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Notification system for guesthouse licence applications takes effect
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     The Office of the Licensing Authority (OLA) of the Home Affairs Department (HAD) introduced a new notification system today (April 1) to inform owners and residents of the buildings concerned of receipt of new or renewal applications for guesthouse licences.

     Under the notification system, the OLA will, depending on circumstances, issue letters to the owners' corporation (OC), residents' organisation and/or property management company (PMC) of the building concerned, as appropriate, to inform them that a licence application has been received and is being processed by the OLA. For buildings without any OC or residents' organisation and that are not managed by any PMC, letters will be issued to all individual occupants of the buildings concerned.

     In either case, the letters will also be copied to the relevant District Offices for reference.

     A spokesman for the HAD said that the new notification system has been implemented to let owners and residents know as early as possible whether any unit in the building is applying for a guesthouse licence. This will allow OCs and owners ample time to study relevant provisions in the Deed of Mutual Covenant (DMC) and to consider whether appropriate actions under the power conferred by the DMC should be taken.

     The OLA will issue two letters to parties concerned. The first letter will be issued after the OLA has received a new or renewal licence application. The second letter will be issued shortly before the application is to be approved by the OLA. The letters will contain the "address of the prospective/licensed guesthouse" and "type of application" (i.e. new or renewal application) and such information will also be uploaded to the OLA's website (www.hadla.gov.hk) for public information.

     The spokesman stressed that a DMC is a private covenant among the owners, the property manager and the developer of a building. Involved parties are empowered to act under the power conferred by the DMC to enforce the DMC provisions in relation to the management and administration of the building, etc. They may also take appropriate actions and measures against any owner who does not comply with the DMC.

     A guesthouse licence issued by the OLA does not act as a waiver of any terms in any lease, tenancy agreement or licence granted by the Government, nor does it affect or change the provisions of the DMC or other covenants relating to the building in which the guesthouse is situated. The issuance of a licence does not exempt or protect the licence holder or the applicant from any consequence and liability of any breach of the laws, the DMC or other leases and agreements.

     The OLA has already issued letters to all applicants of new or renewed guesthouse licences, informing them of the arrangements under the new notification system.

     The operation of guesthouses in Hong Kong is regulated by the Hotel and Guesthouse Accommodation Ordinance (Cap. 349), which aims to ensure that the premises intended to be used as a guesthouse comply with the statutory standards of structural and fire safety for the safety of patrons and other users of the building. The OLA is responsible for the enforcement of the Ordinance and it is tasked with the issuance of licences and enforcement work.

Ends/Tuesday, April 1, 2014
Issued at HKT 18:46

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