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The following is issued on behalf of the Housing Authority:
The Housing Authority today (October 19) reminded people to comply with the restrictions on the selling, letting, mortgage or re-financing of flats under the Home Ownership Scheme (HOS), Private Sector Participation Scheme (PSPS) and Tenants Purchase Scheme (TPS) as stipulated in the Housing Ordinance or they might face prosecution.
The reminder follows two recent court cases in which a finance company and an HOS owner were convicted for breaching the restrictions.
The first case involved a finance company which was convicted and fined $20,000 at the Fanling Magistracy last month for having committed an offence of unlawful mortgage.
"The finance company entered into a re-financing agreement as money lender with an HOS owner in 2006 to create a mortgage of the HOS flat without settling the premium with the Housing Authority nor obtaining prior consent from the Director of Housing,"an authority spokesman said.
The spokesman said that owners of HOS/PSPS/TPS seeking re-financing arrangements should obtain the prior consent from the Director of Housing or pay the assessed premium to the authority to remove the restrictions before proceeding to mortgage the property.
"Money lenders or borrowers are also required to comply with the alienation restrictions of subsidised flats," he said, adding that unlawful alienation would be subject to a maximum penalty of $500,000 and one year's imprisonment.
"Owners with genuine financial hardship can apply for approval from the Director of Housing for re-financing of their subsidised flats without paying premium first," he said.
In the second case, an HOS owner was convicted and fined $20,000 at the Sha Tin Magistracy for leasing the HOS flat to a third party without settling the premium with the authority.
"HOS/PSPS/TPS flats are subsidised housing which is sold to eligible applicants at prices well below the market value. The restrictions on selling, letting or mortgaging are necessary to ensure the proper use of public resources," he said.
"The Housing Department adopts a zero tolerance policy against unlawful alienation committed by any person and will carry out prompt investigation and institute prosecution action as appropriate," the spokesman said.
The restrictions have clearly been stipulated in the application forms, sales brochures and conveyancing documents for the sale of flat. The relevant information may also be obtained through the authority and department website, hotline and information leaflets.
Ends/Friday, October 19, 2007
Issued at HKT 11:00
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