ENG-1997 — Page 253

HOUSING

Home Starter Loan Scheme would receive low interest loans of up to $600,000 or 30 per cent of the property value, whichever is lower. In each of the next five years, 6 000 loans would be made available.

Tenant Purchase Scheme

In December 1997, the government approved a scheme, called the Tenant Purchase Scheme, for the HA to sell public rental flats to tenants. The target is to provide the opportunity for at least 250 000 families living in public rental housing to buy their flats at reasonable and affordable prices over the next 10 years. The scheme will make a significant contribution towards achieving the government's 70 per cent home ownership target.

The basic sale price will be set by reference to an 'adjusted replacement cost' approach which takes into account the replacement cost, location of the property, its age and other relevant factors.

A structural safety guarantee of seven years will be provided and a maintenance fund will be set up with a one-off contribution from the, sales proceeds to pay for major repair works in the future. The first batch of about 27 000 flats in six estates, selected from estates built between 1985 and 1992, was scheduled for sale in January 1998.

Mixed Development

As a means to encourage further private sector involvement in the public housing programme, the government will invite private developers to build subsidised home ownership flats as part of a 'mixed development'. Under this approach, residential sites will be offered for sale by tender. The successful tenderer will be required to hand over a specified proportion of flats selected at random within the development to the government for sale to eligible purchasers at designated prices. A pilot scheme has been announced for launching in 1998.

Interim Housing

Interim housing provides accommodation for people who are rendered homeless by clearances, fires and natural disasters but are not eligible for permanent public housing. There are several types of interim housing: old-type low-rise timber structures, multi-storey concrete blocks (converted from the existing blocks in the older estates) and prefabricated interim housing blocks. In 1997, the Housing Authority cleared all pre-1984 interim housing areas. It has also developed plans to construct a new form of vertical interim housing on earmarked sites in the New Territories. All remaining old-type interim housing areas will be cleared by 2000. Thereafter, permanent flats in high-rise blocks will be built to meet the continuing and long-term need for this type of accommodation.

Transit Centres

Transit centres provide free emergency shelters for the homeless and victims of fires and natural disasters, pending assessment of their eligibility for rehousing to permanent or interim housing. The Housing Department manages four transit centres with a capacity for 620 people.

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