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HOUSING
would work to ensure that all those who cannot afford adequate accommodation in the private market have the opportunity to have access to decent, affordable housing. The means of delivering this aim would be through a combination of the traditional public rental housing (PRH) programme and the newly implemented rental allowance scheme (initially for elderly households). The Government is committed to maintaining the average waiting time for PRH at three years, and ensuring that there is an adequate supply of PRH flats to keep the pledge.
At present, about 2 104 300 people or 31 per cent of Hong Kong's population live in PRH estates managed by the HKHA or the HKHS. At December, there were 91 580 households on the Waiting List for PRH. The current average waiting time for PRH is 2.3 years. In 2002, some 20 200 PRH units were built. In determining the actual quantum of PRH units to be built annually under a rolling development programme, the Government takes account of the housing demand of low-income families and the turnover in PRH tenancies.
Rent Policy
The affordability of tenants is the prime factor in determining rent levels of public rental flats. Other factors taken into consideration include estate value, maintenance and management charges, rates and general household incomes. At present, public housing rents are inclusive of rates and management and maintenance expenses. Public housing tenants pay, on average, 44 per cent of the assessed market rent (inclusive of rates) for the flats they live in.
Rent Assistance
Public housing tenants facing temporary financial hardship may apply for a 50 per cent rent reduction under the Rent Assistance Scheme operated by the HKHA. The eligibility criteria of the scheme were relaxed in October for elderly households and to allow tenants affected by redevelopment to apply for rent assistance immediately upon rehousing. At year-end, 11 630 households had benefited from this scheme since its launch in 1992.
Better-off Tenants
Better-off tenants are required to pay higher rents. At December 31, there were 13 256 households paying the higher rents. The subsidy saved through charging under this scheme amounted to $150 million in 2002. In addition, tenants living in estates for more than 10 years with both household income and assets exceeding the prescribed limits, or choosing not to declare household assets, are required to move out. In 2002, some 1965 better-off tenants, including 592 households which acquired their own flats under the HOS, PSPS or Home Purchase Loan Scheme (HPLS), returned their public rental housing flats to the HKHA.
Allocation
In 2002, 56 9075 rental flats were allocated by the HKHA and the HKHS to various categories of applicants. Of these flats, 31 3945 were new and 25 193 refurbished: 69.4 per cent were allocated to Waiting List applicants, 8.82 per cent to tenants affected by the HKHA's Comprehensive Redevelopment Programme, 0.41 per cent to families affected by clearances, 1.69 per cent to junior civil servants, 19.6 per cent to sitting
5 Including 320 Rent Allowance for Elderly Scheme cases.