2013.10.26 lau ky taipei housing workshop ppt final for ...€¦ · change from basic housing to...
TRANSCRIPT
-
Dr LAU Kwok-yuAssociate ProfessorDepartment of Public PolicyCity University of Hong Kong
(Presented at the 2013 International Workshop on Asian Public Housing Policy on 26 October 2013, Taipei)
The workshop is hosted by the Urban Development Department of the Taipei City Government, and
organized by The Organization of Urban Re-s (OURs) and other housing and welfare NGOs.
Housing the Needy in Hong Kong
In-kind Public Rental Housing (PRH) provision ?or
In-cash Rent Allowance ?
Why???
-
Parameters for comparison1. Quality of housing2. Rent Burden3. Choice4. Equity5. Cost6. Politics, & 7.Stability
PRH: in-kind housing assistance It has been 60 years since the Hong Kong government provides
public rental housing units to people in need of government assistance.
Now, public rental housing (PRH) units has provided adequate and affordable homes for 30% of Hong Kong people.
about 763,000 PRH units in March 2013.
the major provider is the Hong Kong Housing Authority (HKHA).
HKHA(房屋委員會)provides 728,000 PRH units (about 96% of all) in Hong Kong accommodating 2,026,900 people as at 31 March 2013.
-
Public sector housing used only 1.4% of HK land to house 47% of HK people
•Public Sector Housing 公營房屋 =PRH公屋(出租)+Subsidized Sale flats 資助出售房屋
•Provide homes for 47% of HK’s population
• used 16 sq. km. =about 1.4% of HK’s total landarea of 1,108 sq. km. (i.e. 16 square kilometer) (2011 year-end figures)(author’s estimate: about 10 sq.m. (or 0.9%) of HK’s land is used for PRH)
High-rise & high density housing is common [email protected] 5
PRH Units are located in different parts of HK
Table 1: Geographical Distribution of PRH Flats (as at end of March of the year)
Source: HKHA (2012) Housing Authority Executive Information Guide 2012, Table 2.3.
1992 2012 Change
Urban (市區) 332,058(51.3%)
332,132(46.0%)
+74(-5.3%)
Extended Urban(擴展市區)
185,112(28.6%)
224,277(31.0%)
+39,165+2.4%
New Territories(新界)
128,373(19.9%)
163,832(22.7%)
+35,459(+2.8%)
Islands(離島)
1,122(0.2%)
2,127(0.3%)
+1,005(+0.15)
Total No. of Flats 646,665(100.0%)
722,368(100.0%)
+75,703
-
Rent Allowance (租金津貼):In-cash housing assistanceprovided by one government department:
Social Welfare Department社會福利署, and
one statutory organization: HKHA
香港房屋委員會
Social Welfare Department Hong Kong Housing Authority
Scheme Comprehensive Social Security Assistance (CSSA) Scheme
Rent Allowance for Elderly Scheme (RAES), introduced in August 2001
Target group and who receives rent allowance
• the landlord of public rental housing (HKHA)
• the recipients who have rented private sector housing.
eligible elderly (a total of 623 applications were approved)
Figures and considerations
As at June 2013, of 181,070 CSSA cases in public and private rented flats in receipt of rent allowance under CSSA,
81% (146,472 cases) were used in paying public rental housing rent
19% (34,598 cases) were used in paying private sector rent.
Among PRH tenants who used CSSA rent allowance to pay for rent, only 2% of their actual rents were higher than the maximum rent allowance, Whereas among private tenants who received CSSA rent allowance, 52%of their actual rents were higher than the maximum rent allowance(not enough to pay for private rent)
most have to live in small and sub-standard private rooms.
17,000 eligible elderly applicants on the Waiting List were invited to use RAES but there were only 623 successful cases. Due to the lukewarm response to the RAES, HKHA approved in September 2003 to phase out the RAES by ceasing acceptance of new applications. The existing beneficiaries, after re-assessmentbiennially, continue receiving the cash allowance. Alternatively, they may opt to revert to Public Rental Housing (PRH), out of the 623 approved cases, 365 beneficiaries (59%) opted to switch to
PRH, 111 withdrew from the scheme
voluntarily, and 80 became ineligible due to various
reasons (including death of the recipients), only 67 households (11%) which are still receiving rent allowance under RAES as at the end of February 2013.
Source:HKHA (2011) Memorandum for the Subsidised Housing Committee -- Revision of Monthly Allowance Payable under the Rent Allowance for Elderly Scheme for Leases due for Renewal in 2011/12, Paper No. SHC 23/2011.
-
A long history of in-kind public rental housing provision in Hong KongPeriod: 1954-1973Post-1973 periods (1 April to 31 March):1973-1983, 1983-1988, 1988-19981998-2003, and 2003-2013 (1 April to 31 March)
Table 2: Average annual production of public rental housing units in Hong KongPeriod期間
No. of rental units built per
annum每年平均建成
出租公屋數目
change over the last period
比對上一期間
的變化
No. of public sale flats built per
annum每年平均建成
資助出售房屋數目
Remarks on public sales flats
1 April 1954 to 31 March 1973 18,321 -- 0 --1 April 1973 to 31 March 1983 19,525 +6.6% 6,322 1978/79-1982/83
(annual average based on 4 years
only) HKHA HOS & PSPS
1 April 1983 to 31 March 1988 26,371 +35.1% 11,768 HKHA HOS & PSPS
1 April 1988 to 31 March 1998 24,971 -5.3% 16,517 HKHA+HKHS1 April 1998 to 31 March 2003 27,865 +11.6% 16,848 HKHA + HKHS1 April 2003 to 31 March 2013 15,118 -45.8% 601 HKHA HOS &
PSPS
Source: Raw statistics are extracted from Census and Statistics Department (various years) Hong Kong Annual Digest of Statistics and Websites of the Hong Kong Housing Authority and the Hong Kong Housing Society. The average annual production of public rental housing and public sale flats is calculated by Dr LAU Kwok-yu of the City University of Hong Kong, October 2013.
-
Change from basic housing to adequate and quality public rental housingIn the 1950s : “basic” housing standards Five-person flats of Mark I resettlement blocks With a floor area of 11.15 square metres (m2), allowing space of 2.23 m2 (24 square feet per adult, half for child). NO internal partitions, no running water, no kitchens or bathrooms were
provided inside the unit.
In March 2012, PRH flats are bigger and with better facilities kitchen and bathroom have ecome standard provision flats for 1 to 2 persons (14.1 sq.m. to 18 sq.m. Internal Floor Area, IFA), flats for 2 to 3 persons (22.3 sq.m. IFA), and 1-bedroom (31 sq.m.) and 2-bedroom flats (37 to 41 sq.m.) are available. On average, each person has a living area of 12.9 m2. Sustainability is now embedded in public housing development, with
initiatives implemented in energy efficiency, water saving, greening, andwater recycling. All these underline progress and advancement.
Rent Allowance (HKHA) : chronology of events Demand for public rental housing assistance has been addressed with the supply of
public rental housing units in Hong Kong.
In 2000, Hong Kong Government asked the HKHA to jointly explore with the former Housing Bureau (HB) the feasibility of providing rent allowance in lieu of PRH to eligible elderly applicants as an additional option to address their housing needs.
HKHA subsequently launched a pilot Rent Allowance for the Elderly Scheme (RAES) in July 2001 (a quota of 500 allowances, with an additional quota of 600 in 2002 was provided to eligible elderly applicants to lease private accommodations).
In 2001, Government further asked the HKHA and the former HB to jointly examine the feasibility of extending rent allowances to non-elderly households on the public rental housing Waiting List. After a few years (in 2005), Hong Kong Housing Authority finally decided not to pursue Rent Allowance as a means to help families in need of housing assistance.
-
Comparing PRH with Rent Allowance ‐QualityPublic Rental Housing (in-kind provision) Rent Allowance (in-cash provision)
Quality: subsidized housing producer (HKHA or HKHS) generally• builds good quality housing• also brings externalities: benefits
to the community as public housing estates in Hong Kong are built with community and welfare facilities;
• to generate jobs in housing construction and housing management and maintenance related industries and thus boosted the local economy);
• New town – PRH residents provide workforce & as infra-structure is more developed, private land value has also gone up – government gains
Quality: private tenants generally were found to have used rent allowance to rent • sub-standard private housing
units. • Quality of the rented units are
normally NOT comparable to those provided by the public housing authority.
See photos of PRH units See photos of private rented units (internal and external environment)[email protected] 13
PRH brings good environment(Yau Lai Estate in East Kowloon)
-
Old and New PRHShek Kip Mei Estate, housing blocks completed in 1976 (front) and in 2012 (back)
Living Room of a two‐bedroom PRH flat (36 sq.m. Internal Floor Area in Yau Lai Estate)
-
Dining area of the two‐bedroom PRH unit (one bedroom on right and one on left of photo)
Kitchen of a two‐bedroom PRH flat (Yau Lai Estate, East Kowloon)
-
Bathroom of the same two‐bedroom PRH flat
Victoria Harbour view enjoyed by PRH tenant in Yau Lai Estate
-
Plan of Yau Lai Estate (PRH)
Location of Yau Lai Estate –near underground station
-
Sitting out area in PRH estate
24‐hour security guard service + CCTV (at main entrance of PRH block)
-
Shek Kip Mei Estate (1976 and 2012)
Open space in public rental housing estate
-
Old private vs New PRH
Single parent with two kids at a private rental flat (the sub‐divided unit)
-
Rent allowance (under CSSA) is typically used to rent sub‐divided units(Photographer: Lei Jih‐Sheng 雷日昇)
Sub‐divided units – floor plan
-
Sub‐divided units with illegal structures
Private rent (Shamshuipo)
-
Sub‐divided units (illegal structures) in factory building (Photographer: Lei Jih‐Sheng 雷日昇)
Comparing PRH with Rent Allowance –Rent Burden
Public Rental Housing (in-kind provision)
Rent Allowance (in-cash provision)
Rent Burden: rental charges are much lower than those of the private sector housing.
Rent Burden: private tenants in receipt of rent allowance are typically asked to pay high rent relative to its small units.
Examples of rental charge in public rental housing :Shek Kip Mei Estate (in West Kowloon, an urban district, 3 to 5 minutes walk from mass transit railway station )
Examples of rental charge in private rental housing :
-
Public Rental Housing (PRH, in-kind provision) Rent Allowance (RA, in-cash provision)
Rent Burden: Rent Burden:
Examples of rental charge in public rental housing :Shek Kip Mei Estate (in West Kowloon, an urban district, 2013/14))For one person:Average size of PRH unit: 17.79 to 18.24sq.m. (IFA), housing blocks completed in 2006
Average unit rent: $63.4 per sq.m. (2% increase since 2006)
Rental charge: HK$1148 to $1179 (or $993 to $1020 with rates concession) per month
Such units, if leased in the market, are expected to charge a market rent of $3270 to $3352 per month.
Examples of rental charge in private rental housing in urban district (2013/14):
For one person:Average size of housing unit: 15.9 square metres (Internal Floor Area, IFA), typically completed 30 to 50 years ago
Average unit rent: $289 per sq.m. (77% increase since 2006/07)
Rental charge: HK$4595 per monthMaximum rent allowance rate under RAES: HK$2760Portion paid by tenant: $1835 per month
Examples of rental charge in public rental housing :Shek Kip Mei Estate (in West Kowloon, an urban district, 2013/14))For two-person household:Average size of PRH unit: 22.79 to 22.92 sq.m. (IFA), housing blocks completed in 2006
Average unit rent: $63.4 per sq.m. (2% increase since 2006) [note: rental charge of older PRH blocks built in 1976 in the same estate is about 70% of that of the newer blocks]
Rental charge: HK$1464 to $1474 (or $1256 to $1274 with rates concession) per month.
Such units, if leased in the market, are expected to charge a market rent of $4212 to $4312 per month.
Examples of rental charge in private rental housing in urban district (2013/14):
For two-person household:Average size of housing unit: 22.4 square metre (Internal Floor Area, IFA), very old housing blocks, typically completed 30 to 50 years ago
Average unit rent: $260 per sq.m. (67% increase since 2006/07)
Rental charge: HK$5824 per monthMaximum rent allowance rate under RAES: HK$3490 per month.Portion paid by tenant in receipt of rentallowance (Rent Allowance for the Elderly Scheme, HKHA): $2334 per month.
-
Additional benefits of being PRH tenants Hong Kong Government had offered to help tenants over financial
difficulties at various times, the Government paid rent on behalf of PRH households for three months in 2008 (excluding well-off tenants), and from 2009 to 2013, for two months in each year (covering also the net rent of well-off tenants). That is to say, on top of the rent reduction of 11.6% in August 2007, between 2007 and 2013 (7-year period), there are three months of rent waivers offered by HKHA and 13 months of rent paid by the Government (i.e. in a 84-month period, only 64 months of rents (80%) were paid).
Rates concession is also passed on to PRH tenants and hence rent is further reduced.
Half-rent payment or 75% payment will be granted if tenants who are suffering from temporary financial hardship (as long as they have met HKHA Rent Assistance Scheme eligibility criteria).
Additional benefits of being PRH tenants
PRH tenants are not required to declare income and net asset within the first 10 years of residence.
As a contrast, beneficiaries of the rent assistance scheme (e.g. those under HKHA’s RAES), will be re-assessed biennially to ascertain that they have met the prevailing eligibility criteria. Those in receipt of SWD’s rent allowance under CSSA are also required to go through means tests (income and asset test) every year (or every three years in the case of elderly single persons or couples).
All the above are not enjoyed by the private tenants in receipt of rent allowance.
-
39
Table 3: Median Rent-to-Income Ratio of Public and Private Housing in Hong Kong 2011
Source: Census and Statistics Department (2012) 2011 Population Census Summary Results, Table 32
A typical one bed-room flat = 31.9 sq.m.(IFA) for 3 or 4-person households.Monthly rental charge in Urban district is = HK$2,000 in 2013
• (about one-third of its market rent or• 80% of the estimated operational cost for each unit).• Average monthly rent in PRH (HKHA) was $1,417 in March
2002 and $1,397 in March 2012 (decreased after 10 years)
Median Rent-to-Income Ratio, 2011
Public Housing 10.6
Private housing 25.7
Comparing PRH with Rent Allowance ‐
Choice
-
Public Rental Housing (in-kind provision) Rent Allowance (in-cash provision)Choice: applicants on the PRH waiting list will be given three choices in the allocation process. Generally speaking, non-elderly applicants are not allowed to choose PRH in the urban districts.
PRH flats are generally allocated by means of random computer batching. The reasons for refusing flat offers vary among the applicants. 70% of applicants who received the first flat offer within three years refused the offer.
Choice: private tenants using rent allowance enjoy some degree of freedom and flexibility to decide where to live and to select accommodations that suit their needsat their own choosing.
In reality, due to the limited availability of cheap accommodation in the urban area, the choice is still quite limited (choose among the bad choices, e.g. sub-divided units in illegal structures in factory buildings or roof-top or in very old private tenement blocks without lift access, etc.)
Comparing PRH with Rent Allowance
Equity
-
Public Rental Housing (in-kind provision) Rent Allowance (in-cash provision)Equity: Due to time lag in producing PRH units, applicants, though meeting the eligibility criteria, are generally required to wait on the PRH waiting list for some years before allocation of a PRH unit.
Equals therefore are not treated equally and the principle of horizontal equity is violated. Reason: those already living in PRH units are only required to pay subsidized rent (low rent and therefore resulted in a higher disposable income) while those on the PRH waiting list, earning similar income, will have to pay high private rent.
Vertical equity is also not practiced in HK’s PRH estates as existing policies allow the better-off / well-off tenant families to stay as long as they pay additional rent (1.5 times rent or double rent) while all those not living in PRH estates are not given an offer if their income exceed the income / asset limits.
Equity: subject to budget provision, rent allowance can be provided to people in need of housing assistance immediately after vetting their eligibility.
The principle of horizontally equity is upheld as all equals (those in need of housing assistance and of similar situation) are given equal treatment (same amount of rent allowance)
Comparing PRH with Rent Allowance
Costs
-
Public Rental Housing (in-kind provision) Rent Allowance (in-cash provision)Costs to Government: In-kind provision of PRH requires huge initial capital outlay. In 2004/05, it costs on average some $275,000 to build a typical one-bedroom PRH unit (about 30 sq.m. IFA or 51 sq.m. CFA). (In 2013/14, project cost for building a flat of size of 28.41 sq.m. (Internal Floor Area) or 50.83 sq.m. (Construction Floor Area) is about HK$780,000)i.e. an increase of $0.5 million in about 10 years.
Costs to Government: Rent allowance requires no initial capital outlay or recurrent building management and maintenance costs.
After completion, PRH also incurs operational deficit ($360 per flat per annum, $30 per month) [2013/14: Average Operating Deficit per weighted average unit per annum $1332, i.e. $111 per month]
Very high recurrent cash subsidy. $23760 per annum for a 3-person household under General Rent Assistance Scheme as at 1st Quarter 2004 ($32,268 for RAES)
Huge bureaucracy (and high cost) required to operate the PRH programme
Relatively lower administrative costs. More in line with the principle of small government
Comparing PRH with Rent Allowance ‐ Costs
Public Rental Housing(in-kind provision)
Rent Allowance(in-cash provision)
Huge ‘opportunity cost” in terms of land value foregone
No land value foregone
-
Subsidy Analysis and Impact of Rent Allowance on HKHA's finances Paragraphs quoted are shown in quotation marks. See HKHA (2005) Memorandum for the Subsidised Housing Committee: Rent Allowance, Paper No. SHC3/2005.
Assumptions: HKHA assumes that if it was to introduce General Rent Assistance Scheme (GRAS), the amount of rent allowance payable would be based on the average rentals in extended urban areas and New Territories, which should be lower than the rentals in urban areas for RAES.
HKHA analysis also “shows that for a three-person household, the overall public subsidy for PRH (including both direct monetary cost and potential land value foregone) in urban and extended urban areas is 91% and 70% higher than that under GRAS respectively. In the case of New Territories, PRH incurs roughly the same level of subsidy as GRAS.”
Subsidy Analysis and Impact of Rent Allowance on HKHA's finances (continued)
“However, it is revealing that depending on locations, some 50% to 88% of the total public housing subsidy under PRH is in the form of potential land value foregone by Government. Direct monetary cost in terms of construction, management and maintenance, etc. accounts for only 12% to 50% of the total subsidy. If land value cannot be hypothecated, the monetary cost of GRAS could be 2 to 4.4 times higher than that of PRH, depending on the locations of the PRH units.” “whether PRH or GRAS is more cost-effective therefore hinges on whether Government could realize the potential opportunity cost in terms of land revenue
forgone under the PRH option. ”
-
Subsidy Analysis and Impact of Rent Allowance on HKHA's finances (continued)
In this connection, HKHA “believes any reference to land value foregone would only be meaningful and realized if the concerned sites earmarked for PRH developments would actually be put onto the open market for disposal.
The exact impact of so doing on land value is less than certain, but the odds are land prices sold in the private market would likely be dampened substantially if HK Government were to flood the market with a large number of PRH sites”
Land is allocated free of charge to the HKHA by the GovernmentValue of land since April 1973 =
HK$191,903 Million (as at 31 March 2012)
(or simply HK$ 191.9 billion)Recorded as government’s contribution Exchange rate: New Taiwan Dollar 100=HK$27.7 (20 Oct. 2013); Exchange rate: US$ 1 = HK$7.777
-
“over the short term, replacing PRH by rent allowance could help improve the cash flow of the HKHA because of the huge savings in initial
construction costs. ” However, analysis further “shows that in pure monetary terms, the cumulative subsidy for GRAS would exceed that for PRH in about 9 to 12 years’ time. It should also be noted that given its snow-balling effect, rent allowance would pose a very serious drain on the HA’s finances in the medium to long term. For instance, if the HKHA were to help out 5 000 families by way of rent allowances
each year, the cumulative cash outlay over a 10-year period would be as high as $6.5 billion.”
As shown from the above analysis, Rent Allowance is not the preferred choice of both the Government and the potential recipients.
Comparing PRH with Rent Allowance
Politics
-
Comparing PRH with Rent Allowance – Politics
Public Rental Housing (in-kind provision) Rent Allowance (in-cash provision)
Political costs to governmentGovernment in power normally prefers to use PRH (in-kind housing assistance) because the new estates built come with a better environment will result in good image of the government officials (showing that the ruling political party really cares about the needs of housing needy).Good quality PRH estate is a show case of good governance of leaders in power.
Political costs to governmentGovernment opted to use Rent Allowance may use it as stop-gap measure filling in the vacuum when newly built PRH units are not yet ready for meeting the housing needs of the poor.If used as a permanent measure, under scarcity of supply of suitable units, value will be captured by “greedy” landlords who normally raise rents but not to improve housing environment. Government will be seen as “uncaring” and “not responsible”.
Public Rental Housing (in-kind provision)
Rent Allowance (in-cash provision)
Responsiveness and Flexibility
Government is seen as inflexible in meeting short-term fluctuations in housing demand. Cannot stop building when demand is lowered and cannot build more immediately when demand is increased.
Responsiveness and Flexibility
Potentially more flexible in responding to short-term fluctuations in housing demand [easy to withdraw or to provide additional number of rent assistance, subject to availability of resources)
-
A few issues relating to the political and social dimension of public rental housing in Hong Kong
For decades, public rental housing has been used as a tool to smoothen the potential resistance from squatter residents in the clearance operations.
Political stability will be at stake if forced evictions and clearance were resulted without the provision of PRH to resettle them.
Though PRH unit is not considered as compensation to the squatters affected by clearance, rehousing them into PRH is considered as an ex-gratia arrangement.
A living unit in PRH estate has often be regarded as “a compensatory resettlement unit” upon the demolition a living unit in the squatter areas (many of these targetted for clearance were illegal structures and were sub-standard housing units which occupied many of the good sites in urban fringe areas). PRH provision, in Hong Kong’s case, is the most acceptable way to the “victims” affected by squatter clearance operations.[Note: some squatter residents “bought” the squatter huts with a “big sum” of cash. When the huts were cleared, they were resettled into PRH units and required to pay public rent.]
-
Clearing squatters is no easy task and if people in the squatter areas affected by clearance were only given rent allowance and displaced into another poorer area (i.e. not properly re-housed / re-settled into PRH units), the government would have to face strong resistance actions. The public interest dimension (to maintain stability) has to be accorded priority.
The land recovered from squatter clearance has been used for economic and social purpose (building of public housing estates, schools, clinics and community facilities, etc).
Comparing PRH with Rent Allowance – Social Stability Both PRH and Rent Allowance can be used as a means to an end for a stable society if there is a right mix of them serving as housing assistance to the needy.
On balance, PRH, from Hong Kong’s case, is seen as a better alternative:
When the government requires land occupied by tenants of sub‐standard housing (like urban slums in low density area) for social and economic development, PRH, used as resettlement housing, is a “lubricant” to speed up the clearance projects.
-
Rationales and justifications for NOT introducing Rent Allowance as a means to replace or to supplement public rental housing
1. Rent assistance would drain the HKHA's finances in the medium tolong term due to its snow-balling effect. A wide application of rentallowance would therefore further deteriorate the financial positionof HKHA.
2. Unlike PRH, rent allowance might not help improve the livingconditions of the beneficiaries.
3. There was no such precondition of having an adequate supply ofsuitable rental units in the private market. “Unless this preconditionis met, introducing rent allowance on a substantial scale will likelypush up rental level, thereby further increasing the total subsidy thatwill be incurred.” (As shown in the 2011 Census data, among 2.368 millionhouseholds in Hong Kong, about 14% were tenants of private housing).
4. Introducing rent allowance might substantially increase thedemand for rental assistance from those households who are notinterested in PRH.
The complex nature of Rent Allowance:
1. Liberal economists and market believers generally welcome Rent Allowance which is thought to be more efficient and cost-effective than PRH.
2. Some perceive Rent Allowance as a lever to help revitalize the private rental market.
3. A wider application of Rent Allowance may imply Government’s withdrawal from the construction of PRH.
4. Should Rent Allowance be presented as an additional option to, rather than a replacement of, PRH?
-
The complex nature of Rent Allowance (cont’d):
5. Some others consider that rent allowance should only be granted as a stop-gap measure to households on the PRH Waiting List pending eventual re-housing to PRH.
6. If Government and HKHA continue to uphold their pledges to keep the Average Waiting Time (AWT) at around three years, would the community at large accept the decision of not pursuing rent allowance given the huge financial implications.
7. If Rent Allowance is introduced on a modest scale (say, limited to a maximum of 3,000 quota per annum for those having waited on PRH waiting list for over 3 years), would the ‘undesirable effects’ mentioned by HKHA in its paper SHC 3/2005 be there?
The Hong Kong public housing story continues …..in the hope of sustainability and stability
1. PRH units were mainly used for those affected by clearance projects in early years of its development and then changed to focus on providing adequate homes for the low-income families.
2. Public rental housing (PRH) units provide affordable homes for 30% of HK people.
-
3. Cross subsidy (from surplus generated in subsidized sale flats and non-domestic operations) is required as PRH rents are unable to cover its operating costs.
4. Rent Allowance has been given to recipients of the Social Welfare Department’s Comprehensive Social Security Scheme as an income supplement measure to the low-income group. Amount not adequate to provide private rent of private flat.
5. Public rental housing unit (the in-kind provision) is still the preferred choice of people in need of housing assistance and of the Government.
Contact:Department of Public PolicyTat Chee AvenueKowloon TongHong Kong
Tel: (852) 3442 8758
Email: [email protected]
Thank you.