TNAG-0809-FCO40-1014-Legislation-for-Crown-lands-in-Hong-Kong-1978 — Page 58

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aim

Socierv

a turnar tits closing, lower- rent estates by offering such new accommodation to its better-off tenants, thus releasing space in its other estates for tenants from these dilapidated tenements. Alternatively, it might offer to sell flats in newly bought or redeveloped blocks, rather than rent them. The sale price would reflect construction costs and the market value of the unit. Some families from redeveloped properties might not be able to afford the rents of existing Society estates and it might be possible for the Housing Authority to accept some of the poorer tenants in its estates. Once the first old tenements had been redeveloped the new accommodation on these sites would be offered to tenants from subsequent redevelopment projects.

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The Society is now considering what scale of activity it could undertake in this field of urban renewal, and much will depend on its ability to secure the necessary management services. Ideally, the aim should be to reach a point within five to ten years at which it could pursue a steady programme of renewal from funds internally generated, the initial financing being provided by Governmen. loans. The larger toe initial scale of operation, the sooner the scheme can become self-financing, and various alternative programmes are being considered which would require Government loans of about $100 million over the first 4 years, to determine what would be a practicable commitment. Given the high land acquisition and building costs of such a venture, the scheme's financial aspects will be largely determined by the level of rent which, can be demanded of the displaced tenants in the new blocks, and this level will very much influence the interest rate which could be paid for the Government loan.

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This scheme can be justified not only because it will make a valuable contribution to the Colony's housing stock, but also because it will contribute towards the achievement of the Ten Year Housing Target approved by the Governor in Council on 17th October 1972. There are at least three strong arguments regarding this scheine as being within the public sector, namely:

(a)

it will be an activity of the Housing Society, whose efforts are taken into account in arriving at the target of 1,8 million units to be achieved by March 1933;