TNAG-0807-FCO40-1012-Policy-for-housing-and-resettlement-in-Hong-Kong-1978 — Page 2

Housing Department, the Registrar General's Department, the Public Works Department, the Rating and Valuation Department, the Inland Revenue Department, the Urban Services Department and the Treasury.

The Housing (Amendment) (No 2) Bill 1978

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The basic considerations in drafting the Housing (Amendment) (No 2) Bill 1978 are that:

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(a) the Housing Authority should be able to operate the

Home Ownership Scheme within broad guidelines laid down by the Governor in Council. Its relationship with Government would be regulated by a Memorandum of Administrative Arrangements rather than set out in detail in the bill;

(b) the Housing Authority should, wherever possible, be

in the same position as private developers who rely on conveyancing documents, in particular Deeds of Assignment and Deeds of Mutual Covenant, for the sale and management of their property;

(c) because of the liabilities connected with ownership, the

Housing Authority would sell each estate in undivided shares except for commercial premises and carparks (which would be retained by the Authority) and "through" roads (which would be surrendered to the Crown); and

(d) the Authority should have power to sell flats (i.e.

undivided shares in land) or to let any flats per se which might remain unsold.

Clause 3(b)

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The significant features of the bill are:

The Authority is given the additional power to manage the common parts" of estates. Clause 2 defines common parts which include corridors, lift lobbies, open space etc.

Clause 4 (new section 17A (1) and (2))

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The Housing Authority is given the power to sell flats subject to the conditions under which the property is held from the Crown. purchase price of the flats and the terms and conditions of payment will be

The

CONFIDENTIAL **