Doc Type EFC
Paper No 111/95
Title Leasing of Premises in Private Sector for Housing Information Centres
CONTENTS EFC 111/95


THE HONG KONG HOUSING AUTHORITY

Memorandum for the Establishment and Finance Committee

Leasing of Premises in Private Sector for Housing Information Centres



PURPOSE

To seek Members approval to negotiate and conclude the lease of private premises in Hung Hom and Kowloon West Districts for setting up Housing Information Centres (HICs).


BACKGROUND

2. When the HICs were first set up in September 1992 in Wanchai and Mongkok districts, these were annexed to the District Offices next to the public enquiry counters. In view of the growing effectiveness and popularity of the services rendered, these two HICs have been relocated to larger private ground floor premises as endorsed vide Paper No. EFC 77/94. After relocation, the number of enquiries handled has increased by 25% for the Wanchai HIC and 11% for the one in Yaumatei (relocated from Mongkok).


PROPOSED EXPANSION

3. With a view to providing convenient enquiry services to local residents affected by private redevelopment and elderly people in their application for public rental housing, the Department is planning to set up more HICs in districts with a high concentration of old tenement-buildings which accommodate a higher proportion of elderly and single persons.

4. According to the statistics provided by the Rating and Valuation Department at the Annex, Hunghom/Tokwawan and Kowloon West have the highest number of old tenement-buildings (with age of 31 and above) next to Hong Kong East/Wanchai and Yaumatei/Mongkok/Homantin where HIC services have already been provided. It is proposed to expand the HICs services to these two districts in 1995/96.


PROPOSAL

5. A number of suitable premises in Hung Hom and Shamshuipo have been identified. The size of the premises is in the region of 35 to 45 square metres with current rentals not exceeding $85,000 per month for a 3-year lease. The fitting out cost including furniture is estimated to be around $700,000 for each HIC.

6. Each new HIC will be manned by three Housing Officers and one contract general clerk. Two computer terminals and a multi-media kiosk will be installed to facilitate instant checking on the latest position of the applications. A waiting hall, an interview booth and a dedicated information desk for the elderly will also be provided.

7. To facilitate prompt action on suitable premises which become available for lease, it is proposed that authority be delegated to Senior Assistant Director/Housing Administration to approve the leasing and fitting out of the premises subject to the following conditions -

(a) the monthly rental for each centre not to exceed $85,000 for a term of not less than 3 years;

(b) the deposit be not more than three months rental;

(c) an agency fee not to exceed one months rental; and

(d) fitting-out costs including furniture for one centre not to exceed $700,000.


FINANCIAL IMPLICATIONS

8. Assuming the tenancies of the HICs will commence in November 1995, the rental and the staff cost for the two HICs up to end of 1995/96 plus the expenditure for items (c) to (d) in paragraph 7 will be in the order of $3.5M. Funds are available in the 1995/96 budget for this purpose.

PRESUMPTION

9. It is not thought that Members will object to the proposal in paragraph 7 above. If no objection or request for discussion is received by the Committees' Secretary by noon on 24 November 1995, Members approval will be presumed and appropriate action taken.



---0---0---0---



c.c. Members of the Management and Operations Committee (for Information)




File Ref. : HD(H)APP/A 12/16/2

Date : 10 November 1995

Back