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The Housing (Amendment) Bill 2007 is passed by the Legislative Council today (June 13) which enables the establishment of a new income-based rent adjustment mechanism for public rental housing (PRH).
A spokesman for the Housing, Planning and Lands Bureau said that for the past six years, the Housing Authority, Legislative Council as well as members of the public had discussed how to replace the statutory median rent-to-income ratio cap with a framework that would provide a fair and rational basis for PRH rent adjustment. After thorough discussion, a consensus was reached on the new rent adjustment mechanism, which would be implemented through legislative means.
"The Housing Authority (HA) has agreed to adjust the existing PRH rent according to the extent changes in the income index since 1997, which means an across-the-board rent reduction of 11.6% of the normal inclusive rent upon the passage of the Bill. The rent reduction of 11.6% will take effect on August 1 and letters will be sent to all PRH tenants to inform them of the arrangements," the spokesman said.
After the rent reduction of 11.6%, the rental expenditure of some 90% of the PRH tenants will be below $2,000 while those of some 70% of the PRH tenants will be below $1,500.
"The HA has agreed to relax the eligibility criteria for the Rent Assistance Scheme (RAS) and the revisions will be implemented together with the rent reduction of 11.6% on August 1 this year. The Housing Department will inform PRH tenants of both the rent reduction as well as the revised RAS criteria in the letters sent to them," the spokesman added.
Following the relaxation, PRH households whose rent-to-income ratio exceeds 18.5% or monthly income is below 70% of the respective waiting list income limits will be eligible for rent assistance. The HA will also revise the resident requirements and the requirement of moving RAS beneficiaries to cheaper accommodation after they have received rent assistance for three consecutive years.
Ends/Wednesday, June 13, 2007
Issued at HKT 21:24
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