Introduction

This paper provides information on the progress in implementing the Tenants Purchase Scheme (TPS) and some related issues.

First batch of TPS estates

2. The sale of the first batch of six TPS estates was launched on 9 January 1998. As at 2 March 1998, 80% of the 26,854 affected households had expressed an interest in the scheme, and among them, 7,314 households (34%) had submitted offers to buy and had paid the "intention money" of $2,500. The Housing Department started to accept offers at the end of February. We expect that signing of the first Deeds of Assignment will take place in early April.

Responsibility for maintenance of facilities and common areas in TPS estates

3. As a general principle, property owners bear the responsibility for the maintenance of estate facilities and common areas. Open spaces, recreational facilities and estate roads within the boundaries of residential portions of TPS estates are primarily for the benefit of residents of the estate. Future owners of TPS flats, and the HA as owner of unsold flats (and other accommodation within the estates), will share the responsibility for the management and maintenance of these areas and facilities.

4. In some cases, HA will also be responsible for the management and maintenance of recreational facilities that are used jointly by residents and other occupants (such as schools) of TPS estates⁽¹⁾.

Future batches of TPS estates

5. The Housing Authority's (HA) Home Ownership Committee will discuss within this month the sales programme for the next TPS phases.

6. A review of the TPS will be completed in May this year. It will refine the sales procedures and other logistical arrangements, if necessary, in the light of the experience with the sale of the first batch of TPS flats.

Changes to the Home Ownership Scheme

7. The HA recently adopted the following improvements to the HOS, taking into account, among other factors, the impact of the TPS -

1. it has endorsed a flexible discount rate, allowing HOS applicants to opt for two other levels of discounts at 10% above or below the base rate, so that applicants could select the discount level that best suits their personal circumstances. The flexible discount rate will take effect from HOS Phase 19C onward; and
   
   
2. the ratio of Green Form (GF) to White Form (WF) applicants, which was 80:20 in the past, has been replaced by an independent quota allocation for each phase. The GF:WF ratio for Phase 19C HOS is 60:40. Any unused GF quota will be added to the WF quota.
   
   

Way forward

8. At the sitting of the Provisional Legislative Council on 7 January, Members requested that consideration be given to making changes to the Home Ownership Scheme in view of the impact of the TPS.

9. The HA will include in its TPS review aspects of the operation of the HOS that may have a bearing on the implementation of the TPS, taking into account views expressed by Members of the Provisional Legislative Council.



(1) One example is the ball courts in Wan Tau Tong Estate, which are used in the day time by students of schools in the estate, and at night by estate residents. HA will be responsible for the maintenance of the courts.