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Following is a question by the Hon Li Kwok-ying and a written reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (January 17):
Question:
The Housing Authority ("HA") endorsed in 2005 the implementation of a number of measures to reduce the rent arrears rate among public rental housing ("PRH") tenants. In this connection, will the Government inform this Council:
(a) of the average rent arrears rate among PRH tenants, the number of PRH tenants with rent arrears, the number of notices-to-quit issued to tenants on grounds of rent arrears and the number of PRH units recovered since the implementation of the above measures, together with a breakdown of such figures by tenants on Comprehensive Social Security Assistance ("CSSA tenants") and non-CSSA tenants;
(b) given that the authorities have introduced, since the end of last year, a revised arrangement for CSSA tenants to pay their rents whereby the rents of those CSSA tenants receiving full rent allowance are paid directly to the Housing Department through the Social Welfare Department, and HA has set the target of reducing rent arrears from 4% to below 3.5% for the year 2007-2008, whether the authorities have assessed how such an arrangement and target will improve the situation of rent arrears among PRH tenants, and whether it will make further efforts to reduce the rent arrears rate; and
(c) whether it will consider enhancing the existing measures to reduce rent arrears among PRH tenants; if it will, of the details?
Reply:
Madam President,
My reply to the three-part question is as follows :
(a) During the 12 months from October 2005 to September 2006, there were an average of 22 146 public rental housing (PRH) tenants with rent arrears per month, representing a rent arrears rate of 5.03% (in terms of amount of rent arrears). During the period, there were 10 678 cases where notices-to-quit were issued on the grounds of rent arrears and a total of 1 186 PRH units were recovered for this reason.
At present, the Housing Department (HD) does not keep separate statistics on rent arrears cases involving tenants on Comprehensive Social Security Assistance (CSSA).
(b) & (c) The HD has agreed with the Social Welfare Department (SWD) on an arrangement under which the SWD will pay the rent for the CSSA recipients living in PRH by crediting the rental allowance part of the CSSA to the HD directly. As it takes time to adjust the information technology systems of the two departments for the new mode of payment, the new arrangement will come into operation in mid 2007. Upon implementation of the new payment arrangement, no rent arrears will occur among CSSA recipients receiving rental allowance.
The Housing Authority implemented measures in September 2005 to improve the situation of rent arrears, e.g. shortening the time before notices-to-quit to tenants with rent arrears are issued. These measures have proved to be very effective. The monthly average number of tenants with rent arrears and the rent arrears rate (in terms of amount of rent arrears) from July to September 2006 dropped by 30% and 25% respectively as compared with the same period in 2005. The HD also strives to make it more convenient for tenants to pay their rents. Currently, rents can be paid through autopay, payment-by-phone service, automatic teller machines and internet banking. The HD is now planning to extend the rent collection points to some 700 convenient stores and Mass Transit Railway ticket offices. We believe that this measure, to be implemented in the second quarter of 2007, would further reduce rent arrears among PRH tenants.
Ends/Wednesday, January 17, 2007
Issued at HKT 12:40
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