Relocation and Compensation (III)

7/31/2019 Relocation and Compensation (III)

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Land Development Corporation

&Urban Renewal Authority

Compensation

&

Relocation


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Land Development

Corporation

Compensation


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Eligibility

Tenants living in LDC redevelopmentproject areas but without self-owned

domestic properties or other livingquarters

Tenants must be lawful Hong Kongresidents


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Eligibility

Tenants who have been or are living on

the affected premises prior to theannouncement date of redevelopment


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Principles of cash

compensation

Cash compensation is offered by LDC

with reference to The statutory requirements

1983 rateable value

Current rateable value


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Principles of cash

compensation

Compensation, including principal

tenants and sub-tenants, is calculatedon:

Areas exclusively used or controlled them

& Pro-rata share of common areas


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Details of cash compensation

Before 1992, either: 8 to 16 times the 1983 rateable value

2 times the current rateable value

* Whichever was higher

After Dec. 1993:

5 times the current rateable value

* The statutory requirement is only 1.7 current rateablevalue


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Conditions of compensation

Tenants opt for cash compensation willautomatically forfeit their right to

relocation

Principal tenants not residing in the

units will only receive compensationwhich is the excess of rental receivedfrom his sub-tenants


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Conditions of compensation

Principal tenants will receive all cashcompensation for vacant rooms or

rooms vacated by sub-tenants

All illegal structures built on or after the

announcement of redevelopment willnot be included for calculation


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Payment

Tenants after signing the compensationagreement will receive half of the cash

compensation, the balance will be givenwhen they vacate the premises

Cash compensation will be paid eitherin cash or by cheque


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Land Development

Corporation

Development


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Reasons for Relocation

LDC stated:

it is the Corporations stated policy that no

genuine tenants affected by itsredevelopment projects would be renderedhomeless.

As old urban areas are redevelped for the

overall benefit of all the people in H.K.affected tenants (lower income one) must beappropriately looked after


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Eligibility

Tenants

living in LDC redevelopment project areas

Tenants must be lawful H.K. residents

Be affected to the announcement date ofredevelopment


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Arrangements

Single / Two-person household Single / two-person dormitories

Households with three persons or more Family units

One month rent-free period for current

occupied unit May move out early or after deadline

through application


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Rentals of Family Units

Rates and management fees included

Water and electricity charges excluded

Average household income permonth

Full market rental

Up to $ 8,500 23%

$ 8,501 - $ 12,000 35%Over $ 12,000 52%


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Rentals of Dormitory

Accommodations

Rates, management fees and electricityand water charges included

Dormitory unit Monthly rentals

Bedspace $250

Single-personcubicle

$350

Two-person cubicle $700


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Other Rental Details

Rentals renew every two years

Incomes will be reviewed every two

years

Tenants may appeal to the LDC foradjudication

Tenants may appeal to pay a lowerrental


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Facilities of Rehousing Unit

Basic facilities are provided

Management services


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RemovalAllowance

Principal living areas - $ 5 psf saleablearea

Subsidiary areas - $ 2.5 psf saleablearea

Universal rates $ 500 for bunks

Universal rates at $ 600 for bedspaces

Minimum amount offered - $ 1,000


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Urban Renewal

Authority

Compensation


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Eligibility

Tenants affected by URA redevelopment projectswill be offered re-housing.

Tenants who are not allocated re-housing unit

may receive basic cash compensation Basis of cash compensation is in accordance with

Landlord and Tenant (Consolidation) Ordinance(LTO).


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Principles of Basic Cash

Compensation The formula for calculating statutory compensation is

as follows: Rateable Value (RV) - HK$first $30,000 RV 7 times RV

next $30,000 RV 5 times RVnext $30,000 RV 3 times RVremaining RV Statutory Compensation 1 timesRV

A minimum amount of HK$70,000 - one-personhousehold

HK$80,000 for a two-person or larger household


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Details of Cash Incentive

70% of the basic cash compensation fortenants on ex-gratia basis

Residents (legal domestic tenants only) -moved within the project boundaries after theproject occupancy survey

receive LTO compensation plus a 20%incentive


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Payment for Principal Tenants

Absentee principal tenants - before thedate of project occupancy survey

HK$10,000 plus an incentive provided theyaccept the offer within a specified period

Absentee principal tenants - after the

project occupancy survey HK$5,000 without any cash incentive.


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Payment Arrangement

Half of the total amount

paid upon the execution of surrender

agreement and remaining half

paid after the delivery of vacant possession.


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Urban Renewal

Authority

Relocation


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Eligibility

Tenants affected by the project area

prevailing eligibility criteria for public housing

of the HKHA and the HKHS will apply. Domestic tenants living in the project area

before the project freezing survey


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Arrangements

Eligible domestic tenants

Be re-housed in units provided by the Hong Kong Housing Authority (HKHA) or

the Hong Kong Housing Society (HKHS)

Can opt for other subsidized housingschemes provided by HKHA and HKHS.


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Ex-gratia Removal Allowance

Tenants re-housed as a result of a URAproject

an ex-gratia removal allowance offered Half of the total amount of ex-gratia removal

allowance

paid upon the execution of surrender agreement

remaining half paid after the delivery of vacant possession.


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Eligibility of

Compassionate Re-housing

Households

do not meet the normal eligibility criteria


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Basic Ex-gratia Allowance

Non-domestic tenants - tenancies areterminated by their landlords

not entitled to any compensation or otherpayments.

URA prepared to pay 3 times the RV of the

affected premises as an ex-gratiaallowance


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Cash Incentive

10% of the basic ex-gratia allowancewill be offered to non-domestic tenants,

who are in occupation before the projectoccupancy survey.


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Payment Arrangement

The whole package of basic ex-gratiaallowance and incentive

payable to tenants who accept the offer withina specified period.

Half of the total amount of basic ex-gratiaallowance and cash incentive

be paid upon the execution of surrenderagreement

the remaining half paid after the delivery of vacant possession.


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Comparison between Land

Development Corporation and

Urban Renewal Authority


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Compensation

LDC only provide compensation fortenants without self-owned domestic

properties or other living quarters butURA do not

In LDC, tenants must be lawful Hong

Kong residents but in URA, tenant canbe unlawful residents


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Compensation

In LDC, only for tenants who have beenor are living on the affected premises

prior to the announcement date ofredevelopment

In URA, tenants can also have

compensation after the projectoccupancy survey


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Compensation

The compensation provided by the URAis better than that provided by the LDC

Ex- gratia removal allowance isprovided in URA but not in LDC

Payment arrangement is the same forURA and LDC


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Comparison of Relocation

executed by the two bodies


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Comparison of Eligibility to

Relocation Both should be domestic tenants living

in the affected area before the

announcement of redevelopment For URA, the tenant should also satisfy

the eligibility criteria for public housing

of the HKHA and the HKHS, thoughthose should not satisfy the criteria forURA may be offered compassionate

rehousing


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Comparison of Relocation

Arrangement

Single or double person households willbe allocated to single or double persondormitories for LDC

All households will be allocated tohousing units of HKHA or HKHSregardless of the number of family

members in the household for URA


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Comparison of Payment of Rentals

for Housing Units allocated

The amount payable monthly for LDCby the tenants bases on their total

household income. The amount payable monthly for URA is

the same as the rental for public

housing of HKHA or HKHS


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Other Differences

Non-domestic tenants for URAwhosetenancies are terminated by theirlandlords will be compensated with basic ex-gratia allowances (about 3 times the RV of theaffected premises)

Cash incentives are also payable to the non-domestic tenants for those who are inoccupation before the project occupancysurvey.

The two arrangements above are not presentfor LDC


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Comment on Relocation

The URA shows more compassion forthe single/double person household

The URA has also paid attention to thenon-domestic tenants

Documents

Relocation and Compensation (III)