Page 10 - LanHse_Part1_Subsidized_eng

Table 2 lists the number of “super well-off tenants” (who pay double
rent and market rent) and “relatively well-off tenants” (who pay 1.5 times
rent). Under the HA’s "Housing Subsidy Policy" amended in 1993, “relatively
well-off tenants” are defined as those with household incomes between
two to three times of Waiting List income limits. They are required to pay
one and a half times net rent plus rates (commonly shortened to as “one-
and-a-half-times rent”). If their household incomes exceed the income lim-
its three times or they choose not to declare their household incomes, the
tenants are required to pay double net rent plus rates.

Under the "Policy on Safeguarding Rational Allocation of Public Housing
Resources" (or the so-called “super well-off tenants” policy) implemented
in 1996, those who pay double rent under the “relatively well-off tenants”
policy are required to declare their assets once every two years. Before
1999, if total household income and net assets exceed the limit, or the ten-
ants choose not to declare their assets, they are required to pay market
rent. After the policy was amended in 1999, such households are required
to vacate and surrender their PRH flats.

Based on Professor Lau’s research, the percentage of “tenants pay-
ing additional rent” among PRH tenants has not been on the rise. In his
opinion, this is due to the overly lenient income limits set by the “well-off
tenants” policy. For example, in 2015/16, a three-member household will be
required to surrender their PRH flat if their household monthly income is
as high as $59,460 and their assets exceed the prevailing limits. In the past
few years, only a few hundred have been required to surrender their PRH
flats because of the “well-off tenants” policy (see Table 3). This represents
just a tiny fraction of the 700,000-plus PRH tenants, and thus has little pos-
itive effect on public flat circulation.

Table 3. Number of “well-off tenants” who surrendered their PRH flats
Year 2008/2009 2009/2010 2010/2011 2011/2012 2012/2013

Total number of “well-off tenants” who have moved 536 362 772 318 261

out from their PRH flats

Number of “well-off tenants” who have moved out
upon purchase of HOS flats (including the purchase of 377 225 587 148 165
HOS flats put up for sale by the HA and from the HOS
Secondary Market with premium not yet paid)

The percentage of “well-off tenants” who have moved
out upon purchase of HOS flats to the total number of 70% 62% 76% 47% 63%
“well-off tenants” who have moved out

Source: Government Press Release (2013)

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