HOUSING
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In response to the demand for more living space, tenants may choose to live at the minimum internal floor area allocation standard of seven square metres per person, with the median rent-to-income ratio not exceeding 18.5 per cent; or at the minimum standard of 5.5 square metres per person with the median rent-to-income ratio not exceeding 15
per cent.
With rents being charged at $51.20 per square metre for the newest urban estates and $29.30 for the newest New Territories estates, domestic rents represent, on average, eight per cent of the median household income of Housing Authority tenants.
Rents are reviewed every two years and adjusted to take account of rates increases, maintenance and other costs, estate values in terms of location, facilities and services provided, and the tenants' ability to pay.
Housing Subsidy Policy
Under a modified housing subsidy policy introduced in April 1993, tenants who have lived in public housing for 10 years or more, and whose incomes exceed twice but are less than three times the waiting list income limit, are required to pay 1.5 times the net rent plus rates. Only tenants whose incomes exceed three times the waiting list income limit are required to pay double net rent plus rates.
There are some 309 000 households with 10 years' residence in public housing, and 15 per cent of these are required to pay extra rent.
- Rent Assistance
Temporary relief is granted to domestic tenants facing financial hardship. In 1994, 450 families received rent assistance under the scheme.
Those tenants whose rent-to-income ratio exceeds the qualifying percentages as a result of an increase in rent or a reduction in household income, may apply for a reduction of rent for a period of 12 months, subject to annual review.
The amount of reduction will be 25 per cent for tenants whose rent-to-income ratio exceeds 25 per cent, and 50 per cent for tenants whose ratio exceeds 33 per cent.
Tenants who still face financial difficulty after 12 months may seek a transfer to cheaper housing in the same district. They will be granted a domestic removal allowance and a rent- free period of one month on transfer.
Elderly persons and persons with disabilities, however, are entitled to a 25 per cent rent reduction if their rent-to-income ratio exceeds 20 per cent and a 50 per cent reduction if their ratio exceeds 25 per cent; and they may remain in their existing homes on receiving rent reduction.
A family which has already moved to cheaper housing because of hardship but whose rent-to-income ratio still exceeds 25 per cent will be entitled to further rent assistance, subject to review every 12 months.
Allocation
In 1994, 11 400 new flats and 14 000 vacated flats were let to the various categories of eligible applicants.
The largest allocation of some 10 100 flats (39 per cent) went to waiting list applicants. Applicants for public rental housing through the waiting list are considered in the order of their registration and in accordance with their choice of districts. Accommodation is offered