CONFIDENTIAL
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Minimum Household Incomes
40
The Working Party considers that aggregate household income should bear a relationship with the income eligibility limits for rented public housing. At the present time these limits are set out in a scale ranging from $1,800 a month for a household with three persons to $2,600 for a household of ten or more persons. The Working Party considers that the households to be assisted towards become home owners should have aggregate monthly incomes of at least $1,800 and $2,600 depending on their size, partly because households earning less than these amounts are already eligible for rented public housing and partly because they are least able to afford the burdens of home ownership. While these minima are somewhat at variance with the Terms of Reference, the Working Party will make or allow for arrangements by which such households could qualify for assistance, possibly in two ways, namely -
(a)
(b)
the household could re-arrange itself so as to augment its total income;
the household could pay a larger than usual initial downpayment under
an advance sales arrangement to be devised by the Housing Authority, thereby reducing its monthly repayments
of the mortgage loan to affordable levels.
But as a general rule, the Working Party recommends a minimum aggregate household income ranging from $1,800 a month (for two or three person households) to $2,600 a month (for a household with ten persons or more).
Household Income Ceiling
5.
iven the Government's limited resources for a Home Ownership Scheme in the public sector and given, also, the need to avoid, as far as possible, competition with the private sector, it is necessary to set a ceiling for household income. The working Party considers that this should be pitched at 3,500 p.m., above which households are expected to be able to afford the smallest self-contained flats (350 square feet of lettable floor area) built by private developers on open market mortgage terms. recommends accordingly.
The Working Party
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G.F. 323
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