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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 26) discussed the findings of the review of Waiting List (WL) income and asset limits for public rental housing (PRH) for 2012/13, and endorsed the limits for respective household sizes (see table attached).
"Based on the established mechanism, the WL income limits are derived using a 'household expenditure' approach consisting of housing costs and non-housing costs, plus a 5 per cent 'contingency provision'," a spokesman said.
"Although there are increases in household expenditure of 1-person and 2-person households, the increases are less than the one-off extra 10 per cent contingency provision incorporated in the WL income limits last year after taking into account the uncertainties relating to the implementation of the statutory minimum wage. Therefore, when comparing the assessed income limits this year (derived based on the established methodology of a 5 per cent contingency provision) with the existing income limits (which included the special one-off provision of an additional 10 per cent contingency provision as buffer), there should in fact be a decrease in the income limits for 1-person and 2-person households. However, in light of the current economic situation, and in order to continue to provide the additional buffer for 1-person and 2-person households, the SHC has given special consideration to freeze their income limits at existing levels."
"In fact, the review mechanism has already flexibly and suitably catered for the special circumstances of 1-person and 2-person households, i.e. the housing expenditure is calculated by multiplying the differential unit rent or overall average unit rent (whichever is higher) with the average space of PRH flats allocated to achieve a balancing effect. Although the income limits of 1-person and 2-person households are frozen at existing levels, the existing WL income limits would respectively be 9.5 per cent and 9.6 per cent higher than what would have been the 2011/12 levels if only the usual 5 per cent contingency provision was adopted in accordance with the established methodology. In other words, the extra contingency provision (which was 10 per cent of household expenditure) incorporated into the WL income limits in last yearˇ¦s review is in effect an advancement of adjustments which should be made this year according to the mechanism. Additionally, in light of the present economic circumstances, we decided to freeze the income limits for 1-person and 2-person households in order to continue to provide them with the buffer. This is already a flexible and relaxed arrangement. For 3-person households and above, we will effect the changes in accordance with the established formula," the spokesman said.
The WL income limits for 2012/13 will increase by an average of 7.7 per cent over the 2011/2012 level. As regards the asset limits, in accordance with the established mechanism, there would be an increase of 5.3 per cent overall, following the changes in Consumer Price Index (A).
Take 4-person households as an example, the monthly income limit will increase from $18,560 to $20,710 and the asset limit will go up from $397,000 to $418,000.
The limits will come into effect on April 1. It is estimated that some 112,800 non-owner occupied households in the private sector would be eligible for applying for PRH, representing 29.2 per cent of the total number of non-owner occupied households in the private sector in Hong Kong.
"Under the income limits for 2012/13, it is estimated that the number of eligible households would increase. We will continue to monitor the number of applications on the WL. If necessary, we will adjust the PRH production to keep the average waiting time target for general WL applicants at around three years," he said.
Ends/Monday, March 26, 2012
Issued at HKT 18:22
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