Hong Kong must beware of fallout in fixing public housing ills

As one of the world’s most densely populated and expensive cities, Hong Kong’s public housing is a vital safety net for its low-income residents. But as the government grapples with the multifaceted challenges of balancing a limited supply of affordable housing with increasing demand, it must also address abuses of the public housing system while ensuring equity and support for its most vulnerable residents.

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Recently, local media channels and online platforms have highlighted the challenges confronting the public housing sector. Examples of blatant abuse and the government’s intervention efforts have sparked much public comment. But these abuses have persisted for decades and the entire community is aware of the issues.

One well-known example of how some tenants exploit the system is by holding on to public housing units even after moving out. Units are sometimes used for commercial purposes, such as beauty salons or gyms, as storage spaces or left empty. Concerns about some tenants breaching the financial eligibility criteria are also common.

Abuse of the system is fraudulent, unethical and completely unacceptable. The average waiting time for general public housing applicants is 5.5 years, and there are reports of single under-60s who have been waiting for as long as 16 years.

The eligibility criteria for public rental housing are well-publicised. For the current financial year started April 1, the monthly income limit for a four-person household is HK$30,950 (US$3,975), while the combined asset limit is HK$590,000. For an individual, the limits are HK$12,940 for monthly income and HK$286,000 for assets.

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In its December report, the Legislative Council’s housing panel said the Housing Authority would raise rents and lower income limits for better-off tenants who have lived in public housing for 10 years.

  

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