7/31/2019 Relocation and Compensation (III)
1/43
Land Development Corporation
&Urban Renewal Authority
Compensation
&
Relocation
7/31/2019 Relocation and Compensation (III)
2/43
Land Development
Corporation
Compensation
7/31/2019 Relocation and Compensation (III)
3/43
Eligibility
Tenants living in LDC redevelopmentproject areas but without self-owned
domestic properties or other livingquarters
Tenants must be lawful Hong Kongresidents
7/31/2019 Relocation and Compensation (III)
4/43
Eligibility
Tenants who have been or are living on
the affected premises prior to theannouncement date of redevelopment
7/31/2019 Relocation and Compensation (III)
5/43
Principles of cash
compensation
Cash compensation is offered by LDC
with reference to The statutory requirements
1983 rateable value
Current rateable value
7/31/2019 Relocation and Compensation (III)
6/43
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
7/31/2019 Relocation and Compensation (III)
7/43
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
7/31/2019 Relocation and Compensation (III)
8/43
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
7/31/2019 Relocation and Compensation (III)
9/43
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
7/31/2019 Relocation and Compensation (III)
10/43
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
7/31/2019 Relocation and Compensation (III)
11/43
Land Development
Corporation
Development
7/31/2019 Relocation and Compensation (III)
12/43
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
7/31/2019 Relocation and Compensation (III)
13/43
Eligibility
Tenants
living in LDC redevelopment project areas
Tenants must be lawful H.K. residents
Be affected to the announcement date ofredevelopment
7/31/2019 Relocation and Compensation (III)
14/43
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
7/31/2019 Relocation and Compensation (III)
15/43
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%
7/31/2019 Relocation and Compensation (III)
16/43
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
7/31/2019 Relocation and Compensation (III)
17/43
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
7/31/2019 Relocation and Compensation (III)
18/43
Facilities of Rehousing Unit
Basic facilities are provided
Management services
7/31/2019 Relocation and Compensation (III)
19/43
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
7/31/2019 Relocation and Compensation (III)
20/43
Urban Renewal
Authority
Compensation
7/31/2019 Relocation and Compensation (III)
21/43
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).
7/31/2019 Relocation and Compensation (III)
22/43
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
7/31/2019 Relocation and Compensation (III)
23/43
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
7/31/2019 Relocation and Compensation (III)
24/43
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.
7/31/2019 Relocation and Compensation (III)
25/43
Payment Arrangement
Half of the total amount
paid upon the execution of surrender
agreement and remaining half
paid after the delivery of vacant possession.
7/31/2019 Relocation and Compensation (III)
26/43
Urban Renewal
Authority
Relocation
7/31/2019 Relocation and Compensation (III)
27/43
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
7/31/2019 Relocation and Compensation (III)
28/43
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.
7/31/2019 Relocation and Compensation (III)
29/43
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.
7/31/2019 Relocation and Compensation (III)
30/43
Eligibility of
Compassionate Re-housing
Households
do not meet the normal eligibility criteria
7/31/2019 Relocation and Compensation (III)
31/43
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
7/31/2019 Relocation and Compensation (III)
32/43
Cash Incentive
10% of the basic ex-gratia allowancewill be offered to non-domestic tenants,
who are in occupation before the projectoccupancy survey.
7/31/2019 Relocation and Compensation (III)
33/43
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.
7/31/2019 Relocation and Compensation (III)
34/43
Comparison between Land
Development Corporation and
Urban Renewal Authority
7/31/2019 Relocation and Compensation (III)
35/43
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
7/31/2019 Relocation and Compensation (III)
36/43
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
7/31/2019 Relocation and Compensation (III)
37/43
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
7/31/2019 Relocation and Compensation (III)
38/43
Comparison of Relocation
executed by the two bodies
7/31/2019 Relocation and Compensation (III)
39/43
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
7/31/2019 Relocation and Compensation (III)
40/43
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
7/31/2019 Relocation and Compensation (III)
41/43
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
7/31/2019 Relocation and Compensation (III)
42/43
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
7/31/2019 Relocation and Compensation (III)
43/43
Comment on Relocation
The URA shows more compassion forthe single/double person household
The URA has also paid attention to thenon-domestic tenants
Top Related