The Housing Authority's Subsidised Housing Committee has endorsed a proposal to expand the scope of the Vacant Flat Refurbishment Allowance scheme to cover more units and increase the fund ceiling.

Under the new arrangements to be implemented in October, the scheme will cover all vacant flats aged less than 21 years. Based on the current response rate, the projected saving for the scheme is estimated at $18.4 million per annum. A review will be conducted one year after implementation.

To reflect the higher touch-up costs for ageing flats, the revised allowance will be five months rent for flats in the 16-to-20 age group and four months rent for flats in the 11-to-15 age group.

The allowance, however, will be maintained at the current level of three months rent for flats under 10 years of age. Flats 21 and over as well as Interim Housing flats will be excluded from the scheme.

Older flats may be upgraded

Committee chairman Ng Shui-lai said it may be necessary for the Housing Department to upgrade and renovate flats aged 21 and over.

"As Interim Housing flats have high turnover rates, the department will touch-up the flats without offering refurbishment allowance to the incoming tenants," Mr Ng said.

The current policy of not granting refurbishment allowance to prospective tenants taking up flats under the Tenants' Mutual Exchange Scheme, and overcrowding relief through automatic offers in estates due for redevelopment within three years will be maintained.

To ensure the scheme will not be abused, the department will maintain the practice of not undertaking minor repairs for one year after the tenant has opted for the scheme.

Landlord role to continue

As a caring landlord, Mr Ng stressed the department will continue to perform the landlord's responsibility on structural and major repair works that will affect the neighbourhood or structural integrity of the buildings, including seepage, electricity and water supply.

Introduced in 1998, the scheme provides an option for tenants to conduct minor refurbishment works by themselves or choose to have them carried out by department contractors.

Last year, about 2,900 tenants opted for scheme. With the expansion of the scope and increase of the allowance, Mr Ng is confident that more incoming tenants will opt for it.