ENG-1993 — Page 226

HOUSING

The authority was able partly to offset this deficit from the net income derived from its non-domestic operations which, over the same period, generated a surplus of $609.5 million, after paying to the government interest on its permanent capital and the required dividends.

The authority itself financed capital programmes amounting to $7,851.4 million.

Rent Policy

Despite increasing operating and maintenance costs, rents for domestic premises in public housing estates have been maintained at low levels. This has been possible as a result of government subsidies in the form of free land and average low interest rates.

To meet the demand for more spacious allocation, the Ad Hoc Committee to Review Domestic Rent Policy and Allocation Standards recommended, in 1991, that tenants moving into public housing could in future choose to live at the minimum internal floor area allocation standard of seven square metres per person with the median rent-to-income ratio not exceeding 18.5 per cent, or at the existing minimum standard of 5.5 square metres per person with the rent-to-income ratio not exceeding 15 per cent.

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With rents being charged at $47 per square metre for the newest urban estates and $26 for the newest New Territories estates, public housing tenants pay on average about eight per cent of their income on rent.

Rents are reviewed every two years and adjusted to take account of rates increases; maintenance and other costs; estate values in terms of location, facilities and services provided; and the tenants' ability to pay.

Housing Subsidy Policy

A modified housing subsidy policy was introduced in April. Under this policy, tenants who have lived in public housing for 10 years or more and whose incomes exceed twice the waiting list income limit, but are less than three times the waiting list income limit, are required to pay 1.5 times net rent plus rates. Only tenants whose incomes exceed three times the waiting list income limit are required to pay double net rent plus rates.

There are some 300 000 households with 10 years' residence in public housing, and 18 per cent of these are required to pay extra rent.

Rent Assistance

Domestic tenants facing financial hardship are granted temporary rent relief under the rent assistance scheme. In 1993, 300 families received assistance under the scheme.

Those tenants whose rent-to-income ratio exceeds 25 per cent, as a result of an increase in rent or a reduction in household income, may apply for a reduction of rent for a period of six months, renewable for a further six months.

The amount of reduction will be 25 per cent for tenants whose rent-to-income ratio exceeds 25 per cent, and 50 per cent for tenants whose ratio exceeds 33 per cent.

Tenants who still face financial difficulty after 12 months may seek a transfer to cheaper housing in the same district. They will be granted a domestic removal allowance and a rent-free period of one month on transfer.

A family which has already moved to cheaper housing because of hardship but whose rent-to-income ratio still exceeds 25 per cent will be entitled to further rent assistance, subject to review every six months.

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