ONVIDENTIAL
觀靈
Annex B
For discussion
on 15th June 1976
XCC(76)35
Copy No. of 70
MEMORANDUM FOR EXECUTIVE COUNCIL
HOUSING SOCIETY'S SLUM CLEARANCE PROJECT
In November 1973, Honourable Members endorsed a scheme for slum clearance by the Housing Society, as set out in memorandum XCC(73)100, (Annex A), and agreed that statutory resumption powers should be used where necessary to acquire suitable sites. The objectives were to achieve redevelopment of slum properties in areas neglected by private developers, while at the same time produc- ing flats that could be offered at less than market price (two-thirds was suggested) to families in the nearby properties to be redeveloped; that is, the rcheme aimed at not uprooting these families from their accustomed district. Subsequently, the Finance Committee of Legis - lative Council approved a loan of $100 million at the same interest rate as is paid by the Housing Authority, 5%, on the basis that after 5 years or so the scheme would be self-supporting.
2
The Society's experience with the first scheme has been that the great majority of families living there have very low incomes, and that it is not possible to rehouse them in newly developed blocks in the same area at a rent or price within their means, as originally intended, without offering these flats (of 200 to 450 square feet) at a rent or price substantially below the cost to the Society (which has to repay resumption costs, i, e, market value, for the sites). The Society has enquired whether Government could provide additional funds over and above the present $100 million commitment, in order to provide for subsidised rents in its new developments, and so fulfil at least in part the original aims of the scheme. However, it is not thought that such a subsidy, aimed at keeping the displaced families in the same area, where land is expensive and has to be acquired at open-market values, can be justified; in the circumstances they will have to be treated in the same way as other families displaced by Government or Government-sponsored action, e.g. urban renewal schemes, demolition of dangerous buildings, and be offered aided housing where- ever it might be available. This could well require them to move to, say, Kwai Chung or Shatin. It is therefore necessary to seek confirma- tion from Council that the approval given in 1973 to accept this scheme 25 a public mireose ju allying the use of resul tion po.des remains valid
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