HOUSING
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for allocation to those in greater need. Priority is also extended to prospective tenants so that they can bypass public rental housing.
During the year, some 10 987 flats and 2 340 flats were sold under the HOS and the PSPS scheme. The schemes were over-subscribed by 10 times.
In a bid to promote home ownership, the authority conducted a comprehensive review of the HOS in 1995. The review resulted in several recommendations, including a proposal to sell new rental flats to tenants affected by the Comprehensive Redevelopment Programme (CRP). The proposal provides a mortgage subsidy to CRP tenants and possibly certain other public rental housing tenants to purchase these transfer block flats. Also included are a new resale restriction regime and the introduction of a secondary market for the sale of HOS flats to public rental housing
tenants.
Sandwich Class Housing Scheme
The Sandwich Class Housing Scheme was introduced in 1993 to assist families with a monthly income of between $20,001 and $40,000 to buy their own homes. In 1996, the lower and upper limits were revised to $26,001 to $60,000 respectively. It comprises an Interim Loan Scheme and a Main Scheme, both of which are administered by the Housing Society.
The Loan Scheme, with a grant of $2 billion from public funds, will help 4 500 families buy their own homes in the private sector. Successful applicants can borrow up to 25 per cent of the flat price or $550,000, whichever is the less, to buy a property that is not older than 20 years and worth not more than $3.3 million. The loan is repaid, in 120 equal instalments starting from the fourth year after the loan is made. Interest is charged at 2 per cent a year. By the end of 1996, 4 047 loans with a total value of $1.86 billion had been granted.
The Main Scheme involves the construction of flats which will be sold to eligible applicants at discounted prices but subject to a five-year resale restriction. The land is granted to the Housing Society on concessionary terms and this is reflected in the selling prices of the units. In all other aspects the flats are comparable to those built by the private sector.
Eleven sites producing 10 446 flats form the first batch and currently 1 024 flats in Tsing Yi have been completed. Another 2 578 flats in Ma On Shan, Ap Lei Chau and Tseung Kwan O have been pre-sold, and the remaining 6 844 units will be offered for pre-sale in 1997. To meet the balance of the total target of 30 000 units under the scheme by the year 2003, two sites have been granted which will produce approximately 1 612 units. Eleven sites have been identified which will produce some 12 000 units. We will continue to identify suitable sites for this purpose.
Home Purchase Loan Scheme
The Home Purchase Loan Scheme was introduced in 1988 to help lower and middle- income families to buy flats in the private sector. In 1996, 6 170 families benefited from the scheme. Eligible applicants are offered an interest-free loan, repayable over the same period as the bank mortgage on the property, up to a maximum of 20 years. Alternatively, they may opt for a monthly subsidy for 48 months, which need not be repaid.