The current-term Government is determined to tackle the long-standing, big and difficult issue of substandard subdivided units (SDUs) in Hong Kong. The Basic Housing Unit (BHU) regime is rolled out starting from today (March 1) under the principle of "registration first, enforcement later" with 48-month transitional arrangements, aiming to eradicate substandard SDUs in an orderly manner and enhance the living conditions of grassroots tenants.
 
     Under the Basic Housing Units Ordinance (Cap. 658), a new regime (i.e. the BHU regime) for the letting of SDUs in residential buildings is rolled out in phases starting from today. From today onwards, the Dedicated Team on Subdivided Units of the Housing Bureau (HB) begins to accept applications for registration of pre-existing SDUs, as well as applications for BHU recognition of SDUs complying with minimum standards of living conditions. The 48-month transitional arrangements (i.e. until February 28, 2030) under the BHU regime allow reasonable time for SDU owners/operators to gradually adapt to the statutory requirements. Meanwhile, the criminal offence of illegal letting of SDUs with no registration and no recognition will only come into effect 12 months after the commencement of the Ordinance (i.e. March 1, 2027).
 
     A Government spokesman stressed that with accumulation of the issue of substandard SDUs over the years, it had come to a critical point and there had been undisputed consensus in the community that grass-root SDU tenants should have a safe, hygienic and reasonable living environment. The Government has always accorded top priority to the well-being of SDU tenants and will implement the BHU regime in an orderly and steady manner, focusing on registration in the first year and commencing enforcement in the second year, instead of taking immediate enforcement action in one go. 
 
     During the first year of the implementation of the new regime (i.e. from today until February 28, 2027), the HB primarily motivates owners of pre-existing SDUs to submit their registration applications as soon as possible in order to obtain a 36-month grace period (i.e. from March 1, 2027, to February 28, 2030) for more time in arranging their tenancies and alteration works in a flexible and people-oriented manner. The application procedure for grace-period registration is simple and no application fee will be charged. Such 48-month arrangements of registration and grace-period provide owners/operators with reasonable time to carry out necessary alteration works and submit recognition applications. Pre-existing SDUs, regardless of whether they comply with the minimum standards of living conditions or not, are welcome to apply for registration for free to obtain the grace period.
 
     Starting from the second year of the implementation of the new regime (i.e. upon the expiry of the registration period, from March 1, 2027, onwards), the HB will adopt a pragmatic, people-oriented and risk-based approach when taking enforcement actions in a reasonable, compassionate and orderly manner against illegal letting of SDUs with no registration and no recognition, so as to ensure that SDU households will not be displaced due to relevant enforcement actions.
      
     The HB, through its six District Service Teams (DSTs) covering various regions of Hong Kong Island, Kowloon and the New Territories, will assist affected households in need in finding alternative accommodations (including SDUs that have obtained BHU recognition) in the private market for relocation, and flexibly co-ordinate other housing resources (such as transitional housing (TH), Hostels for Single Persons, interim housing and transit centres) to provide temporary shelters for them. Contact details of these six DSTs are at Note 1. The HB will continue to closely monitor the SDU rental market. For those potential situations where SDU owners and tenants may need to discuss their rental arrangements for various reasons, the six DSTs under HB have geared up to render immediate assistance to affected tenants. At the same time, the DSTs will continue to reach out to SDU households through street counters, home visits, seminars, briefing sessions, etc, providing them with comprehensive and suitable support, such as handling enquiries, referring suspected cases of contravening the SDU tenancy control to the Rating and Valuation Department, assisting SDU households in need to apply for traditional public rental housing (PRH), Light Public Housing, TH, or find other accommodations, etc. On the road to eradicating substandard SDUs, the HB will make utmost efforts to support affected grassroots tenants in improving their living conditions.
      
     In tandem with the implementation of the new regime, the HB has created a new type of Category C tenants for TH since October 2025, to allow SDU households affected by alteration works or enforcement actions under the BHU regime with imminent short-term rehousing needs to apply for TH. Applicants for Category C tenants need not be persons currently waiting for traditional PRH, and they can be exempted from meeting the prevailing income/asset limits for TH. For information on application for TH, please visit the HB's website (www.hb.gov.hk/eng/policy/housing/policy/transitional/tenantapplications.html).
      
     Under the BHU regime, SDUs must comply with minimum standards of living conditions (i.e. a total of eight aspects on minimum area, minimum height, fire safety, structural safety, separate toilet, water supply requirements, lighting and ventilation, as well as separate water and electricity meters) and obtain BHU recognition before they can be legally let out for habitation in the future, so as to ensure a safe, hygienic and reasonable living environment. In this connection, the HB has issued the Code of Practice on the Minimum Standards of Living Conditions for Basic Housing Units, which sets out in detail how SDUs can comply with the various requirements of minimum standards to obtain BHU recognition, thereby providing clear guidance for owners/operators and the industry practitioners. To encourage SDU owners/operators to submit registration and recognition applications as early as possible, the Government provides "early-bird" reduction/waiver on application fees for recognition, i.e. no application fee will be charged for SDUs with early registration/application (Note 2).
      
     The relevant application forms of registration and recognition, application guide, Code of Practice, etc, have been uploaded to the BHU thematic website (www.bhu.gov.hk/eng). Starting from today, owners/operators may submit their duly completed registration/recognition application forms to the Dedicated Team through the following methods: (a) by post to the Dedicated Team on Subdivided Units of the HB, P.O. Box 90888, Tsim Sha Tsui Post Office; (b) by depositing into the drop-in box located at the office of the Dedicated Team (address: 30/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong) during office hours (from 9am to 6pm, Mondays to Fridays, except public holidays); or (c) if the applicant has registered for "iAM Smart+", he/she may opt to complete, sign and submit the electronic application form and relevant documents at the BHU thematic website.
      
     For enquiries, please call 3611 0248, send email to bhu@hb.gov.hk, mail to the Dedicated Team on Subdivided Units of the HB, P.O. Box 90888, Tsim Sha Tsui Post Office, or visit the office of the Dedicated Team (address: 30/F, Revenue Tower, 5 Gloucester Road, Wan Chai, Hong Kong) in person during office hours (from 9am to 6pm, Mondays to Fridays, except public holidays).
       
     In addition, in accordance with the Ordinance, the Chief Executive, appointed members of the relevant appeal panel for a period of three years starting from today, to deal with appeals lodged against the decisions made by the Secretary for Housing as specified under section 53(1) of the Ordinance (such as refusal of registration/recognition application and cancellation of registration/recognition). The membership of the appeal panel is set out in the Annex.
  
Note 1: Contact details of the six DSTs are as follow:

Non-government organisations	Service region	Service district (based on District Council boundaries)	Contact details
New Home Association Hong Kong Island Service Centre	Hong Kong Island	Central & Western, Eastern, Southern and Wan Chai	2807 2188 / 9267 9548 hkitcsu.nha@gmail.com
Y.T.M. Concern For Livelihood Association	Kowloon West (1)	Yau Tsim Mong	6257 4590 ytmcfla.sub@gmail.com
Hong Kong Single Parents Association	Kowloon West (2)	Sham Shui Po	9813 7512 sdu@hkspa.org.hk
New Home Association Kowloon West Service Centre	Kowloon Central & East	Kowloon City, Wong Tai Sin and Kwun Tong	2720 7010 / 6435 2496 sdu@nha.org.hk
New Territories Association of Societies (Community Services) Foundation	New Territories West	Yuen Long, Tuen Mun, Tsuen Wan, Kwai Tsing and Islands	5169 5757 ntwtpsitcsu01@gmail.com
Shatin Inhabitants Association	New Territories East	Tai Po, North, Sai Kung and Sha Tin	2691 8055 / 9683 0925 siadistrictserviceteam@gmail.com

Note 2: Specific arrangements on reduction/waiver of application fees for recognition during the first three years of the roll-out of the BHU regime are as follows: 

Date of submission of BHU recognition application	Application fee for BHU recognition (per SDU)
	For SDUs in registered flats with grace-period registration applications submitted between March 1, 2026 and August 31, 2026	For SDUs in registered flats with grace-period registration applications submitted between September 1, 2026 and February 28, 2027	Other SDUs
From March 1, 2026 to February 28, 2027	No application fee	No application fee	No application fee
From March 1, 2027 to February 29, 2028			$1,500
From March 1, 2028 to February 28, 2029		$1,500
From March 1, 2029 onwards	$3,000

Ends/Sunday, March 1, 2026
Issued at HKT 9:00

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