ENG-1991 — Page 229

HOUSING

188

Welfare Services

By the end of the year, 873 welfare premises in Housing Authority estates and courts were let for welfare and community services at a concessionary rent of $19 per square metre per month. Non-domestic premises at less popular locations were also let to community organisations to run their services at a fair market rate.

Under another programme, the authority undertakes fitting-out works on some welfare projects in various estates. Since 1984, 120 welfare projects have been fitted out.

An experimental project has begun in Choi Hung and So Uk estates to provide out- reaching services to elderly people. Officers visit the elderly persons to help them take part in various activities, and render other services.

Letting of Commercial Properties

The Housing Authority manages 1.27 million square metres of commercial space for shops, market stalls, banks, restaurants and flatted factory units, of which 48 000 square metres was completed in 1991.

The commercial space is let under some 30 500 separate tenancies. Rental income during the year amounted to $2,082 million.

The stock includes 17 660 flatted factory units in 17 flatted factories and 5 180 graded shops in the former resettlement estates. These shops were initially let at very low rents which, despite moderate biennial increases since 1976, remain at about one third of the market levels.

Rents for other commercial premises are fixed at market levels, in keeping with the policy not to subsidise commercial operators. During the year, 831 commercial premises were let by rental tendering while another 144 premises with a total floor area of 42 000 square metres were disposed of through letting by negotiation.

A more flexible approach is adopted for the letting of a number of commercial premises in public housing estates to large-space takers for the operation of stores, supermarket- cum-markets, single operator markets and food plazas. Greater freedom has been given to such tenants who are allowed to license part or the whole premises to their licensees to run the businesses.

The year saw full completion of Lok Fu Shopping Centre II as an extension from the existing Centre I, providing additional retail space of 14 280 square metres, accom- modating two mini-cinemas and the first Japanese department store in public housing estates. Already opened for business are a number of neighbourhood shopping centres including Wah Kwai, Tak Tin, Fung Tak, Kwai Hing, Kwong Yuen and Fu Heng where marketing efforts achieved satisfactory occupancy.

Under the Commercial Properties Committee, research and design were emphasised to ensure that new shopping centres are best suited to the needs of tenants and local residents, and existing centres were upgraded where necessary. Improvement works were carried out to upgrade eight shopping centres in 1991, and promotional activities were held in more than 70 centres.

Six-monthly reviews of the rents of tenants affected by the comprehensive redevelopment programme are carried out to ensure that such tenants are not being asked to pay rents in excess of market value. Tenants required to vacate their premises to facilitate redevelopment receive an ex-gratia payment. In some cases, alternative premises are offered through restricted tender and a three-month rent-free period is granted to the successful