HOUSING
204
The Loan Scheme provided subsidised loans to eligible households to enable them to buy their own homes in the private sector; 5 700 loans amounting to $2.7 billion were granted. The Loan Scheme was abolished in March 1998 following a review of subsidised housing loan schemes. Eligible households may continue to obtain loans under the Home Starter Loan Scheme (HSLS) and the HPLS.
Home Purchase Loan Scheme
The HPLS was introduced by the HKHA in 1988 to assist low income households to purchase flats in the private sector. Eligible households are offered an interest-free loan of up to $800,000, or a monthly mortgage subsidy of up to $5,100 for 48 months, to purchase their own homes. So far, 39 718 loans and 2 076 subsidies have been granted. A quota of 7 000 loans (5 500 for Green Form and 1 500 for White Form applicants) has been set for 2000-01.
Home Starter Loan Scheme
The HSLS was launched in April 1998 by the HKHS on behalf of the Government to help families to buy their own homes for the first time. About 30 000 families will benefit during the period 1998-99 to 2001-02. The scheme has been extended since December 1999 to cover single persons under 60 years of age. Successful applicants with families receive a low-interest loan of up to $600,000 ($300,000 in the case of single persons) or 30 per cent of the property price, whichever is lower. Up to the end of 2000, about 17 689 loans were drawn down, including 856 loans for single persons.
Tenants Purchase Scheme
The Tenants Purchase Scheme, announced in December 1997, provides opportunity for at least 250 000 households living in public rental housing to buy their flats at reasonable and affordable prices over a 10-year period up to 2007. This arrangement will make a significant contribution to achieving the target of 70 per cent home ownership in Hong Kong by 2007.
Phases 1 and 2 of the scheme, involving 54 000 flats, were launched in January 1998 and March 1999 respectively, and so far 38 600 (71.5 per cent) sitting tenants purchased their own flats. Phase 3, involving 27 400 flats, was launched in January 2000. About 19 330 households (70.5 per cent) have indicated interest in buying, and 19 130 households (69.8 per cent) have so far bought their own flats.
Single Persons
In 1999, the HSLS was extended to cover single persons. To cater for increasing demand, the HKHA has, since December 1999, also allowed White Form singleton applicants to buy HOS and PSPS flats or to join the HPLS. So far, 2 900 single persons have successfully purchased flats under the HOS and PSPS, and 355 have obtained HPLS loans.
Mortgage Subsidy Scheme
The Mortgage Subsidy Scheme was implemented in September 1998 to promote home ownership among tenants affected by the HKHA's
the HKHA's Comprehensive Redevelopment Programme and households affected by Cottage Area clearance exercises. Under the scheme, eligible applicants buying HOS or PSPS flats are given a mortgage subsidy of up to $162,000 over a period of six years. So far, 2600 households have bought homes with this subsidy.