ENG-1978 — Page 146

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HOUSING AND LAND

The Mass Transit Division continued to examine Mass Transit Railway proposals, in order to safeguard buildings adjacent to railway construction and to administer the Buildings Ordinance in respect of property development by the Mass Transit Railway Corporation.

Management of Buildings in Multiple Ownership

During 1978, 180 new owners' corporations were formed under the Multi-storey Buildings (Owners' Incorporation) Ordinance. This legislation, passed in 1970, enables owners of a building in multiple ownership to incorporate themselves and appoint a committee for the better management of their building, particularly to ensure its main- tenance and to uphold environmental standards. By the end of 1978, the total number of corporations was 1,234.

The City District Offices and the New Territories District Offices offer assistance and advice to owners and tenants, either on incorporation or on the formation of Mutual Aid Committees. Mutual Aid Committees have similar aims to owners' cor- porations but they are not statutory incorporated bodies or legal entities in themselves. Membership is open to all residents of a particular building. By the end of 1978, 3,455 Mutual Aid Committees were registered.

Rent Control of Pre-war Premises

Legislation controlling rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after World War II, and was later embodied in 1947 in the Landlord and Tenant Ordinance - since re-enacted as Part I of the Landlord and Tenant (Consolidation) Ordinance. This legislation applies to both domestic and business premises and restricts rents by reference to pre-war levels (standard rent), while providing for exclusion from control of any new or substantially reconstructed buildings.

Increases in rents are permitted periodically, the latest being in December, 1977, when the legislation was amended to provide for permitted increases to standard rent to be raised to 200 per cent in the case of domestic premises and 500 per cent for business premises.

A Tenancy Tribunal is appointed to fix or determine the amount of rent payable in respect of pre-war premises and to deal with other tenancy matters.

Where a landlord incurs expenditure of $5,000 or more on additions or improve- ments he may, subject to the approval of a Tenancy Tribunal, increase the rent by 20 per cent a year of the amount expended. Rent increases are also permitted where the landlord bears the rates and the rates liability is increased.

There is provision in the legislation for the exclusion from control of premises on account of redevelopment and so, year by year, the stock of pre-war buildings is gradually diminishing. Generally, possession is obtained subject to the payment of compensation to the protected tenants. The Rating and Valuation Department pro- vides a mediatory and advisory service to deal with many of the practical problems arising from these controls and, in particular, where exclusion proceedings are commenced or where buildings are declared dangerous by the Building Authority, to ensure that tenants and sub-tenants understand their rights.