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HOUSING
regard to the average household expenditure, plus the rent for a self-contained flat in the private sector. Currently, the income limits range from $4,800 for a family of three to $7,400 for a family of 10 or more. Since January 1985, and subsequent to the Housing Authority's decision to provide public rental flats for two-person and single
households persons, applications from these groups of households have been registered. The monthly income limits for single persons and two-person households have been set at $2,900 and $4,200 respectively. The number of live applications at the end of the year stood at 173 000. In the past, about 60 per cent of applications were found to be eligible on investigation.
As a means of helping elderly persons, the Housing Authority has been operating a priority scheme whereby single elderly persons applying in groups of two or more will be allocated public housing within two years. So far, 3 200 flats have been allocated in this manner. In addition, since 1982, the authority has been operating an incentive scheme under which families with elderly members are allocated housing one year ahead of their normal waiting time, and so far over 2 350 families have benefitted from this scheme.
Domestic Rent Policy for Public Housing
Rents for domestic premises in public housing estates have been maintained at low levels despite increasing operating and maintenance costs. The median rent-to-household-income proportion for tenants in public housing is at present around five to six per cent - an extremely low figure compared with the corresponding figure of 17 per cent paid by tenants in the private sector. (In terms of average rent to household income proportion, tenants in public housing pay seven to eight per cent whereas those in private housing pay 20 to 21 per cent.)
It has been possible for the Housing Authority to keep rents low because of heavy government subsidies: land is provided free of charge, and construction of rental estates is financed largely by loans provided by the government on concessionary terms.
Rents for existing estates are reviewed every two years, taking into account increases in rates, maintenance and other costs; estate values in terms of location, facilities and services provided; and tenants' ability to pay. This comprehensive approach resulted in the successful implementation of two rent increases for 93 237 flats in 45 estates during. the year.
Before the rent increases were implemented, briefings were given to district board members, mutual aid committee office bearers and tenants' representatives with a view to explaining the rationale behind the increases. The affected tenants were also individually notified of the reasons for the increase. -
In July, the authority appointed a committee to review its domestic rent policy.
Commercial, Community and Welfare Facilities
Commercial centres complete with shops, markets, cooked food stalls, restaurants, supermarkets and banks are provided in all new Housing Authority estates to cater for the everyday needs of tenants and residents in neighbouring areas.
The authority does not subsidise commercial operators, and keeps rents for commercial premises in estates in line with fair market rents. Shop units are normally let through a tendering process. During the year, 878 new commercial lettings were let on fixed terms of three years and 2 970 existing tenancies were renewed for another term of three years at reassessed rents. However, in many cases, where the increases were substantial, they were applied in stages according to a fixed pattern to avoid the tenants having to suffer any hardship.