ENG-1998 — Page 249

HOUSING

Long Term Housing Strategy

In February 1998, the government promulgated a White Paper on Long Term Housing Strategy in Hong Kong: 'Homes for Hong Kong People into the 21st Century' which provided a blue-print for future housing policy. In particular, the government is fully committed to achieving three key specific initiatives:

producing an average of 50 000 flats a year in the public sector, and forming land and building the necessary infrastructure to meet the long-term demand for about 35 000 flats a year in the private sector;

achieving a home ownership rate of 70 per cent by 2007; and

reducing the average waiting time for public rental housing to three years by 2005.

Organisational Framework

Housing Bureau

The Secretary for Housing has overall responsibility for public and private housing matters in Hong Kong. Set up in November 1994, the Housing Bureau is responsible for setting government policy on the provision of housing in the public and private sectors. It oversees public housing programmes, facilitates and monitors the operation of the private housing market, and ensures provision of sufficient land and infrastructure to meet housing targets.

Housing Authority

The Housing Authority (HA) is a statutory body and the government's agent responsible for implementing the majority of Hong Kong's public housing programmes. Established in 1973, the HA plans and builds public sector housing, either for rent or sale. It manages public rental housing estates, Home Ownership Scheme (HOS) courts, interim housing, cottage areas, transit centres and flatted factories, as well as commercial and other community facilities. Increasingly, it has contracted out the management of these facilities to private agencies. It also administers the Private Sector Participation Scheme and the Home Purchase Loan Scheme, and acts as the government's agent to clear land and control illegal squatting. The Housing Department is its executive arm.

The government provides land to the HA on concessionary terms and, where necessary, finances the HA to meet its public housing targets. Capital expenditure of the HA in 1997-98 was $14.9 billion, representing 6.3 per cent of total public expenditure. This figure excludes the value of land provided by the government for rental estates and Home Ownership Courts on concessionary terms. At March 31, 1998, the total cumulative market value of land provided by the government to the HA amounted to $228.7 billion.

Housing Society

The Hong Kong Housing Society (HKHS) is an independent organisation established in 1948 which plans and builds affordable housing of high quality for rent or sale to specific target groups. At the end of 1998, it had built 33 515 flats in 21 rental estates. and 17 124 flats for sale through its Flat for Sale Scheme and Sandwich Class Housing Schemes. To assist home purchasers, the HKHS administers the Sandwich

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