XN000022-1981-07-13 — Page 3

MONDAY, JULY 13, 1981

IN

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IN ADDITION TO THE HPA, THOSE WHO ARE ELIGIBLE FOR THE ALLOWANCE AND WHO ARE CONFIRMED TO THE PERMANENT AND PENSIONABLE ESTABLISHMENT WILL BE ABLE TO OBTAIN A LOAN TO ASSIST WITH THE INITIAL DOWN PAYMENT ON THE PROPERTY.

THE LOAN WOULD BE LIMITED TO 10 PER CENT OF THE PURCHASE PRICE OF THE FLAT OR 18 MONTHS' SALARY, WHICHEVER IS LESS.

THE RATE OF INTEREST FOR THE LOAN WILL BE ANNOUNCED SEPARATELY.

THE LOAN WOULD NORMALLY HAVE TO BE REPAID OVER 10 YEARS.

THE OFFICER CAN ONLY RECEIVE ONE SUCH LOAN DURING HIS SERVICE WITH THE GOVERNMENT BUT WILL BE ALLOWED TO TRADE UP HIS FLAT WITHIN THE 10 YEAR PERIOD OF PAYMENT OF THE ALLOWANCE TO REFLECT HIS PROGRESS THROUGH THE SALARY SCALE ON PROMOTION OR THROUGH LONG SERVICE.

THE OTHER WAY IN WHICH PENSIONABLE CIVIL SERVANTS ARE HELPED TOWARDS HOME OWNERSHIP IS THROUGH THE HOUSING LOAN SCHEME. THIS SCHEME IS APPLICABLE TO THOSE WHO HAVE HAD AT LEAST 10 YEARS OF SERVICE AND WHO ARE INELIGIBLE FOR OR HAVE NOT TAKEN ADVANTAGE OF THE HOME PURCHASE SCHEME.

IT WOULD HELP THOSE WHO ARE NEAR ING RETIREMENT AND THOSE WHO ARE SUCCESSFUL IN THE HOUSING AUTHORITY'S HOME OWNERSHIP SCHEME OR WHO HAVE JOINED THE RECENTLY COMPLETED WAH YUEN CHUEN AND SHATIN LODGE HOUSING SCHEMES.

THE AMOUNT OF THE HOUSING LOAN WOULD BE LIMITED TO THE OFFICER'S MAXIMUM COMMUTED PENSION GRATUITY CALCULATED AT THE TIME OF THE LOAN APPLICATION AND WOULD NOT BE FURTHER ADJUSTED,

THE LOAN WOULD BE REPAYABLE BY MONTHLY INSTALMENTS DEDUCTED FROM SALARY IN EITHER OF TWO WAYS. THE REPAYMENT CAN COVER THE PRINCIPAL AND INTEREST ON THE LOAN, CALCULATED ON THE REDUCING BALANCE, AND MADE OVER 10 YEARS, OR UNTIL THE OFFICER LEAVES THE SERVICE IF THIS IS EARLIER. ALTERNATIVELY, IT CAN COVER THE INTEREST ALONE, CALCULATED ANNUALLY ON THE FULL LOAN, WITH REPAYMENT OF PRINCIPAL TO BE EVENTUALLY RECOVERED FROM THE COMMUTED PENSION GRATUITY.

THE GOVERNMENT SPOKESMAN POINTED OUT THAT IT WOULD NOT BE POSSIBLE TO ESTIMATE HOW MANY CIVIL SERVANTS WOULD OPT FOR EITHER THE HOME PURCHASE SCHEME OR THE HOUSING LOAN SCHEME AT FIRST. SOME MIGHT WAIT TILL THEY CAN BETTER AFFORD THE FLAT THEY WANT, WHILE SOME MIGHT CHOOSE, AT LEAST INITIALLY, TO REMAIN IN GOVERNMENT QUARTERS OR CONTINUE TO DRAW PRIVATE TENANCY ALLOWANCE. THERE IS ALSO A LIMIT TO THE NUMBER OF SUITABLE FLATS THAT CAN BE AVAILABLE AT ANY ONE TIME.

IN RESPECT CF BOTH SCHEMES, THERE WOULD BE NO AGE LIMIT WITH REGARD TO ELIGIBILITY, AND OFFICERS WHO ALREADY HOLD CURRENT MORTGAGES ON FLATS WOULD ALSO BE ELIGIBLE TO TAKE PART IN THE SCHEMES.

/ZED CIVIL