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WEDNESDAY, MAY 19, 1982
FOR A TYPICAL COMMERCIAL GROUND TENEMENT FLOOR, MR LIAO SAID, THE INCREASE WOULD BE ABOUT $700 PER MONTH, BRINGING THE RENT TO ABOUT $2 100, OR 40 PER CENT OF ITS FAIR MARKET RENT. 1 500 BUSINESS UNITS ARE LIKELY TO BE AFFECTED.
ABOUT
UNDER THE RESOLUTION, LANDLORDS WILL BE REQUIRED TO SERVE AT LEAST ONE MONTH'S NOTICE OF THE INCREASED RENTS TO THE IR TENANTS. IN THE CASE OF PUBLIC ASSISTANCE RECIPIENTS, ANY INCREASE WOULD BE OFFSET BY INCREASES IN RENT ALLOWANCES UP TO THE PERMITTED MAXIMA.
MR LIAO SAID THE INCREASES WERE SMALL IN CASH TERMS BUT REPRESENTED ANOTHER STEP IN THE GOVERNMENT'S POLICY OF LOOSENING THESE RIGID AND OUTDATED CONTROLS WHICH HAVE BEEN IN FORCE FOR OVER 30 YEARS.
HE RECALLED THAT IN NOVEMBER 1978, THE GOVERNMENT AGREED TO PURSUE A POLICY ALLOWING ANNUAL INCREASES IN THE PERMITTED RENTS OF PREWAR PREMISES IN ORDER TO MITIGATE THE RESTRICTIVE NATURE OF THESE STATIC RENT CONTROLS.
+ IN PARTICULAR, IT IS THE DECLARED POLICY OF THIS COUNCIL TO DECONTROL PREWAR BUSINESS PREMISES ON JULY 1, 1984, HE SAID, ADDING THIS IS ALREADY PROVIDED UNDER PART OF THE ORDINANCE.+
DESPITE REPEATED INCREASES, HE SAID, AVERAGE PERMITTED RENTS OF BUSINESS PREMISES SUBJECT TO CONTROLS STILL STOOD AT ONLY ABOUT 26 PER CENT OF FAIR MARKET RENTS, AND THOSE OF DOMESTIC PREMISES AT ABOUT 18 PER CENT OF FAIR MARKET RENTS.
+THIS IS DUE TO THE VERY LOW BASE ON WHICH RENT INCREASES ARE CALCULATED AND TO SUBSTANTIALLY INCREASED MARKET RENTAL LEVELS OVER THE PAST TWO YEARS.
+UNLESS FURTHER INCREASES ARE ALLOWED, THE GAP BETWEEN CONTROLLED RENTS AND MARKET RENTS WILL WIDEN, MR LIAO SAID.
MR LIAO SAID THERE WERE ABOUT 9 000 UNITS IN PREWAR BUILDINGS, 55 PER CENT (OR 5 000 UNITS) OF WHICH ARE EFFECTIVELY SUBJECT TO RENT CONTROL. THE BALANCE (4 000 UNITS) WERE EITHER OCCUPIED BY OWNERS, SPECIFICALLY EXCLUDED FROM CONTROLS OR LET AT RENTS AT OR APPROACHING MARKET LEVELS.
THE RESOLUTION ADOPTED BY COUNCIL WILL HAVE LITTLE EFFECT ON THE RENTS PAYABLE BY TENANTS OF PREMISES WHICH ARE NOT EFFECTIVELY SUBJECT TO CONTROLS.
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