ENG-1982 — Page 150

HOUSING AND LAND

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plan, build and subsequently manage, on behalf of the government, flats provided under the Home Ownership Scheme. Legal powers to carry out these functions are provided by the Housing Ordinance. The Housing Authority also acts as the government's agent in the building and management of flatted factories, which provide small factory units for industrial undertakings displaced by development clearances.

The Housing Authority is chaired by the Secretary for Housing and comprises 14 unofficial members (nine of whom are Urban Councillors), and six official members, all of whom are appointed by the Governor. However, with the implementation of district administration and the increasing number of public housing estates in new towns, the Housing Ordinance was amended during the year to remove the limit on the number of unofficial members with a view to allowing the appointment of a more representative membership.

The Housing Authority is responsible for its own finances and management. Under revised financial arrangements drawn up in 1977, the Housing Authority is no longer required to pay any premium for land granted by the government for public rental housing. However, land value is written into the Housing Authority's balance sheet as a government contribution. Loans from the Development Loan Fund for new public rental housing estates are repaid over 40 years, with a notional five per cent interest shown in the authority's balance sheet as a government contribution. Capital funding for the public housing programme currently set at a production target of 35 000 rental and Home Ownership flats a year - is provided through government funds, on the basis of a four-year expenditure forecast rolled forward annually. The government has emphasised that this rate of production is not a maximum target and when economic circumstances permit expansion can be considered.

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Recurrent expenditure on the Housing Authority's domestic rented properties totalled $888 million during 1981-2; this was spent mostly on the management and maintenance of the estates. Rental income from these domestic properties amounted to only $838 million, resulting in a deficit of $50 million. The non-domestic properties owned by the Housing Authority produced income of $417 million during 1981–2, compared with expenditure of $213 million. Any surplus funds that the Housing Authority generates from the manage- ment of its properties are used to help finance the public rental housing programme.

During 1981-2, the Housing Authority spent $2,302 million on its capital programmes of which $1,896 million was financed by loans from the government (mostly on concessionary terms) with the balance being financed from Housing Authority funds. In addition the Housing Authority, acting as the government's agent, spent $1,054 million on flats for sale under the Home Ownership Scheme.

Land Supply and Site Formation

The Special Committee on Land Supply has confirmed that there is sufficient land for the next five years' public housing programme and steps are being taken to ensure a continuation of land supply to the end of the decade.

While the New Territories Development Department is normally responsible for carrying out site formation and infrastructure for new towns, the Housing Department is now handling a greater proportion of site formation contracts for public housing estates in the urban area. During the year, work started on urban sites at Chuk Yuen, Ap Lei Chau, Ma Chai Hang and Lam Tin which will provide a total platformed area of approximately 49 hectares. This will accommodate 21 300 rental and Home Ownership flats, 10 secondary and six primary schools, together with carparking and commercial facilities. Other site

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