XN000022-1975-11-05 — Page 6

WEDNESDAY, NOVEMBER 5, 1975

HOME OWNERSHIP SCHEME FOR LOW-INCOME GROUPS

CONSIDERED IMPRACTICABLE

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THE SECRETARY FOR HOUSING, THE HON. IAN LIGHTBODY, BELIEVES IT WOULD BE IMPRACTICABLE FOR THE LOW INCOME GROUPS, CURRENTLY CATERED FOR BY THE HOUSING AUTHORITY, TO BUY THEIR OWN FLATS AS INSURANCE, RATES AND MANAGEMENT CHARGES COULD ADD UP TO 25 PER CENT TO THE MONTHLY MORTGAGE PAYMENT.

MR. LIGHTBODY WAS SPEAKING ON THE FEASIBILITY OF A HOME OWNERSHIP SCHEME AT TODAY'S RESUMED DEBATE AT LEGISLATIVE COUNCIL.

AS AN EXAMPLE, HE SAID THE SMALLEST FLAT COSTS ABOUT $100,000 AND IF A 20 PER CENT DOWNPAYMENT WERE MADE THE MONTHLY OUTGOINGS ON SUCH A FLAT FOR MORTGAGE REPAYMENTS AND OTHER CHARGES WOULD BE ABOUT $1,200.

HE ASSURED DR. THE HON. HARRY FANG, WHO RAISED THIS ISSUE AT THE LAST MEETING OF THE COUNCIL THAT +THE QUESTION OF THE SALE OF FLATS TO SUITABLE FAMILIES WHO CAN'T AFFORD TO MAKE THEIR OWN WAY IN THE PRIVATE SECTOR IS VERY MUCH A LIVE ISSUE.+

ONE GROUP, THE SECRETARY SAID WHICH HE WOULD WISH TO SEARCH OUT WAYS OF HELPING ARE THOSE WHO EARN ABOUT $3,000 MONTHLY OR BELOW BUT WHO ARE NOT ELIGIBLE FOR AUTHORITY'S RENTED FLATS IN ONE WAY OR ANOTHER AND WHOSE FAMILY COMMITMENTS PRECLUDE THEM FROM BUYING A FLAT IN THE PRIVATE SECTOR.

SPEAKING ON DR. FANG'S OTHER SUGGESTION OF DEVISING A SALES SCHEME AIMED AT BETTER-OFF FAMILIES LIVING IN PUBLIC HOUSING THUS RELEASING PUBLIC HOUSING UNITS FOR RE-ALLOCATION TO LESS WELL-OFF FAMILIES WITHIN THE INCOME-ELIGIBILITY LIMITS, MR. LIGHTBODY SAID:

+DISCUSSIONS HAVE BEEN HELD WITH THE HONG KONG BUILDING AND LOAN AGENCY RECENTLY ON MORTGAGE LOAN TERMS AND I AM HOPEFUL THAT IT MIGHT PROVE POSSIBLE TO DEVISE TERMS FOR SUCH A SCHEME RATHER MORE FAVOURABLE THAN ARE NORMALLY AVAILABLE.+

HOWEVER, HE POINTED OUT THAT THE PRINCIPAL FACTORS IN ANY SUCH SCHEME - AND THE AUTHORITY IS STUDYING THEM CLOSELY NOW - ARE MORTGAGE LOAN TERMS, THE LAND-VALUE COMPONENT IN ANY SALES PRICE SPECIALLY DETERMINED FOR A GROUP SUCH AS HE HAD DESCRIBED= AND THE AVAILABILITY OF FUNDS FOR CONSTRUCTION.

THE SECRETARY SAID THAT THE QUESTION OF LAND CHARGE RAISED VERY REAL PROBLEMS SINCE ANY SUBSTANTIAL SUBSIDY GIVEN IN THIS DIRECTION COULD EASILY BE ABUSED UNLESS VERY TIGHT MANAGEMENT CONTROL OVER SUBSEQUENT SALES IS MAINTAINED.

/+ONE POSSIBILITY