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Subsidised housing flat owner and finance company convicted by court for offence of unlawful alienations
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     A spokesman for the Housing Department (HD) today (February 2) reminded owners of subsidised housing to observe and strictly comply with the alienation restriction stipulated in the Housing Ordinance in the refinancing of flats.

     The HD spares no efforts in combating abuses of subsidised housing. Recently, a Home Ownership Scheme flat owner and a finance company were prosecuted for the offence of unlawful alienations.

     The case was heard yesterday (February 1) in Kwun Tong Magistrates' Courts. The subsidised housing flat owner alienated the subsidised flat located at King Shing Court in Fanling to a finance company by way of loan agreement, without paying a premium to the Housing Authority or obtaining prior approval from the Director of Housing. They were thus prosecuted for the offence of unlawful alienations. Eventually, both defendants were convicted by the Court. The subsidised housing flat owner was ordered to pay a fine of $10,000 and the finance company was ordered to pay a fine of $80,000.

     Under the Housing Ordinance, it is an offence for a subsidised housing flat owner to unlawfully mortgage, charge, assign or otherwise alienate their subsidised housing flat without paying a premium or obtaining prior approval from the Director of Housing, and such a transaction will also be void. Under Section 27A of the Housing Ordinance, a void alienation under Section 17B is an offence and an offender is liable to a maximum fine of $500,000 and to imprisonment for one year.

Ends/Tuesday, February 2, 2016
Issued at HKT 15:50

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