HOUSING
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The extended redevelopment programme involving the clearance of 26 sub-standard blocks in 11 middle-aged estates progressed smoothly during the year, with more than half of the affected 15 000 families now rehoused. The redevelopment of Phase 1 of Kwai Fong Estate, comprising 905 new rental flats, was completed and demolition of blocks under Phase 2 will be completed in 1988. Other blocks at Kwai Hing, Sau Mau Ping, Wong Chuk Hang, Shek Pai Wan and Lam Tin Estates are scheduled for demolition in 1988 and the whole rehousing process of the sub-standard blocks is expected to be completed in 1989–90.
As part of a new housing strategy, the Housing Authority has recognised the need not only to complete the redevelopment of Mark I/II estates, but also to extend the redevelop- ment programme to include most of the Mark III to VI and former government low cost housing estates. The extended programme takes due consideration of the conditions of the individual blocks and estates concerned, with a view to bringing them into line with the latest standards.
Extension of the redevelopment programme will increase the overall estimated demand for new flats by 125 000 units and it has, therefore, been necessary to identify additional urban area sites to rehouse the families affected. Currently, supplementary sites are being developed at Kwai Chung, Shun Tin Estate Phase 4, Chuk Yuen Estate Phase 6 and the Sham Shui Po Reclamation. When completed in 1988 and 1989, these sites will provide a total of 4 520 rental flats. Further supplementary sites have been earmarked at Ma Chai Hang, Chuk Yuen, Ho Man Tin and Ngau Chi Wan, while other possible sites are under study. The redeveloped sites will on completion provide a mix of rental and HOS flats together with a wide range of amenities.
Home Ownership Scheme
To meet the community's growing aspirations, the government established the HOS to help lower-middle income families and public housing tenants become home-owners.
The scheme is administered by the Housing Authority with government funds to provide flats for sale to these families and tenants at prices below market value.
Private sector applicants for HOS flats may not own domestic property and are subject to a household income limit of $8,500 per month. These restrictions, however, do not apply to rental estate tenants. The latter restriction is not applied to residents of temporary housing areas and cottage areas managed by the Housing Authority, households displaced by clearance of squatter areas for development, natural disaster victims and junior civil
servants.
Since the scheme started in 1978, a total of 85 357 flats, including 23 158 flats produced under the complementary PSPS, have been sold to eligible families. About 42 per cent of these families were public housing tenants, who were required to surrender their rental flats to the authority on obtaining HOS flats. Since the beginning of 1985, 2 306 flats have been sold to prospective public housing tenants, who were in return required to forgo their rights to rental accommodation.
To encourage public housing tenants to become home-owners and therefore give up their rental accommodation for those families who are in greater need of public housing, public housing tenants are accorded priority in selecting HOS flats. This incentive is also extended to prospective public housing tenants, so that rental flats which would have been allocated to them can be let to applicants in greater need.
As another form of assistance, the government undertakes to indemnify financial institutions which provide mortgage loans to HOS flat purchasers. As a result, these