Cash handouts from July for those in housing queue

The government will from next month start giving out up to HK$3,900 a month to families who have been on the waiting list for a public housing flat for more than three years.

The scheme was announced by Chief Executive Carrie Lam in her latest policy address, and officials revealed on Thursday how much cash households of various sizes will receive.

Individuals on the waiting list are expected to receive HK$1,300 per month under the scheme, while a family of six or more will get HK$3,900. The money will be handed over at the end of each month.

But Comprehensive Social Security Assistance recipients and those already living in public housing flats won’t be able to apply, and individual applicants are only eligible for the money if they are elderly.

Application forms for eligible households will be sent out later this month, ahead of the start of the three-year trial.

Director of Housing Agnes Wong said she understands poor families may consider the sum to be too low, but she believes it will still help them.

“There is no need for them to definitely use it for rent per se. This is purely to relieve their pressure while waiting for the public rental housing. I don’t know how much it will help but it definitely will provide some kind of relief to them,” she said.

Asked how the government can prevent landlords from taking advantage of the subsidy to increase rents, Wong said officials are nearing the final stages of preparation for a bill that will introduce rent controls for subdivided units.

“For the private landlords, the government cannot honestly control them not to increase rent per se. But [when] we have the subdivided unit rental control in place, hopefully this will balance off the potential impact,” she said.

The government is hoping to enact the law within this legislative term.

The cash allowance scheme will cost an estimated HK$8 billion and is expected to benefit around 90,000 households.

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