Appendix D-Contd.
Table 15
Year
1983-84 (actual)
Housing Authority's rental housing
programme (flats)
Home
Ownership Scheme (flats)
Private Sector
Participation Scheme (flats)
Total (flats)
28 564
7 877
2 240*
38 681
1984-85 (actual)
26 354
10 168
1 408
37 930
1985-86 (actual)
29 386
6 688
11 902
47 976
1986-87 (estimated)
30 237
6838
4 866
41 941
1987-88 (estimated)
31 887+
7610
2716
42 213
1988-89 (estimated)
40 885+
5 810
5 020
51 715
1989-90 (estimated)
35 863
6 492
7 064
49 419
1990-91 (estimated)
32 684+
5 250
4 880
42 814
Note: * Built under the now defunct Middle Income Housing Programme.
+ Including a total of 7 215 flats to be produced under the Extended Redevelopment Programme (905 in 1987-88, 4 878 in 1988–89
and 1 432 in 1990-91).
109 The Housing Authority's rental housing programme is financed largely by loans to the Authority from the Development Loan Fund which are repayable over 40 years at a notional interest rate of 5% per annum on the reducing balance of the loans. Although the interest is not payable in cash, the Authority is required to include the amount of interest in its accounts in order to demonstrate more accurately Government's contribution towards the provision of public housing. Land is provided free of charge, but its value is shown in the Housing Authority's accounts as a Government contribution. In 1986-87 total expenditure incurred by the Housing Authority on the construction of flats (including flats to be built under the Extended Redevelopment Programme and those transferred to the Home Ownership Scheme) is estimated to amount to $2,066 million. For 1987–88, it is estimated that the capital expenditure would amount to $2,150 million.
110 Provision has been made in the Development Loan Fund for the structural repair and redevelopment of defective public housing estates under the Extended Redevelopment Programme (including the demolition of 26 sub-standard blocks) together with the development of additional rehousing units on supplementary sites to cater for the initial rehousing of the tenants affected. This provision will allow for both immediate action and continuing redevelopment and improvement of the housing estates affected, similar to the Authority's successful planning and progress in the redevelopment of the Mark I & II resettlement blocks. Since this programme is still in the formative stage and will continue in phases relating to priority of works, there are likely to be adjustments and fine-tuning in subsequent years.
111 The construction of flats under the Home Ownership Scheme is financed through the Home Ownership Fund which derives its income from appropriations from General Revenue and from proceeds from the sale of flats. No land premium is payable in respect of flats sold since early 1982. In 1986-87, total expenditure on the construction of flats and transfers from the rental programme is estimated to amount to $724 million and proceeds from the sale of flats are estimated to be $1,796 million. For 1987-88, total estimated expenditure amounts to $743 million and proceeds from the sale of flats are estimated to be $1,688 million.
112 Commercial and car-parking facilities associated with the Home Ownership Scheme are constructed by the Housing Authority by means of loans from the Development Loan Fund. Loans are repayable over 20 years (with a grace period of up to three years) at an interest rate of 8% per annum on the reducing loan balance. Land premium is payable in respect of commercial facilities. Loans to the Housing Authority for this purpose in 1986-87 amount to $66 million, and in 1987–88 are estimated to amount to $57 million.
113
The programme for the development of temporary housing areas is funded from the Capital Works Reserve Fund and is rolled forward annually to meet anticipated demand arising from clearances, people made homeless by fires, natural disasters and other causes. From 1 April 1985, the programme has also included certain improvements to cottage areas in order to provide facilities such as individually metered water supply and basic amenities.
114 Under the Private Sector Participation Scheme (a supplement to the Home Ownership Scheme), Government offers sites for sale on the condition that the developer builds a set number of flats to laid-down specifications for sale at a stipulated average price to purchasers nominated by the Government. The projects in this Scheme are financed solely by private developers. The Government receives revenue in the form of land premium, but in the event that the end-selling price of the flats is below the guaranteed price or Government has to purchase unsold flats, it is required to reimburse the developer using funds from the Home Ownership Fund for the purpose.
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