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Following is a question by the Hon James To and a written reply by the Secretary for Housing, Planning and Lands, Mr Michael Suen, in the Legislative Council today (March 12):

Question:

Hoi Fu Court ("HFC") in Tai Kok Tsui, the first public housing estate included in the Buy-or-Rent Option, comprises four blocks which are rented out and one already sold. As the owner-occupiers of HFC have set up the Owners' Corporation, the relevant departments consider it inappropriate for the tenants to form a mutual aid committee. It is learnt that some tenants consider that their interests have been compromised unfairly. Moreover, there are often divergence of views and conflicts between tenants and owner-occupiers on property management matters. In this connection, will the Government inform this Council:

(a) given that the consent of all owners is required for amending the Deed of Mutual Covenant ("DMC") of the estate, whether it will consider enacting laws to enable the splitting of the DMC concerned into rented-out and sold portions, so as to resolve the current property management problem of the estate; if it will, of the details; if not; the reasons for that; and

(b) whether it has reviewed the circumstances under which property management of a public housing estate with both owner-occupiers and tenants is governed by a single DMC; if it has, of the results of the review and the specific solutions proposed?

Reply:

Madam President,

Housing estates under the Housing Authority's Tenants Purchase Scheme and Buy-or-Rent Option, and estates with flats sold after payment of premium under the Home Ownership Scheme, feature a mixed tenure of private owners and public housing tenants. These estates are comprehensive developments comprising residential blocks, commercial complex and other facilities through integrated planning and design. Each estate is managed as an integrated entity under a single Deed of Mutual Covenant, and in accordance with the Building Management Ordinance (Cap. 344). This management arrangement is also used in large-scale private housing developments.

To protect the interests of tenants, the Building Management Ordinance provides for the formation of an "approved association" and its representation on the management committee of the owners' corporation to reflect tenants' views. In a public housing estate with mixed tenure of private owners and public housing tenants, the Housing Authority, being owner of the public rental flats, is represented on the management committee or at the general meeting of the owners' corporation. Through such representation, the Housing Authority reflects tenants' views on day-to-day estate management, thereby protecting their interests. The Housing Authority's representative on the management committee will also seek to reconcile any differences in views between private owners and public housing tenants, and encourage them to work together in the interest of the estate as a whole.

As regards Hoi Fu Court, the tenants formed the Tenants' Association in December 2001. A representative has also been elected to serve on the Management Committee to ensure that tenants' interests are protected. At present, the day-to-day management of Hoi Fu Court is undertaken by the Management Committee in accordance with the Deed of Mutual Covenant and the Building Management Ordinance. The Management Committee has been able to reach agreement and make satisfactory progress in major estate management matters such as security, cleansing and maintenance.

The Honourable Member has proposed to split the Deed of Mutual Covenant for Hoi Fu Court into public housing rental and privately owned portions. The Deed of Mutual Covenant is a legally binding contractual agreement. Its provisions and requirements have been clearly set out when Hoi Fu Court was offered for sale. All owners (including the Housing Authority) must observe and comply with the provisions and requirements under the Deed of Mutual Covenant as a legally binding agreement, and should not seek to amend it without owners' unanimous consent. In the spirit of contractual agreement, and to avoid impacting on the rights of individual flat owners conferred on them by the Deed of Mutual Covenant, we do not consider it appropriate to enact legislation to override the terms of the Deed of Mutual Covenant in this case.

As mentioned above, management of a housing estate with mixed tenure of owners and tenants under a single Deed of Mutual Covenant is a common arrangement in Hong Kong. Generally speaking, these large-scale residential properties (including public housing estates) are managed effectively. Notwithstanding, the Housing Authority will take into account its experience in managing different kinds of housing estates when formulating the management arrangement for mixed tenure estates to facilitate effective management and promote harmonious relationship between owners and tenants.

End/Wednesday, March 12, 2003

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