TNAG-1574-FCO40-2147-Housing-in-Hong-Kong-1986 — Page 4

tenants are accustomed to the

Authority's biennial rent review. Tenants signing up for new flats are advised of the Authority's policy to review rents

and, therefore every

increase expect years

to be announced. Past experience suggests that increases between 20% to 30% would be acceptable and affordable by tenants.

14

two

an

In September 1985 the Authority set up а special committee to undertake an overall review of

an overall review of its domestic rent policy. This committee considers that the rent to income ratio A of 15% on average is reasonable and affordable by tenants. final report is expected to be made to the Authority in July. In the last rent review exercise, some pressure groups requested that all rents of the Authority's premises should be frozen until the public housing rent policy review was completed.

It is likely that the same request will be made this time. The answer will be that the existing policy will continue to prevail until changes, if any, are approved.

Publicity

15

be

The tenants will individually be given six weeks' advance notice together with an explanation note, before the rent increase is implemented. Publicity will emphasise the following points :

(a) the proposed new rents constitute a moderate percentage of the tenants' average household income and remain considerably below levels payable in the private sector;

(b)

rent

the present increase is reasonable both in money and percentage terms;

(c) even after the rent increase, there is still

(a)

(e)

a heavy element of through the provision subsidized · management services;

Government subsidy of free land and and maintenance

the increases include the additional rates and arrears of rates which the Authority has paid on tenants' behalf; and

tenants who are unable to afford the new rents will be referred to the Social Welfare Department for assistance or, alternatively, they may apply to transfer to cheaper flats.