G.F. 323

CONFIDENTIAL #

機密

Accordingly, it will be extremely difficult for people outside

the Walled City to claim this as a precedent.

Financial Implication of this 'Special' Compensation Package

17.

(a) Owners of flats be given ex-gratia cash compensation

equivalent to market value of the flats. The current

market value of flats in the Walled City is estimated

to be between $100 - $120/sq. ft. Approximately 93

building units or flats will be affected in these

26 buildings, each with an average size of about 400 sq.ft.

Therefore the financial commitment would be in the region

of 3.7 million to $4.5 million. However, short of a

physical survey the figures must be regarded as no more

than a very rough estimate.

(b) Tenants and owner occupiers to be offered ex-gratia

compensation for their tenancy. It is difficult to

calculate the financial commitment at this stage.

Housing Implications

18.

All bona fide occupiers whether tenant or landlord to

be offered public housing. Some of the existing conditions for

allocation of public housing units may have to be waived in this case

e.g. residents with known alternative accommodation should still be

considered for rehousing as some of these are branches of families

e.g. married sons of public housing tenants. Subject to the deletion

of these persons from the original tenancy a new tenancy should be

created for those affected by this exercise. It is impossible to

estimate with any degree of accuracy at this moment the exact number

of households in the 93 affected flats. But if we take the average

of 1.5 household in each unit then there are approximately 140 households.

If the whole operation is carried out in stages it is unlikely that

the housing requirement for each stage will be great.

However if

Government is forced to announce its completed programme of action

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