XN000022-1986-10-29 — Page 19

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WEDNESDAY, OCTOBER 29, 1986

+ OF THESE HOUSEHOLDS, 72.5 PER CENT OF THEM PAID A RATIO OF LESS THAN 15 PER CENT, 22.3 PER CENT PAID 15 PER CENT UP TO 25 PER CENT AND 5.2 PER CENT OF THEM PAID 25 PER CENT OR MORE,+ HE SAID.

BUT MR LIAO SAID THE TWO GROUPS PAYING A HIGHER PERCENTAGE THAN 15 PER CENT INCLUDED PUBLIC ASSISTANCE RECIPIENTS WHOSE RENTS WERE PAID FOR BY THE SOCIAL WELFARE DEPARTMENT AND TENANTS WHO OPTED FOR HIGHER SPACE STANDARDS.

THE 15 PER CENT MEDIAN RENT-INCOME RATIO WAS INTENDED TO ENSURE THAT PUBLIC HOUSING RENT WOULD CONTINUE TO BE AFFORDABLE WHEN SETTING RENT LEVELS FOR NEW ESTATES, HE SAID.

+AS FOR EXISTING OLDER HOUSING UNITS WITH LESS SPACE AND A LOWER STANDARD OF AMENITIES AND HOUSING ESTATES FURTHER AWAY FROM THE URBAN AREA, THEY ARE ACCORDED A LOWER ESTATE VALUE AND THEREFORE THEIR RENT LEVELS WOULD NOT BE RAISED UP TO THE 15 PER CENT MEDIAN RENT-INCOME RATIO LEVEL,+ MR LIAO SAID.

+

HE SAID SOME MEMBERS HAD MISUNDERSTOOD THE COMMITTEE'S RECOMMENDATIONS WHEN THEY SAID HALF OF THE HOUSING AUTHORITY'S TENANTS WOULD PAY MORE THAN 15 PER CENT OF THEIR INCOME WHEN A RENT-INCOME RATIO OF 15 PER CENT WAS APPLIED.

IT WAS ESTIMATED THAT LESS THAN TWO PER CENT OF THE FOUR-PERSON FAMILIES MOVING INTO NEW ESTATES AND THOSE ALREADY IN PUBLIC HOUSING WOULD IN FACT PAY MORE THAN 15 PER CENT UNDER THE NEW PROPOSED POLICIES. FOUR-PERSON FAMILIES CONSTITUTED ABOUT A QUARTER OF THE AUTHORITY'S EXISTING TENANTS.

+OVERALL, IN THE PERIOD 1976-77 TO 1984-85, THE RENT-INCOME RATIO FOR ALL HOUSEHOLDS AMONG NEW TENANTS RANGED FROM 10.7 PER CENT TO 13.5 PER CENT AND AMONG SITTING TENANTS THE RATIO RANGED FROM FOUR PER CENT TO 6.5 PER CENT,+ HE SAID.

+EVEN IF THE 15 PER CENT MEDIAN RENT-INCOME RATIO IS IMPLEMENTED FOR THE NEW ESTATES WHICH REPRESENT A SMALL FRACTION OF THE TOTAL PUBLIC HOUSING STOCK, THE OVERALL RATIO WILL NOT BE AFFECTED SIGNIFICANTLY.+

ON THE HON HUI YIN-FAT'S SUGGESTION THAT THE BIENNIAL RENT INCREASES WOULD IN TIME PLACE RENTS BEYOND THE AFFORDABILITY OF PUBLIC HOUSING TENANTS, MR LIAO SAID PUBLIC HOUSING RENT HAD RARELY KEPT UP WITH INFLATION AND HAD REMAINED FAIRLY STABLE IN CONSTANT PRICES OVER THE YEARS.

+IN CONTRAST TO THE STEADILY IMPROVING FINANCIAL CIRCUMSTANCES OF THE PUBLIC HOUSING TENANTS WHO HAVE RESIDED IN PUBLIC HOUSING FOR SOME TIME, RENTS HAVE LAGGED BEHIND THE REAL GROWTH IN THE INCOME OF THE AVERAGE TENANTS, HE ADDED.

/REPLYING TO