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Following is a question by the Hon Cheung Kwok-che and a reply by the Secretary for Transport and Housing, Professor Anthony Cheung Bing-leung, in the Legislative Council today (May 25):
Question :
Quite a number of residents of the housing estates under the Tenant Purchase Scheme (TPS) have relayed to me that the Hong Kong Housing Authority (HA) owns a large number of unsold units in certain TPS estates, and yet HA, being the major owner in such estates, has not taken an active role and adopted double standards in the management of TPS estates. For example, HA, being the owner of a number of units in Leung King Estate, has not taken part in the handling of the estate's hawking problem and stated that the estate's Owners' Corporation (OC) must take responsibility for handling the problem. As the hawking problem of the estate remains unresolved for a long time, a spate of clashes, which were caused by hawker clearing operations, occurred in February this year. Furthermore, some non-government organisations have sought my assistance claiming that difficulties had repeatedly been created deliberately to deter their use of the facilities in Shan King Estate. When I helped those organisations follow up the matter with the relevant government departments, I was told that while HA had appointed a representative as a member of the management committee of Shan King Estate's OC and had one vote, HA would uphold the spirit of respecting and maintaining the autonomy of the OC and would not interfere in the management of the estate. However, at the general meeting of the OC of Cheung Wah Estate in Fanling held in August last year, the representative from HA cast a vote against the owners' call for overturning a decision regarding the replacement works of water mains. In this connection, will the Government inform this Council:
(1) whether it knows the respective names of the TPS estates built the earliest and latest; and set out by estate name of the current numbers of residents as well as the current numbers and percentages of unsold units in various estates;
(2) of the total number of votes cast by the representatives from HA in the past five years at the general meetings of the OCs of TPS estates, and set out by estate name the percentages of HA's ownership shares in the aggregate ownership shares of the estates concerned; and
(3) as some residents have queried that HA adopts double standards on issues relating to the management of TPS estates, whether the Government has assessed if such a query about HA is substantiated; when the OCs of TPS estates handle management issues which involve significant public interests, of the standards and mechanism adopted by HA for determining its stance on and the ways to handle such issues?
Reply:
Acting President,
The Hong Kong Housing Authority (HA) introduced the Tenants Purchase Scheme (TPS) in 1998 to enable tenants to purchase the flats in which they are living at a discounted price. In support of the Government's repositioning of housing policy in 2002, HA terminated the TPS in 2005-06. However, sitting tenants of the existing 39 TPS estates can still opt to purchase their flats. At present, all TPS estates have formed their own Owners' Corporations (OCs) and appointed their own property management companies to undertake the management and maintenance works of their estates.
My consolidated reply to the various parts of the question of the Hon Cheung Kwok-che is as follows:
There are 39 TPS estates in Hong Kong, providing a total of about 184 000 flats in building blocks aged between 25 and 34 years. So far, about 132 800 TPS flats were sold, representing about 70% of the total number of flats. Sale figures are detailed at Annex A.
Same as any other private properties, all TPS estates, regardless of the number of flats sold, are governed by the Building Management Ordinance (BMO) (Cap. 344), the Government leases (i.e. land leases) and the Deeds of Mutual Covenant (DMCs). Daily management issues of the TPS estates are discussed and resolved at meetings of management committees (MCs) or owners' general meetings convened by the OCs pursuant to the provisions of the DMCs and the BMO. The property management companies appointed by the OCs undertake the estate management work.
HA has all along been assisting owners of TPS estates to form OCs to manage their own estates. After the OCs have taken over the management of the estates, they have the sole responsibility for the management and maintenance of common areas and facilities in the estates.
HA, as the owner of unsold flats in TPS estates, appoints representatives from the Housing Department (HD) to stand for elections in the MCs. If elected, these representatives will take part in the management of the estates jointly with other MC members. As HD representatives have estate management experience and established contacts with government departments, they will advise the OCs on matters including the day-to-day management of the estates, requirements of the DMCs and relevant legislation, etc. from time to time. As one of the owners, HD representatives will encourage other owners to put emphasis on the overall interests of the estates so as to safeguard the interests of all owners (including HA) and to ensure the quality and the effectiveness of estate management work. HA will also convey the views of tenants of unsold flats and encourage the OCs and the property management companies to maintain communications with the tenants.
Pursuant to the BMO, each member present at a MC meeting (including the representative of HD) shall have one vote on each resolution. Therefore, on estate management matters which the MC is empowered to decide, a resolution can be passed by a majority of members even if HD's representative votes against it.
As for the general meetings of the OCs, except for the circumstances provided for under the BMO (See note), all matters arising at the general meetings of the OCs shall be decided by a majority of the votes in terms of ownership share. As HA still holds the proprietary interest of a considerable number of properties in TPS estates (ranging from about 15% to 75%), HD must draw up its voting strategies in a prudent manner when comes across this kind of problem.
It has long been the practice of HA not to dominate estate matters, but to encourage owners' participation in estate management to facilitate owners' autonomy. In this connection, HD representatives will take a neutral stance on routine management matters at OCs' general meetings and MC meetings to give other owners a free rein over the daily operation of the estates. However, HD representatives will actively exercise HA's rights to vote-
(1) on important matters with far-reaching implications, e.g. the increase of management fees, the appointment of property management companies, or resolutions to overturn decisions resolved by owners at a general meeting, in order to safeguard the interests of all owners (including HA);
(2) for the appointment of the contractor with proprietary lift maintenance in the procurement of lift repair and maintenance services;
(3) on the use of the Maintenance Fund; and
(4) for HD representatives in the election of MC members.
In the past five years, HD representatives had voted on about 200 resolutions proposed at the OC's general meetings (a summary is set out at Annex B). Given the diversity in the modes of operation of different estates and the OCs, HA will, after balancing interests of various parties and considering the requirements of relevant deeds and legislation, exercise its voting right with prudence.
TPS estates are no different from private properties for which the OCs act on behalf of all owners and are solely responsible for the management and maintenance of the common parts in accordance with the relevant legislation, land lease and DMC, including matters like hawking at common areas, road control and maintenance of the estates. As one of the owners, HA pays the management fee according to its ownership shares and appoints HD representatives to take part in the OC's work. Assistance from other government departments will be sought where necessary. In case of significant issues, interests of various parties will be balanced carefully to ensure that the estates are properly managed and a harmonious community is maintained.
Note:
The circumstances so provided are:
(1) the appointment of MC members, chairman, vice-chairman (if applicable), secretary and treasurer, which shall be made by using the "first past the post" voting system; and
(2) the resolution on changing the name of the OC, which shall be passed by not less than 75% of the votes.
Ends/Wednesday, May 25, 2016
Issued at HKT 18:03
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