XCC(79)46
a substantial downpayment from their own resources. The Home Ownership Committee therefore recommended that applicants eligible for a housing loan from their employers should not be disqualified, irrespective of the amount of loans they are able to obtain.
Housing Authority Tenants
17
As regards Housing Authority tenants, the most important consideration is that they should surrender their heavily subsidised tenancies back to the Authority and pay their own way as far as possible under the Home Ownership Scheme. It is recommended that the current rules applicable to Housing Authority tenants (paragraph 2A) should remain, apart from the proposed minor relaxation of the residential qualification rule.
Public Relations
18
The Home Ownership Scheme has proved very popular with the public. Although Phase II flat prices will be higher than Phase I prices, they will nevertheless be 30% below market value for comparable flats in the private sector and will therefore be eagerly sought by the public.
19
There have been many suggestions particularly in Chinese newspapers that the scheme should be expanded and the eligibility limits (particularly income eligibility) should be raised. Any decisions to increase the limit from $3,500 to $4,500 will therefore be generally welcomed. Without being aware of the Home Ownership Committee's recommendations, private developers also suggested that an increase to $4,500 would be reasonable. Likewise, the relaxation of the disqualification of employees eligible for housing assistance from their employers would be welcomed.
20
The change in the minimum number of family members for non-Housing-Authority applicants is likely to highlight the different treatment of Housing Authority tenants and non-Housing Authority tenants and may lead to the charge that the former are too privileged. It is thought, however, that the reason behind the change in the rule relating to household size would be understood by the public.
Staff
21
The change in eligibility criteria as such will not give rise to additional staff or financial requirements but the verification of family composition will require a small increase of staff which will be paid for by the Housing Authority.
CONFIDENTIAL ##
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