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The following is issued on behalf of the Housing Authority:
The Housing Authority will offer four to six months rent-free incentives in the form of rent reduction to tenants taking up flats with long vacant period to improve their letting rate.
The authority's Subsided Housing Committee today (May 15) approved the incentives aimed at encouraging people to take up less popular public rental housing (PRH) flats vacant for a long time.
"Starting from September 1, tenants who take up PRH flats which have been vacant for one year or more but below two years will be granted a rent-free period of four months in the form of reduced rent at 50% for eight months," the Chairman of SHC, Professor Anthony Cheung Bing-leung said.
"For flats which have been vacant for two years or above, a rent-free period of six months in the form of reduced rent at 50% for 12 months will be offered."
"The reduction is based on inclusive rent comprising rates and management fees, making the incentives more attractive," Prof Cheung said.
From time to time, the Housing Department recovers flats which are located at less favourable locations, in older estates, or where unhappy events have happened.
The Housing Department has been letting long vacant flats through the Express Flat Allocation Scheme (EFAS) under which eligible applicants on the Waiting List are invited to select the flats earlier than their normal waiting time.
"Despite strenuous efforts in letting, some of these flats have remained unlet," Professor Cheung said.
There are currently about 1,490 flats vacant for one year and more but less than two years, and 1,750 flats vacant for at least two years.
In exploring additional ways to let out promptly the less popular rental flats, the Ad hoc Committee on Review of Domestic Rent Policy (CDRP) earlier recommended offering four to six months¡¯ rent-free periods to tenants taking up flats vacant for one year or more.
"CDRP recommended offering rent-free periods instead of differential rents, although it had earlier proposed the latter, in order to avoid the stigmatising effects on the less popular flats," Professor Cheung said. The recommendation was subsequently endorsed by the authority in November last year.
At today's meeting, members of the SHC further decided that instead of offering rent-free periods in one go, a longer rent-reduction period with the amount of reduction equivalent to the total rent-free amount would be offered.
"The modification ensures the benefits will go to the genuine takers of the flats. More importantly, requiring tenants to make partial rental contributions will assist those with low and irregular income to get used to paying rent no matter how small the amount," Professor Cheung explained.
To deter abuse of the scheme, tenants who have taken up flats with the rent-reduction incentives will be required to undertake not to request any subsequent transfer within three years upon intake unless due to overcrowding, under-occupation, or compassionate reasons as recommended by the Social Welfare Department.
PRH flats which have been vacant for a year or longer will be covered by the rent reduction scheme. The flats will be offered to all categories of applicants including the waiting list applicants through normal letting or EFAS, and existing PRH tenants upon transfer.
Ends/Tuesday, May 15, 2007
Issued at HKT 18:17
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