ENG-1988 — Page 212

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Housing

THE Housing Authority was re-organised from April 1, 1988 to enable it to implement the approved Long Term Housing Strategy in the most effective manner. Since then, the Housing Authority has been chaired by a non-official and given the task of co-ordinating its housing production with that of the private sector to meet public needs. It has also been given the financial flexibility to channel its resources to its priorities.

Under the Long Term Housing Strategy, it was estimated that 1 085 000 new flats would have to be built throughout the territory between 1985 and 2001 and that about 56 per cent of these flats (607 600) would be built under the Housing Authority's programmes. During the year, the Housing Authority produced 32 200 rental units, and offered for sale 15 437 units under the Home Ownership Scheme (HOS) and Private Sector Participa- tion Scheme (PSPS). The demand for assisted home purchase was so great that these flats were, on average, 13 times over-subscribed.

To increase the opportunities for assisted home purchase, a new Home Purchase Loan Scheme (HPLS), with a quota of 2 500 for 1988–9, was introduced to offer sitting and prospective tenants an alternative of interest free loans of $70,000 to buy private sector flats. The private residential property market remained buoyant in 1988, with production reaching 37 700 units, compared with 32 470 in 1987.

Under the Long Term Housing Strategy, it was recognised that most of the Marks IV to VI and the Former Government Low Cost Housing Estates (comprising 408 blocks) were expensive to maintain in instances where the facilities and environment fell short of current standards, and should be redeveloped. A Comprehensive Redevelopment Programme, scheduled for completion by 2001, was drawn up to integrate the on-going redevelopment programmes with the proposals under the strategy.

Apart from the work of the Housing Authority, the Hong Kong Housing Society continued to supplement the provision of public housing through its rental and rural public housing projects, its urban renewal scheme and the newly introduced flats-for-sale scheme. Public housing remained one of the government's major commitments. During the year, $7,900 million, or 13 per cent, of the government's Consolidated Annual Expenditure was devoted to the development and maintenance of subsidised public housing.

Some 2.8 million people, or 50 per cent of the population, are benefiting from subsidised public housing through accommodation in rental or home ownership public housing or by the purchase of private property with assistance from the Home Purchase Loan Scheme.

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. It has undergone a re-organisation (which took effect on April 1, 1988) in order to implement effectively and