ENG-1984 — Page 209

HOUSING

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incentives aimed at encouraging existing Housing Authority tenants to apply for Home Ownership Scheme flats.

The Home Ownership Scheme (HOS) and Private Sector Participation Scheme (PSPS) provide low income families with the opportunity to purchase their own flats at prices below those of comparable units on the open market. During the year, 11 700 units were completed for sale under the Home Ownership Scheme. Although no PSPS flats were completed in the year, the scheme continues and some 13 300 flats are due for completion in 1985 to boost public sector production.

The year also saw the completion of the first phase of a rural housing scheme at Tui Min Hoi, Sai Kung, by the Hong Kong Housing Society, which manages small rental estates and is involved in urban redevelopment schemes.

On the private sector front, some 20 000 units were completed in what was a difficult year for developers. The property market in general remained depressed, although sales of small flats in good locations were buoyant. There were signs, however, that a recovery was in sight and completions for 1985 were forecast to increase to 27 000 units. The private housing supply of 20 000 units in 1984 was low compared with 24 000 for 1983 and a five-year average of 27 000 units per annum for 1978-82.

Housing Authority

The Hong Kong Housing Authority, established under the Housing Ordinance, is a statutory body responsible for co-ordinating all aspects of public housing. The authority advises the Governor on all public housing policy matters and through its executive arm, the Housing Department, plans and builds public housing estates for categories of people determined by the authority with the approval of the Governor; manages public housing estates, cottage areas, temporary housing areas and transit centres throughout the territory; clears land for development; prevents and controls squatting; and plans and co-ordinates improvements to squatter areas. The authority also plans, builds and subsequently manages, on behalf of the government, flats provided under the Home Ownership Scheme. It acts as the government's agent in the sale and development of land for the scheme, and also nominates purchasers for flats built under the Private Sector Participation Scheme. Legal powers to carry out these functions are provided by the Housing Ordinance.

The Housing Authority is chaired by the Secretary for Housing and comprises 14 unofficial and six official members. Six committees, each chaired by an unofficial member, oversee building, finance, estate management, operations, the Home Ownership Scheme and appeals. These committees are augmented by co-opted members who are not Housing Authority members. There are 31 unofficials serving on the authority and its committees and they constitute a two-thirds majority. Many of these members also serve the community as Legislative Councillors or Urban Councillors, or as members of the Heung Yee Kuk, district boards or mutual aid committees. Together, they have a broad base of experience and representation and are able to apply a critical and conscientious. perspective in determining public housing policies.

The Housing Authority is responsible for its own finances and management. Capital funding for the public housing programme is provided through government funds on the basis of a four-year expenditure forecast rolled forward annually. The government subsidises the programme by providing free land for rental and home ownership projects, and providing loans from the Development Loan Fund (DLF) to finance the construction of rental estates. The Home Ownership Scheme is funded by the government which recoups the money from sales of the cost-price flats. Loans from the DLF are repayable over 40