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The following is issued on behalf of the Housing Authority:

    The Housing Authority's (HA) Subsidised Housing Committee (SHC) today (March 14) endorsed a proposal for adjusting upward the income limits for Waiting List (WL) applicants by an average of 1.8% for 2005-06, the first increase in six years.

    At today's meeting, the SHC also endorsed to set the asset limits for elderly households at two times the asset limits for non-elderly applicants.  

    The new set of asset limits for elderly households is applicable to nuclear and non-nuclear households comprising solely elderly members, the latter includes households comprising unrelated elderly members.

    "Given that most of the elderly applicants are either retired or on very low income, many of them have to rely on savings to meet their daily expenses.  Members fully accept that there is a strong case to adopt a different set of asset limits for elderly households to cater for the specific needs," a spokesman for the HA said.

    The SHC accepted that the existing methodology for assessing income limits should be retained following a thorough examination of possible areas for changes.

    "Members agreed that the present formula for setting the income limits is still applicable and there is not any overriding need to either relax or tighten it up from the point of view of rational allocation of public housing resources," the spokesman said.

    "The existing methodology for assessing WL income limits, which was already substantially relaxed after a comprehensive review in 2002, has proved its resilience and flexibility in coping with the major economic adjustments over the past few years.  

    "This can be shown by actual registration figures.  Between 1999-2000 and 2003-04, the income limits were adjusted downwards in line with the relevant price and rental indicators.  Yet some 35,000 households were successfully registered on the WL per annum, as opposed to around 25,000 households per annum between 1994-95 and 1998-99 when the income limits were at record high.

    "Between 1999-2000 and 2003-04, the HA re-housed some 30,000 WL applicants to public rental housing per annum.  The respective figure for 1994-95 to 1998-99 was only 15,000," the spokesman said.

    SHC members decided to maintain the asset limits at the present level.

    The revised limits will be effective on April 1.  It is estimated that some 127,700 non-owner occupied households in the private sector (34.9%) would be eligible for public rental housing, up 1,600 from the current 126,100 households (34.4%).

    It has been the established policy of HA to review annually the WL income and asset limits. The objective is to ensure that public rental housing is available to those in genuine need.

    Following is the Waiting List Income/Asset Limits for 2005/06 :-

Household Size Income Limit Asset Limit

1-Person $6,600 ($6,947) $170,000 <$340,000>

2-Person $10,100 ($10,632) $230,000 <$460,000>

3-Person $11,900 ($12,526) $300,000 <$600,000>

4-Person $14,300 ($15,053) $350,000 <$700,000>

5-Person $16,100 ($16,947) $390,000

6-Person $17,600 ($18,526) $420,000

7-Person $19,100 ($20,105) $450,000

8-Person $20,300 ($21,368) $470,000

9-Person $21,800 ($22,947) $520,000

10-Person       $23,100 ($24,316) $560,000

and above

Figures in <  > denote asset limits for elderly households (both nuclear and non-nuclear households comprising solely elderly members)

Figures in (  ) denote the effective income limits should a household be contributing 5% of its income under the Mandatory Provident Fund (MPF) Scheme as required by the law

Ends/Monday, March 14, 2005

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