HOUSING
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person at a median rent-to-income ratio not exceeding 15 per cent, or 7 square metres per person at a median rent-to-income ratio not exceeding 18.5 per cent. With rents being charged at $60.40 per square metre for the newest urban estates, $37.70 for the newest New Territories estates, and $34.70 for the newest Island estates, domestic rents represent, on average, 8.6 per cent of the median household income of Housing Authority tenants. Rents are reviewed every two years, taking into account increases in rates, management and maintenance costs, location, facilities, and 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 are required to declare household income at two-yearly intervals. Households with income exceeding two times the Waiting List Income Limit are required to pay 1.5 times rent plus rates. Those with income exceeding three times the Waiting List Income Limits or who choose not to declare income have to pay double rent plus rates. At present, some 46 500 households or 14 per cent of the 330 000 affected households are paying extra rent.
In June 1996, a new policy on safeguarding rational allocation of public housing resources was introduced following deliberations by an ad hoc committee under the authority, and a three-month public consultation. With the introduction of the new policy, tenants paying double rent are required to declare their net household assets at two-yearly intervals. If such households' assets exceed 110 times the 1995 Waiting List Income Limits, they are required to pay market rent. The first batch of affected households will start to pay market rent in April 1997.
Rent Assistance
Public housing tenants facing temporary financial hardship can apply for rent reduction under the Rent Assistance Scheme. In September 1996, the eligibility criteria for rent assistance were relaxed to benefit more low-income households. A public housing household whose income is below 50 per cent of the Waiting List Income Limits; or whose income is between 50 and 60 per cent of the Waiting List Income Limits and whose rent-to income ratio exceeds 15 per cent; or whose rent-to- income ratio exceeds 25 per cent, is eligible for assistance. Up to December 1996, 2 252 families benefited from the Rent Assistance Scheme.
Allocation
In 1996, 15 747 new flats and 22 107 refurbished flats were let to the various categories of eligible applicants. Some 13 200 flats (35 per cent) went to waiting list applicants. Applicants are considered in the order of their registration and in accordance with their choice of district. Accommodation is offered to those who are eligible in respect of their family income and residence in Hong Kong (normally seven years). At the end of the year, there were 149 340 applications on the general waiting list; including 22 216 applications single persons.
Two other large groups of allocation were tenants affected by the comprehensive redevelopment programme (20 per cent), and families affected by development clearances (24 per cent). The remainder of the flats were allocated to junior civil