The Housing Authority has tightened its policies for wealthy public housing tenants since October of the previous year, mandating that tenants declare their assets and living conditions every two years. So far this fiscal year, the authority has repossessed 2,100 misused public housing flats, and anticipates recovering over 2,200 units by the year's end.
The Housing Authority recently distributed declaration forms to 88,000 public housing households who have lived in public housing for two to nine years, requiring residents to disclose their living and ownership status within Hong Kong. To date, 87,000 declaration forms have been successfully collected, indicating that about 1,000 households have yet to submit their forms. Should a tenant willfully fail to comply with the declaration requirement, they face severe repercussions, including lease termination and repossession of their public housing unit.
The tightening measures have proven effective. Reasons for repossession have included vacant flats, flats misused in breach of tenancy agreements, ownership of local residential properties, or changes in family circumstances, among others. In light of these developments, the Housing Authority intends to proactively intensify efforts to combat the abuse of the public housing system.
According to Rosanna Law Shuk-pui, Permanent Secretary for Housing and Director of Housing, new measures to combat tenancy abuse of public housing will be unveiled as soon as the first quarter. These measures include enhancing collaboration with property management companies. In the next phase, the Housing Authority will examine and review the asset declarations of Mainland and overseas public housing tenants.
To optimize the use of public housing resources, the Housing Authority is considering a collaboration with property management companies and the establishment of a bonus point system. If property management companies find that public housing units have been unoccupied for an extended period or abandoned during inspections, they are to report these findings to the Housing Authority. Successful reports that lead to the eventual recovery of a unit will result in additional points for the company.
The bonus points awarded will benefit property management companies in future bids for estate management work, and I believe this will boost their enthusiasm. Furthermore, the authorities are planning to establish a "Good Citizen Award," modeled after a police initiative, to encourage citizens to report incidents and help combat tenancy abuse.
Some argue that promoting a culture of reporting could undermine social trust. However, the aforementioned measures are still in the conceptual phase, and their specifics will not be revealed until the Housing Authority makes a formal announcement. Regarding the upcoming asset declaration round scheduled to commence on April 1, involving approximately 250,000 tenants who have resided in public housing for 10 years, it is anticipated that some units may be repossessed as a result.
Recent hot topics in the city have included the garbage levy and whether public housing rents will be raised, which has drawn attention from all sectors. The Finance Committee of the Housing Authority recently reviewed the financial budget and forecast summary for 2024/25. The Housing Authority estimates that if there is no rent increase for public housing estates, the rental housing accounts will shift from profit to loss. It is projected that a deficit of approximately HK$1.17 billion will be recorded in the coming year.
Every two years, the Housing Authority reviews and adjusts the rent levels for public housing based on changes in the tenants' income. The upcoming review of public housing rent is scheduled for the third quarter of this year. Market news suggests a significant likelihood of a rent increase. Billy Mak Sui-Choi, chairman of the HA’s Finance Committee, noted that a rent increase is understandable given that people's incomes have risen.
The news of a potential rent increase for public housing has caused distress among the community. However, it is still premature to discuss any potential increase in public housing rent at this stage. The decision will largely depend on the changes in income among public housing tenants during this period. There has been a rent freeze in the past, so any decisions will have to await the outcome of discussions in the third quarter.
