ENG-2002 — Page 253

HOUSING

tenants for transfers including overcrowding relief, and the remainder to victims of fire and natural disasters, and compassionate cases recommended by the Social Welfare Department.

Flats are allocated in accordance with the order of registration and applicants' choices of district. Applicants are required to satisfy comprehensive means tests (covering income and assets), not to own any domestic property and to meet the residence rule in Hong Kong before being admitted into public rental housing. To speed up the letting of some less popular flats, the HKHA launched the Express Flat Allocation Scheme (EFAS) and invited all eligible applicants on the Waiting List to select a flat from among the vacant flats, with prolonged vacancy periods, in all districts. During the year, 2 398 households were successfully rehoused under this scheme.

Redevelopment

Since the launching of the HKHA's Comprehensive Redevelopment Programme. (CRP) in 1988, 515 housing blocks have been redeveloped to improve the living. conditions of some 173 300 households. In the coming years and until 2008-09, another 51 old blocks in the CRP will be redeveloped. In 2002, rehousing for the redevelopment of North Point Estate, which is outside the CRP, was completed. Seven blocks were vacated and some 1 760 households rehoused.

Rent Allowance Schemes

To provide an additional choice to eligible elderly applicants for PRH and to maximise the use of private sector resources, the Rent Allowance for Elderly Scheme (RAES) was launched in August 2001. The scheme offers elderly applicants a rent allowance which enables them to rent private accommodation rather than taking up public rental flats. A quota of 600 was set for 2002. By year-end, 1 680 elderly applicants had opted for the rent allowance. The HKHA is exploring the possibility of extending the rent allowance scheme to eligible non-elderly applicants.

Home Ownership

Home Ownership Scheme/Private Sector Participation Scheme

The HOS and the PSPS were introduced by the HKHA in 1978 and 1979 respectively to assist eligible households and public housing tenants to purchase homes at discounted prices. Since then, over 300 000 HOS and PSPS flats have been sold, representing over 13 per cent of the total housing stock in Hong Kong. In response to changes in the market conditions, the HKHA has over the past few years made substantial adjustments to its HOS/PSPS programmes. These included a major cutback in its HOS/PSPS production programme, transferring HOS/PSPS units to rental use and implementing a moratorium on HOS sales in July 2000 and September 2001, respectively.

Given the significant changes undergone in the economy and the property market over the past few years, the Government believes that home ownership should essentially be a matter of personal choice and affordability. In this respect, the Government has come to the view that it should withdraw from its previous role as a direct housing provider and refrain from competing with the private residential market. Furthermore, it should facilitate eligible families to become home owners

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