XN000022-1993-05-18 — Page 2

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TUESDAY, MAY 18, 1993

LOW INTEREST SANDWICH CLASS HOUSING LOAN BEING CONSIDERED

THE GOVERNMENT IS CONSIDERING USING THE $2 BILLION PROPOSED FOR QUICK START SCHEME OF SANDWICH CLASS HOUSING TO SET UP A LOW- INTEREST LOAN FUND WHICH WOULD BENEFIT MORE PEOPLE.

THE

THIS WAS REVEALED BY THE SECRETARY FOR PLANNING, ENVIRONMENT AND LANDS, MR TONY RASON WHEN HE BRIEFED A JOINT MEETING OF THE LEGCO'S HOUSING AND LANDS AND WORKS PANELS TODAY (TUESDAY).

"THE PREFERRED OPTION HAS BEEN ARRIVED AT AFTER CAREFUL CONSIDERATION OF THE MANY VIFS PUT FORWARD ON HOW BEST TO USE THE $2 BILLION, SAID MR EASON.

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THE LOW-INTEREST LOAN OPTION IS MORE COST EFFECTIVE AND FAIR BECAUSE IT WOULD ENABLE A ROLLING FUND BE SET UP

BENEFIT MORE PEOPLE BY RECOUPING THE SUBSIDY FROM SUCCESSFUL APPLICANTS. IT MAY BECOME PART OF THE LONG-TERM SCHEME AS AN OPTION FOR POTENTIAL

BENEFICIARIES.

SUCCESSFUL APPLICANTS WILL BE PROVIDED WITH IMMEDIATE RELIEF TO HELP MEET THE DOWNPAYMENT OF A FLAT THEY WISH TO BUY ON THE MARKET. THEY WILL BE GIVEN A LOW-INTEREST LOAN IN THE ORDER OF 20-25% OF THE SALE PRICE OF A FLAT AND UP TO A LIMIT OF $500,000.

THE REPAYMENT OF A SANDWICH CLASS HOUSING LOAN BY INSTALMENT WILL ONLY BEGIN IN THE FOURTH YEAR WHEN A BENEFICIARY'S FINANCIAL POSITION HAS IMPROVED.

THE MALN PROPOSED ELIGIBILITY CRITERIA FOR SANDWICH CLASS HOUSING ASSISTANCE ARE AS FOLLOWS:

THE APPLICANT MUST HAVE HAD AT LEAST SEVEN YEARS CONTINUOUS

RESIDENCF IN HONG KONG AND BE WITHIN THE AGE OF 30-45,

TOTAL FAMILY INCOME MUST BE WITHIN THE RANGE $20,001 $40,000 PER MONTH,

EACH APPLICATION MUST INCLUDE AT LEAST THREE FAMILY MEMBERS. PREFERENCE WILL BE GIVEN TO MARRIED COUPLE AND SINGLE PARENT (IN THAT ORDER) WHO HAVE TWO OR MORF CHILDREN,

* EACH APPLICANT MAY ONLY SUBMIT ONE APPLICATION,

*

ALL PERSONS INCLUDED IN AN APPLICATION MUST NOT HAVE HAD ANY DOMESTIC PROPERTY REGISTERED IN THEIR NAMES IN HONG KONG WITHIN 24-MONTH PERIOD IMMEDIATELY BEFORE AN APPLICATION

SUBMITTED +

IS

/* THE APPLICANT