ENG-1991 — Page 226

HOUSING

Since the scheme started in 1978, a total of 153 000 flats, including 48 500 produced under the complementary Private Sector Participation Scheme have been sold to eligible families. About 50 per cent of these families were public housing tenants who were required to surrender their rental flats to the authority on obtaining HOS flats. Since the beginning of 1985, 10 000 flats have been sold to prospective public housing tenants, who were then required to forego their rights to rental accommodation.

As an encouragement, public housing tenants are accorded higher priority than private sector applicants in selecting HOS flats. This incentive is also extended to prospective tenants, so that more rental flats will be available for applicants in greater need.

In return for the authority's indemnity against loss in case of default, purchasers are able to enjoy favourable mortgage terms provided by 50 financial institutions, for the purchase of the HOS and PSPS flats. The guarantee enables purchasers to borrow between 90 and 95 per cent of the flat price, with repayment periods of up to 20 years.

With the introduction of the housing strategy, the production of ownership flats will increase from 10 000 flats a year to around 16 000 flats a year from 1991 to 1996. Of these, about 25 per cent of annual production will be upgraded flats in blocks originally intended for rental housing estates, thus providing a wider choice of flat sizes, standards, locations and prices.

During 1991, a total of 17 392 flats were sold, starting in January with 5 210 flats in Phase 12C. Applications were invited for a further 6 010 flats in Phase 13A in April, and nearly 60 000 applications were received.

In August another 5 484 flats were put up for sale, and in December more flats were offered.

The prices of flats sold ranged from $228,800 for a flat of 36 square metres (saleable floor area) at Shiu Hin Court, Tuen Mun, to $1,102,700 for a large flat of 60 square metres at Hong Pak Court, Lam Tin.

Home Purchase Loan Scheme

As an integral part of the housing programme, the Home Purchase Loan Scheme assists lower-middle-income families to buy flats of their own in the private sector. Eligible applicants are offered an interest-free loan of $130,000 over 20 years, to help towards the purchase at downpayment or completion stage. Public housing tenants may also use the loan for refinancing.

In April, the authority revised the HOS income limit to $14,000, and applied this also to the Home Purchase Loan Scheme. The authority also introduced a new option whereby eligible applicants who choose not to take the $130,000 interest-free loan, are given a monthly mortgage contribution of $2,000 for 36 months, which is not repayable.

Applications were accepted throughout the year. Since the implementation of the scheme in 1988, a total of 21 650 applications were received, of which 12 700 (59 per cent) were from public housing applicants and 8 950 from the private sector (41 per cent). Altogether 13 800 applicants were found eligible. A total of 7 450 loans were granted.

As a result, 4 200 public housing units were recovered for allocation to other families.

Allocation

The Housing Authority owns and manages some 645 000 rental flats of different sizes, amenities and rent levels in 146 housing estates.

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