ENG-1977 — Page 143

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HOUSING AND LAND

replacing inadequate housing - in the early resettlement estates, private tenements and the remaining squatter areas – and also building new homes to keep up with population growth. There is still a shortage of the right type of accommodation and overcrowding is a serious problem.

Home Ownership

In 1976, the government announced its intention to promote home ownership in the lower-middle income groups by building flats for sale within the public housing sector. A working party was set up to devise a practical scheme to be made available to people within and immediately above the income limits of eligibility for public housing.

The working party reported in September, 1976, that the purpose of the scheme was to provide flats for purchase by families with incomes up to $3,500 a month, and public housing tenants who were willing to surrender their existing tenancies irrespec- tive of income. Eligible buyers will be able to buy at prices below those prevailing in the open market. On the strength of a government partial guarantee against default, special mortgage arrangements have been negotiated with leading banks to provide for a standard repayment period of 15 years, interest rates of between 7 and 9 per cent a year, and a minimum down payment of 10 per cent of the sale price. These arrangements compare very favourably with open market terms.

The Housing Authority will act as the agent of the government in designing, develop- ing, marketing and managing the flats, and sites have been identified with a capacity of 35,000 flats. The programme envisages the completion of 8,500 flats in 1979-80 and between 5,000 to 6,000 in each of the successive years to 1985-6. The flats will range in size from 34 to 55 square metres, each having a living room, two or three bedrooms, kitchen, toilet, and bath or shower. The standards will compare with those produced by good private developers.

The Housing Authority

The Housing Authority comprises the Secretary for Housing, 13 unofficial members (eight of whom are urban councillors) and six official members, all of whom are appointed by the Governor. The authority is a statutory corporation with respon- sibility for its own finances and management. Its principal task is to build and manage public housing estates, but it also deals with temporary housing, squatter control and clearance, and advises the government on housing policy.

The authority meets bi-monthly but, to ensure that business is despatched effec- tively, six committees have been set up: appeals, building, finance, management, operations and home ownership. The executive arm of the Housing Authority is the Housing Department.

During the year, the government introduced new financial arrangements for the Housing Authority to allow it to continue, without impediment, with its large and growing construction programme. The scale of operations, aimed at providing public housing for a further 1.5 million people in the next 10 years, is indicated by the fore- cast expenditure of nearly $4,000 million on housing projects, excluding land costs, over the period.

Previously, the authority was required to pay land premium at one third of the full market value less formation costs, and to pay interest of five per cent on money