The Housing Authority has endorsed a more targeted approach in conducting its rent review by waiving the rents of households receiving Comprehensive Social Security Assistance, on top of an across-the-board 10% reduction for other homes.

The decision was made after a thorough deliberation by members on rent adjustment options which aim to bring the median rent-to-income ratio of public rental housing down to the statutory cap of 10%.

The adopted option has taken into full account the affordability of public housing tenants and causes the least financial loss to the public purse among the proposals examined. It is estimated to cost the authority $2.52 billion for the first year and $7.76 billion for the coming three years.

Balance important

As the Social Welfare Department will correspondingly adjust the amount of rent allowance payable to 117,300 households receiving assistance, the net loss under this approach for the public purse as a whole is expected to be in the region of $740 million for the first year and $2.42 billion in the next three years.

Members said it is important to strike a balance between the interests of tenants and other sectors of the community.

The 10% reduction for households not receiving assistance is also considered to be a more viable and acceptable alternative as this level is broadly in line with the general deflation rate since the rent review in 1999.

The authority said the interests of individual households receiving assistance will not be adversely affected nor will they receive additional benefits.