TNAG-1614-FCO40-2222-Executive-Council-of-Hong-Kong-memoranda-and-minutes-of-meet-1987 — Page 4

three ways.

First, HOS/PSPS production is increased to satisfy all outstanding demand from both the general public and sitting tenants. Secondly, enough HOS/PSPS and rental housing suitable for transfer to HOS will be built to accommodate those households who are affected by redevelopment and would like to purchase HOS/PSPS. Thirdly, Waiting List applicants, clearees and disaster victims will be offered the option of either being rehoused into rental units or HOS units (initially in rental blocks upgraded to HOS standards). This strategy is capable of promoting the mobility of sitting tenants and clearing all outstanding demand for housing by 2001. The private sector, however, is still likely to have surplus capacity after 1990.

the demand for is done by Loan Scheme

(c) Private Sector Priority Strategy: This strategy modifies the HOS/PSPS Led Strategy by maximising the contribution of the private sector, particularly in satisfaction of outstanding assisted home purchase. This introducing the

the Home Purchase (HPLS) which offers clearees and sitting rental tenants downpayment loans, either interest free or at a low rate of interest, to assist them to purchase private sector flats. It is suggested that these loans should be restricted to 10%

10% of the flat price subject to a maximum of $50,000. Upon receipt of a HPLS loan, households are required to forego their entitlement to public housing and surrender their rental flat for reallocation. The HPLS therefore envisages substitution of a cash subsidy for the building cost subsidy enjoyed by sitting and prospective rental tenants*. It is expected that the joint effect of the HPLS and the recently endorsed recommendations of the Housing Authority on rent policy and rent subsidy will give wealthier tenants a greater incentive to purchase their Own homes. The quota of the HPLS would be so adjusted as to keep the private sector producing at its normal attainable level.

*

an

Details of the

of the HPLS

HPLS such as loan recovery and conditions of resale are given

given in appendix of the review report called "The Home Purchase Loan Scheme Proposal".