TNAG-1574-FCO40-2147-Housing-in-Hong-Kong-1986 — Page 8

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Authority's total sitting tenants of 465,000 households,

24,250 or 5.2% are public assistance recipients.

As

The 15% median rent-income ratio is intended to

ensure that public housing rent will continue to be affordable when setting rent levels for new estates. for existing older housing units with less space and a lower standard of amenities and those housing estates further away from the urban area, they are accorded a lower estate value and therefore their rent levels would not be raised up

to the 15% median rent-income ratio level.

Concern has been expressed by a number of Members to the effect that by applying a median rent-income ratio of 15%, half of the Authority's tenants will pay more than

15% of their income as rent. This is a misinterpretation

of the Committee's recommendation. Taking as an example

the average size families of 4-persons moving into new estates and those already in public housing and discounting those hardship cases whose rent are paid for by the Social Welfare Department, it is estimated that less than 2% of these 4-persons families will in fact pay more than 15% and in many cases only just above that level of their incomes as rent. 4-persons families constitute about 1/4 of the Authority's existing tenants. Overall, in the period 1976/77 1984/85, the rent-income ratio for all households among new tenants ranged from 10.7% to 13.5% and among

Even if sitting tenants the ratio ranged from 4% to 6.5%. the 15% median rent-income ratio is implemented for the new

/estates