ENG-1985 — Page 196

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HOUSING

On the legal front, the government intends to make certain amendments to the Multi-storey Buildings (Owners Incorporation) Ordinance which will facilitate the forma- tion of owners corporations. Such corporations act in the interests of individual owners regarding their rights, powers, duties and liabilities in relation to those parts of a building held in common ownership.

Although the existence of an owners corporation does not guarantee good management of a building, it has been found from experience that management standards in buildings which have owners corporations have tended to be better than in cases where no comparable management body exists.

As well as making the formation of owners corporations easier, the legislative amend- ments contain new clauses governing the conduct of management committees. These clauses define more clearly the powers and responsibilities of management committee members and specify certain requirements in relation to the conduct of their meetings.

In parallel with the amendments to the Multi-storey Buildings (Owners Incorporation) Ordinance, the government intends to recommend the inclusion of a number of standard clauses in all new deeds of mutual covenant. These clauses specify more clearly the rights and responsibilities of developers and owners in relation to the management of common areas in a building.

Administrative arrangements aimed at improving private building management consist mainly of the establishment, in two districts to date, of Building Management Coordina- tion Teams. These teams consist of professional housing managers and assistants, who, together with the liaison staff of district offices, offer advice to owners corporations, mutual aid committees and other building management bodies, at a district level.

The teams play an important role in encouraging the formation of owners corporations and in providing advice to the members of management committees. They also work towards improving public awareness in building management matters by means of seminars and discussion groups.

An equally important task carried out by the teams is the co-ordination, under the supervision of the district officer, of the various enforcement agencies which have statutory responsibility for building management matters under several ordinances.

Rent Control in the Private Sector

Statutory controls on rents and security of tenure in Hong Kong date back to 1921. The present legislation governing these matters is the Landlord and Tenant (Consolidation) Ordinance.

The legislation is complicated but is under constant review to improve its working and to achieve the objective, recommended in 1981 by a Committee of Review and endorsed by the government, that as soon as circumstances permit, rent control should be phased out.

At present, statutory controls apply only to domestic premises in the private sector unless otherwise excepted. Tenants are afforded rent increase control and security of tenure. Unless a tenant voluntarily vacates the premises, a landlord must apply on certain specified grounds and obtain an order from the Lands Tribunal before he can recover possession.

Heavy penalties are prescribed for harassment of a protected tenant with intent to induce him to leave. However, provisions exist to facilitate negotiations by which the parties may reach an agreement whereby the tenant surrenders his protected tenancy in exchange for a consideration.

The Rating and Valuation Department publishes explanatory pamphlets to help people understand their position in relation to the legislation, and provides an advisory and