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LCQ2: Assistance to Young Public Rental Housing Applicants
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     Following is a question by the Hon Chan Hak-kan and an oral reply by the Secretary for Transport and Housing, Ms Eva Cheng in the Legislative Council today (January 7):

Question:

     Some young applicants for public rental housing ("PRH ") have relayed to me that since the implementation of the Quota and Points System ("QPS") for non-elderly one-person applicants of PRH by the Hong Kong Housing Authority in 2005, their waiting time for PRH units has become longer and their chances of being allocated PRH units have been reduced.  Under the QPS, the allocation of PRH units is prioritised according to the ages of the applicants, whether they are PRH tenants and how long they have been on the Waiting List.  These young applicants have also pointed out that the Waiting List income and asset limits are too low, which covertly discourages them from saving and owning assets while waiting for the allocation of PRH units.  In this connection, will the Government inform this Council:

(a)  of the average and the longest cumulative waiting time of non-elderly one-person applicants currently on the PRH Waiting List, broken down by age groups each covering 10 years;

(b)  whether it will consider building more one-person PRH units to cope with the demand; if so, of the details; if not, the reasons for that; and whether the Government will introduce other measures to assist such young people, who have housing needs; and

(c)  whether the authorities will consider raising the above income and asset limits?

Reply:

President,

     The Housing Authority (HA) introduced the Quota and Points System for Non-elderly One-person Applicants (QPS) in September 2005 to rationalise and re-prioritise the allocation of public rental housing (PRH) units to non-elderly one-person applicants so that the HA can focus its resources on assisting those applicants with the most pressing needs for housing.

     The relative priorities for PRH allocation to applicants under the QPS are determined by the points the applicants receive according to the points system.  Points are assigned to the applicants on the basis of their age at the time of submitting the PRH applications, their waiting time and whether they are PRH tenants.  The higher the number of points accumulated, the earlier an applicant will be offered a PRH flat.

     Currently, the annual allocation quota under the QPS, which is based on the average percentage of flats allocated to non-elderly one-person applicants against the total number of flats allocated in the decade before the implementation of the QPS, is set at 8% of the total number of flats allocated to the Waiting List applicants, subject to a ceiling of 2,000 units.
  
     My reply to the three parts of the question is as follows:

(a)  Details of the waiting period of non-elderly one-person applicants currently on the Waiting List based on the statistics as at end of November 2008 are given at Annex.  

(b)  In determining the flat mix of PRH to be constructed, we have taken into consideration a number of factors including the household size of the applicants, the flat mix of recovered PRH flats, and the implementation of the QPS, etc.

     The HA introduced the QPS with the aim of allocating limited public housing resources in an objective and effective manner to those with the most pressing housing needs.  An annual allocation quota is set on the basis of the average percentage of flats allocated to non-elderly one-person applicants over the past years.  Such an arrangement has enabled the HA to give due regard to and to balance the housing needs of all applicants.

     In fact, under the current system, apart from applying under the QPS, non-elderly one-person applicants can also apply for PRH as general families together with his/her family members.  In fact, in 2008/09, on average 335 non-elderly one-person applicants switch to family applications per month.  In addition, to encourage the younger generation to live together with their elderly members, the HA has also introduced a number of enhanced housing arrangements to foster family harmony.  Under the Harmonious Families Addition Scheme, eligible adult offspring (including singleton or those with family members) may apply for addition to the tenancy of elderly tenants.  Under the Harmonious Families Priority Scheme, young people (including singleton) may apply with their elderly member(s) for a PRH flat of any District of their choice and enjoy a 6-month credit waiting time.

     For eligible non-elderly one-person applicants with a pressing need for housing, they may apply for the Express Flat Allocation Scheme, or compassionate rehousing through recommendations by the Social Welfare Department for early rehousing.

(c)  The Hon CHAN Hak-kan had relayed the view that the Waiting List (WL) income and asset limits were too low and asked if the limits would be raised.  I must point out that the objective of the Government's subsidised housing policy is to provide public rental housing to low-income families who cannot afford private rental accommodation.  Under the principles of fairness and effective use of limited housing resources to help those with genuine housing needs, the HA determines the eligibility of PRH applicants by setting up the WL income and asset limits.
 
     Under the existing mechanism, the WL income and asset limits are calculated on the basis of the total household expenditure, which include housing expenditure and various non-housing expenditure items.  These limits are adjusted annually with reference to the latest housing expenditure figures and changes in Consumer Price Index (A).

     Each year, the HA reviews the WL income and asset limits according to the established mechanism to meet the latest socio-economic changes.  In line with previous practice, we will report the findings to the Legislative Council Panel on Housing and submit the Legislative Council Members' comments to the Subsidised Housing Committee of the HA.  The next review will be conducted in March 2009.  

 
Annex

Waiting Period of Non-elderly One-person Applicants
Currently on the Waiting List (Note)
(as at end of November 2008)

Waiting Period       Age Groups
on the Waiting
List (years)
              Below 30  30-39  40-49  50 or above

Average Waiting  2.4     2.2    1.6     1.0
Period
 
Case of Longest  6.0     6.2    5.9#    5.5#
Cumulative Waiting
Period

Note: The waiting period refers to the time between the date of first registration until the end of November 2008, but excluding any frozen time during the application period, for example, when the applicant has not yet fulfilled the requirement of the residence rule, as well as the period between cancellation of the application and its subsequent reinstatement within the specified time frame.

#  Processing of the non-elderly one-person applications is in the allocation stage and the applicants concerned will be offered PRH units shortly.

Ends/Wednesday, January 7, 2009
Issued at HKT 14:52

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