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Following is a question by the Hon Lam Tai-fai and a written reply by the Secretary for Transport and Housing, Ms Eva Cheng, in the Legislative Council today (November 2):
Question:
It has been reported that the current number of families on the Waiting List (WL) for public rental housing (PRH) in Hong Kong has exceeded 150 000, representing an increase of almost 20% and about 40% when compared respectively with last year and 2007. Under the Housing Subsidy Policy (commonly known as "well-off tenants policy") of the Hong Kong Housing Authority, households who have been living in PRH flats for 10 years or more are required to declare household income biennially. Those with a household income amounting to two to three times the corresponding Waiting List Income Limits (WLILs) are required to pay 1.5 times rent, those with a household income exceeding three times the corresponding WLILs are required to pay double rent, and those with assets exceeding 84 times of the WLILs are required to pay the market rent and vacate their flats within one year. The Hong Kong Housing Society (HS), which also provides PRH to Hong Kong people, has not yet implemented any well-off tenants policy. In connection with the issue of rational allocation of public housing resources, will the Government inform this Council:
(a) of the number and percentage of PRH tenants who were required to pay additional rent (commonly known as "well-off tenants") in each of the past three years, together with a breakdown by the rent payable by such well-off tenants, namely the 1.5 times rent, double rent and market rent;
(b) of the criteria based on which the authorities determine that a PRH unit is misused or left vacant; the number of PRH units repossessed by the authorities for being found to be misused or left vacant in each of the past three years, and how many of them are units allocated to well-off tenants; the measures put in place by the authorities to investigate if PRH units are misused or left vacant; the number of times such measures were taken in each of the past three years; and whether they have assessed the effectiveness of such measures;
(c) of the reasons or criteria based on which the authorities require households who have been living in PRH flats for 10 years or more to declare their household income and/or assets biennially; the number and percentage of such households at present;
(d) of the reasons or criteria based on which the authorities set the 1.5 times or double rent levels payable by well-off tenants and require only those well-off tenants with assets exceeding 84 times of the WLILs to vacate their flats within one year;
(e) given the growing demand for PRH from the public, whether the authorities will conduct a comprehensive review of the existing well-off tenants policy (including shortening the 10-year period for first declaration, shortening the one-year period for surrendering the flat, and reviewing the household income and asset limits, etc.); if so, of the details; if not, the reasons for that;
(f) whether the authorities will study and introduce some new measures to induce those well-off tenants who are no longer in need of subsidy to surrender their flats early, with a view to expediting the turnover of PRH flats and allocating such units to other people in need in a fair manner; if so, of the details; if not, the reasons for that;
(g) whether it knows if there is any queuing system in place for the rental housing of HS; if there is, of the total number of families on the waiting list and the average waiting time at present; and
(h) given that HS does not enforce well-off tenants policy, whether it knows how HS deals with misuse of its rental housing and ensures rational allocation of public housing resources?
Reply
President,
The Housing Authority (HA) is committed to ensure the rational allocation of limited public housing resources. Tenants who have been living in public rental housing (PRH) for ten years are required to declare their household income and thereafter biennially under the Housing Subsidy Policy (HSP). Those with household incomes exceeding the prescribed income limits are required to pay 1.5 times or double net rent plus rates. For double rent paying households, they are further required to declare their assets biennially under the Policy on Safeguarding Rational Allocation of Public Housing Resources (SRA) to determine their eligibility to continue to stay in PRH. Those whose assets value exceed 84 times of the prescribed income limits or opt not to declare assets are required to vacate their PRH flats. Households who are required to vacate their PRH flats but have a temporary housing need may apply for a fixed-term licence to stay in the flat for a period of not more than 12 months, during which time they are required to pay a licence fee equivalent to double net rent plus rates or market rent (whichever is the higher).
My reply to the eight-part question is as follows:
(a) The number of PRH households required to pay additional rent during the past three years is as follows (See Table 1):
(b) The criteria used to define the non-occupation or abuse of PRH flats are:
(i) Non-occupation, such as staying in proven alternative accommodation and not retaining regular and continuous residence for over three months;
(ii) Sub-letting to unauthorised persons;
(iii) Operating illegal activities (e.g. gambling or storage of drug); and
(iv) Non-domestic usage (e.g. commercial activities).
The overall number of abuse cases detected and flats recovered during the past three years is as follows (See Table 2):
To safeguard the proper use of PRH flats, the Housing Department (HD) has established a Biennial Inspection System (BIS) to detect tenancy abuses cases. Under the BIS, estate management staff will conduct flat visits to all PRH households every two years and take the opportunity during flat inspection to detect potential tenancy abuses. For the latest Biennial Inspection Cycle starting from November 1, 2010, a total of 345 600 households have been visited as at September 30, 2011. Suspected cases found will be referred to a Central Team for in-depth investigation. The Central Team will also identify tenancy abuse cases through web-patrol, checking of deceased tenant cases as well as investigation of complaint cases and randomly selected cases. Besides, publicity programmes are launched regularly to encourage the public and sitting tenants to report abusive use of PRH flats.
In the past three years, the Central Team has investigated some 7 600 suspicious occupancy-related cases annually. These measures are effective and have a deterrent effect in tackling tenancy abuses and recovering flats for reallocation to those in need.
(c) The "Well-off Tenants Policies" is to encourage well-off tenants to vacate their PRH flats in order to ensure the rational allocation of limited public housing resources. Households which have been living in PRH flats for ten years are required to declare their income every two years under the HSP. The rationale is that after 10 years' residence, the income of households may have increased to such an extent that they no longer require the public housing subsidy. Those with household income exceeding the prescribed income limits are required to pay 1.5 times or double net rent plus rates. For double rent paying households, they are required to declare their assets biennially under the Policy on SRA to determine their eligibility for continued stay in PRH. Currently, around 380 000 households (55.3% of the PRH households) are required to declare their income and/or assets biennially under the "Well-off Tenants Policies".
(d) "Income" and "assets" are the two determinants for public rental housing subsidy. On the income side, PRH tenants with total household income exceeding two times but not exceeding three times of the Waiting List Income Limits (WLILs) are required to pay 1.5 times net rent plus rates. Those with total household income exceeding three times of the WLIL are required to pay double net rent plus rates. The WLILs will be reviewed annually.
On the asset side, the Net Assets Limits (NALs) are set at 84 times of the WLIL. The WLIL is reviewed every year with reference to the latest economic statistics under an established mechanism. Households who opt not to declare their assets or with total net household assets exceeding the prevailing NALs will be required to vacate their flats. If they have difficulty and are unable to vacate on the specified date, the HA may grant them a fixed term licence for temporary stay at the flat they are occupying for a maximum period of 12 months, during which time they will be charged a licence fee equivalent to the double net rent plus rate or market rent, whichever is higher.
(e) and (f) The existing policies on income and assets declarations are considered effective in ensuring the rational allocation of public housing resources. In 2010/11, some 24 000 PRH households were required to pay additional rent. The HA has no plan to change the existing mechanism which has been working smoothly and effectively. As set out in (b) above, the HD will remain vigilant in checking and investigating as appropriate suspected cases of abuse to ensure proper use of public resources.
(g) and (h) Currently, the Hong Kong Housing Society (HKHS) provides two types of rental estate units, namely Group A estate units (Group A units) and Group B estate units (Group B units). According to HKHS's policy, Group A units are for low income families with housing needs, while Group B units target families of relatively higher income as compared to HKHS Group A estates.
HKHS's Group A units are mainly allocated to applicants of the Waiting List (WL) of the HA. When there are a certain number of vacant flats, HKHS will inform the HD, and the HD will inform eligible applicants on the WL in writing. HKHS will then follow up by sending letters to eligible applicants to invite them to apply for Group A units. Eligible applicants may apply direct to HKHS for those flats on a voluntary basis. The HA has not compiled statistics categorically on the average waiting time for cases allocated with Group A units.
Those who wish to live in HKHS's Group B units have to apply directly to HKHS. According to HKHS, all Group B units are currently rented out. Over the past three years, there were 78 Group B units reallocated to eligible applicants upon the moving out of tenants.
The HKHS does not have a "well-off tenant" policy. It conducts regular home visits once every three years after applicants are admitted into HKHS' rental units to ascertain the residency situation of the units and update the particulars of the tenants.
Ends/Wednesday, November 2, 2011
Issued at HKT 14:06
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