HOUSING
with reference to the prevailing market value of the property and the original purchase discount.
Sandwich Class Housing Scheme
The Sandwich Class Housing Scheme, comprising a Main Scheme and a Loan Scheme and administered by the HKHS, was introduced in 1993 to help middle income families to buy their own homes.
The Main Scheme involved the construction of flats which were sold to eligible applicants at discounted prices subject to a five-year resale restriction. Land was granted to the HKHS on concessionary terms but all other development costs were borne by the HKHS. So far, 8 920 flats have been completed. As property prices have dropped substantially and many private sector flats are now within the reach of middle income families, the Main Scheme has been suspended since October 1998.
The Loan Scheme provided subsidised loans to eligible households to enable them to buy their own homes in the private sector: 5 701 loans amounting to $2.7 billion were granted. The Loan Scheme was abolished in April 1999 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. The Green Form applicants of the HPLS can also make use of the loan or the subsidy to purchase flats in the HOS secondary market. Eligible households are offered an interest-free loan of up to $660,000, or a monthly subsidy of up to $4,200 for 48 months, to purchase their own homes. Eligible White Form households are offered an interest-free loan of up to $410,000, or a monthly subsidy of up to $2,800 for 48 months. So far, 44 654 loans and 2 685 subsidies have been granted.
A quota of 4 500 loans was initially set for 2001-02 to cater solely for Green Form applicants. After the imposition of the moratorium on sales of HOS flats, the HKHA provided additional quota of 12 000 HPLS to be shared equally between Green Form and White Form applicants. The maximum loan amount for White Form applicants. is $410,000.
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. 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 2001, about 26 000 loans were drawn down, including 5 400 loans for single persons.
Tenants Purchase Scheme
The Tenants Purchase Scheme, announced in December 1997, will provide the 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
205