Application for two new building rehabilitation subsidy schemes begins next week

The Urban Renewal Authority (URA) today (Friday) signed Memoranda of Understanding (MOU) with the Development Bureau and the Security Bureau for the launch of Operation Building Bright 2.0 Scheme (OBB 2.0 Scheme) and Fire Safety Improvement Works Subsidy Scheme (FSW Scheme) respectively. The URA will also take over the work of the Hong Kong Housing Society (HKHS) under the Mandatory Building Inspection Subsidy Scheme (MBISS). Being fully responsible for handling all new MBISS applications including the areas originally served by HKHS, URA will provide a one-stop and comprehensive support to property owners on various building rehabilitation initiatives.

Application for OBB 2.0 Scheme and FSW Scheme will start concurrently on next Monday (9 July). The application will be closed on 31 October 2018. The application result is expected to be announced by the end of this year. The URA today signed the respective MOU with the Development Bureau and the Security Bureau stipulating the implementation framework of OBB 2.0 Scheme and FSW Scheme. The two schemes are introduced in response to the Policy Address announced by the Chief Executive last year to use $3 billion and $2 billion to assist owners in need to undertake the inspections and repair works required under the Mandatory Building Inspection Scheme (MBIS), and comply with the fire safety enhancement measures required under the Fire Safety (Buildings) Ordinance, with an aim to tackle the safety hazards of old private residential or composite buildings and enhance the fire safety standard of old composite buildings. The application requirements and details of the two subsidy schemes are at Annex.

Starting from the same day (9 July), the URA will take over the work of HKHS under MBISS. The MBISS was jointly launched by the URA and HKHS in August 2012 to dovetail the implementation of MBIS and subsidise the cost of the first building inspection. With effect from 9 July 2018, the URA will be fully responsible for handling all new MBISS applications, including the areas originally served by HKHS, thereby extending its service area for MBISS to cover the whole of Hong Kong.

With the launch of the two new subsidy schemes and being fully responsible for all new MBISS applications, the URA also integrates its building rehabilitation assistance schemes and services, with a view to providing a one-stop and comprehensive support to property owners. To facilitate owners to apply for various subsidy and assistance schemes, the URA has consolidated the application forms of various building rehabilitation schemes into a single form of Integrated Building Rehabilitation Assistance Scheme (IBRAS), covering applications for all assistance schemes. Building owners can apply multiple building rehabilitation subsidy schemes of the URA in one go by filling in one single application form or by online submission of a newly-launched electronic application form, which saves time and makes the application procedures more convenient. In order to encourage building owners to form owners’ corporation for organising building rehabilitation works, the URA also streamlined the application for owners’ corporation formation subsidy. If the owners’ corporation is formed within 12 months before the submission of the IBRAS application, the owners will be able to obtain the subsidy.

Speaking after the signing of the MOU, Chairman of the URA, Mr Victor So Hing-woh, said: “The two new building rehabilitation subsidy schemes will provide further financial and technical support to building owners in need with a view to facilitating the compliance with statutory notice for mandatory building inspection and Fire Safety Directions, and improving the building condition and fire safety standards of old buildings. It also encourages owners to fulfill their responsibilities for proper repair and maintenance of their buildings, which will help improve the building condition in Hong Kong in the long run. To ensure the $5 billion subsidy is fully used to support owners for carrying out building rehabilitation works, the URA will bear all costs in relation to the manpower, appointment of independent consultancy services and administration for the implementation of the two schemes, allowing the funding allocated by the Government to be fully used to help the owners in need.”

Also attending the signing ceremony, the Secretary for Development, Mr Michael Wong, said: “OBB 2.0 Scheme will focus on helping the more needy owner-occupiers of old buildings to carry out the prescribed inspection and repair works under MBIS in the hope of facilitating timely maintenance and repairs to enhance building safety, extend the useful life of buildings, slow down urban decay and improve the living conditions of the community.”

Speaking after the signing ceremony, the Secretary for Security, Mr John Lee, said: “Fire safety enhancement of buildings plays a pivotal role in protecting life and property. With the launch of the FSW Scheme, we hope to subsidise owners of old composite buildings to start works as soon as possible to comply with the requirements under the Fire Safety (Buildings) Ordinance, so as to protect the lives and properties of the occupants and visitors of these old buildings.”

Following the 10 mass briefings held by the URA for owners of the target buildings of OBB 2.0 Scheme and FSW Scheme early this year, the URA will launch a new round of 11 briefing sessions together with the Buildings Department, the Fire Services Department and the Home Affairs Department from July to August. The URA has sent letters to owners of the target buildings to invite them to attend the briefings where details and application methods of the two new subsidy schemes will be explained.

Application for the two new subsidy schemes will begin from 9 July. The application form and respective guidance notes can be downloaded from the website of Building Rehab Info Net (http://www.buildingrehab.org.hk/eapplication) or obtained from the following URA offices:

URA Headquarters: 26/F COSCO Tower, 183 Queen’s Road Central, Hong Kong;
URA Building Rehabilitation Division Office: Unit 1001, 10/F, Tower 2, Cheung Sha Wan Plaza, 833 Cheung Sha Wan Road, Kowloon;
Urban Renewal Resource Centre: 1/F, No. 6, Fuk Tsun Street, Tai Kok Tsui, Kowloon; and
URA Neighbourhood Centres in Kwun Tong, Sham Shui Po and Kowloon City.

The application form and guidance notes will also be available at all Home Affairs Enquiry Centres later. Applications can be made by sending the duly completed form to the URA by post, in person or by submitting the electronic form on the URA website.

For details about the two new subsidy schemes, members of the public can call the Hotline at 3188 1188 for assistance and enquiries.

Application details of Operation Building Bright 2.0 Scheme and Fire Safety Improvement Works Subsidy Scheme

	Operation Building Bright 2.0 Scheme	Fire Safety Improvement Works Subsidy Scheme
Application Period	From 9 July 2018 to 31 October 2018
Scope of coverage	Primarily for prescribed inspection and repair works under Mandatory Building Inspection Scheme (MBIS) (including consultancy fee)	Fee for fire safety improvement works in the common areas of a building required under the Fire Safety Directions or the relevant Fire Safety Compliance Orders (including consultancy fee)
Application Requirements	Private residential or composite (residential and commercial) buildings aged 50 years or above	Target composite (residential and commercial) buildings under the Fire Safety (Buildings) Ordinance
	Average rateable values (RV) of domestic units in participating building should not exceed the upper RV limit	Average RV of domestic units in participating building should not exceed the upper RV limit
	Buildings have been issued with outstanding MBIS notices or pre-notification letters by the Buildings Department, and had not complied with the MBIS notices by 11 October 2017[i]	Owners of buildings have been issued with Fire Safety Directions issued by the Fire Services Department and Buildings Department on the common areas of a building, or relevant Fire Safety Compliance Orders, and had not yet completed the works to meet the Fire Safety (Buildings) Ordinance requirements by 11 October 2017
	Buildings have formed owners’ corporation/owners’ committees in accordance with the Deed of Mutual Covenant/engaged building manager/reached consensus among all owners to join the scheme	Buildings have formed owners’ corporation/owners’ committees in accordance with the Deed of Mutual Covenant/engaged building manager/reached consensus among owners to join the scheme
Target beneficiaries and subsidy level	Target beneficiaries: Owner-occupiers Subsidy for works at common parts of a building: 80% of the cost subject to a cap of $40,000 per unit Elderly owner-occupiers aged 60 or above will be subsidised 100% of the cost subject to a cap of $50,000 per unit	Maximum 60% of the cost, or corresponding cap imposed on the respective category of buildings, whichever is less
Target beneficiaries and subsidy level	Subsidy for private projecting structures[ii]: 50% of the cost subject to a cap of $6,000 per unit	Subsidy will be disbursed to owners’ corporations, owners’ committees or owners’ representatives on a building-basis (applicable to buildings that have not yet formed owners’ committees but obtained the consent of all owners to join the scheme)

[i] Including buildings (a) not yet engaged inspectors or contractors with a view to complying with the MBIS requirements; or (b) the MBIS-related works were regarded as ongoing at the time when OBB 2.0 Scheme was announced in the Policy Address on 11 October 2017, i.e. the Buildings Department, as of 11 October 2017, had not yet issued compliance letters confirming that the works carried out met the MBIS requirements.

[ii] An individual eligible owner can apply subsidy for undertaking prescribed inspection and repair works in respect of such private projecting structures only if his building is approved for participation in OBB2.0.

(ENDS)

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