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The following is issued on behalf of the Housing Authority:
The Housing Authority (HA) reminded members of the public to observe the restriction on selling, letting or mortgaging flats under the Home Ownership Scheme (HOS), Private Sector Participation Scheme (PSPS) and Tenants Purchase Scheme (TPS) and their associated premium payment arrangement as set out in the Housing Ordinance.
The reminder is given following a court case last month in which the representative of a money lending company was convicted and fined $25,000 for having committed an offence of unlawful mortgage.
"This is the first case that a finance company was convicted," Mr Anthony Wong Kwok-hing, Acting Deputy Director of Housing (Corporate Services) said today (June 1).
The joint owners of an HOS flat at Tsz Oi Court in Tsz Wan Shan, as borrowers, entered into a re-financing agreement with a money lending company in December 2004 to create a mortgage of the HOS flat without settling the premium with the HA nor obtaining prior consent from the Director of Housing.
Mr Wong pointed out that flat owners seeking for re-financing arrangements should pay the assessed premium to the HA to remove the restrictions before proceeding to mortgage the property.
"Owners with genuine financial hardship, with prior approval from the Director of Housing, can apply for re-financing of their subsidised flats without paying premium first," Mr Wong said.
"Any person whether as lender, borrower or otherwise purports to create a mortgage of or charge land or to alienate land of HOS/PSPS/TPS without settling the premium with the HA commits an offence under the Housing Ordinance and is liable to a fine of $500,000 and one year's imprisonment.
"HOS/PSPS/TPS flats are subsidised housing which is sold to eligible persons at prices well below the market value. The restrictions on selling, letting or mortgaging are necessary to ensure the proper use of public resources.
"The Housing Department (HD) adopts a zero tolerance policy against unlawful alienation committed by any person (whether as lender, borrower or otherwise) and will carry out prompt investigation and institute prosecution action as appropriate," Mr Wong said.
The restrictions had also been clearly stipulated in the application forms, sales brochure and conveyancing document before the sale of flat. The relevant information may also be obtained through the HA/HD's website, hotline, and in information leaflets.
Ends/Friday, June 1, 2007
Issued at HKT 16:38
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