A consultation paper on the adjustment of public housing rents will be released in February, Acting Director of Housing Tam Wing-pong says.

Speaking on a radio talk show today, Mr Tam said the consultation would put forward suggestions to improve the existing mechanism and it is hoped that a conclusion can be reached in six months.

He said the authority had earlier endorsed a proposal to relax the eligibility criteria for rental assistance under the Rent Assistance Scheme for tenants in financial hardship.

Under the new proposal, the rent-to-income ratio threshold will be lowered from over 25% to 20% or the income eligibility criteria will be increased from under 50% to below 60% of the Waiting List Income Limit.

Applications will be invited in February and the enhanced measures will be implemented on March 1.

Mr Tam said the authority had also approved spending of about $600 million to enhance the living environment of public rental housing estates.

The improvement works included replumbling works, lift modernisation and installation of condensation drain pipes for air-conditioners at old estates.

Mr Tam said the authority would start selling the remaining 16,000 flats under the Home Ownership Scheme in 2007.