TNAG-0912-FCO40-1122-Policy-on-housing-and-resettlement-in-Hong-Kong-1979 — Page 144

C.S. 166

CONFIDENTIAL 機密

XCC(77)8

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(c) other recurrent expenditure including fees for

consultants commissioned by the Housing Depart- ment; and

(d) an element of interest on drawings from the Home

Ownership Fund to meet the foregoing items of expenditure, so as to reflect the opportunity cost to the community of diverting part of the community's resources towards promoting home ownership.

But, given that the open market value of the flats would still be considerably higher than the sale price, the Working Party considers that it is essential to introduce certain restrictions on re-sale. These res- trictions have to be balanced carefully between two conflicting require- ments, namely, the need to discourage speculation on the one hand, and on the other to avoid making the flat an unattractive proposition from the point of view of the purchaser. In the circumstances the Working Party recommends:

(a) that within a period of five years from the date of

purchase, the buyer wishing to sell the flat should be placed under an obligation to offer the flat to the Housing Authority at the price he originally paid. If the Housing Authority should exercise this option it would arrange to re-sell the flat to another eligible household; but

(b) that after the expiry of this time bar, the buyer should

be free to sell the flat on the open market.

Similar arrangements have been applied to home ownership promotion schemes abroad and have worked reasonably well.

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There are two possible ways of enforcing this time bar, namely:

(a) the Housing Authority would sell flats subject to a deed.

of mutual covenant incorporating the time bar;

(b) building into the deed of assignment a clause empower-

ing the Authority to re-enter during the first five years.

Injunction procedures under (a) could be uncertain and tedious, while (b) could affect the popularity of the Home Ownership Scheme if only because it would not confer clean title to the flat during the first five years. These possibilities are being examined by the Working Party.

CONFIDENTIAL

機密