WEDNESDAY, JULY 16, 1986
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RENT OF ERP COMMERCIAL TENANTS FROZEN
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THE RENTS OF ALL SHOPS IN THE 26 BLOCKS AFFECTED BY THE EXTENDED REDEVELOPMENT PROGRAMME ARE NOW FROZEN AND ARE BEING REASSESSED ONCE EVERY SIX MONTHS, THE SECRETARY FOR HOUSING, THE HON JOHN TODD, SAID TODAY (WEDNESDAY).
IN REPLY TO A QUESTION BY THE HON ANDREW WONG ON RENT DETERMINATION AND REVIEW FOR PUBLIC HOUSING COMMERCIAL TENANTS AFFECTED BY THE ERP, MR TODD SAID: THE RENTS OF ALL SHOPS IN THE 26 BLOCKS CONCERNED WERE FROZEN ON ANNOUNCEMENT OF THE PROGRAMME ON NOVEMBER 21, 1985.
+SUBSEQUENT TO THAT. THE RENTS OF THESE SHOPS ARE BEING REASSESSED ONCE EVERY SIX MONTHS TO TAKE INTO ACCOUNT CHANGES IN MARKET VALUE ARISING FROM FACTORS SUCH AS THE REDUCTION OF THE RESIDENT POPULATION.+
THE FIRST RENT REVIEW IN APRIL 1986 RESULTED IN THE RENTS OF 16 TENANCIES IN KWAI FONG ESTATE BEING REDUCED BY EIGHT TO 45 PER CENT.
MR TODD ADDED THAT FOR SHOPS IN THE VICINITY OF THE ERP BLOCKS, THEIR RENTS ARE REASSESSED ONCE EVERY SIX MONTHS IN ADDITION TO THE NORMAL REASSESSMENT OF RENTS ON RENEWAL OF TENANCY.
+THEY WILL BE REDUCED IF THE REASSESSMENT INDICATES THAT THE RENTS BEING PAID ARE ABOVE THE REASSESSED MARKET RENT.+
ON MEASURES THE HOUSING AUTHORITY HAD TAKEN OR WOULD TAKE TO DETERMINE AND REVIEW THE RENTALS OF SHOP TENANTS FACING STRONG COMPETITION FROM THEIR COUNTERPARTS IN ADJACENT COMMERCIAL COMPLEXES, MR TODD SAID IT WAS THE AUTHORITY'S POLICY TO LET ITS COMMERCIAL PREMISES ON A COMMERCIAL BASIS.
+TENANCIES ARE NORMALLY RENEWED ONCE EVERY THREE YEARS IN ACCORDANCE WITH THE TERMS OF THE TENANCY AGREEMENT AND RENTS ARE REASSESSED AT THE SAME TIME.
+THESE REASSESSMENTS WILL TAKE ACCOUNT OF ALL FACTORS THAT MAY AFFECT THE BUSINESS POTENTIAL OF THE PREMISES, INCLUDING COMPETITION FROM SHOPS IN THE VICINITY, + MR TODD EXPLAINED.
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