ENG-1989 — Page 223

HOUSING

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The stock includes 6 673 'graded' shop tenancies in former resettlement estates. These shops were initially let at very low rents and current rents are, in most cases, less than one-third of current market levels despite moderate biennial increases since 1976. Rents for other commercial premises are fixed at market levels, in keeping with the authority's policy not to subsidise commercial operators.

Under the Commercial Properties Committee, research and design were emphasised to ensure that new shopping centres are best suited to the needs of both tenants and local residents, and existing centres were upgraded where necessary. Promotional activities were held in more than 60 centres to sustain and enhance their competitiveness. Shops and market stalls continued to be let mainly by rental tender, although increasing num- bers of premises were let by negotiation to well-known retailers, including a Japanese department-store chain in Lok Fu Centre II. The letting of an entire market to one single operator was concluded as an experimental scheme during the year. Similar letting arrangements may be applied to other selected new markets in future.

The arrangements by which a rent review is conducted every six months to ensure that tenants affected by the Extended Redevelopment Programme are not being asked to pay rent in excess of market value, have been extended to cover tenants affected by the Comprehensive Redevelopment Programme. Tenants required to vacate their premises to facilitate redevelopment receive an ex-gratia payment and, where possible, reprovisioning in alternative premises through restricted tender. A three-month rent-free period is then - granted.

Temporary Housing

Temporary Housing Areas (THAS) continued to play an important role in providing places for people made homeless by natural disasters or displaced by development clearances, but who are not immediately eligible for permanent housing.

During the year, 12 000 people, mostly affected by development clearances, were allocated units in THAS, but at the same time 30 000 people moved out mainly to per- manent public housing through the general Waiting List or clearances of THAS.

Temporary housing spaces for 18 000 people were completed in the year, against a loss. of 13 000, mainly due to the development of existing sites. While THAs with 16 000 person spaces were under construction, there was still an acute shortage of sites for THA develop- ment in the urban areas.

At the end of the year, there were 74 THAs throughout the territory housing 110 000 people from 38 000 families.

Residents of THAS have priority in the purchase of HOS flats or may be granted an interest-free loan of $110,000 to buy a flat in the private sector under the newly-introduced Home Purchase Loan Scheme.

Transit Centres

At the end of the year, there were 10 transit centres with a capacity of 2 100 person-spaces providing emergency accommodation for those rendered homeless by fires, typhoons, or other natural disasters. These people will eventually be rehoused in permanent or tempo- rary housing, according to their eligibility.

Cottage Areas

There were seven remaining cottage areas scattered throughout the territory, providing accommodation for 10 400 people. The largest, the Rennie's Mill Village Area at Junk Bay, houses 5 600 people.