XN000022-1991-11-27 — Page 5

WEDNESDAY, NOVEMBER 27, 1991

"WITHOUT A STRONG FINANCIAL BASE, THE AUTHORITY WILL NOT BE TO PLAN ITS HOUSING PROGRAMME YEARS AHEAD AND TO MEET ITS COMMITMENTS, HE SAID.

ABLE

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AS REGARDS THE MOST CONTROVERSIAL ISSUE OF PRICING, MR BARNES SAID THE CONSULTATIVE DOCUMENT ON THE SCHEME HAD RECOMMENDED THAT PRICING SHOULD FOLLOW THE USUAL HOME OWNERSHIP SCHEME (HOS) METHOD, WITH DUE ALLOWANCE BEING GIVEN TO THE CONDITIONS OF THE RENTAL BLOCKS COMPARED TO THE PURPOSE-BUILT HOS BLOCKS.

HOS

"THIS RECOMMENDATION WAS THE SUBJECT OF CONSIDERABLE DEBATE DURING PUBLIC CONSULTATION, PARTLY BECAUSE OF THE PERCEPTION THAT PRICES WERE ALREADY ON THE HIGH SIDE, AND PARTLY BECAUSE MANY BELIEVED THAT PRICES SHOULD ONLY REFLECT THE HISTORICAL CONSTRUCTION COST, WITH THE SOME ADJUSTMENT, IN ORDER TO MAKE THEM SUFFICIENTLY ATTRACTIVE TO SITTING TENANTS, HE NOTED.

IF

BECAUSE OF THESE CONCERNS, HE SAID THE LEVEL OF DISCOUNT WAS INCREASED BEYOND THAT INDICATED IN THE CONSULTATIVE DOCUMENT.

THE FINAL PRICING HAD INCLUDED A FURTHER 10 PER CENT DISCOUNT OF THE ASSESSED MARKET VALUE.

DESIGN,

OF

MOREOVER, GENEROUS ALLOWANCE WAS ALSO MADE FOR THE CONDITION AND THE AGE OF THE BLOCKS, WITH THE RESULT THAT PRICES WERE AROUND HALF

A THE LEVEL OF CURRENT HOS PRICES AND AROUND

THIRD PRICES OF NEWLY-COMPLETED PRIVATE SECTOR PROPERTIES IN THE SAME DISTRICT, MR BARNES ADDED.

"IN

ARRIVING AT THIS DECISION, THE AUTHORITY WAS CONSCIOUS THE NEED TO PRODUCE PRICES WHICH SHOULD BE FAIR AND REASONABLE.

OF

"THERE IS ALSO NEED TO ACHIEVE A BALANCE WITH THE PRICES UNDER THE HOS BECAUSE THE TERMS AND CONDITIONS OF THE TWO SCHEMES HAVE MANY COMMON FEATURES, AND PUBLIC HOUSING TENANTS MAY CHOOSE BETWEEN THEM, HE EXPLAINED.

FACTORS THE AUTHORITY

BARNES ADDED.

M

AFFECTING PRICING WERE LIKELY TO BE EXAMINED AGAIN IF DECIDED TO PROCEED WITH A COMPREHENSIVE REVIEW, MR

ADDRESSING THE CONCERN OVER THE QUALITY AND MAINTENANCE CONDITION OF THE SALE BLOCKS, MR BARNES SAID THE AUTHORITY HAD ALREADY TAKEN ADEQUATE STEPS TO ALLAY TENANTS' CONCERNS THROUGH THE UNDERTAKINGS GIVEN IN THE CONSULTATIVE DOCUMENT.

"PRIOR TO SALE, A CONDITION SURVEY OF THE COMMON AREAS IN THE BLOCK WOULD BE CARRIED OUT BY AN INDEPENDENT SURVEYOR AND THAT ANY FLATS DEFECTS IDENTIFIED BY THIS SURVEY, AND OTHER DEFECTS INSIDE THE WHICH

TENANTS HAD REPORTED, WOULD BE

THE REPAIRED AND

WORK GUARANTEED FOR A FURTHER YEAR, MR BARNES SAID.

THE

H

ON THE GENERAL QUESTION OF CONSTRUCTION DEFECTS SUCH AS WATER SEEPAGE, PLUMBING AND OTHER MINOR PROBLEMS, HE SAID THE AUTHORITY HAD ALREADY AGREED TO MAKE GOOD THE DEFECTS IRRESPECTIVE OF WHETHER THESE FLATS WOULD BE SOLD.

HE

THE AUTHORITY WILL ALSO CONSIDER EXPANDING ITS COMPREHENSIVE REPAIR PROGRAMME TO COVER HOUSING ESTATES BUILT IN THE MID 1980S, ADDED.

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