The Legislative Council has passed the Housing (Amendment) Bill 2007, which enables the establishment of a new income-based rent adjustment mechanism for public rental housing.

The Housing, Planning & Lands Bureau today said the Housing Authority will adjust the existing public rental housing rent according to changes in the income index since 1997, which means an across-the-board rent reduction of 11.6%.

The reduction will take effect on August 1 and letters will be sent to all tenants to inform them of the arrangements.

After the reduction, some 90% of the tenants will pay less than $2,000 and some 70% of the tenants will pay  less than $1,500.

Assistance scheme criteria relaxed

The authority will also relax the eligibility criteria for the Rent Assistance Scheme; the revisions will be implemented together with the rent reduction on August 1.