ENG-1984 — Page 213

HOUSING

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category. In 1982, the authority approved an incentive scheme under which families with elderly members were allocated housing one year ahead of their normal waiting time, and each year about 1 000 families benefit from this scheme.

Rent Policy for Public Housing

Rents for domestic premises in public housing estates have been maintained at low levels despite increasing operating and maintenance costs. On average, rents charged at present represent approximately seven to eight per cent of the average household income of tenants an extremely low figure compared with the 20 per cent paid by tenants of private housing.

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It has been possible to keep rents low because of heavy government subsidies: land is

pro- vided free of charge, no land value is included in the rents charged, and construction of rental estates is financed largely by loans provided by the government on concessionary terms.

Rents are reviewed on a biennial basis and adjusted in view of increases in rates, maintenance and other costs, estate values in terms of location, facilities and services provided, and tenants' ability to pay. Owing to the very low rents at old estates where maintenance and improvement costs are high, there was a substantial deficit in the Housing Authority's estate working account for domestic properties in 1983-4.

The Housing Authority also has a large number of commercial premises with 16:513' shop, market stall, bank and restaurant tenancies of various sizes. Shops and markets in new commercial centres are let on tendered rents, thus giving an opportunity to the smaller operator with limited capital to obtain an estate shop. Apart from 8 449 small shops at the old estates, commercial properties are generally let on three-year agreements. It is the authority's policy not to subsidise commercial operators and the intention is to keep rents at near-mārket levels on renewal of an agreement. However, in many cases where the increases are substantial, because of increases in market values, it is the authority's policy to apply increases in stages over two or three years. In 1983-4, these commercial properties generated a surplus of $360 million. The authority also manages 17 200 factory units in 34 purpose-built blocks, and 4 200 cottages in various districts.

Some 544 welfare premises at estates are let at concessionary rents. These premises include children's 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, 46 welfare lettings were made. In order to maintain a balanced community for public housing tenants, a total of 445 premises are let for educational purposes such as kindergartens, and primary and secondary schools. In most cases, kaifong and residents' associations and mutual aid committees in housing blocks are also provided with office accommodation. Medical clinics and premises for various government departments are generally let at commercial rents.

Management

Estate environments have been greatly improved since the Housing Authority was em- powered to introduce road restrictions at estates and impose charges for the removal and towing of vehicles parked illegally within estates. During the year, road restrictions were further extended to six estates, bringing the total number of estates with road controls to 92. Notable examples were the road control operations carried out at estates in Lei Muk Shue and Lower Ngau Tau Kok which resulted in greatly improved access roads and in some 400 additional car parking spaces being made available for use by estate residents.