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Special Compensation and Rehousing (C&R) Arrangements

The special package to be offered for the Hung Shui Kiu (HSK) New Development Area (NDA) has been formulated with reference to the special C&R package for eligible clearees affected by the Kwu Tung North and Fanling North (KTN/FLN) NDAs, the details of which are set out in the paper submitted to the North District Council (NDC) in April 2017 (NDC paper no. 10/2017) (Enclosure 1  (Chinese version only)).  The package includes the prevailing general C&R arrangements and also the following special C&R arrangements subject to the specified eligibility criteria, restrictions and discretions as set out at Annex 7 of Enclosure 1 


(a)    Special Rehousing Scheme (SRS)


The Government have formulated a Special Rehousing Scheme (SRS), generally the same1 as the special rehousing arrangements adopted for KTN/FLN NDAs, that offers eligible households2 affected by the HSK NDA project the option to rent or buy subsidised housing units at a dedicated en-bloc local rehousing estate (Dedicated Rehousing Estate).  Two adjacent sites near Hung Fuk Estate have been reserved for the development of the Dedicated Rehousing Estate, which can provide a total of about 2,100 flats, including rental and subsidized sale flat (SSF) units. The Government will invite the Hong Kong Housing Society (HKHS) to develop and manage the Dedicated Rehousing Estate.  The eligibility criteria and restrictions are the same as those applied to households affected by the KTN/FLN NDAs project.


For assessing the eligibility of households opting for rental units under the SRS, the prevailing maximum income and asset limits for HKHS’s Group B rental housing will be generally adopted3. Nevertheless, for elderly households4 opting for the rental housing, the Secretary for Development (SDEV) has discretion to relax the maximum asset test requirement (but not the income test requirement) making reference to the estimated discounted sale prices of HKHS’s SSF units at the Dedicated Rehousing Estate.  For eligible households opting to purchase SSF units under SRS, the means test requirement would be waived and a discounted amount of the Special Ex-gratia Cash Allowance (SEGCA) explained in item (b) below be offered (see below for details).


(b)   Special Ex-gratia Cash Allowance (SEGCA)


Same as for KTN/FLN NDAs, eligible households5 affected by the HSK NDA project would be offered a SEGCA in the form of a lump-sum cash allowance at a maximum of $600,000, regardless of the area occupied by the relevant structures.  The SEGCA offered will be on a structure or household basis, whichever is smaller.  That is, if a household occupies more than one structure, the SEGCA will only be paid once for the household; if more than one household occupies one structure, the SEGCA will only be paid once for the structure, and the households will have to agree amongst themselves on the sharing arrangement.  The amount of SEGCA receivable in individual cases with special circumstances which warrant discretion to be exercised by SDEV to grant SEGCA will be determined with reference to, inter alia, the length of continuous occupation in the structures concerned for domestic use immediately preceding the date of the freezing survey.  The cash allowance will be discounted at a maximum of $500,000 if the relevant household opts for purchasing an SSF under the SRS mentioned in item (a) above.


(c)    Domestic Removal Allowance (DRA)


The coverage of DRA would be extended to all households covered by the freezing survey and vacated by the Government.


The special C&R arrangements of SEGCA and DRA proposed above would be subject to approval of the Finance Committee of the Legislative Council.


For KTN/FLN NDAs project, a one-off bridging allowance in the form of a lump-sum cash allowance to cover broadly the rental expenses during the time gap between clearance and flat intake date would be offered. According to the latest development programme for HSK NDA, it is the plan to make the rehousing units at the reserved rehousing sites for HSK NDA available in time for clearance, the special C&R arrangements for HSK NDA do not include any bridging allowance.
Eligible households are those which occupy licensed or surveyed domestic or non-domestic structures for domestic use in the 1982 squatter structure survey (SSS), are registered in the 1984/85 squatter occupancy survey (SOS), are registered in the freezing survey, do not own properties and meet other specified eligibility criteria and restrictions. The Secretary for Development may exercise discretions to cater for the special circumstances of individual households (e.g. households not registered in the 1984/85 SOS but have resided in the licensed/survey structures for 10 years or more prior to freezing survey, and elderly households with compassionate grounds).
Under the SRS, households should be subject to the maximum asset and income limits for HKHS’s Group B rental housing and there is no minimum income limit. Rental units of HKHS fall into two groups: Group A and Group B.  Group A caters for low-income families whereas Group B targets families of relatively higher incomes.  The eligibility criteria of Group A are very similar to the Comprehensive Means Test (CMT) requirement of the Hong Kong Housing Authority (HKHA)’s public rental housing units while those of Group B are more lenient than HKHA’s CMT requirement.  For illustration purpose, for a family of four, as at 1 June 2017, the maximum family income and family asset limits under Group A eligibility are $27,500 and $510,000 respectively, while those under Group B eligibility are $42,000 and $510,000 respectively.  The corresponding minimum family income limit of $27,501 under Group B eligibility is not applicable for assessing the eligibility of clearees for rental units at the Dedicated Rehousing Estate under the SRS.
For the purpose of the SRS, an elderly household is broadly defined as a household with at least 50% of its members (excluding children aged below 18 at the time of actual clearance) being elderly persons aged 60 or above at the time of actual clearance.
See footnote 2 above.