ENG-1980 — Page 160

HOUSING AND LAND

109

two commercial developments over station premises in the Central District of Hong Kong Island and Stage I of a residential complex on the podium over the Kowloon Bay Depot.

Management of Buildings in Multiple Ownership

During 1980, 237 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 maintenance and to uphold environmental standards. By the end of 1980, the total number of corporations was 1,659.

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' corporations, but they are not statutory incorporated bodies nor legal entities in themselves. Membership is open to all residents of a particular building. By the end of 1980, 4,245 mutual aid committees were registered.

A government Working Group consisting of representatives from several departments was set up in the Kwun Tong District during 1980, under a pilot scheme aimed at assessing the effectiveness of the existing legislation governing conditions in multi-storey buildings and suggesting a basis for further improvement. The group met seven times during the year.

Rent Control of Pre-war Premises

Legislation controlling the rents of pre-war premises and providing security of tenure was instituted by proclamation immediately after World War II and, in 1947, it was embodied 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 excluding from control new or substantially reconstructed buildings.

Increases in rents are permitted periodically, the latest being in May, 1980, when the legis- lation was amended to provide for permitted rents to be six times the standard rent in the case of domestic premises, and 12 times for business premises. In neither case, is the permitted rent to exceed the fair market rent. There are provisions for the Commissioner of Rating and Valuation to certify the user of premises and their fair market rent. A Tenancy Tribunal is appointed to 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 improvements 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 and so, year by year, the stock of pre-war buildings is gradually diminishing. The usual purpose of exclusion is redevelopment and, generally, possession is subject to the payment of com- pensation to the protected tenants. The Rating and Valuation Department provides a mediating 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. In addition, the department administers a Rent Officer