1961-1962 — Page 11

CHAPTER I

INTRODUCTION

THERE were two events of great significance for the Authority during the period under review. The first was the decision in September, 1961 that the Authority should let and manage Government low cost housing estates, and the second, was the announcement by the Colonial Secretary on the last day of the financial year that more funds were to be made available for the Authority.

2. During the eight years of its existence the Authority has erected 6,760 flats housing 42,500 people. Under this programme 1,296 flats were built in the year under review housing 8,000 people and in the next two years a further 87,200 people will be housed bringing the total to 129,700.

3. This programme, which got off to a slow start in 1956 and housed only 16,200 people by 1959, has been made possible by Government loans for the first five projects amounting to $156 million. These loans have been consolidated into a revolving fund on which interest is paid at half yearly intervals. By using the fund augmented by the surplus obtained from lettings the Authority will by 1964 have spent $187.57 million, housing 129,700 people in property which, under careful management and maintenance, should be a growing asset.

4. Although the Authority is empowered by its Ordinance to borrow money from other approved sources it has up to now been dependent on the Government of Hong Kong to provide the finance necessary to enable it to build houses which can be let at rents which the lower middle income group can afford. A measure of self-financing, to supple- ment these Government loans, has recently been undertaken to enable the Authority to provide more people with housing at reasonable rents.

5. The Authority is also dependent on the Government for the pro- vision of suitable sites on which to build its estates, and sites in suitable areas where multi-storey flats can be built at densities of from 1,600 to 2,000 persons per acre are by no means easy to find in or near the very overcrowded urban areas of Hong Kong. It has therefore been necessary for the Authority to develop such sites as are available in the rapidly developing suburban areas as near as possible to centres of

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