WEDNESDAY, JULY 19, 1978
MORE COMPENSATION FOR OWNERS - OCCUPIERS OF
POST-WAR FLATS RESUMED FOR DEVELOPMENT
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THE GOVERNMENT IS TO INTRODUCE A NEW FORM OF ASSISTANCE TO OWNER-OCCUPIERS OF POST-WAR RESIDENTIAL PROPERTIES RESUMED FOR DEVELOPMENT PURPOSES TO HELP THEM TOWARDS BUYING A NEW FLAT IF THE COMPENSATION FOR THE RESUMED FLAT IS NOT ENOUGH.
THE FIRST GROUP TO BENEFIT FROM THIS SCHEME ARE THE OWNER- OCCUPIERS OF FLATS AT SAI LAU KOK, TSUEN WAN WHICH ARE BEING RESUMED TO MAKE WAY FOR THE MASS TRANSIT RAILWAY STATION AND JEPOT AND THE ASSOCIATED NEW TOWN DEVELOPMENT AT NORTH TSUEN WAN.
UNDER THE SCHEME, THE GOVERNMENT WILL OFFER THE EQUIVALENT OF AN INTEREST-FREE LOAN TO AN OWNER-OCCUPIER TO MAKE UP THE DIFFERENCE, IF ANY, BETWEEN THE VALUE OF HIS RESUMED FLAT AND THE PURCHASE PRICE OF A NEW FLAT OF HIS CHOICE PROVIDED THAT THIS DIFFERENCE IS NO MORE THAN HALF THE VALUE OF THE RESUMED FLAT OR „100,000 WHICHEVER IS THE LESSER AMOUNT.
THE ASSISTANCE WILL BE GIVEN NOT AS A LOAN BUT IN THE FORM OF A LUMP SUM REPRESENTING THE CASH VALUE OF THE INTEREST WHICH THE OWNER-OCCUPIER WOULD HAVE HAD TO PAY IF HE HAD BORROWED THE DIFFERENCE IN VALUE OF THE TWO FLATS. THE LUMP SUM WILL BE CALCULATED AT AVERAGE PREVAILING RATES OF INTEREST BASED ON MORTGAGE LOAN REPAYMENTS OVER A 12-YEAR PERIOD. INITIALLY, THE RATE OF INTEREST USED TO CALCULATE THE LUMP SUM WILL BE 10.5 PER CENT. THE LUMP SUM WILL BE PAID EITHER TO THE AFFECTED OWNER- OCCUPIER OR TO THE FINANCIAL INSTITUTION HOLDING THE MORTGAGE.
A GOVERNMENT SPOKESMAN SAID THAT THE SCHEME IS DESIGNED ON THE ASSUMPTION THAT OWNER-OCCUPIERS WILL WISH TO REACCOMMODATE THEMSELVES IN THE SAME DISTRICT WHERE THEY LIVE BUT CANNOT FIND SUITABLE ACCOMMODATION OF A SIMILAR SIZE AND STANDARD. UNTIL HE FINDS SUITABLE ACCOMMODATION, THE OWNER-OCCUPIER IS ENTITLED TO TEMPORARILY OCCUPY A FLAT IN A HOUSING AUTHORITY ESTATE FOR UP TO ONE YEAR.
ALTERNATIVELY, ELIGIBLE OWNER-OCCUPIERS NOT WISHING TO AVAIL THEMSELVES OF THIS SCHEME, WILL BE OFFERED PUBLIC HOUSING ON THE SAME BASIS AS ELIGIBLE TENANTS OF RESUMED RESIDENTIAL PROPERTIES.
THE GOVERNMENT SPOKESMAN SAID THAT THE SCHEME IS ADDITIONAL TO THE EXISTING STATUTORY AND EX-GRATIA PROVISIONS WHICH APPLY IN SUCH CASES.
/AS AN EXAMPLE,
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