URA Launches New Preventive Maintenance Subsidy Scheme on 1 April

The Urban Renewal Authority (URA) will launch a new scheme, Preventive Maintenance Subsidy Scheme (PMSS), to motivate owners of residential and composite properties to carry out preventive maintenance for their buildings. The PMSS will open for application starting from 1 April 2024.

Preventive maintenance ensures the building components can be properly upkept and includes inspections to enable minor defects to be detected at an early stage such that they can be repaired before deteriorating into major costly problems. Implementing preventive maintenance is crucial for extending the service life of buildings and slowing down the pace of urban decay. By providing financial assistance, the PMSS aims to incentivise eligible owners to compile building maintenance manuals and establish financial reserves for future maintenance expenses such that preventive maintenance can be systematically implemented.

The PMSS will provide property owners with two subsidies in two stages. The first stage involves support for the preparation of the Building Maintenance Manual (BMM), while the second stage focuses on incentivising property owners in establishing a Special Fund (the Fund). To be eligible for the subsidies, the building must fall within a certain rateable value threshold. Additionally, the property owners must follow the necessary procedures and meet the specific requirements at each stage, such as submitting the required documentation in a timely manner.

The first stage of subsidy will be offered to property owners for engaging an Authorised Person (AP) to prepare a BMM by using the templates provided by the URA. The BMM shall include the timeline and implementation details for maintenance works for common areas and facilities for the building. It shall also provide an estimation of the costs for the maintenance tasks for the next 10 years, and a schedule for owners to make financial contributions. The subsidy will support 50% of the consultancy fee for the preparation of the BMM subject to maximums according to the size of the building.

The second stage subsidy will offer incentives equivalent to 10% of the owners’ total contribution to the Fund over a period of three years, subject to maximum limits based on the size of the building. To be eligible for this subsidy, property owners must pass resolutions in Owners’ General Meetings to establish and arrange financial contributions to the Fund, which will be utilised to cover non-recurrent expenses related to building maintenance works, as listed in the BMM. To receive the subsidies, property owners must demonstrate that they have made regular and consistent contributions to the Fund for the entire three-year period.

The application requirements and details of the PMSS are listed in the Annex. Starting from 1 April 2024, the application forms and guiding notes can be downloaded from the Building Rehabilitation Platform website (www.brplatform.org.hk). Printed application forms will be available at the following locations starting from 2 April, and at District Offices and Enquiry Centres of Home Affairs Department from 5 April onwards:

URA Headquarters: 26/F COSCO Tower, 183 Queen’s Road Central, Hong Kong;
URA Building Rehabilitation Division Office: Unit B, G/F, 777-783 Yu Chau West Street, Kowloon;
Urban Renewal Resource Centre: 1/F, No. 6, Fuk Tsun Street, Tai Kok Tsui, Kowloon;
URA Building Rehabilitation Resource Centre: 201 & 202, 2/F, eResidence, 8 Hok Yuen Street, Hung Hom, Kowloon; and
URA’s Kowloon City Neighbourhood Centre: Units K & L, 1/F, Sunshine Plaza, 17 Sung On Street, Hung Hom

Interested parties should submit the completed forms to the URA Building Rehabilitation Division Office by post or in person. For details about the PMSS, please call the Hotline at 3188 1188 for enquiries.

(ENDS)

Annex:
Application Details for the Preventive Maintenance Subsidy Scheme

Application date

1 April 2024 onwards

Eligible buildings

Building usage shall be private residential or composite (commercial and residential) building (including a building held by a Civil Servants’ Co-operative Building Society(“CBS”)). Building usage shall be referred to the Occupation Permit (“OP”) of the building;
Building has:
1. formed Owners’ Corporation; or
2. been held by a CBS; or
3. been managed by property management company with a valid property management licence under Property Management Services Authority; or
4. the manager who engaged for providing services to the building under Deed of Mutual Covenant.
The average annual rateable value of all the domestic units in the building shall not exceed the limit.
Application shall be submitted before the tendering procedure of Authorised Person (AP) for the preparation of the BMM.
Building has not been included as a redevelopment project by the URA.
Building has not received any PMSS subsidy.

Use of subsidy

Preparation of BMM (First stage of subsidy)

Engage an AP to compile a BMM by adopting the URA’s template. The BMM will include the review of the structural elements, equipment and facilities in the common areas, as well as data collection and the associated works.

Set-up of Special Fund (Second stage of subsidy)

Provide incentive subsidy to the Special Fund* to encourage building owners to set up a Special Fund and make regular contributions for planned maintenance works according to the BMM.

* For covering the non-recurring building maintenance expenditure

Subsidy amounts and limits

First stage of subsidy

No. of units	Subsidy item	Subsidy cap (HK$)
20 units or below	50% of consultancy fee to appoint AP for compiling BMM	$15,000
21 – 49 units		$20,000
50 units or above		$30,000

Second stage of subsidy

No. of units	Subsidy item	Subsidy cap (HK$)
20 units or below	10% of total contributed amount for first 3 years from issuance date of contribution schedule *Accumulated contribution amount in the Special Fund for the first three years must reach 80% of the amount resolved in the Owners’ meeting, otherwise the second stage subsidy will not be released.	$2,000 / unit
21 – 49 units		$1,500 / unit
50 units or above		$1,000 / unit or $200,000 (whichever is the lower)

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