The Hong Kong government will make it easier for owners of subsidized housing to rent out their properties in September by waiving the land premium requirement.
Housing Authority said in a statement on Thursday that it had approved a scheme that allows owners of subsidized resale flats to rent out their units without paying a land price to the government.
The authority will launch the new pilot scheme with a quota of 3000 apartments.
According to the statement, the scheme “will make more effective use of existing housing resources, allow landlords … to use their properties flexibly and provide more rental options for citizens who are not eligible for public rental housing but cannot afford to buy private residential properties”.
Under the scheme, landlords who have owned their flats for 10 years or more can rent out their flats without paying the land price to tenants who meet the household income and asset limits set by the White Form eligibility. the criteria.
The land premium that landlords currently have to pay before renting their flats is around 30 per cent of the flat’s current market value.
Currently, renting out subsidized housing without first paying the price of the land is a crime criminal offense.
Under the new scheme, landlords will have to pay a rental permit fee to the government.
Peace of mind
“Many landlords have owned them (subsidised sales flats) for many years and their housing needs may have become different due to changes in their family circumstances,” said a Housing Authority spokesman.
The new scheme will allow landlords to make more effective use of their housing by providing eligible tenants with affordable housing options, they said.
Landlords will need to apply for two certificates, each with an application fee of HK$400, before they can start renting out their flats.
Speaking to reporters after an event on Thursday, Stephen Cheung, chairman of the authority’s Subsidized Housing Committee, said the new plan would allow landlords to rent out their flats with peace of mind and prevent them from renting out their properties on the black market.
