HOUSING

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which are held by a number of owners who may or may not be residents of the building. The nature of ownership of these buildings, combined with other factors, has resulted in a situation over the years where the management of some private properties has dete- riorated.

Although the management of privately owned buildings is the responsibility of property owners, the consequences of consistent neglect are of serious concern to the government. The government is, therefore, taking steps to provide a better legal and administrative framework to enable those concerned to manage their properties more effectively.

Draft legislation to amend the Multi-Storey Buildings (Owners' Incorporation) Ordin- ance is being prepared to make it easier to form owners' corporations, to improve their functioning, and to define more clearly the powers and responsibilities of the corpora- tions' management committees. Such corporations act in the interests of individual owners regarding their rights, powers, duties and liabilities in relation to those parts of a building held in common ownership. Although the existence of an owners' corporation does not guarantee good management of a building, it has been found from experience that manage- ment standards in buildings which have owners' corporations have generally been better than in cases where no comparable management body exists.

To involve the public in developing policies on building management, an Advisory Committee on Private Building Management was established in November 1988. This committee consists of a majority of non-official members and advises the government on - measures to improve the management of private buildings.

Separately, the government is concerned about the problems associated with existing Deeds of Mutual Covenant, many of which fail to protect adequately the interests of individual flat owners. The public was consulted from February to May 1989 on proposals to remedy unfair clauses in the covenant. Measures to remove the unfairness are being formulated having regard to the views of the public and in consultation with the Advisory Committee on Private Building Management.

So far, 12 Building Management Co-ordination Teams have been set up to offer advice to owners' corporations, mutual aid committees and other building management bodies, at district level. These teams of professional housing managers and assistants play an important role in encouraging the formation of owners' corporations and in providing advice to members of management committees. They also work towards improving public awareness in building management matters through seminars and discussion groups.

Rent Control in the Private Sector

Statutory controls on rents and security of tenure in Hong Kong date back to 1921. The present legislation governing these matters is the Landlord and Tenant (Consolidation) Ordinance.

The legislation is under constant review to improve its working and to achieve the objective, recommended in 1981 by a Committee of Review and endorsed by the govern- ment, that as soon as circumstances permit, rent control should be phased out.

At present, statutory controls apply only to domestic premises in the private sector unless otherwise exempted. Tenants are afforded rent increase control and security of tenure. Unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession.

Heavy penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. However, provisions exist to facilitate negotiations by which the parties may

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