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the Society will be required to become incorporated and,
on formation of an Improvement Trust, to merge its
functions into those of the Trust and make over the flats
to it. The loan from Government required to meet
construction costs will be made in the first instance to
the Hong Kong Housing Society, but the Society's assets
and liabilities will in due course be taken over by the
Improvement Trust referred to above by whom repayment of
the loan will be completed.
6.
Bearing in mind the type of person for whom
the flats to be erected under this scheme are intended, it
is important that the rents to be charged for the
finished flats shall be kept as low as possible. If at
the same time the rents of these and other similar flats
to be constructed in the future are to be kept at an
economic level (i.e. meeting over a specified period of years all charges on the properties) it is essential, so
the Governor has stated in his despatch No. 14 of
10th February, 1951, that site formation and development
should not be a charge on the properties. It is also
important that the rents for different blocks of similar
accommodation should be uniform; this would not be possible
if site formation and development were to form a charge on the properties without the need for one group of flats carrying part of the over-heads of another, since such charges vary considerably. Although in the present scheme the cost of site formation is relatively low i.e., $216,000 (£13,500) in all, it is not expected that these charges will constitute such a small proportion of the capital outlay in future owing to the extreme shortage of building sites which are inexpensive to develop in
localities where housing of this type is most needed.
:
7. For these reasons the Governor has proposed that
by meeting the initial cost of site formation C.D. and W.
money can most conveniently contribute towards setting
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