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Thursday, December 13, 1973
NEW RENT CONTROL PROVISIONS CLARIFIED
A spokesman for the Rating and Valuation Department today clarified
some points in the new rent control ordinance which was passed by the
Legislative Council yesterday, and which will come into effect this
Saturday (December 15).
Following an amendment proposed by the Hon. P.C. Woo on behalf
of the Unofficials, premises with a rateable value of over $30,000 will
be allowed to have a rent increase of over 21 per cent of the current rent.
This allowed increase, however, will still be limited to one-fifth
of the difference between the current rent and the fair market rent assessed
by the department.
For example, if the current rent is $2,200 and the fair market rent
is assessed to be $5,000; one-fifth of their difference is $560. This
will be the maximum amount of increase that can be charged for the premises
if it has a rateable value of over $30,000.
If the premises has a rateable value of $30,000 or less, the
increase in rent will be limited to 21 per cent of the current rent, that
is $462.
On rate increases, the spokesman pointed out that these may
be passed on to tenants, regardless of the rateable value of the premises.
Any rate increase, if passed on to tenants, cannot be counted as
a rent increase under the Ordinance.
The spokesman revealed however that there are no plans for a
general review of rateable values next year.
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