Information Paper
for the LegCo Panel on Housing

The Administration's response to concerns
raised by Members at the special meeting of 12 July 1999

Affordability of tenants in public housing estates

(a) To consider devising separate rent-setting criteria for elderly public rental housing (PRH) tenants


As the prime consideration in rent-setting is tenants' ability to pay, public rental housing is heavily subsidised by the community. (The principle of affordability is translated into two median rent-to-income ratio ceilings.) Attempt to devise a separate rent-setting criterion for the elderly PRH tenants is undesirable and would be seen as being unfair to other categories of tenants. Tenants who continue facing financial difficulty may approach the Social Welfare Department for application of Comprehensive Social Security Assistance (CSSA).

(b) To provide data by household size and block type comparing the median rent-to-income ratio (MRIR) of households affected by Comprehensive Redevelopment Programme (CRP), before and after they move to new PRH estates


The MRIR of households affected by CRP, before and after they moved to new PRH estates in the past five years, are estimated as follows -

MRIR (%)(Excluding CSSA recipients)
Household sizeBefore they movedAfter they moved
1-person and 2-person6.717.9
3-person and above4.511.9

Data by block type is not available.

(c) To consider increasing PRH rent by phases for households affected by CRP, instead of implementing an abrupt rent increase upon their removal to new PRH estates


Increasing the rents of the new estates by phases would be restricted by the Housing Ordinance because the Housing (Amendment) Ordinance 1997 provides that any variation in public housing rent levels shall only take effect at least three years after the coming into effect of the previous rent determination.

Housing Department September 1999