LCQ13: Operation of the Hong Kong Housing Society
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Question :
Although the Hong Kong Housing Society (HKHS) is an independently operated, financially autonomous and self-financing statutory body, it has over the years been granted lands by the Government on concessionary terms for the purpose of building subsidised housing and a number of senior government officials have been appointed as members in its governance structure. On the other hand, the Office of The Ombudsman (the Office) pointed out in a direct investigation report released in January 2015 that the Government had neither the statutory powers nor a mechanism to monitor the work of HKHS, and it did not have any policy documents relating to the monitoring of the provision of rental units by HKHS either. In this connection, will the Government inform this Council:
(1) of the details of the lands granted in the past 10 years by the Government to HKHS for housing development (including the concessionary terms offered and the policies based on which it made the relevant decisions);
(2) whether a mechanism is currently in place to monitor the work of HKHS in respect of the provision and management of rental units; if so, of the details; if not, the reasons for that; whether the Government will, pursuant to the recommendation of the Office, draw up written agreements with HKHS to ensure proper use of the lands to be granted to HKHS on concessionary terms and the achievement of the intended objectives;
(3) given that HKHS recently refused to send representatives to meet with me, other Members of this Council and District Council members to listen to the views of members of the public on its Well-off Tenants Policy, and that some tenants of HKHS's rental estates have indicated that it is difficult for them to contact HKHS staff to relay their housing problems, whether the Government will request HKHS to establish a mechanism to respond to the views and requests of members of the public and tenants of its rental estates; if so, of the details; if not, the reasons for that; and
(4) as the Office recommended that the Housing Department enhance the reporting mechanism with HKHS regarding double housing benefits, including drawing up a written agreement and establishing a channel for regular communication, whether the Government has implemented such recommendations; if so, of the progress; if not, the reasons for that?
Reply:
President,
The Hong Kong Housing Society (HKHS) has all along been providing the people of Hong Kong with affordable housing and related services to meet different housing needs through its provision of public rental units and subsidised sale flats for low to middle-income households. After consulting the HKHS, my reply to various parts of the question raised the Hon Leung Yiu-chung is as follows.
(1) and (2) The Government has considered but has reservations about The Ombudsman's recommendation. The Government's position and views are set out in detail in the Government Minute in response to the Annual Report of The Ombudsman 2015 and the progress reports submitted to The Ombudsman.
The HKHS is a financially autonomous, non-profit-making housing organisation operating independently on a self-financing basis without any direct subsidy from the Government, nor is it subject to Government supervision. The HKHS was incorporated under the Hong Kong Housing Society Incorporation Ordinance (Cap. 1059) (the Ordinance). According to the Ordinance, the HKHS has full power in various aspects, for instance, to dispose of land and property, to make investment decisions, to borrow or raise money, to do other things in accordance with its aim and objects, etc. The HKHS Constitution under the Ordinance governs the functions and powers of the HKHS. The HKHS establishes its governance structure in accordance with its Constitution. The structure of the HKHS includes a Supervisory Board which is responsible for setting HKHS' mission and working direction, and an Executive Committee which is responsible for formulating policies of the HKHS, so that the HKHS can administer its business by itself. The Ordinance does not confer on the Government any powers to intervene and supervise the operation of the HKHS. Such practice is also inappropriate.
The HKHS has all along been a close partner of the Government in providing public housing to address the housing needs of the public. Subject to the overall planning of land resources, sites with restrictions on the land use have been granted to the HKHS by the Government at a concessionary land premium for development of subsidised housing. In the past ten years, the Government granted to the HKHS a site for developing rural public housing, and four sites for developing subsidised sale flats, in order to address keen demands of the general public for housing and home ownership. To ensure the proper use of the sites granted to HKHS for subsidised housing development and the achievement of the intended objectives, the Government has prescribed relevant terms and conditions or requirements in the Conditions of Grant of individual sites according to the nature and needs of the different housing projects. These terms and conditions include the requirement that the HKHS has to rent or sell subsidised housing units to eligible low to middle-income persons, alienation restrictions of the units, etc. How the terms and conditions are implemented and carried out is a matter of internal operation of HKHS. This mechanism has been working effectively. The Government will continue to keep close liaison and communication with the HKHS on various subsidised housing projects.
(3) As an independently operating organisation, the HKHS has managed its rental estates according to its independent policies. We understand that the HKHS has regularly communicated with resident representatives (i.e. Mutual Aid Committees) of rental estates to understand and respond to residents' views and requests with respect to estate management. After announcing the introduction of its Well-off Tenants Policy in January 2018, the HKHS has explained the Policy in details to Mutual Aid Committees. The HKHS will announce the implementation details of the Policy in due course.
(4) As for The Ombudsman's recommendation that the Housing Department (HD) should enhance the reporting mechanism with HKHS regarding double housing subsidies, the HD has strengthened liaison with HKHS and held several special meetings to discuss how to improve the notification and coordination mechanism of tenancy duplication cases between the HD and the HKHS. The improved mechanism has been operating since July 2015. Measures including enhancement of monthly computer reports, delivery of computer reports to the HKHS by electronic means instead, and strengthening communication between the HD and the HKHS at both frontline staff and management levels, have been put in place to facilitate timely handling of tenancy duplication cases by the HD and the HKHS.
Ends/Wednesday, March 28, 2018
Issued at HKT 12:50
Issued at HKT 12:50
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