148
HONG KONG ANNUAL REPORT
with a total of 903 members had been formed, and projects involving the loan of $28 million had been completed or approved. More schemes are under consideration.
It has, however, for some time been obvious that greater efforts than these were required in the provision of low-cost housing. In 1954 a Housing Authority was created, charged with the duty of providing accommodation for people living in overcrowded and unsatisfactory conditions. Under the provisions of the Housing Ordinance, No. 18 of 1954, the Authority consists of all members of the Urban Council, ex-officio, plus not more than three members appointed by the Governor. Two such appointments have so far been made. The Authority functions as a commercial enterprise, and although rents will be kept as low as possible, they must be sufficient to cover expenditure. Crown land is allocated at one-third of the normal market price, and Government loans are granted at a low rate of interest. In 1955 the interest rate for future loans was raised from 31% to 5% per annum. The Government maintains a general control over the Authority's activities, and all its housing schemes must receive Government's prior approval.
The routine administration and execution of the decisions of the Authority are carried out by the Housing Division of the Urban Services Department, under the control of the Director of that department, who is concurrently Chairman of the Housing Authority. The staff was considerably expanded during the year; a full-time Secretary to the Authority was appointed, and a Housing Manager arrived from the United Kingdom in April to be responsible for selection of tenants and management of properties. Recruit- ment and training of the necessary investigating staff was put in hand. The salaries of all staff are reimbursed to Government by the Authority, plus a 30% surcharge to cover the cost of pensions, quarters, passages, office accommoda- tion, etc. The building schemes so far put in hand are being carried out through private architects.