TNAG-1574-FCO40-2147-Housing-in-Hong-Kong-1986 — Page 15

RESTRICTED WAS X F

內部文件

For information

(7.10.1986)

JKK 364/1

RECEIVED A REGISTRY

- 3 NOV 1986

DESK OF

1.DEX

B

A

C

XCRI (86) 22 Copy No

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•

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NOTE FOR EXECUTIVE COUNCIL

RENT REVIEW OF GROUP B ESTATES AND FORMER GOVERNMENT LOW COST HOUSING ESTATES

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7/11

Introduction

The Housing Authority

Authority intends to increase, with effect from 1 December 1986, the rents for 211,412 domestic flats in 52 Group B (Mark I to VI) and Former Government Low Cost Housing (FGLCH) estates, a breakdown of which is at Annex A. This note is

is for Members' information before the proposals are implemented.

Background

2

The Housing Authority has a duty under section 4(4) of the Housing Ordinance (Chapter 283) to ensure that the revenue accruing to it from its estates shall be sufficient to meet its recurrent expenditure on its estates. Although a substantial surplus is achieved from its commercial properties (estimated to reach $561 million in 1986/87), the Authority is still some way from fulfilling this duty in respect of its domestic properties.

3

The

-

and Year

rent

The

Estate Authority's

Working Account Domestic Properties for the year 1986/87 at Annex B shows deficit of $213.8 million. For the years 1987/88 and 1988/89, the deficit is forecast to be $235.4 million $146.6 million respectively, as shown in the Five Forecast at Annex C. The forecast assumes moderate increases at an average of 17.5% for every two years. deficit mainly arises from the Group B estates and the Former Government Low Cost Housing Estates. These estates are the oldest types of public housing built between 1950s and early 1970s, where

where rents are low and maintenance is increasingly costly. Although the redevelopment of Mark I and II blocks and the increasing proportion of new estates in the housing stock will gradually reduce the deficit, the Authority cannot eliminate this deficit completely until 1989/90 when a surplus of $92.3 million from its domestic

domestic properties is expected. Any net surplus will be used to finance the rental public housing programme.

G.F. 324

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