Information Paper for the
Provisional Legislative Council
Panel on Housing

Rehousing Policy on Redevelopment of Public Rental Estates


This paper briefs Members on the rehousing policy on redevelopment of public rental estates and the allowances offered to affected tenants.


2. In 1987, the Government undertook to redevelop all Mark I - VI and Former Government Low Cost Housing Estates by 2005 under the Comprehensive Redevelopment Programme (CRP) in order to improve the living environment of tenants in older estate blocks. The operation of comprehensive redevelopment is planned over five years on a rolling basis. Each year, the Housing Authority reviews and announces the updated Five-Year Redevelopment Programme. The Five-Year Redevelopment Programme (1997/98 to 2001/02) announced in May 1997 is at Annex A.

Local rehousing

3. Tenants affected by CRP are usually given 18 to 24 months advance notice. These tenants are offered rehousing resources within the same district as far as practicable. Their preferences for other districts are normally met subject to availability of rehousing resources in the districts indicated. Of the ten current on-going redevelopment operations, rehousing resources within the same district are available. The Housing Department (HD) is now identifying rehousing resources within the same district for ten more operations due to be announced in 1998. A list of these 20 operations is at Annex B.


4. Monetary assistance in the form of Domestic Removal Allowance (DRA) is payable to tenants affected by CRP. The rates of DRA are set in accordance with those recommended by the Inter-departmental Compensation Review Committee for families compulsorily cleared into public housing. They are reviewed annually. The current rates are given at Annex C.

5. Single person and 2-person households involved in CRP may also opt to receive an allowance of $37,330 and $48,310 respectively in lieu of rehousing. These sums are equivalent to 12 months of the current average rent for similar size of flats in the private sector. These are paid in addition to the DRA.

Purchase of Home Ownership Scheme flats

6. Tenants affected by CRP are encouraged to purchase Home Ownership Scheme (HOS) flats. When these tenants are given rehousing notice, first priority will be given to them in flat selection if they choose to purchase HOS flats. Second priority will be given to tenants whose rental units are within three years of clearance but have not yet received the rehousing notice. DRA is still payable in these circumstances.

7. In line with Government's policy to encourage wider home ownership, we plan to introduce a Mortgage Subsidy Scheme by offering financial assistance to CRP tenants who opt to buy transfer block flats at reception estates.

Advance Allocation Scheme

8. Since 1996, the HD has adopted an Advance Allocation Scheme to allocate flats to tenants affected by redevelopment. Under this arrangement, priorities in selection of flats at reception estates are determined by ballot except for 1-person households the priorities of which are determined by age.

Housing Department
January 1998