HOUSING
It also manages public housing estates, Home Ownership Scheme courts, temporary housing areas, cottage areas, transit centres, flatted factories and the ancillary commercial facilities throughout the territory, and administers the Private Sector Participation Scheme and the Home Purchase Loan Scheme. On behalf of the government, the authority clears land, prevents and controls squatting, and plans and co-ordinates improvements to squat-
ter areas.
The authority meets every three months to review the work of its eight standing com- mittees which have delegated powers to deal with matters concerning establishment and finance, building, management and operations, home ownership, development, commercial properties, complaints and tenancy appeals. It also meets whenever there are important issues which require special attention.
In addition to the eight standing committees, the Special Committee on Clearance of Kowloon Walled City, an ad hoc committee established in January 1987, continues to perform its functions. Four other ad hoc committees have been formed to examine the housing needs of the 'sandwich class', to review the contribution of the private housing sector, to review domestic rent policy and allocation standards and to examine the feasibility of selling suitable public rental flats to sitting tenants.
The authority is chaired by a non-official, supported by 20 other non-official members and four official members whose responsibilities have a bearing on housing matters. All members are appointed by the Governor. There are also 31 committee members, who sit on one or more of the committees. Many of the members of the authority and committees also serve the community as Legislative, Urban or Regional councillors, or as members of the New Territories Heung Yee Kuk, district boards, area committees and mutual aid committees. Together, they have a broad range of experience and representation in community service and professional knowledge in certain areas of activity, and are able to apply a critical and conscientious perspective in determining public housing policies.
The authority is responsible for its own finance and management. Under an arrangement with the government which came into effect on April 1, 1988, government continues to ensure the availability of funds required for the housing programmes as set out in the Long Term Housing Strategy. For its part, the authority will continue to pursue financial efficiency in providing accommodation at affordable rents and prices.
On March 31, 1990, the government's capital investment and contribution to housing stood at about $80.9 billion, which comprised permanent capital of $18.6 billion, con- tribution to domestic housing of $54 billion and non-domestic equity of $8.3 billion.
In the 1989-90 financial year, recurrent expenditure on the authority's domestic rental properties, covering mostly management and maintenance costs, totalled $4,381.3 million, while income from domestic rents was $3,639.2 million, resulting in a deficit of $742.1 million. This deficit was mainly because the low rents in old estates were insufficient to cover management expenses and the high cost of maintenance and improvements. The authority was partly able to offset this deficit from income derived from its non-domestic properties which, in the same period, generated a surplus of $289.2 million after charging amortisation and paying interest on permanent government capital and 50 per cent dividends to the government.
The authority spent $7,191 million on its capital programmes, of which $4,991 million (69.4 per cent) was financed by the authority, while the balance of $2,200 million (30.6 per cent) came from the government through supplementary injection of capital.
193