XN000022-1992-05-21 — Page 4

Application

3

THURSDAY, MAY 21, 1992

Rent Control Mechanisms under Parts I and II of the Landlord and Tenant (Consolidation) Ordinance

Part I Control

Tenancies in pre-vax domestic premises

Fart II Control

Tenancies created before 10 June 1983 in post-war domestic premises:

(a) built before 19 June 1981

and

(b) with a rateable value of

less than $30,000 in 1983.

Determination

of Controlled Rent

(a) Current

System

(b) Proposed

Changes

Maximum Rent

48 times the Standard Rent (rent payable on 25 December 1941) provided it does not exceed the prevailing market rent (PMR).

Minimum Rent

Not specified

To increase progressively the standard rent

multiplier and to specify a minimum level of controlled rent, as follows:

Maximum Rent

1.3 times the current rent provided it does not exceed the prevailing market rent (PMR) or is not less than the Minimum Rent.

Minimum Rent

70% of the prevailing market rent.

To increase the percentage governing the minimum rent in steps, as follows:

Year

Minimum Rent

Standard

Rent

Minimum

1992

Year Multiplier Rent

1993

1994

1992

55

60% of PMR

1993

65

75% of PMR

1994

'75

92.5% of PMR

77.5% of PMR 85% of PMR 92.5% of PMR

Ernquency of Rent Increase

Provided that the rent

determined by a multiple of the standard rent is not less than the Minimum Rent.

No rent increase can be made within 12 months from the date of the Jast increase.

No rent increase can be made within 24 months from the date of the last increase,

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