THE latest batch of Home Ownership Scheme (HOS) flats on sale appeared to have lost some of its appeal after preferential arrangements were made for so-called double-rent public housing tenants. The Housing Authority yesterday distributed 60,000 application forms - nearly 30 per cent less than the 85,000 forms snapped up in a previous batch. Five hundred out of the 5,000 flats on sale were set aside for double-rent tenants. A Wong Tai Sin Estate tenant, Gladys Tang Yu Miu-lan, said at the Lok Fu housing office: ''They are richer. I do not see why they should be given preference.'' Mrs Tang, who planned to buy a 500-square-foot flat in the Shau Kei Wan project, said the price was acceptable but feared the policy to set aside flats for tenants paying double-rent could affect her chance of success. The authority said the move was to persuade better-off tenants to vacate their rented homes for the needy. The relatively low turnout for applications was also caused by the bad weather, potential home-buyers said. On offer are 4,488 flats in four projects in Shau Kei Wan, Yau Tong, Fanling and Tuen Mun. Another 500 units in Junk Bay are being offered to tenants affected by government redevelopment. Buyers are given a 45 per cent discount on the flats' market values. Prices start at $498,000 for a 520-square-foot unit in Tuen Mun.