Application opens for 5th round of demand-led redevelopment project (pilot scheme) next month

The Urban Renewal Authority (URA) today (Thursday) announced that application for the fifth round of projects under its demand-led redevelopment project (pilot scheme) will be open for three months starting 18 February until 18 May 2016.  The URA aims to select suitable project(s) from this round for implementation within its 2016/17 financial year.

Speaking at a media briefing today, Director (Planning and Design) of the URA, Mr Michael Ma, said: "The URA will accept applications for the fifth round next month and extend the application period to three months so as to allow interested property owners more time to make preparation for the application.  An assessment panel of the URA will review the applications and make recommendation to the URA Board for a decision. Any selected project(s) from the fifth round will be included in the URA's 2016/17 Business Plan after obtaining approval from the Financial Secretary."

Since the introduction of the demand-led redevelopment model in 2011, the URA has commenced a total of 11 demand-led redevelopment projects in three rounds of projects, helping some 1,000 households improve their living environment. The demand-led redevelopment model provides an opportunity for owners to initiate redevelopment of their own properties.

Of the 77 applications received for the fourth round, most of them were applications from applicant-owner of one single flat only which failed to meet any of the application requirements.  In fact, there was only one application which was able to meet all application requirements.  However, this application is considered not suitable for implementation after a stringent screening and scoring process conducted by the URA.

The fifth round of demand-led application would have the following application requirements:

• Joint application by owners of not less than 80% of the undivided shares of each lot of an applicant site. If an owner owns not less than 20% of the undivided shares in any lot, he/she must be among the applicants;
• All buildings within the site are classified as "poor" or "varied"; and
• The total area(s) of the lot(s) in the site should be no less than 700 square metres.

Conditions of buildings will be considered in the project selection process with the relevant weighting set at 50 percent. If the application involves buildings with non-compliance of building orders issued by the Buildings Department, scores will be deducted.

In order to sustain the pilot scheme, financial consideration will also be given in the project selection process.  The acquisition offers for domestic properties of the demand-led redevelopment projects are calculated in accordance with the Government's Home Purchase Allowance Policy (known as "7-year-old" HPA policy). 

The selected and approved demand-led redevelopment project(s) of the fifth round will be gazetted for implementation and freezing survey will be done on the same day in the 2016/17 financial year. 

Mr Ma cautioned that the continued implementation of a selected project is subject to the fulfillment of two conditions precedent, namely, (i) acceptance of URA's conditional offers and signing of Agreements for Sale and Purchase by owners of no less than 80% of undivided shares of each lot in the application within the specified offer period and; (ii) the Secretary for Development's authorisation of the project and no appeal is filed within the appeal period or if an appeal is filed, the dismissal of appeal, within one year of the offer.

Starting from 18 February 2016,  pamphlets and application forms for the fifth round of the pilot scheme, 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 the URA Headquarters at 26/F COSCO Tower, 183 Queen's Road Central, Hong Kong, by 5 pm  on or before Wednesday,18 May 2016.

The URA has commissioned the Senior Citizen Home Safety Association to provide an enquiry and assistance service to any person who is interested in applying for the fifth round of the pilot scheme.  The enquiry service hotline is 5582 2295.

 (ENDS)