XN000022-1973-12-13 — Page 2

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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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