all concerned. In order to be so, this system entails a tremendous amount of work in the receipt of applications, the "pointing" of these applications on the basis of housing need, and the visitation of all eligible applicants.
Families have to be fitted into ac- commodation which is not only suit- able in size but also is in accordance with the rent which the family is able to pay and which the Authority be- lieves, for this type of tenant, to be around one-fifth or one-sixth of the family income. The work involved
in this method of selection, and the points system used, is regarded as a public duty but is an expensive part of the management operation.
In view of the fact that income must cover expenditure, costs must necessarily be reflected in the rents charged, with a considerable limiting effect in the efforts to obtain the lowest possible rents.
Mistakes which have been made in the selection of tenants have been
If the
very few, and misfits small. Authority finds that any tenant has obtained accommodation by means of false statements ог other illegal means, the tenancy is terminated, but these irregularities are usually found out in time for the application to be cancelled.
The essence of housing manage- ment is good relationship between landlord and tenant. In their man- agement duties the Authority's hous- ing assistants make regular monthly visits to collect rents, and during such visits the state of the flats can be
inspected and any irregularities in tenancy or in occupation are quickly discovered and dealt with.
The management staff is carefully selected from candidates who have a good education and are considered to be temperamentally suited for these tasks. Housing assistants are trained for their duties within the depart- that in due course the ment, so Authority will have a complete staff of well-trained housing managers and assistants.
It takes only a few years to design and build a housing estate, but the schemes which are thus constructed will require to be managed for the full extent of their life, which may well be anything up to 100 years.
This is the real secret of success in public housing.
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Far East Architect & Builder November, 1965
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