The Housing Authority says there is immense public interest in clarifying the verdict that it was in breach of the law
The Housing Authority will lodge an appeal with the top court to overturn a ruling that it had breached its duty by not reviewing rents to ensure they complied with limits under the Housing Ordinance.
The law says rents must not exceed 10 per cent of tenants' median household income.
Secretary for Housing, Planning and Lands Michael Suen Ming-yeung said the authority was appealing against the ruling because it involved a matter of immense public interest. The unusual step of taking the case to the Court of Final Appeal, instead of to the Court of Appeal first, was aimed at saving costs and getting a speedy ruling, Mr Suen said.
He said the decision to appeal was not related to the authority's financial hardship, even though the ruling, if allowed to stand, will leave it facing claims of $4.5 billion from tenants who have been overcharged and will deprive the authority of $48.7 billion in rental revenue over the next decade.
The authority wanted one more opportunity to clarify some very important points, he said.
'It is about how to interpret rent reduction, the rent review mechanism and what we should do. It is not a problem of whether we will win in the end. Because this case involves immense public interest, it is necessary we get these points clarified,' said Mr Suen.
