Future operator of Hong Kong’s first ‘light public housing’ flats will be paid less if occupancy rate falls below 85%
- Undersecretary for Housing Victor Tai says occupancy rate among key performance indicators for city’s first 2,100 ‘light public housing’ flats in Yuen Long
- Operator will be able to earn up to 7.5 per cent more on its monthly fee as estate approaches capacity, but will lose money if occupancy rate drops below 85 per cent
Hong Kong authorities will reduce the monthly fee paid to the future operator of the first batch of government-built temporary flats if the occupancy rate falls below 85 per cent.
Undersecretary for Housing Victor Tai Sheung-shing on Monday said the occupancy rate was one of the key performance indicators used to monitor the management of the city’s first 2,100 “light public housing” flats and determine financial incentives for the yet-to-be decided operator.
“If [the operator] achieves our targets, it will get more money. We hope it can keep up its performance,” Tai said.
The site on Yau Pok Road in Yuen Long is one of 13 locations where the administration will build a combined 30,000 transitional homes by the 2027-28 financial year to house families that have waited for a permanent public rental flat for at least three years.
The tender process kicked off on Monday last week, with NGOs and property management companies able to submit applications until noon on April 19. The government will assess their proposals, which include operation plans and fees.
Deputy housing secretary Winnie Wong Ming-wai said companies would be able to receive up to an extra 7.5 per cent of the monthly operation fee as the estate approached capacity.
She added that the operator would be rewarded with a further 1 per cent of the monthly fee if more than 90 per cent of tenants used an e-payment solution to settle their rent.