XN000022-1993-05-04 — Page 5

TUESDAY, MAY 4, 1993

THE CURRENT INCOME RESTRICTION ON "DOUBLE- RENT" TENANTS IN APPLYING FOR OVERCROWDING RELIEF IS WAIVED.

THE VETTING PERIOD FOR TENANTS TO APPLY FOR REVERTING TO PAYING NORMAL RENT IS SHORTENED FROM SIX TO THREE MONTHS.

UNDER THE MODIFIED POLICY, ABOUT 80 PER CENT OF THE EXISTING 61 500 DOUBLE-RENT PAYERS WILL BE REQUIRED TO PAY 1.5 TIMES THEIR RENTS.

THE SPOKESMAN SAID THE AUTHORITY RECOGNISES THAT ECONOMIC CIRCUMSTANCES MAY CHANGE, THEREFORE ANY HOUSEHOLD THAT PAYS THE DOUBLE OR THE 1.5 TIMES RENTS CAN APPLY TO REVERT BACK TO PAYING ORDINARY RENTS IF THEIR INCOME FALLS BELOW THE SUBSIDY LIMIT.

"THE INTRODUCTION OF A NEW RENT TIER SHOULD MAKE THE IMPLEMENTATION OF THE POLICY EVEN MORE ACCEPTABLE TO TENANTS CONCERNED," HE SAID.

"FOR EXAMPLE, A FOUR-PERSON HOUSEHOLD WITH A TYPICAL RENT OF $1,000 WILL BE REQUIRED TO PAY SOME $400 MORE IF ITS HOUSEHOLD INCOME IS ABOVE $22,800, WHICH PUTS THE HOUSEHOLD IN THE TOP 20% INCOME GROUP IN HONG KONG.

"ONLY THOSE WITH INCOME ABOVE $34,200, WHICH IS THE TOP 10% INCOME GROUP, WILL BE REQUIRED TO PAY SOME $800 MORE IN RENT."

GIVEN THAT DOUBLE RENT PAYERS' INCOMES ARE WITHIN THE TOP ONE-THIRD SEGMENT OF INCOMES OF EQUIVALENT FAMILY SIZE, THOSE FAMILIES PAY ON AVERAGE ONLY 6.2% OF THEIR INCOME ON RENT WHILE THAT OF OVERALL PUBLIC HOUSING

OVERALL PUBLIC HOUSING TENANTS AND PRIVATE

TENANTS IS 8 AND 20% RESPECTIVELY, THE SPOKESMAN NOTED.

THE REVENUE ARISING FROM THE REVISED POLICY IS ESTI- MATED TO DECREASE BY 40 PER CENT FROM $460 MILLION TO $280 MILLION.

THE SPOKESMAN POINTED OUT THAT THE POLICY IS BASED ON THE PRINCIPLE THAT THE COMMUNITY'S CONTRIBUTION IN THE FORM OF HOUSING SUBSIDY SHOULD GO TO THOSE MOST IN NEED.

HE ADDED THAT THE AUTHORITY WAS ACTIVELY CONSIDERING NEW MEASURES TO ENCOURAGE MORE BETTER-OFF TENANTS TO MOVE TO HOME OWNERSHIP. THESE INCLUDED :

ASKING TENANTS TO DECLARE PROPERTY OWNERSHIP, WITH A VIEW TO IMPOSING STRONGER MEASURES FOR PROPERTY OWNERS TO MOVE OUT OF PUBLIC HOUSING.

RAISING THE HOME PURCHASE LOAN SCHEME AMOUNT FROM $200,000 TO A MUCH HIGHER AMOUNT.

/THIS BROAD