Information Paper for
Legislative Council Public Service Panel
Prevention of Double Housing Benefits in the Civil Service



Introduction

This paper sets out the civil service housing benefits policy, the mechanisms in place to monitor the implementation of the prevention of double housing benefits rules and measures available to prevent civil servants from receiving double housing benefits.

Housing Benefits Policy

2. Civil service housing benefits are provided to officers on or above MPS 34 or equivalent as a condition of service and to any others on a quota basis or on the basis of policy, subject to resource constraints. A list of civil service housing benefits is in Annex I.

Prevention of Double Housing Benefits Rules

3. Civil service housing benefits are provided subject to the prevention of double housing benefits rules. Unless otherwise specified in the rules (eg officers directed to live in post-tied departmental quarters):

  1. an officer and spouse may not receive more than one housing benefit at any one time irrespective of whether or not the benefit is provided by the Government, public-funded bodies or private employers;
  2. once an officer or spouse has received a civil service housing benefit to achieve home ownership, they will forfeit their entitlement to all other forms of civil service housing benefits;
  3. if an officer or spouse is receiving a public housing benefit, the officer will not concurrently be eligible to receive civil service housing benefits.

The detailed rules are set out in the Civil Service Regulations - CSR 809. An extract is in Annex II for Members reference.

Implementation

4. The prevention of double housing benefits rules are set out in Civil Service Regulations. A circular memorandum is circulated at half-yearly intervals to remind officers of the rules and the consequences of not complying with them.

5. Officers applying for any civil service housing benefits are required to make a statement on housing benefits which they and their spouses receive. They are also required to report any subsequent changes of information contained in their applications or statements to the approving authority within a period of 30 days.

6. The approving authority will verify the information provided with Housing Department or any other relevant organisations. Those who or whose spouses are in receipt of public housing benefits are required to relinquish their public housing on being granted the civil service housing benefit. A period of three months is allowed for them to do so.

Checking Compliance

7. The Director of Accounting Services will conduct random sample checks on officers in receipt of housing assistance from the Government to ensure that officers live in the property so acquired.

8. Departments with Departmental Quarters are responsible for checking on compliance with the prevention of double housing benefits rules. They carry out record checks on occupants of departmental quarters and their spouses in conjunction with the Housing Department to ensure that they are not receiving double housing benefits. They also work closely with the Housing Department to ensure the prompt return of public housing units to the Housing Department by officers and their spouses allocated departmental quarters.

Penalties

9. Officers who fail to comply with the prevention of double housing benefits rules may be disqualified from all forms of civil service housing benefits, be required to refund the benefits they have received to the Government and/or render themselves liable to disciplinary/legal proceedings.

Administration’s View

10. Government will strictly enforce the prevention of double housing benefits rules. Regular reviews are conducted by the relevant Heads of Department on the control procedures and appropriate action will be taken against cases of non-compliance.

Civil Service Branch
9 December 1996
[Leg-PSP]


Annex I

Civil Service Housing Benefits

Current Benefits

Home Financing Scheme (HFS) The HFS is provided to local officers on or above MPS 34 or equivalent who were appointed on or after 1 October 1990 as a condition of service to assist them to purchase properties in Hong Kong. Local and overseas officers on or above MPS 34 or equivalent who were appointed before 1 October 1990 can opt to join the HFS by forfeiting their entitlement to NDQ/PTA.

Home Purchase Scheme (HPS) The HPS is provided to officers between MPS 22 to 33 or equivalent and those below MPS 22 with 20 years’ continuous service, on a quota basis to assist them to purchase properties in Hong Kong.

Departmental Quarters (DQ) The DQs are allocated by Heads of Department to their staff for operational purpose or in accordance with approved policy

Accommodation Allowance (AAS) AAS is provided only to overseas officers appointed on or after 1 October 1990 to assist them to rent private accommodation.

Civil Service Public Housing Quota Junior civil servants may apply for public (CSPHQ) housing units of the Housing Authority under the civil service public housing quota.

Declining Benefits

Non-departmental Quarters (NDQ) NDQs are provided to local officers on or above MPS 45 or equivalent and all overseas officers who were appointed before 1 October 1990.

Private Tenancy Allowance (PTA) PTA is provided to local officers on or above MPS 34 or equivalent and all overseas officers who were appointed before 1 October 1990 to assist them to rent accommodation.

Housing Loan Scheme (HLS) Officers appointed before 1 October 1990 who have at least 10 years service and are qualified for a pension or an annual allowance may apply for an interest bearing loan to buy a residential property using their pensions/annual allowances as a guaranty.

Co-operative Building Societies (CBS)/ Local officers on permanent and pensionable

Government Built Housing Scheme terms may apply to join one of the existing

(GBHS) schemes. (No new CBS/GBHS have been formed since 1979)

House Allowance (HA) The HA is provided to local officers on or above MPS 34 or equivalent and overseas officers, who were appointed before 1 October 1990, living in their own accommodation and who are not receiving any other housing benefits from the Government. (The amounts are very small)


Annex II

II PREVENTION OF DOUBLE HOUSING BENEFITS AND DOUBLE HOUSING

RELATED BENEFITS AND ENFORCEMENT OF LIVE-IN REQUIREMENT

809

(1)

(a)

For the purpose of administering housing benefits in the civil service, civil service housing benefits and civil service housing related benefits are defined as follows :




(A) Civil Service Housing Benefits




(i) Non-Departmental Quarters;




(ii) Private Tenancy Allowance;




(iii) Hotel and hostel accommodation;




(iv) Departmental Quarters (other than operational post-tied departmental quarters);




(v) Membership of a Local Officers’ Co-operative Building Society, or Underlease of a Local Officers’ Government Built Housing Scheme (other than membership or underlease acquired through beneficial succession);




(vi) Acquisition of a legal title through accepting the first assignment of a lease to a flat and land which belonged at some time to a Local Officers’ Co-operative Building Society or a Local Officers’ Government Built Housing Scheme, and the officer was a member of that Society or underlessee of that Scheme immediately before such assignment (except that this sub-paragraph shall not apply in the case where an officer became a member of such Society or underlessee of such Scheme through beneficial succession, or had inherited the flat and land after such assignment);

Aug 96



(vii) Acquisition of an underlease/license to a flat and land which belonged at some time to a Local Officers’ Co-operative Building Society from an ex-member of such society who does not acquire legal title through accepting assignment after such Society has been dissolved;




(viii) House Allowance;

809 cont.

(1)

(a)

(A) (ix) Home Purchase Allowance and/or Downpayment Loan granted under the Home Purchase Scheme;

Feb 95



(x) Home Financing Allowance and/or Downpayment Loan granted under the Home Financing Scheme;




(xi) Accommodation Allowance;




(xii) Housing Loan granted under the Housing Loan Scheme;

Feb 95



(xiii) Public rental housing flat provided by the Hong Kong Housing Authority and acquired under the Civil Service Public Housing Quota, irrespective of whether the officer concerned is a tenant or an authorized occupant;

Feb 95



(xiv) Home Ownership Scheme flat acquired through the Civil Service Public Housing Quota arrangement (including flats sold under the Home Ownership Scheme and the Private Sector Participation Scheme administered by the Hong Kong Housing Authority and the Flat for Sale Scheme and the Urban Improvement Scheme (only Urban Improvement Scheme flats completed before March 1981) administered by the Hong Kong Housing Society), which is subject to resale restriction, irrespective of whether the officer concerned is an owner or authorized occupant;




(xv) Home Purchase Loan acquired through the Civil Service Public Housing Quota arrangement.




(B) Civil Service Housing Related Benefits




(i) Furniture and Domestic Appliances;




(ii) Furniture Allowance and Domestic Appliances Allowance;




(iii) Air Conditioning Allowance.

809 cont.

(1)

(b)

(i) Except under the circumstances set out in CSR 809(1)(c) below, an officer (whether single, married, separated, divorced or widowed) is entitled to receive at any one time only one civil service housing benefit referred to in CSR 809(1)(a)(A) above, and only one of the same (or similar) civil service housing related benefits referred to in CSR 809(1)(a)(B) above. The officer (whether single, married, separated, divorced or widowed) is prohibited from receiving double housing benefits and/or double housing related benefits (i.e. the concurrent receipt of more than one civil service housing benefit and/or more than one of the same (or similar) civil service housing related benefits).




(ii) Except under the circumstances set out in CSR 809(1)(c) below, a married officer is not eligible to receive any civil service housing benefits if his spouse is in receipt of a civil service housing benefit provided by the Government or any housing benefit at all provided by a private employer. No married officer may receive double housing benefits (i.e. the same or a similar benefit provided more than once concurrently) when such benefits are provided by the Government (in the case of the officer) and by the Government or a private employer (in the case of the officer’s spouse).




(iii) A married officer is not eligible to receive a particular civil service housing related benefit if his spouse is in receipt of that same or similar benefit provided by the Government or a private employer. No married officer may receive double housing related benefits (i.e. the same or a similar housing related benefit provided more than once concurrently) when such benefits are provided by the Government (in the case of the officer) and by the Government or a private employer (in the case of the officer’s spouse).

809 cont.

August 96

(1)

(b)

(iv) An officer and his spouse (if any) are not eligible to receive any civil service housing benefits and civil service housing related benefits if the officer who is an ex-member of a Local Officers’ Co-operative Building Society or a Local Officers’ Government Built Housing Scheme has voted for dissolution of his Society or Scheme for the purpose of transfer of title and he revokes his decision.

Feb 95



(v) Save where provisions exist under the Home Purchase Scheme, the Home Financing Scheme, the Housing Loan Scheme or the House Allowance for an officer to receive concurrent housing benefits, an officer is ineligible to receive civil service housing benefits, if he or his spouse is :




- a tenant or an authorized occupant of a public rental housing flat (i.e. a rental flat provided by the Hong Kong Housing Authority, Hong Kong Housing Society and Hong Kong Settler’ Housing Corporation); or

Feb 95



- an owner or an authorized occupant of a flat sold under the Home Ownership Scheme (including flats sold under the Home Ownership Scheme and the Private Sector Participation Scheme administered by the Hong Kong Housing Authority, and the Flat for Sale Scheme and the Urban Improvement Scheme (only Urban Improvement Scheme flats completed before March 1981) administered by the Hong Kong Housing Society) which is subject to resale restriction; or

Feb 95



- an owner or an authorized occupant of a flat sold under the Sandwich Class Housing Scheme administered by the Hong Kong Housing Society which is subject to resale restriction; or




- the recipient of a loan granted under the Home Purchase Loan Scheme administered by the Hong Kong Housing Authority.

809 cont.

(1)

(b)

(v) regardless of whether or not the flat or loan concerned was acquired through the Civil Service Public Housing Quota.




For the purpose of this regulation, the term "married officer" includes an officer separated from his spouse. A separated officer who has genuine difficulties in complying with this regulation must report to the Secretary for the Civil Service who shall consider each case on its merits.


(1)

(c)

An officer may receive concurrent civil service housing benefits and/or concurrent civil service housing related benefits under the following circumstances :




(i) An officer may occupy operational post-tied departmental quarters under the direction of his Head of Department while he or his spouse receives concurrently another civil service housing benefit, provided that in the case of benefits set out in CSR 809(1)(a)(A)(i) - (xii) the approval of the Secretary for the Civil Service is obtained (see CSR 809(1)(d)). The definition of operational post-tied departmental quarters is contained in the Accommodation Manual. Where the officer goes on leave for a period of 14 consecutive calendar days or more and retains the quarters under CSR 804(5)(a) for his/his family’s residence, he shall report to the Secretary for the Civil Service who shall decide whether he may continue to receive concurrently the other benefit during his leave. The 14 days referred to in this regulation include intervening Sundays and Public Holidays, and Sundays and Public Holidays occurring at the beginning or end of the leave period (see CSR 871(5)).

Aug 94



(ii) If an officer or his spouse is in receipt of a civil service housing benefit, he may be granted hotel/hostel accommodation under CSRs 841(3) and (4) and as provided under the Overseas Service Regulations, subject to the approval of the Secretary for the Civil Service.




(iii) If an officer or his spouse is :

809 cont.

(1)

(c)

(iii) - a member of a Local Officers’ Co-operative Building Society; or




- an underlessee of a Local Officers’ Government Built Housing Scheme; or




- an ex-member of a Local Officers’ Co-operative Building Society to which a Government loan has not been granted and who has acquired a legal title to a flat and land which belonged to that Society. (The societies which have not received a Government loan are Wah Yuen Chuen and Shatin Lodge Co-operative Building Societies); or

Feb 95



- an owner of a Home Ownership Scheme flat (as defined in CSR 809(1)(b)(v)) which was not acquired by him or his spouse through the Civil Service Public Housing Quota arrangement; or




- a recipient of a loan, granted under the Home Purchase Loan Scheme administered by the Hong Kong Housing Authority, which was not acquired through the Civil Service Public Housing Quota arrangement, or

Feb 95



- an owner of a flat under the Sandwich Class Housing Scheme,

he may at the same time receive House Allowance, provided that CSRs 861 and 862 are satisfied.

Feb 95

`


(iv) If an officer is in receipt of a Housing Loan under the Housing Loan Scheme, Home Purchase Allowance and/or Downpayment Loan under the Home Purchase Scheme, or Home Financing Allowance and/or Downpayment Loan under the Home Financing Scheme, he may receive concurrently another civil service housing benefit, provided that the terms and conditions and regulations of the schemes providing for the concurrent entitlement are satisfied.

809 cont.

(1)

(c)

(v) Where an overseas officer, or a local officer receiving a substantive salary on or above MPS point 34 (or equivalent) is directed by his Head of Department to occupy operational post-tied departmental quarters, he may be provided with a set of furniture and domestic appliances for that quarters under CSR 890, and at the same time be granted either another set of furniture and domestic appliances under CSR 890 or furniture and domestic appliances allowances in lieu at the rates set out in Annex 5.3 for another accommodation occupied by his family (as defined in CSR 801(a)), subject to CSR 809(6) and the following conditions being met :




- the officer’s family (as defined in CSR 801(a)) shall be residing at the accommodation for which the other set of furniture and domestic appliances is supplied or furniture and domestic appliances allowances in lieu are granted;




- the officer is eligible for exemption from rent under CSR 871(2); or where the other accommodation occupied by his family is a civil service housing benefit, the officer has obtained approval from the Secretary for the Civil Service or the Head of Department as appropriate for the retention of such a benefit; and




- the accommodation shall not be let or sub-let to any person.




(vi) Where there are other exceptional circumstances approved by the Secretary for the Civil Service.

May 91


(d)

If a Head of Department directs an officer in receipt of a civil service housing benefit to occupy operational post-tied departmental quarters, he shall inform Government Property Administration within 30 days of such direction. In the case of the benefits set out in CSR 809(1)(a)(A)(i) - (xii), the Secretary for the Civil Service shall also be notified; in the case of the other benefits, the Director of Housing shall also be notified (see CSR 809(1)(c)(i) and CSR 831 (2)).

809 cont.

(1)

(e)

Save as provided in CSR 809(1)(c) above and CSR 809(6) below, an officer in receipt of one civil service housing benefit/civil service housing related benefit may relinquish this benefit for switching to another civil service housing benefit/civil service housing related benefit provided to him or his spouse by the Government, or to a housing benefit/housing related benefit provided to his spouse by a private employer.

May 91

(2)


A married officer (including an officer separated from his spouse) is required to opt for either the civil service housing benefits/civil service housing related benefits provided to him by the Government or such benefits provided to his spouse by the Government or similar benefits provided to his spouse by a private employer. An officer in receipt of a civil service housing benefit/civil service housing related benefit should, upon getting married, exercise such an option within 60 days of his marriage (see CSR 809(4)(a)). This option can be changed at any time if the officer and his spouse so wish, subject to any specific conditions attaching to a particular benefit, and also subject to the prior approval in writing of the Secretary for the Civil Service being obtained. A separated officer who has genuine difficulties in complying with this regulation must report to the Secretary for the Civil Service who shall consider each case on its merits.


(3)


When an officer (whether single, married, separated, divorced or widowed) applies for a civil service housing benefit, he is required to forward a "Statement on Housing and Housing Related Benefits Received by An Officer/His Spouse" (GF 551) to -

Feb 95


(a)

his Head of Department (in the case of departmental quarters, and public rental housing flats, Home Ownership Scheme flats (as defined in CSR 809(1)(a)(A)(xiv) and Home Purchase Loans acquired through the Civil Service Public Housing Quota arrangement); or



(b)

the Secretary for the Civil Service and his Head of Department (in the case of other civil service housing benefits).

May 91

(4)

(a)

An officer (whether single, married, separated, divorced or widowed) who is in receipt of civil service housing benefit(s) is required to report, within 30 days, to -

809 cont.

Feb 95

(4)

(a)

(i) his Head of Department (in the case of departmental quarters, and public rental housing flats, Home Ownership Scheme flats (as defined in CSR 809(1)(A)(xiv) and Home Purchase Loans acquired through the Civil Service Public Housing Quota arrangement); or




(ii) the Secretary for the Civil Service and his Head of Department (in the case of other civil service housing benefits),




any change in the information provided in the "Statement on Housing and Housing Related Benefits Received by An Officer/His Spouse" (GF 551) which affects his entitlement to such benefits(s).



(b)

An officer (whether single, married, separated, divorced or widowed) who is in receipt of civil service housing related benefit(s) provided by the Government is required to report to his Head of Department within 30 days any change in circumstances which affects his entitlement to such benefits(s).



(c)

Any overpayment of allowances due to the officer’s failure to comply with CSR 809(4)(a) and (b) may result in deduction of the overpayment from his salary, or from any money due to him or to his estate.

.

(5)


An officer may not claim House Allowance if another person is also claiming the allowance or another civil service housing benefit in respect of the same accommodation.


(6)

(a)

As from the date an officer :

Feb 95



(A) commences to receive Home Purchase Allowance under the Home Purchase Scheme, Home Financing Allowance under the Home Financing Scheme, or receives a Housing Loan under the Housing Loan Scheme (except where he is entitled to continue receiving other civil service housing benefits under the Terms and Conditions of the Scheme concerned); or

809 cont.

(6)

(a)

(B) acquires a legal title through accepting the first assignment of a lease to a flat and land which belonged at some time to a Local Officers’ Co-operative Building Society to which a government loan has been granted, or a Local Officers’ Government Built Housing Scheme, and the officer was a member of that Society or underlessee of that Scheme immediately before such assignment (other than where he became a member or underlessee through beneficial succession, or had inherited the flat and land after such assignment); or

Aug 96



(C) acquires an underlease/license to a flat and land which belonged at some time to a Local Officers’ Co-operative Building Society from an ex-member of such Society who does not acquire legal title through accepting assignment after such Society has been dissolved,




his eligibility for the following civil service housing benefits and civil service housing related benefits is immediately and irrevocably forfeited -




(i) Non-Departmental Quarters;




(ii) Private Tenancy Allowance;




(iii) Hotel and hostel accommodation;




(iv) Department Quarters, other than operational post-tied departmental quarters which he is directed to occupy by his Head of Department;




(v) Membership of a Local Officer’s Co-operative Building Society, or underlease of a Local Officers’ Government Building Housing Scheme, other than in the case of a beneficial successor, nominee or guardian;

Aug 96



(vi) Acquisition of an underlease/license to a flat and land from an ex-member of a former Local Officers’ Co-operative Building Society who does not acquire legal title through accepting assignment after such Society has been dissolved.

809 cont.

May 91

Feb 95

(6)

(a)

(vii) Membership of a Local Officer’s Co-operative Building Society flat which has not received a loan from the Government, upon full settlement of the Housing Loan granted under the Housing Loan Scheme or cessation of payment of allowance under the Home Purchase Scheme and Home Financing Scheme, except where he is already a member immediately prior to the full settlement of the Housing Loan or cessation of the Home Purchase and Home Financing Allowance.




(viii) House Allowance;




(ix) Home Purchase Allowance granted under the Home Purchase Scheme (other than in the case of an officer in receipt of Home Purchase Allowance under CSR 809(6)(A);

Feb 95



(x) Home Financing Allowance granted under the Home Financing Scheme (other than in the case of an officer in receipt of Home Financing Allowance under CSR 809(6)(A);




(xi) Housing Loan granted under the Housing Loan Scheme (other than in the case of an officer in receipt of a Housing Loan under CSR 809(6)(A);

Feb 95



(xii) Public rental housing flat, Home Ownership scheme flat (as defined in CSR 809(1)(a)(A)(xiv) and Home Purchase Loan acquired through the Civil Service Public Housing Quota arrangement;




(xiii) Furniture and domestic appliances, other than those supplied to operational post-tied departmental quarters which he is directed to occupy by his Head of Department; and

Feb 95



(xiv) Furniture and Domestic Appliances Allowance in the case of all Home Financing Allowance recipients and Home Purchase Allowance recipients as from 1.10.90.

809 cont.

(6)

(b)

Where an officer has forfeited his eligibility for the civil service housing benefits and civil service housing related benefits set out in CSR 809(6)(a) above, he will not be eligible for any such benefits during his remaining service, regardless of whether such service is broken, except where he is directed to occupy operational post-tied departmental quarters by his Head of Department.



(c)

If such an officer is married and his spouse is a civil servant, his spouse will also be ineligible for the civil service housing benefits and civil service housing related benefits set out in CSR 809(6)(a) above during his spouse’s remaining service, regardless of whether such service is broken, except where his spouse is directed to occupy operational post-tied departmental quarters by his spouse’s Head of Department.


(7)

(a)

An officer in receipt of civil service housing benefit(s) stipulated in CSR 809(1)(a)(A)(i)-(xv) is required to personally live in the accommodation as his full-time residence, unless prior written approval for exemption is obtained from

May 91



(i) the Director of Housing for the benefits set out in CSR 809(1)(a)(A) (xiii)-(xv);

May 91



(ii) the Secretary for the Civil Service for the benefits set out in CSR 809(1)(a)(A)(i)-(xii) for circumstances other than the following -




- he has acquired an uncompleted property and is thereby exempted from the live-in requirement until the property is ready for occupation (the property is deemed to be ready for occupation one month from the date on which a mortgage or first legal charge on the property is executed); or




- he is directed by his Head of Department to live in operational post-tied departmental quarters; or




- he is on overseas duty, posting, full-pay leave or no-pay leave for attending training under CSR 1014.



(b)

Letting, sub-letting or use of such accommodation, or any part thereof, for any purpose other than residence for the officer himself and his family is prohibited.

809 cont.

(8)


An officer who fails to comply with CSR 809(1)-(7) above may render himself liable to disciplinary and/or legal proceedings and/or disqualification from all forms of civil service housing benefits, and where appropriate, may be required to pay or refund to the Government an appropriate sum to be determined by the Secretary for the Civil Service.


(9)


In the event of any dispute arising from this regulation, the Secretary for the Civil Service’s decision shall be final.


Last Updated on 21 August 1998