TNAG-1574-FCO40-2147-Housing-in-Hong-Kong-1986 — Page 28

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CONFIDENTIAL

For discussion

on 5 August 1986

Introduction

XCC (86)136 Copy No

MEMORANDUM FOR EXECUTIVE COUNCIL

HKIC 364

RECEIVE

HONG KONG HOUSING SOCIETY:

CONCESSIONARY LAND PREMIUM FOR DESK CHARLH PROPOSED FLATS-FOR-SALE SCHEME

2 1 AUG 1986

TETRY

INDEX

PA

on Taken

The purpose of this memorandum is to seek Members' advice on whether the Hong Kong Housing Society should be granted land at a concessionary price of one half of full market value enabling it to institute a flats-for-sale scheme, by selling a proportion of flats from its rental projects.

Background

2

future

the

The Housing Society currently provides following forms of housing, which are deemed part of Hong Kong's public housing provision:

(a) Rental flats

for allocation to needy families, under similar conditions and eligibility criteria as are applied to the Housing Authority's applicants from the Waiting List. For this purpose, since the early 1950s, Government has granted the Society land at one-third of full market value (in contrast to nil premium for the Housing Authority) and, in the 1950 - 1960s, it also gave the Society low-interest loans repayable over 40 years, but the latter

Society

ceased

when

self-financing.

the

(b) Urban Improvement Scheme (UIS) flats

Society undertakes urban

acquiring

(at

full market

dilapidated

became

the

renewal

value) and

by

residential

The

redeveloping

in properties

the urban areas. resultant new flats are then sold: at below market prices, to families displaced by the UIS redevelopment and to the Society's

tenants who surrender their rental flats for re-allocation; and, to the general public at

CONFIDENTIAL

15