The Housing Authority has approved the provision of 29,700 public rental housing flats for 2006-07. They consist of 8,400 new and 21,300 refurbished flats for eligible families. About 67.3% will be allocated to waiting list applicants.

Despite a shortfall of 3,300 flats, down 10% on last year, the authority pledges to maintain the average waiting time at around three years.

To maximise utilisation of housing resources, the ad-hoc arrangement relaxing the restriction on district of choice will continue. This will allow eligible waiting list applicants to switch their choice of district to urban areas when flat supplies surplus.

Applications will be invited from waiting list applicants registered before October 1, 2004 in mid-2006 to switch their choice of district.

Under Comprehensive Redevelopment & Major Repairs Programme for 2006-07, about 1,500 flats will be allocated for the redevelopment of Shek Kip Mei Estate Phases 5 & 6 and for early thinning-out of tenants in So Uk Estate, which will be cleared in the coming years. Another 100 flats will be set aside for tenants affected by major repairs.

To cater for rehousing needs affected by clearance, Urban Renewal Authority Projects and Interim Housing trawling exercises, 400 flats have been allocated to the Clearance Category.

As for overcrowding relief and transfer needs, 2,000 flats have been set aside for overcrowded families. Another 3,000 flats will be set aside for transfers. This year's provision under the Non-elderly One-person Applicants category will be 1,600 flats.