A new loan package has been devised to provide greater financial assistance to help Albert House owners solve their civil liability for damage caused by a fatal accident in 1994.

Chairman of an assessment panel of the loan scheme, Professor Nelson Chow said the package has been launched by the Government and the Housing Society in response to feedback from owners on the original scheme offered on January 28.

"We believe the latest financing arrangement can cater for the needs of every individual owner," he said.

Under it, elderly owners with no income or another property will be eligible for a maximum interest-free loan of $200,000 to be repaid until ownership of the subject unit is transferred to another party or the borrower passes away, whichever happens first.

Recognising some younger owners may also have genuine financial difficulties, a bridging loan of $200,000, at zero interest and up to a maximum of 60 months (or until the ownership of the subject unit is transferred, whichever comes first) will be provided on compassionate grounds to be considered by the assessment panel.

Other eligibility

As for other owners, all except corporate owners will be eligible for a bridging loan of $200,000, also at zero interest for 12 months (or until the ownership of the subject unit is transferred, whichever comes first).

The property of the owners concerned will be charged in favour of the Housing Society.

"Because of the ongoing liquidation process of the owners' corporation and the charging orders, Albert House owners will find it difficult to find mortgages from private banks and financial institutions at the present stage," Professor Chow said.

"With the bridging loan provided by the society, owners can clear the encumbrances on their land title regarding the judgment debt. Then, like any other person who owns a property as an asset, they can choose to obtain mortgages or refinancing in the free market for repayment of their loan."

The loan scheme will be open for application from February 8 until March 8. Owners can call the Southern District Office on 2814 5762 for details and application forms.