TNAG-0669-FCO40-818-Policy-on-housing-and-resettlement-in-Hong-Kong-1977 — Page 63

A

CONFIDENTIAL

機密

(202

For discussion

on 31st May 1977

RECEIVED IN

REGISTRY NO. 51

|

3 OMAY 1977

XCC(77)38

Copy No.... of 80

Page 1 of 4

MEMORANDUM FOR EXECUTIVE COUNCIL

RENT INCREASE FOR HOUSING AUTHORITY

FLATTED FACTORIES

་

31.

+KK 360/1

C.S. 166

Background

In 1973, the reconstituted Housing Authority inherited from Government eight factory estates as at Annex A. These factories, of five or seven storeys without lifts, were built by the Public Works Department for the resettlement of squatter factories prior to 1973. These estates contain 8, 587 units of 198 square feet or 256 square feet in 24 blocks, and the total number of tenants is now 3, 167, over a third of whom are not original tenants.

2

These factory blocks are let to industrial undertakings cleared from surveyed squatter structures. If the trade can be operated in a multi-storey block, reprovisioning is according to the size of the covered, enclosed, or open working area as found at the time of screening for clearance. The minimum allocation to a single operator is one unit of 198 or 256 square feet and the maximum allocation is six units or about 1, 500 square feet. Squatter undertakings with over 3,000 square feet of area are not reprovisioned as they are considered to be large enough to re-establish themselves without Government assistance. Tenants are allowed to assign the units allocated to them.

3

Since 1973, on the recommendation of the Housing Authority, eligible operators are also offered an ex-gratia cash alternative. A minimum sum of $6, 000 is offered to undertakings of 50 to 300 square feet and the maximum award for any one operator is $100,000. About half of all eligible operators have opted for cash payment instead of reprovisioning. However, the rate of acceptance is dependent upon the economic outlook of the trade, the location of the factory and the availability of units within a block.

Rents

4

The rent policy of the former Resettlement Department for these blocks was merely to cover the annual recurrent expenditure as assessed at the time of completion of the first block in 1957. The inclusive rents range from 23 cents a square foot to 55 cents a square foot depending on the floor. No allowance was made for increase in

CONFIDENTIAL

機密