Housing 223
At present, about 2 136 100 people or 31 per cent of Hong Kong's population live in public rental housing estates of the HKHA or the Hong Kong Housing Society3. At year-end, there were 92 560 households on the waiting list for PRH and the average waiting time for PRH was about 1.8 years.
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, 54 per cent of the assessed market rent (inclusive of rates) for the flats they live in.
In 2002, two PRH tenants applied for a judicial review of the HKHA's decisions to defer rent reviews. The Court of First Instance ruled in favour of the tenants in July, 2003. The HKHA subsequently lodged appeals against the Court's ruling and in November 2004, the Court of Appeal allowed the HKHA's appeals by a unanimous decision. The two PRH tenants subsequently applied to the Court of Final Appeal for grant of leave to appeal. Leave was granted and the case will be heard in October 2005.
The judicial review cases underline the importance of identifying an alternative rent adjustment mechanism that is more viable and helps promote the long-term sustainability of the public rental housing programme. In this connection, the HKHA has set up an ad hoc committee to undertake a comprehensive review of its domestic rent policy. This committee will consult the public on its initial findings before drawing up recommendations on how the current domestic rent policy is to be improved.
Rent Assistance
The Rent Assistance Scheme was introduced in 1992 by the HKHA to provide assistance to public housing tenants facing temporary financial hardship. Eligible tenants are offered a 50 per cent rent reduction. To assist more needy families, the HKHA revised the scheme in October 2002 and the eligibility criteria for elderly households were relaxed. Tenants affected by redevelopment are also allowed to apply for rent assistance immediately upon rehousing. As at end 2004, 25 931 households have benefited from this scheme.
Better-off Tenants
Better-off tenants are required to pay higher rents. At the end of December 2004, there were 16 538 households paying higher rents. The subsidy saved through charging under this scheme amounted to $172 million in 2004. 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 2004, some 867 better-off tenants, including 348
3 The HKHS is an independent, not-for-profit organisation established in 1948. It provides quality
housing for rent to specific target groups at affordable rents.