(b)
(ii)
10 -
whether there are any of these owners who have not been prosecuted and if so, what the reasons are; and
of the measures which will be taken by the authority concerned to eliminate these unlawful activities?
Answer:
Mr President,
Sale of Home Ownership Scheme (HOS) and Private Sector Participation Scheme (PSPS) flats is subject to the terms set out in the Schedule to the Housing Ordinance. The Schedule specifies that a purchaser shall not sell or lease the flat, in whole or in part, other than to the Housing Authority, or unless a period of 10 years has elapsed from the date of assignment and the balance of premium has been paid to the Housing Authority. A breach of these conditions renders the flat owner liable to a maximum fine of $500,000 and to imprisonment of up to one year.
To date, five cases involving unlawful letting or resale of HOS or PSPS flats have been referred by the Housing Department to the Attorney General for prosecution. One case was withdrawn because the defendant had left the territory and a summons could not be served. In the other four cases, one owner was fined $20,000; another was fined $50,000; and four co-owners in the remaining two cases were each fined $5,000.
There were three other cases involving suspected unlawful resale of HOS or PSPS flats, but no prosecution was instituted because of insufficient evidence (two cases) and expiry of the statutory limit (one case).
The Housing Department regularly reminds owners of HOS and PSPS flats of the statutory restrictions on letting or sale through notices in estate management offices, newsletters, and meetings of management office staff mutual aid committees and residents associations. Solicitors have also been reminded, through the Law Society, of the resale restrictions.
End