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Following is a question by the Hon Leung Kwok-hung and a reply by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, in the Legislative Council today (January 22):
Question:
I have received complaints one after another from the tenants of Fung Wo Estate, Kai Ching Estate, Wing Cheong Estate, Cheung Sha Wan Estate and Un Chau Estate Phase 5, who allege that the remunerations provided by the Housing Department (HD) to outsourced property services agents (PSAs) of public rental housing (PRH) estates are so meagre that the PSAs have employed every means to collect fees from tenants who are moving into the estates. For instance, PSAs will not assist those new tenants who have not yet paid the debris removal charges (DRC) in making move-in arrangements and signing the tenancy agreements. These tenants have relayed to me that as the renovation companies had already passed on to them the waste disposal charges payable under the Waste Disposal Ordinance when they renovated their new homes, the collection of DRC by PSAs was tantamount to double charging, and the rates concerned were also on the high side. In this connection, will the Government inform this Council:
(1) of the number of units, the number of tenants who have moved in, the total amount of DRC that the relevant PSA has collected or plans to collect, and the respective rates of DRC payable for small, medium and large units, in each of the aforesaid housing estates;
(2) as PSAs charge PRH tenants DRC according to the property management contracts signed between PSAs and HD, whether HD gives such authorisation in accordance with the legislation; if so, of the relevant legislation; if not, whether HD has allowed PSAs to freely charge new tenants DRC without legal authority; and
(3) whether it will assist the tenants of the aforesaid housing estates in seeking refunds of DRC from the relevant PSAs; if it will, when it will do so; if not, of the reasons for that?
Reply:
President,
It is very common for public rental housing (PRH) tenants to carry out decoration works in their flats during their intake to new PRH estates. The decoration debris produced is construction waste which is different from domestic waste. Tenants must dispose of the decoration debris in a proper manner and in accordance with the user-to-pay principle. In order to effectively dispose of decoration debris and avoid fly tipping and the accumulation of such waste in common areas such as building corridors and lift lobbies causing obstructions to residents and fire risks, the Hong Kong Housing Authority (HA) assigns the property service agents (PSA) to collect the Debris Removal Charges (DRC) from tenants. The PSA would dispose of all decoration debris collectively. Under this arrangement, decoration contractors employed by the tenants are allowed to dump the decoration debris at a designated debris dumping point without having to transport the decoration debris to the government waste disposal facilities on their own. This arrangement has been in place for more than ten years, and is by and large similar to the arrangement adopted by private residential developments in handling decoration debris during intake.
The tender document issued by the HA for the procurement of the property management services has clearly specified the requirements for the cleansing services to be provided and the monthly remuneration that the PSA will receive under the contract, etc. PSAs are well aware of the contract terms ahead of their submission of bids for the tender (which includes tender prices). The Housing Department (HD) has established an effective and fair tender assessment system to ensure that, in vetting the tenders, the contract price is reasonable and that the PSA has the capability to deliver the services required under the contract. Therefore, there is no question for unauthorised collection of DRC due to low contract price.
DRC of estates are all determined by the HD instead of being set by individual PSAs. HD made reference to factors such as the total number of flats in the estate, flat size, distance between the estate and the nearest government waste disposal facility and operating expenses of the contractor, etc. DRC is also clearly stipulated in the property management contract entered into between the HA and the PSA. The PSA must adhere strictly to the rates laid down in the contract. At the same time, the requirement to pay DRC and its amount are listed out in the intake documents given to tenants.
DRC collected for public housing estates is in general lower than that collected by private residential developments and has been well received by tenants over the years. The HA has not received any complaints about over-charge of DRC by PSAs in the past. For the five new estates quoted by the Hon Leung Kwok-hung, according to HD's records, there is no refund application of the DRC from tenants who transported the decoration debris to the government waste disposal facilities on their own or through their decoration contractors with supporting documents.
Arranging intake of tenants and signing of the tenancy agreement is a tenancy management matter handled by the PSAs on behalf of the HA, while the collection of DRC from tenants in accordance with the property management contract is an estate management matter. These two tasks are of different nature and PSAs should handle them separately. The HD reminds PSAs from time to time that if new tenants do not pay the DRC during intake in accordance with the arrangements above, they should handle the matter flexibly so as to avoid delaying the moving-in of tenants.
My reply to the Hon Leung Kwok-hung's three-part question is as follows:
(a) As mentioned above, the rates of DRC is determined according to factors such as the total number of flats in the estate, flat size, distance between the estate and the nearest government waste disposal facility, and operating expenses of the contractor, etc. For Fung Wo Estate in Sha Tin, Kai Ching Estate in Kowloon City, Wing Cheong Estate, Cheung Sha Wan Estate and Un Chau Estate Phase 5 in Sham Shui Po, the rates of DRC collected by the PSAs with the breakdown by flat size are set out in the Appendix. Broadly speaking, DRC ranges from around $160 and $180 for 1-2 Person Flats to around $460 and slightly less than $600 for 2 Bedroom Flats.
(b) and (c) Pursuant to the property management contract entered into between the HA and the PSA, the PSA is to collect DRC from new tenants at the rates specified in the contract for the flats in accordance with the size of the PRH flats.
However, elderly families (with all family members aged 60 or above), families receiving Comprehensive Social Security Assistance or Disability Allowance are eligible for the exemption of DRC. Tenants who are exempted from DRC but did not apply for exemption during intake and paid the DRC can apply to the PSA for refund and the PSA will handle the applications as soon as possible.
Individual tenants of new PRH flats can opt not to use the service provided by the PSA and to arrange for the transportation of the decoration debris on their own. If they deliver the decoration debris to government waste disposal facilities on their own in accordance with the statutory requirements, and can provide relevant supporting documents, the PSA would arrange for the refund of the DRC as soon as possible upon receipt of the refund applications. Furthermore, for tenants who declare that no fitting-out works will be carried out, the PSA would conduct flat inspections within three months after the execution of tenancy agreement and will arrange for the refund of the DRC as soon as possible after verification.
For the 10 408 flats with intake in the five new estates quoted by the Hon Leung Kwok-hung, about 25% have been exempted from payment of DRC. Only less than 1% have the DRC refunded as no fitting works has been carried out in their flats. In addition, according to HD's records, there is no refund application of the DRC from tenants who transported the decoration debris to the government waste disposal facilities on their own or through their decoration contractors with supporting documents.
Ends/Wednesday, January 22, 2014
Issued at HKT 15:44
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