Housing Authority members are considering rent review proposals aimed at bringing the median rent-to-income ratio of public rental housing down to the statutory cap of 10%.

Their views were formally sought today on the proposed framework for conducting the rent review as ordered by the High Court before concrete recommendations will be put forward for consideration by the end of the month.

Opinions were sought on five rent adjustment options under two different approaches: a simple across the board reduction for all or a targeted adjustment for different classes of tenants or estates with a view to addressing the main causes for the rise in the median rent-to-income ratio.

The first option to reduce rent by 38% for more than 547,000 units covered by the 2003-04 review aims to bring the ratio down to 10% or below in accordance with the Housing Ordinance in a straightforward manner.

The other four options under the targeted approach are:

* a 40% reduction for households with rent-to-income ratios exceeding 10%;

* differential rent reductions ranging from 31% to 41% for new and old estates/blocks;

* rent waivers for elderly households plus a 17% reduction for non-elderly households; and,

* rent waivers for Comprehensive Social Security Assistance households plus a 10% rent reduction for other households.

Considering the potentially far-reaching implications of the review for the authority's finance and the long-term sustainability of public housing programmes, the Housing Department will continue to hear the views of members and other sectors before finalising the proposals.

Whether and when a rent reduction is implemented hinges on the outcome of the Court of Appeal hearing scheduled for mid-April.