A four-member monitoring group has been set up under the Housing Authority's Subsidised Housing Committee to oversee disposal of Kingsford Terrace, a Private Sector Participation Scheme in Ngau Chi Wan.

Committee chairman Ng Shui-lai will act as the convenor and other members include Chan Kam-lam, Wong Kwun and Stephen Yip.

According to the way forward endorsed by the committee, the Government will negotiate with the developer for a lease modification premium through mediation and settle the developer's claims flowing from the alleged failure of the authority to nominate purchasers.

The main role of the group is to monitor the progress of the negotiations and report to the committee as necessary. Members will advise on matters relating to the interest of the Housing Authority and the public during the negotiation and be consulted on any settlement proposals before approval will be sought from the Secretary for Housing, Planning & Lands.

Increased transparency

The group will also increase transparency in dealing with the disposal of the Private Sector Participation Scheme flats.

As a fallback option, the authority will buy back the whole development if both parties fail to reach an agreement. The group will be asked to steer the negotiation with the developer on matters relating to the buy back plan.

The Government and the authority have been exploring the feasibility of different options to dispose of the Private Sector Participation Scheme flats following the re-positioning of housing policy in November 2002. 

The Government is determined to withdraw from the market and introduce a series of initiatives to stabilise the property market. In line with the policy, the Government ceased the sale of subsidised sales flats.