A recent investigation of the structural condition of all Housing Authority stock indicates that by the 1990's, most of the Mark IV
IV - VI and Former Government Low Cost Housing (FGLCH) estates (which are not covered by the existing policy of redeveloping only non-self-contained flats and structurally sub-standard blocks*) will
blocks*) will become increasingly uneconomic to maintain. Even if expensive repairs and improvements are undertaken, the provision of support facilities in these estates will remain inadequate by current standards.
5
A 1986 income survey of all households in Housing Authority rental estates revealed that about 45% of the households have an income above the Waiting List Income Limit. This indicates the growing affluence of such households and more importantly, their low mobility towards home purchase. Notwithstanding the recommendations of the Housing Authority Committees on Housing Subsidy and Domestic Rent Policy, the rent level in public housing estates is still low in relation to both the tenants' household income and the market value of the units. The rents are sufficient to cover only the recurrent expenditure on management and maintenance without fully recouping the capital costs. Although stringent criteria on income, property possession, etc. are applied on initial application, sitting tenants whose financial situation has improved are not subject to eviction, but enjoy almost absolute security of tenure. This low mobility of sitting tenants adversely affects overall housing
housing policy by requiring new rental flats to be built to satisfy demand. This imposes concomitant burden on public revenue.
6
a
All these factors suggest the desirability of a change in direction without which the two fundamental principles underlying the public housing programme cannot be achieved, (that is, the promotion of social stability and the efficient and equitable use of resources). The review has been conducted to examine what changes need to be made to the Existing Strategy.
7
In order to adhere to the two principles mentioned above, the future housing strategy should be one which can best meet the following objectives:
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