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Following is a question by the Hon Li Wah-ming and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, in the Legislative Council today (Mar 9):
Question:
Regarding the Rent Allowance for Elderly Scheme (RAES) currently provided by the Hong Kong Housing Authority, will the Government inform this Council of:
(a) the number of beneficiaries receiving cash allowances under RAES as at the end of February 2011;
(b) the estimated number of beneficiaries whose existing leases for their accommodation are due for renewal in 2011-2012;
(c) the following data required by the authorities for calculating the maximum monthly rent allowances under RAES for 2011-2012 (to be listed by household sizes of one, two and three person(s)):
(i) the average area of accommodation allocated to Waiting List applicants rehoused to public rental housing in various districts from 2007-2008 to 2009-2010; and
(ii) the average monthly rent of households in private units with usable flat size below 70m2 in the urban area, according to the Rent Survey of the Census and Statistics Department for the 4th Quarter of 2010;
(d) the overall average monthly rent of households in private units with usable flat size below 70m2 in the urban area, according to the Rent Survey of the Census and Statistics Department for the 4th Quarter of 2010;
(e) the overall average monthly rent of private residential units with usable flat size below 70m2 in the urban area, according to the information provided by the Rating and Valuation Department for the 4th Quarter of 2010; and
(f) the estimated timeframe for the authorities to announce the maximum monthly rent allowances under RAES for 2011-2012?
Reply:
President,
Rent Allowance for Elderly Scheme (RAES) was a pilot scheme launched by the Hong Kong Housing Authority (HA) in August 2001. It offered rent allowances to eligible elderly applicants as an alternative to public rental housing (PRH). As the response to the RAES was unsatisfactory and the cost-effectiveness of the Scheme was not high, the HA decided in September 2003 to phase out the Scheme. No new applications were accepted thereafter but existing beneficiaries were allowed to continue to receive the rent allowance.
The rent allowance payable under the RAES is pitched at 60% of the monthly rental actually paid by the beneficiary or the rates promulgated by the HA, whichever is the less. The HA will adjust the rate of the rent allowance by making reference to the data of the Census and Statistics Department (C&SD) on private housing rents, and the average space allocated to Waiting List (WL) applicants of respective household size in the past three years.
My reply to the Hon Li's six-part question is as follows:
(a) As at end February 2011, a total of 103 elderly households are still receiving rent allowance under the RAES.
(b) 28 elderly households under the RAES will have their current tenancies due for renewal in 2011/12.
(c) (i) The average space allocated in terms of internal floor area to one-person, two-person and three-person WL applicants from 2007/08 to 2009/10 are around 16 square metres, 23 square metres and 31 square metres respectively.
(ii) Based on rent data of private residential flats as collected in General Household Survey (GHS) conducted by the C&SD in the fourth quarter of 2010, the average unit rent of flats of saleable area below 70 square metres in the urban area for one-person, two-person and three-person households are estimated at $221, $207 and $190 per square metre respectively.
(d) Based on rent data of private residential flats as collected in GHS conducted by the C&SD in the fourth quarter of 2010, the overall average unit rent of flats of saleable area below 70 square metres in the urban area is estimated at $200 per square metre.
(e) According to the property market statistics for the fourth quarter of 2010 prepared by the Rating and Valuation Department, average rents of private domestic units in the urban area (Hong Kong and Kowloon) of saleable area less than 40 square metres are $304 and $215 per square metre respectively; whilst the average rents of private domestic units in the urban area (Hong Kong and Kowloon) of saleable area between 40 to less than 70 square metres are $284 and $232 per square metre respectively.
(f) The Housing Department is currently reviewing the allowance rates under the RAES for 2011/12. It is expected that the new allowance rates will be announced in the first quarter of the fiscal year concerned.
Ends/Wednesday, March 9, 2011
Issued at HKT 13:22
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