XN000022-1988-12-08 — Page 13

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REVISION OF RENT LEVEL

THURSDAY, DECEMBER 8, 1988

THE HOUSING AUTHORITY'S MANAGEMENT COMMITTEE TODAY (THURSDAY) APPROVED A PROPOSAL TO INCREASE THE RENT LEVELS OF NEW URBAN FLATS COMING ON STREAM BETWEEN MAY AND JULY NEXT YEAR BY FOUR PER CENT TO $23.50 PER SQUARE METRE.

THIS REVISION TAKES INTO CONSIDERATION THE AND THE GENERAL REVALUATION OF RATEABLE VALUE ESTATES.

RATE OF INFLATION IN PUBLIC HOUSING

FLATS,

THE PROPOSAL WILL AFFECT MORE THAN 5 700 NEW SINGLE PERSON AND TWO-PERSON FLATS, THAT ARE EXPECTED TO BE FOR LETTING DURING THE MIDDLE OF NEXT YEAR.

INCLUDING AVAILABLE

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THE UNITS WILL BE IN FOUR ESTATES: LOWER WONG TAI SIN, PHASE IV IN TAI PO, TAI PING IN SHEUNG SHUI AND TIN KING PHASE IV IN TUEN MUN.

A HOUSING SPOKESMAN SAID THAT AT THE LAST RENT SETTING EXERCISE, THE RENT LEVEL FOR NEW ESTATES IN THE URBAN AREA WAS REVISED TO $22.8 PER SQUARE METRE.

"BASED ON THE MINIMUM ALLOCATION STANDARD OF 4.5 SQUARE METRE LIVING AREA PER PERSON AND THE REPORTED INCOME OF THE MAJORITY OF ELIGIBLE WAITING LIST APPLICANTS TOGETHER WITH OTHER REHOUSING CATEGORIES, THE MEDIAN RENT-INCOME RATIO FOR THIS GROUP OF FLATS IS ESTIMATED TO BE 13.9 PER CENT, THE SPOKESMAN SAID.

"EVEN WITH HIGHER ALLOCATION STANDARD OF FIVE SQUARE METRE LIVING AREA PER PERSON WHICH IS PREFERRED BY MOST PROSPECTIVE TENANTS, THE RATIO IS 14.1 PER CENT. THIS IS IN LINE WITH THE RECOMMENDATION OF THE DOMESTIC RENT POLICY REVIEW COMMITTEE IN 1986 THAT THE MEDIAN RENT-INCOME RATIO SHOULD NOT EXCEED 15 PER CENT.

"IN ACTUAL FACT, THE ABOVE MEDIAN RENT-INCOME RATIO WILL BR CONSIDERABLY LOWER AT THE TIME OF INTAKE BECAUSE THE INCOME TAKEN INTO CALCULATION IS THE SUCCESSFUL APPLICANT'S FAMILY INCOME FOR THE PAST NINE MONTHS AND RENTS ARE FIXED SOME SIX MONTHS BEFORE THE ANTICIPATED COMPLETION OF THE BLOCKS.

"THEREFORE, BY THE TIME THE APPLICANTS MOVE IN, MANY OF THEM WOULD HAVE ALREADY ATTAINED HIGHER INCOME, HE SAID.

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FURTHERMORE, THE SPOKESMAN STRESSED, THE TENANTS' HOUSEHOLD INCOME WAS LIKELY TO INCREASE FROM YEAR TO YEAR, THUS REDUCING THE RENT-INCOME RATIO.

HE POINTED OUT THAT THOSE NOT MOVING INTO NEW ESTATES ON ACCOUNT OF HIGH RENT CONTINUED TO BE LOW. BETWEEN APRIL AND SEPTEMBER THIS YEAR, THE RATE WAS LESS THAN ONE PER CENT OF THE TOTAL OFFER9 MADE.

"THIS INDICATES THAT THE GENERAL RENT LEVELS ADOPTED BY THE HOUSING AUTHORITY ARE ACCEPTABLE TO PROSPECTIVE TENANTS, BUT SHOULD ELIGIBLE APPLICANTS CONSIDER THE RENTS OF THESE NEW FLATS BEYOND THEIR AFFORDABILITY, THEY CAN ALWAYS BE OFFERED CHEAPER ACCOMMODA– TION," THE SPOKESMAN ADDED,

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