HOUSING
157
that the median rent-income ratio for new public housing estates at the current standard should not exceed 15 per cent.
Some 637 welfare premises in estates are let at concessionary rents. These include children's and youth centres, nurseries, social and community services centres, libraries, study rooms, welfare clinics, sheltered workshops, hostels and centres for the mentally or physically handicapped. Hostels for the elderly are let to voluntary agencies at normal domestic rents. During the year, 65 welfare lettings were made. In order to maintain a balanced community for public housing tenants, a total of 489 premises have been let for educational purposes, such as kindergartens, and primary and secondary schools. In most cases, kaifong and residents' associations and Mutual Aid Committees in housing blocks are provided with office accommodation. Medical clinics and premises for various government departments are generally let at commercial rents.
Letting of Commercial Properties
[ ]
The Housing Authority also has 22 757 sets of commercial premises, including shops, market stalls, banks, restaurants, in its various estates, and the total rental income generated in 1985–6 was $1,097 million. In March 1986, a new Commercial Properties Division of the Housing Department was set up to deal with all matters relating to the authority's commercial properties, design research, valuation, marketing and letting, pro- motion activities and tenancy control.
Ordinary shops and market stalls were let by rental tendering, thus enabling small operators with limited capital to obtain a tenancy which is usually of a three-year term. Some large shops and chains of shops are, however, let by negotiations through which some well-known firms are attracted into starting businesses in the authority's shopping centres. It is the authority's policy not to subsidise commercial operators and to keep rents of commercial premises at or close to the market levels. The level of market rents has been fairly stable during the year for the majority of commercial premises. However, in cases where rent increases for the authority's commercial premises were substantial because of higher market values, the increases were applied over two or three years. There were also cases where rents were reduced at the time of tenancy renewal to reflect the prevailing market trends.
Shop premises affected by the extended redevelopment programme have received special consideration. Rents for the premises are reviewed at six-month intervals. Ex-gratia payment equivalent to 15 months rent are given to tenants who have to vacate their shops. The tenants are also given a fairly wide range of alternative commercial premises which they can acquire through tenders restricted to their group as a reprovisioning arrangement. A three-month rent-free period will be granted for new tenancies so acquired.
The authority is also managing 18 130 flatted factory units in 35 blocks.
Management
Senior staff of the authority continued to foster close contacts with district boards and mutual aid committees, as well as local interest groups by participating in their meetings and community activities. Close contacts with tenants were also maintained through door-to-door visits by estate staff.
To ensure that public housing is offered to the most deserving families, some policy changes have been made, including the adoption of new criteria for the relief of over- crowding and voluntary transfer, and the discontinuation of automatic inheritance of a public housing tenancy.