Under the new policy framework, the provision of assistance to those in genuine need continues to lie at the heart of the Government's housing policy. The Government would work to ensure that all those who cannot afford adequate accommodation in the private market have the opportunity to have access to decent, affordable housing. The means of delivering this aim would be through a combination of the traditional public rental housing (PRH) programme and the newly implemented rental allowance scheme (initially for elderly households). The Government is committed to maintaining the average waiting time for PRH at three years, and ensuring that there is an adequate supply of PRH flats to keep the pledge.

    At present, about 2 104 300 people or 31 per cent of Hong Kong's population live in PRH estates managed by the HKHA or the HKHS. At December, there were 91 580 households on the Waiting List for PRH. The current average waiting time for PRH is 2.3 years. In 2002, some 20 200 PRH units were built. In determining the actual quantum of PRH units to be built annually under a rolling development programme, the Government takes account of the housing demand of low-income families and the turnover in PRH tenancies.

Rent Policy

The affordability of tenants is the prime factor in determining rent levels of public rental flats. Other factors taken into consideration include estate value, maintenance and management charges, rates and general household incomes. At present, public housing rents are inclusive of rates and management and maintenance expenses. Public housing tenants pay, on average, 44 per cent of the assessed market rent (inclusive of rates) for the flats they live in.

Rent Assistance

Public housing tenants facing temporary financial hardship may apply for a 50 per cent rent reduction under the Rent Assistance Scheme operated by the HKHA. The eligibility criteria of the scheme were relaxed in October for elderly households and to allow tenants affected by redevelopment to apply for rent assistance immediately upon rehousing. At year-end, 11 630 households had benefited from this scheme since its launch in 1992.

Better-off Tenants

Better-off tenants are required to pay higher rents. At December 31, there were 13 256 households paying the higher rents. The subsidy saved through charging under this scheme amounted to $150 million in 2002. In addition, tenants living in estates for more than 10 years with both household income and assets exceeding the prescribed limits, or choosing not to declare household assets, are required to move out. In 2002, some 1 965 better-off tenants, including 592 households which acquired their own flats under the HOS, PSPS or Home Purchase Loan Scheme (HPLS), returned their public rental housing flats to the HKHA.

Allocation

In 2002, 56 907⁵ rental flats were allocated by the HKHA and the HKHS to various categories of applicants. Of these flats, 31 394⁵ were new and 25 193 refurbished: 69.4 per cent were allocated to Waiting List applicants, 8.82 per cent to tenants affected by the HKHA's Comprehensive Redevelopment Programme, 0.41 per cent to families affected by clearances, 1.69 per cent to junior civil servants, 19.6 per cent to sitting tenants for transfers including overcrowding relief, and the remainder to victims of fire and natural disasters, and compassionate cases recommended by the Social Welfare Department.

    Flats are allocated in accordance with the order of registration and applicants' choices of district. Applicants are required to satisfy comprehensive means tests (covering income and assets), not to own any domestic property and to meet the residence rule in Hong Kong before being admitted into public rental housing. To speed up the letting of some less popular flats, the HKHA launched the Express Flat Allocation Scheme (EFAS) and invited all eligible applicants on the Waiting List to select a flat from among the vacant flats, with prolonged vacancy periods, in all districts. During the year, 2 398 households were successfully rehoused under this scheme.

Redevelopment

Since the launching of the HKHA's Comprehensive Redevelopment Programme (CRP) in 1988, 515 housing blocks have been redeveloped to improve the living conditions of some 173 300 households. In the coming years and until 2008–09, another 51 old blocks in the CRP will be redeveloped. In 2002, rehousing for the redevelopment of North Point Estate, which is outside the CRP, was completed. Seven blocks were vacated and some 1 760 households rehoused.

Rent Allowance Schemes

To provide an additional choice to eligible elderly applicants for PRH and to maximise the use of private sector resources, the Rent Allowance for Elderly Scheme (RAES) was launched in August 2001. The scheme offers elderly applicants a rent allowance which enables them to rent private accommodation rather than taking up public rental flats. A quota of 600 was set for 2002. By year-end, 1 680 elderly applicants had opted for the rent allowance. The HKHA is exploring the possibility of extending the rent allowance scheme to eligible non-elderly applicants.