URA launches new initiative to promote rehabilitation
VThe Urban Renewal Authority (URA) announced today (Monday) a
new Rehabilitation initiative with a total budget of $210 million
to assist owners of multi-owned old buildings to carry out
rehabilitation work to improve their living environment.
The initiative, comprising two different schemes, aims at offering
assistance either in kind or in interest-free loan to hundreds of
buildings in the urban area over the next five years.
Announcing the schemes today, URA Managing Director, Mr Billy Lam
said: "both schemes are intended for residential buildings which
are 30 years' old or above and are located within or near URA's
urban renewal target areas. The reason why we are having two
schemes is that, based on the experience of the pilot projects
conducted last year, we found that there are two large categories
of owners with distinctly different needs.
"As owners corporations are indispensable for getting a
rehabilitation project off the ground as well as maintaining a
rehabilitated building in the long run, we have made it a condition
in both schemes that the existence of owners corporations is a
pre-qualification for joining," Mr. Lam explained.
One of the schemes is designed as a trial scheme under which the
URA would provide technical guidance and rehabilitation material
incentive to an estimated 140 buildings comprising about 8,000
units. The material incentive will amount to 10 per cent of the
full cost of a project or $3,000 per unit, whichever is the
lower.
"These are buildings subject to statutory actions under the
Buildings Department's Co-ordinated Maintenance of Buildings Scheme
or "Blitz" operations or other relevant statutory orders. If these
buildings owners wish to take the opportunity to rehabilitate the
whole building for good, the URA would be happy to assist," Mr. Lam
said.
"We have had some very successful cases applying this model in
several pilot projects in Tai Kok Tsui. The owners become
'motivated' when they receive the statutory orders. The only
problem is that they lacked experience and perhaps also a bit of
additional funding. This is where the URA comes in," he said.
The other scheme, for which the URA has set aside $190 million for
the next five years, is an interest-free loan scheme designed for
owners who would carry out rehabilitation for their buildings
without receiving any statutory orders.
The URA estimates that the loan scheme would potentially cover 400
buildings comprising 24,000 units.
Individual owners can apply for a loan up to $100,000, repayable in
60 months. For elderly and disabled owners who are welfare
recipients and are in genuine financial difficulties, the URA may
consider offering a grant not exceeding $10,000 per household
instead of a loan.
A key feature of the URA initiative is that the urban renewal body
is teaming up with a total of 10 NGOs to promote the schemes. The
NGOs include works- or building management-related professional
bodies, social work organisations and local branch of political
parties which enjoy strong working relationship with owners
corporations of residential buildings in old districts such as Sham
Shui Po, Yau Ma Tei, Tai Kok Tsui and Mong Kok. These NGOs have
pledged to help promote the schemes through their networks in the
coming year. Some of them will also help owners to form owners
corporations.
"This echoes the idea mentioned by Mr Michael Suen, Secretary for
Housing, Planning and Lands at a Legislative Council meeting last
week that the Government was considering the feasibility of seeking
the participation of NGOs in fostering a stronger building
management culture at the district level," Mr Lam said.
Asked how optimistic he was about public response to the schemes,
Mr. Lam said: "It is difficult to predict the public's response to
a new initiative, especially because there has been such a
widespread neglect of building care in the old districts for many
years.
"Building decay is a formidable and deteriorating problem. Someone
has to do something before all hope of solving the problem is lost
within the next decade."
According to government statistics, about 11,000 residential
buildings or roughly 30 per cent of the total in Hong Kong are
without any form of management structure. Another estimate
published in the Government's Urban Renewal Strategy says that
there are about 2,000 dilapidated residential buildings in the old
districts and the number will increase to 3,000 in 10 years'
time.
"Redevelopment alone will not be sufficient to solve or contain the
problem. Rehabilitation and preventive maintenance must be used
also as a strategic solution to help speed up urban renewal, as the
Chief Executive has said in his Policy Address earlier this year,"
he concluded.