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A spokesman for the Housing Department (HD) today (October 6) reminded owners of flats purchased under subsidised housing schemes to observe the stipulated restrictions on alienation of the subsidised flats as set out in the Housing Ordinance, so as to avoid criminal liability.
An owner of a Home Ownership Scheme (HOS) flat and his agent were convicted by the court last month for letting a HOS flat to a third party without paying the premium to the Housing Authority (HA). The HOS flat owner and his agent were fined $8,500 and $8,000 respectively.
The spokesman said pursuant to the Housing Ordinance, owners are required to pay to the HA the premium of the subsidised flat first with a view to removing the restriction on alienation (e.g. selling, letting, charging or mortgaging etc). Otherwise, they shall not at any time alienate, purport to alienate or enter into any agreement to alienate subsidised flats sold by the HA in accordance with Housing Ordinance. This restriction applies to flats sold under the HOS, Private Sector Participation Scheme and Tenants Purchase Scheme.
For those owners with genuine financial hardship, they may apply to the Director of Housing for refinancing of a subsidised flat without payment of a premium.
The spokesman reiterated that after discovery of a suspected unlawful alienation case, the HD will carry out prompt investigation and institute prosecution action as appropriate. The maximum penalty for unlawful alienation is a fine of $500,000 and imprisonment for one year. Any related agreement to mortgage, charge, sell, or otherwise alienate a subsidised flat shall be void.
Ends/Sunday, October 6, 2013
Issued at HKT 15:00
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