Families who have parents or grandparents living with them will be allowed to jump the public housing queue.
The new policy, expected to benefit more than 9,000 families, takes effect immediately.
'To address the housing needs of an increasing elderly population, we have to take proactive and timely steps to put in place a coherent housing policy to promote family care for the elderly,' said Chan Kam-man, chairman of the Housing Authority's rental housing committee.
The policy will apply to people who have been in the housing queue for at least two years and have one or more elderly members. They will have their wait cut by three years. The average wait for a flat is 6.5 years.
Families will have to promise to take care of their elderly members for as long as they live in the flat. The Housing Department could evict people who broke their agreement, said Mr Chan.
However, Housing Authority member and legislator-elect Lee Wing-tat warned of abuse.
He said the previous policy had required the elderly person to be the principal tenant.
