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HA approves outcome of 2020 rent review for public rental housing and two-month rent waiver

The following is issued on behalf of the Hong Kong Housing Authority:
 
     The Subsidised Housing Committee (SHC) of the Hong Kong Housing Authority (HA) today (July 28) endorsed the outcome of the 2020 rent review of public rental housing (PRH) in accordance with Section 16A of the Housing Ordinance (HO) and provided a two-month rent waiver for PRH tenants in accordance with Section 17 of the HO.
 
     “Section 16A of the HO provides that the HA shall conduct a rent review every two years in accordance with the mechanism stipulated therein and vary the PRH rent according to the change in the income index between the first and second periods covered by the review. Furthermore, according to Section 17 of the HO, the HA may remit rent of tenants for such a period as it thinks fit. The report compiled by the Commissioner for Census and Statistics (C for C&S) for the 2020 PRH rent review showed that the income index of the second period of the review (i.e. 2019) was higher than that of the first period (i.e. 2017) by 9.66 per cent. Therefore, PRH rent will be adjusted upwards by 9.66 per cent with effect from September 1, 2020. At the same time, the SHC also decided to provide a two-month rent waiver to PRH tenants by virtue of Section 17 of the HO,” a spokesman for the HA said.
 
     “In view of the impact of the pandemic on the overall socio-economic environment and PRH tenants, and balancing PRH tenants’ affordability and the healthy and sustainable development of the HA’s finance, the SHC decided to provide a two-month rent waiver for PRH tenants. This can largely offset the financial burden of PRH tenants arising from the upward rent adjustment of 9.66 per cent in the current rent review cycle (i.e. from September 1, 2020 to August 31, 2022). The two-month rent waiver involves roughly $3.5 billion,” the spokesman said.
 
     Taking into account that the rent adjustment cycle is two years, as well as the fact that the Government has already provided rent payments for two months and rates concessions (equivalent to about 3.14 months’ rent in total) to PRH tenants this year, the SHC agreed to waive the rent through a two-step approach, i.e. one-month’s rent will be waived each in September 2020 and September 2021, so as to relieve the impact of rent adjustment on PRH tenants in the second year of the rent review cycle (i.e. from September 1, 2021 to August 31, 2022).
 
     “Making reference to the arrangement for the rent waiver provided by the HA in 2010 and 2012, the rent waiver this time will also cover the portion of net rent of PRH tenants who are required to pay additional rent (i.e. well-off tenants), meaning that they are still required to pay the portion of additional rent and rates,” the spokesman said.
 
     “If individual tenants are still in need of additional short-term rent assistance, they can seek assistance through the HA’s Rent Assistance Scheme (RAS),” the spokesman said.
 
     As at June 2020, about 21 000 HA tenants have benefited from the RAS, with about 95 per cent of them receiving a 50 per cent rent reduction.
 
     The HO stipulates the PRH rent adjustment mechanism, which came into effect in 2008. Under this mechanism, PRH rent is reviewed every two years. Section 16A(7)(b) of the HO provides that the C for C&S shall compute the income index for the first and second periods under a rent review. The income index is compiled by comparing the income data of about 24 000 PRH households in each of the periods. The mechanism provides an objective basis for the HA to determine when and to what extent PRH rent should be adjusted, taking into account tenants’ affordability. According to the mechanism, there is a 10 per cent cap on the rate of rent increase, whereas there is no floor in case of rent reduction. read more

HA approves sales arrangements for recovered Tenants Purchase Scheme flats

The following is issued on behalf of the Hong Kong Housing Authority:
      
     The Hong Kong Housing Authority (HA)’s Subsidised Housing Committee (SHC) today (July 28) approved the new arrangements for the sale of recovered Tenants Purchase Scheme (TPS) flats and additional incentives to encourage sitting TPS tenants to purchase the flats in which they reside.
      
     “The recovered TPS flats will be put up for sale in the annual Home Ownership Scheme (HOS) and Green Form Subsidised Home Ownership Scheme (GSH) sale exercises (i.e. twice a year) to eligible Green Form applicants under the existing TPS pricing mechanism and alienation restrictions,” a spokesman for the HA said.
      
     “During the sale exercise, prices of recovered TPS flats put up for sale will not be revised in accordance with the usual biennial price review, but will remain the same throughout that particular sale exercise,” the spokesman said.
      
     “Those flats which remain unsold at the end of each exercise will be carried over to the next immediate exercise.”
      
     Currently, sitting tenants of the 39 TPS estates may still opt to purchase the flats in which they reside and will enjoy a special credit during the first two years of their tenancies. In order to encourage sitting TPS tenants to buy the flats in which they reside, the SHC approved to provide an additional discount of 17.5 per cent for one year starting from September 1, 2020, to sitting TPS tenants who no longer enjoy any special credit.
      
     For sitting TPS tenants whose transactions of TPS flats are in progress when the additional discount is introduced, they are allowed to rescind the transactions without forfeiting the intention money (i.e. $2,500) they have already paid to the HA if they wish to enjoy the newly introduced discount.
      
     “We aim to put up the recovered TPS flats for sale in the GSH 2020 sale exercise (i.e. around end-2020),” said the spokesman.
      
     “After two sale exercises (i.e. one GSH and one HOS sale exercise), we will review the sale of recovered TPS flats to consider necessary improvements (e.g. whether target buyers should be extended beyond Green Formers), and whether a special transfer programme for sitting TPS tenants should be devised, so as to expedite the sale of the remaining rental flats from TPS estates,” the spokesman added.
      
     In the 2019 Policy Address, the Chief Executive proposed that the HA make active preparations with a view to accelerating the sale of the unsold flats in the 39 TPS estates.
      
     As at end-June 2020, for the around 41 000 flats (i.e. 22 per cent) of the approximately 184 000 TPS flats remaining unsold, close to 450 recovered TPS flats can be put up for sale. Currently, the average list prices of TPS flats range from around $11,000 per square metre to $22,000 per sq m, representing around 15 per cent to 18 per cent of the assessed market value. read more

Cash Payout Scheme advances payment for second batch of eligible registrants using paper forms to tomorrow

     The Government announced today (July 28) that according to the batching arrangement for paper registrations under the Cash Payout Scheme, the second batch of eligible people (i.e. people born in 1956 to 1970) who registered on or before July 18, involving about 356 000 persons, will receive payment or notifications for cheque collection starting from tomorrow (July 29), i.e. five days earlier than the original scheduled date of August 3. Registrants in this age group with registration forms submitted on or after July 19 will receive payment or notifications for cheque collection about two weeks after registration.     

     People who have submitted paper forms to banks (Form 1) will receive payment through their specified personal bank accounts. Those who have submitted registration forms to Hongkong Post (Form 2 in paper or electronic version) will receive notifications for cheque collection from Hongkong Post via SMS or letters. They may collect the order cheques in person from the post offices they specified during the period (about one month) set out in the notifications.

     In view of the Government’s earlier announcement of extension of the special work arrangements for government employees, Hongkong Post has announced that the post offices in Wong Tai Sin District, where the epidemic is relatively severe, will be suspended from service from July 27 to August 2. These post offices are Choi Hung Chuen Post Office, Chuk Yuen Post Office, Fu Shan Post Office, Lok Fu Post Office, Ngau Chi Wan Post Office, Tsz Wan Shan Post Office and Wong Tai Sin Post Office. All other post offices will maintain their normal opening hours on Monday, Wednesday and Friday, but their closing hours will be advanced to 4pm. The time of receiving notifications for cheque collection by some people (in particular those who have chosen to collect cheques at the post offices in Wong Tai Sin District) will therefore be affected and notifications may not be received on July 29 simultaneously. The Government appeals for the public’s understanding on this. The public may call the Hongkong Post enquiry hotline at 2921 2222 to enquire about the service hours of individual post offices. 

     Moreover, as of yesterday (July 27), the Cash Payout Scheme has disbursed payment or issued notifications for cheque collection to nearly 5.5 million eligible people. A Government spokesman reminded the public that as banks will send notifications including SMS to registrants as soon as possible after making payment, there is no need to rush to check account balances at banks’ branches or personal banking centres (including checking transaction records by using passbook update machines). People will also have sufficient time to collect cheques from the post offices and there is no need to rush for collection of cheques at the post offices on the first one or two days. In view of the latest epidemic developments, people should avoid gathering at banks or post offices so as to reduce the risk of infection. 

     The public may visit the website of the Scheme (www.cashpayout.gov.hk) or call 18 2020 for detailed information on the Scheme. read more

HAD to open temporary night heat shelters

     â€‹The Home Affairs Department will open 19 temporary night heat shelters tonight (July 28) for people in need of the service.

     The shelters will be open from 10.30pm until 8am tomorrow.

     For further information, please call the department’s hotline before midnight on 2572 8427.

     The 19 night heat shelters are located at:

Hong Kong Districts:
———————

Central and Western –
Sai Ying Pun Community Complex Community Hall
3/F, Sai Ying Pun Community Complex,
2 High Street, Sai Ying Pun

Eastern –
Causeway Bay Community Centre
3/F, 7 Fook Yum Road, Causeway Bay

Southern –
Lei Tung Community Hall
Lei Tung Estate, Ap Lei Chau

Wan Chai –
Wan Chai Activities Centre
LG/F, Wan Chai Market, 258 Queen’s Road East, Wan Chai

Kowloon Districts:
——————

Kowloon City –
Hung Hom Community Hall
1/F, Kowloon City Government Offices,
42 Bailey Street, Hung Hom

Kwun Tong –
Lam Tin (West) Estate Community Centre
71 Kai Tin Road, Lam Tin

Sham Shui Po –
Shek Kip Mei Community Hall
G/F, Block 42, Shek Kip Mei Estate, Sham Shui Po

Wong Tai Sin –
Tsz Wan Shan (South) Estate Community Centre
45 Wan Wah Street, Tsz Wan Shan

Yau Tsim Mong –
Henry G Leong Yaumatei Community Centre
60 Public Square Street, Yau Ma Tei

New Territories Districts:
————————–

Islands –
Tung Chung Community Hall
G/F, Tung Chung Municipal Services Building,
39 Man Tung Road, Tung Chung

Kwai Tsing –
Kwai Shing Community Hall
Podium, Block 6, Kwai Shing West Estate, Kwai Chung

North –
Cheung Wah Community Hall
Cheung Wah Estate, Fanling

Sai Kung –
Hang Hau Community Hall
G/F, Sai Kung Tseung Kwan O Government Complex,
38 Pui Shing Road, Hang Hau, Tseung Kwan O

Sha Tin –
Hin Keng Neighbourhood Community Centre
No. 5, Hin Wo Lane, Sha Tin

Tai Po –
Tai Po Community Centre
2 Heung Sze Wui Street, Tai Po

Tsuen Wan –
Lei Muk Shue Community Hall
G/F, Hong Shue House, Lei Muk Shue Estate, Tsuen Wan

Tuen Mun –
Butterfly Bay Community Centre
Butterfly Estate (near Tip Sum House), Tuen Mun

Yuen Long –
Long Ping Community Hall
Long Ping Estate, Yuen Long

Yuen Long –
Tin Yiu Community Centre
Tin Yiu Estate, Tin Shui Wai read more