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Public housing tenants willing to take up minor refurbishment works of their rental units before moving in would be given an ex-gratia allowance, the Rental Housing Committee of the Housing Authority decided today (Thursday).

A spokesman for the Authority said that this new option is open for prospective tenants of vacant flats where only touching up works are required. Tenants can choose to have the works undertaken by the Department's refurbishment contractors, or receive an ex-gratia allowance equivalent to three-months rent to refurbish their own flat.

"The allowance will be corresponding to the cost of touching up a vacant flat by the Department's contractors, which ranges from $3,000 to $6,000," he said.

A total of 22,000 vacant flats required refurbishment for the last 12 months up to June 1998, 11% of which only required touching up works which could be carried out by the tenants themselves.

"Other than the ex-gratia allowance, tenants would also be able to move into the flats two months earlier if they agree to do the refurbishment themselves, thereby reducing the vacancy rate of rental units."

Payment of the ex-gratia allowance is expected to be around $11.4 million per year, to be offset by a corresponding saving of refurbishment costs. At the same time, the Authority will save the loss of rental income for two months, i.e. around $7.6 million per year if tenants can move in two months earlier.

"Since most of the work items in the major repair packages are either the responsibilities of the owner or repairs affecting the neighbourhood or structural integrity of the block, the Department will continue to refurbish vacant flats requiring major repairs before handing them over to the tenants," the spokesman stressed, noting that a review of the scheme would be conducted in two years after implementation.

He added that the grant of the allowance will not apply to prospective tenants taking up flats under the Tenants' Mutual Exchange Scheme; and overcrowding relief through automatic offers in estates due for redevelopment within three years.

End/Thursday, July 9, 1998

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