The Housing Authority's Commercial Properties Committee has approved a set of arrangements for tenants affected by the clearance of Tai Wo Hau Factory Estate.

Tenants and genuine operators will be given 18 months' notice to vacate their premises and will be offered three months rent-free when leasing other HA factory units or a cash sum of $4,700 per unit.

Ex-gratia allowances ranging from about $15,000 to $126,000 per unit will be paid to tenants.

An advance payment of 70% of the allowances will be paid on application, with the balance to be paid after delivery of vacant possession.

210 tenancies remain

There are now 210 remaining tenancies at the estate occupying 509.5 units, out of which about 50% are in active use. Under an Early Surrender Scheme, 211 tenants holding 518 units have already surrendered their premises.

The estate is one of the four older factory estates, ranging from 30 to 46 years old, earmarked for clearance because of rising maintenance cost and obsolete design.

Last month, the authority's Strategic Planning Committee endorsed the clearance of Tai Wo Hau Factory Estate, Kwun Tong Factory Estate, Kowloon Bay Factory Estate and Chai Wan Factory Estate in phases with the sites to be returned to the Government for disposal after clearance.

As the building condition of Tai Wo Hau Factory Estate is the least satisfactory, it is considered that the clearance and arrangements for the affected tenants in the estate should be dealt with first.