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The Housing Department has adopted a zero tolerance policy against unauthorised alienation and will carry out prompt investigation and institute prosecution action as appropriate.
A spokesman for the department said today (May 29) that the alienation restrictions had clearly been stipulated in application forms, sales brochure and conveyancing document before the flat purchase as well as widely publicised on the Housing Authority/Housing Department's website, hotline, and in information leaflets.
The spokesman's statement follows a court case in which one of the owners of a Home Ownership Scheme (HOS) flat was convicted and fined $30,000 at the Kowloon City Magistracy today for committing an offence of unauthorised alienation.
The owners purchased an HOS flat at Hiu Lai Court in Kowloon under joint ownership in 1997. One of the owners entered into an agreement with a third party in 2005 without settling the premium with the Housing Authority.
The spokesman reminded owners under the Private Sector Participation Scheme (PSPS), Tenants Purchase Scheme (TPS) and HOS to observe the alienation restrictions as laid down in the Housing Ordinance as these flats were sold at discount prices.
"Owners of HOS/PSPS/TPS flats may sell, rent, or transfer the ownership of their flats in other ways in the open market and upon the expiry of the alienation restriction period and the payment of a premium to the Housing Authority," he said.
"The Housing Ordinance has set out in detail the restrictions on the alienation of HOS/PSPS/TPS flats and associated premium payment arrangements."
"As a form of subsidised housing, these flats were sold to eligible persons at prices well below market value. To ensure the proper use of public resources, PSPS/HOS/TPS flat owners are required to pay a premium to the Housing Authority before they sell, lease or assign their flats in the open market."
"The premium is calculated according to the formula stipulated in the Schedule to the Housing Ordinance with reference to the prevailing market value and the rate of discount applicable to the HOS flat concerned."
"Any person who commits an offence of unauthorised alienation under the Housing Ordinance is liable to a fine of $500,000 and one year's imprisonment," he added.
Ends/Monday, May 29, 2006
Issued at HKT 17:57
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