Revision of URA re-housing costs

The Urban Renewal Authority (URA) has reached a preliminary understanding with the Hong Kong Housing Authority (HA) on a new financial arrangement to reduce the cost of public rental re-housing for tenants affected by urban redevelopment projects.

Under the new arrangement, the URA will pay the HA an average of about $113,400 per flat in public rental estates in urban or extended urban areas for re-housing a family. This represents a reduction of about 65% of the current level of payment by the URA.

The arrangement is the result of a review between the two organisations on the basis of calculating the notional cost incurred by the HA in providing rental flats to families affected by redevelopment projects.

The URA Board today (Thursday) endorsed the new arrangement in principle, subject to further negotiation on implementation details.

At present, the HA provides a total of 1,000 rental units to the URA each year for re-housing purpose. This will not be affected by the revised financial arrangement.

"The URA is thankful to the Housing Authority for rendering support and assistance in re-housing which is vital to the implementation of acquisition and redevelopment of dilapidated urban areas," the spokesman said.