XN000022-1974-08-13 — Page 6

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TUESDAY, AUGUST 13, 1974

RENT INCREASE IN HOUSING ESTATES EXPLAINED

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THE HOUSING AUTHORITY'S DECISION TO REVISE THE RENTS OF PUBLIC HOUSING FLATS WHICH WERE LET ON OR AFTER MAY 17, 1974 WAS FULLY EXPLAINED TO SOME 20 NEW TENANTS OF THE WONG CHUK HANG ESTATE WHO CALLED AT THE HOUSING DEPARTMENT OFFICE IN SAN PO KONG THIS CTUESDAY) MORNING ASKING FOR THE REASON OF THE RENT RISE.

A MEETING WAS HELD AT THE REQUEST OF THE TENANTS. THEY HAD ASKED THAT 11 REPRESENTATIVES BE PRESENT AT THE MEETING. CHAIRS WERE LAID OUT FOR THEN BUT ONLY THREE TURNED UP.

THE TALK HAD NOT PROGRESSED FOR MANY HINUTES WHEN ONE OF THE REPRESENTATIVES DEMANDED TO SEE THE DIRECTOR, HR DONALD LIAO, AND NOT THE ACTING ASSISTANT DIRECTOR HRS BERTHA LEUNG. THE MEETING CONTINUED AFTER IT WAS EXPLAINED THAT MR LIAO WAS IN THE HOUSING DEPARTKENT HEADQUARTERS IN HA TAU KCK ROAD AND WAS NOT AVAILABLE.

MRS LEUNG, WHO SPOKE WITH THE THREE REPRESENTATIVES, EXPLAINED THAT THE RENT ADJUSTMENT WAS NECESSARY AS THE RENT OF THE ESTATE WAS FIXED IN 1968 WHEN THE FIRST BLOCK WAS COMPLETED AND NO. PROVISION WAS MADE TO TAKE INTO ACCOUNT RISING COSTS OF CONSTRUCTION, AND MATERIAL AND LABOUR OF THE CLOCKS OF SUBSEQUENT PHASES COMPLETED YEARS LATER.

FURTHERMORE, MRS LEUNG SAID COSTS OF MAINTENANCE, MANAGEMENT AND OPERATION OF PUBLIC HOUSING ESTATES HAVE RISEN IN RECENT YEARS.

THE RENT REVISION APPLIES TO ALL 11,500 FLATS AT SEVERAL PUBLIC HOUSING ESTATES, INCLUDING VONG CHUK HANG, WHICH WERE UNLET ON MAY 17, 1974. THE INCREASE RANGES FROM $10.50 FOR A SMALL UNIT TO $56 FOR A LARGE UNIT FOR NINE PERSONS. THE INCREASE FOR MEDIUM-SIZED UNITS FOR FIVE AND SEVEN PERSONS IS ABOUT $35.

MRS LEUNG ADDED THAT THE HOUSING AUTHORITY WAS BOUND BY ORDINANCE TO BE FINANCIALLY SELF-SUFFICIENT AND THAT IT WAS AT PRESENT WORKING AT A HUGE DEFICIT OF $110 MILLION.

+BECAUSE OF THIS, THE AUTHORITY RECENTLY DECIDED THAT INCREASING THE RENT OF UNOCCUPIED FLATS IS AN ESSENTIAL STEP TO TAKE TOWARDS BALANCING THIS DEFICIT, + SHE SAID.

ON THE POINT THAT TENANTS WERE TOLD OF A LOWER RENT AT EARLIER INTERVIEWS WITH STAFF OF THE HOUSING DEPARTMENT, MRS LEUNG EXPLAINED THAT THE AUTHORITY'S DECISION ON THE RENT REVISION WAS DELIVERED AT SHORT NOTICE AND THEREFORE WHEN THEY SIGNED THE TENANCY AGREEMENT SOME TIME LATER THE RENT WAS COMPARATIVELY HIGHER.

/SHE SAID

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