ENG-1983 — Page 173

120

HOUSING

maintenance expenses of comparable flats in the private sector. It has been possible to keep rents low because of heavy government subsidy: land is provided free of charge and no land value is included in rents charged; construction of rental estates is financed largely by loans provided by the goverment on concessionary terms.

Rents are reviewed on a biennial basis and adjusted having regard to increases in management, maintenance and other costs; estate values in terms of location, facilities and services provided; and tenants' ability to pay. However, due to the very low rents on old estates where maintenance and improvement costs are highest, there was an overall deficit of $136 million in the Housing Authority's estate working account for domestic properties in 1982-3.

The Housing Authority also has a large number of commercial premises with 16 200 shop, market stall, bank and restaurant tenancies of various sizes. Shops and markets in new commercial centres are let on tendered rents, thus giving the smaller operator with limited capital an opportunity to obtain an estate shop. Apart from some 9 500 small shops in the old estates, commercial properties are generally let on three-year agreements. Rents are usually kept at near-market levels on renewal of an agreement but, where increases are substantial, it is the authority's policy to apply them in stages over two or three years. In 1982-3, these commercial properties generated a surplus of $275 million. The authority also manages 17 200 factory units in 34 purpose-built blocks, and 4 200 cottages in various districts.

Some 530 welfare premises on estates are let at concessionary rents. These premises include child and youth centres, nurseries, social and community services centres, libraries, study rooms, welfare clinics, sheltered workshops, hostels and centres for the mentally or physically handicapped. Hostels for the elderly are let to voluntary agencies at normal domestic rents. During the year, 73 welfare lettings were made. In order to maintain a balanced community for public housing tenants, a total of 407 premises are let for educational purposes such as kindergartens, primary and secondary schools. In most cases, estate kaifong and residents' associations and mutual aid committees in housing blocks are also provided with premises. Medical clinics and premises for various government departments are generally let at near-commercial rents.

Management

Estate management has been greatly improved since the Housing Authority was empowered to introduce road restrictions on estates and impose charges for the removal and towing of vehicles parked illegally within estates. During the year, road restrictions were further extended to 10 estates, bringing the total number of estates with road controls to 86. Notable examples were the road control operations carried out on estates at Lam Tin and Tsz Wan Shan, which resulted in the condition of access roads within these estates being greatly improved and some 1 200 additional car parking spaces made available for use by estate residents.

The management staff also took strenuous and persistent action to combat hawking activities. The hawker situation is under control on most estates in the daytime but special measures have to be taken on estates where hawker problems are more serious, with staff working outside normal office hours to prevent the situation from deteriorating.

To cope with the development of the District Administration Scheme, senior estate management staff are decentralised to estates to enable closer contact with district boards and local interest groups in improving the management and living environment of public housing estates. Close contact is also maintained with tenants through frequent visits by estate staff. In addition, regular meetings are held with more than 880 mutual aid committees and residents' associations.