To help boost the number of homes offering residential care for seniors, the Government has announced a scheme to encourage private developers to build and maintain them.

It is hoped that non-governmental organisations and the private sector will get involved, to offer mixed modes of service to suit the varying needs and affordability of seniors and their families.

Under the scheme, eligible premises would be exempt from paying premiums on different types of land transactions, including lease modification, land exchange and private treaty grants. The incorporation of certain lease conditions would ensure the delivery of the premises for seniors.

Homes to operate on a commercial basis

In return, developers pay the cost of constructing the premises for the elderly. They may lease, sell or operate the premises themselves or through agents - as long as the premises remain as homes for seniors.

Such homes under the scheme will be operated on a commercial basis, targeting elders and their families who are able and prepared to pay market determined rates.

To prevent abuse, the requirement to provide residential care homes for the elderly would be stipulated as a condition in the lease. Any unauthorised change in the use of the premises would breach the lease conditions, leading to lease-enforcement actions.

Social Welfare Department must support the seniors' premises

The lease conditions will prohibit the assignment or sub-letting of these premises except as one whole unit. The Social Welfare Department will regulate such premises under the existing licensing regime.

To ensure that the objective of encouraging the development of purpose-built residential care homes for the elderly in better locations is met, the department's support is needed before premium exemption is granted.

The department will take into account the demand for elderly residential care service in the district and the facility's accessibility. It will issue guidance notes on best practices in the design and operation of residential care homes for the elderly for interested developers.

Private sector key in providing seniors' homes

The scheme sends a clear message that the Government continues to place importance on the private sector's role in the provision of quality residential care places. Interested developers can approach the Social Welfare Department for more information.

The Government will review the market response after the scheme is put in place.

The Elderly Commission, the Land & Building Advisory Committee, the Real Estate Developers' Association, and relevant Legislative Council panels were consulted on proposals to encourage provision of residential care homes for seniors in new private developments. Their views were taken into account in formulating this scheme.

The Government will continue to build residential care homes for seniors, or to pay developers to build them on an entrustment basis.

The Government will also continue to select suitable operators for these premises at a nominal rent through competitive bidding by both NGOs and the private sector. These residential care homes provide quality subsidised and non-subsidised places on a continuum of care basis.