Applications open for third round of demand-led redevelopment projects

The Urban Renewal Authority (URA) is inviting applications for the third round of projects under its pilot demand-led redevelopment scheme as from today (Tuesday) until 30 September 2013.

Announcing this today, Director, Corporate & Legal Services of the URA, Mr Pius Cheng, said: "The demand-led redevelopment model has been well received among the interested property owners with staunch support since its introduction in 2011, with the first two rounds of demand-led redevelopment projects recorded a total of 25 and 34 applications respectively by the closing dates.   In the third round, the URA is committed to taking up demand-led redevelopment projects for commencement in year 2014/15 as soon as possible so as to benefit more people, help them improve their living environment and speed up the pace of redevelopment."

Mr Cheng recalled that all three demand-led projects selected from the first round of applications have attained the 80% acceptance threshold and obtained the authorisation of the Secretary for Development. Meanwhile, the URA has already commenced all four projects selected in the second round of applications.

The demand-led model is one of the major initiatives of the Urban Renewal Strategy promulgated in 2011, providing an opportunity for owners to initiate redevelopment of their own properties. It also exemplified a "bottom-up" approach with great emphasis on people first.

"The demand-led redevelopment projects of the first two rounds announced for implementation have been making good progress so far, which clearly demonstrated that the development model is able to quicken the pace of redevelopment," said Mr Cheng.

The application requirements for the demand-led projects include, inter-alia, that:

• the building conditions of all buildings in the site are "poor" or "varied";
• the size of the site should generally be larger than 400 square metres;
• each application is submitted and supported by owners of not less than 67% of the undivided shares in every lot within the site;
• in computing the required percentage, if any owner owns not less than 20% of the undivided shares in a lot, that/those owner(s) must be the owner-applicant(s); and
• the development project must be a project that may be implemented under section 26 of the Urban Renewal Authority Ordinance and redeveloped into a residential, commercial or commercial/residential development.

An application will go through a screening process conducted by the URA Management to determine whether it meets all the application requirements. If it does, it will be considered as a "valid application" and will proceed to be scored by the URA Management and an Assessment Panel comprising two URA Board members and the Managing Director of URA. Based on the scores, the Assessment Panel will then make recommendations to the URA Board in regard to the inclusion of any demand-led project(s)  in the 2014/15 Annual Business Plan which will be subject to the approval by the URA Board and the Financial Secretary.

Once a selected demand-led redevelopment project is gazetted for implementation, the URA will conduct a freezing survey on the same date of the gazette notice to signify that the application is successful, said Mr Cheng.

As for those unsuccessful applications, the coordinators will be duly informed of such in writing by the URA after the conduct of freezing surveys of the selected projects.  Owners may consider re-submitting applications in the following year or they may apply for the facilitation services of the Urban Redevelopment Facilitating Services Company Limited if it is deemed necessary, he added.

Mr Cheng cautioned that even though a selected demand-led project is gazetted for implementation and a freezing survey carried out correspondingly, there must be an acceptance of URA's conditional offers up to the 80% level of the said project within a 90-day period with the execution of Sales & Purchase Agreements and the granting of Government authorisation within one year before it is taken a further step for implementation.

Mr Cheng said in making the application for the demand-led scheme, the coordinator is asked to deploy all possible means to inform all owners of building(s) in the application site of the relevant application so that every property owner is aware of the application.

Starting from today, pamphlets and application forms for the demand-led redevelopment project (third round), in both English and Chinese, will be available at the following locations:

All duly completed and signed application forms should be returned by hand to URA Headquarters (26/F, COSCO Tower, 183 Queen's Road Central, Hong Kong) by 5 pm on or before Monday, 30 September 2013.

The URA has commissioned the Senior Citizen Home Safety Association (SCHSA) to provide an enquiry and assistance service for property owners who are interested in applying for the scheme.

For details, please call the SCHSA enquiry service hotline at 2342 6656 / 2345 5184.

 (ENDS)