TNAG-0807-FCO40-1012-Policy-for-housing-and-resettlement-in-Hong-Kong-1978 — Page 4

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Clause 6 amends section 23 of the Ordinance (emergency closure of dangerous buildings) so as to apply that section only to buildings which are entirely leased to tenants, since by virtue of the new subsection (3) in clause 5, the Building Authority has powers in respect of buildings parts of which have been sold under the Home Ownership Scheme.

Clause 8

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The new subsection (2) in clause 8 is necessary so as to deal with ineligible persons or families who try to obtain or do obtain a Home Ownership flat by false pretences. The maximum penalty is related to the maximum financial advantage thus to be gained, estimated at $50,000 at to-day's values. This represents the maximum difference between the sale price of a Home Ownership flat in Phase I of the programme and the assessed market value of such a flat. This provision covers both applicants and persons aiding or abetting such applicants. Legal advice is that a provision whereby completed assignments of flats which had been allocated on the basis of false information regarding eligibility could be rescinded or set aside would not be practicable. It would create undesirable uncertainty in respect of the title of Home Ownership flats and would be inconsistent with accepted principles of conveyancing. The Registrar General, however, has included a clause in the standard form of Agreement for Sale and Pruchase (considered to be the appropriate document) to the effect that if it is discovered before the flat is actually assigned, that false information was knowingly given by or on behalf of the applicant, then, apart from the criminal sanctions available under the Ordinance, the Agreement for Sale and Pruchase can be rescinded and the purchaser's deposit forfeited.

Clause 9

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The new section 29A in clause 9 sets out the limitation of time for the prosecution of offences.

Private Sector Participation Scheme

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Honourable Members may wish to note that the Housing Authority will have no function in respect of the Private Sector Participa- tion Scheme which will be implemented by and between Government and the private developers concerned.

C.S. 166

CONFIDENTIAL #