The Housing Authority has reached agreement with the Link Management that, upon divestment of the authority's retail and car-parking facilities, sitting social welfare agencies and kindergartens will continue to enjoy rent concessions.

Secretary for Housing, Planning & Lands Michael Suen told lawmakers today the Link Management, as an independent company, will make its own tenancy arrangements with other organisations or commercial tenants according to its business strategies.

Among the commercial facilities to be divested, there are 100 social welfare agencies and 43 kindergartens, accounting for about 9% of the total number of the non-profit-making organisations and kindergartens operating in authority's commercial premises and enjoying rent concessions.

Subject to review

At present, eligible non-profit-making welfare agencies and kindergartens leasing the authority's commercial facilities are given rent concessions. In determining the rate of concessionary rent, the authority mainly takes into account the daily operational costs, including management expenses, maintenance costs and the general recurrent expenditure. The rate is subject to review every three years. 

Tenants providing welfare or community building services lease the premises at concessionary rent, the prevailing rate of which is $45 per square metre of Internal Floor Area.

Operators of kindergartens can lease the premises at half of the prevailing market rents. Upon the renewal of tenancy, they have to pay either half of the prevailing market rent or the concessionary rent applicable to non-profit-making welfare agencies, whichever is the higher.

Similar to other commercial lettings, the offices of District Council or Legislative Council members are let at prevailing market rents.