Land Development Corporation

1
Land Development Corporation Urban Renewal
Authority

• Compensation
• Relocation

2
Land Development Corporation

• Compensation

3
Eligibility

• Tenants living in LDC redevelopment project areas
  but without self-owned domestic properties or
  other living quarters
• Tenants must be lawful Hong Kong residents

4
Eligibility

• Tenants who have been or are living on the
  affected premises prior to the announcement date
  of redevelopment

5
Principles of cash compensation

• Cash compensation is offered by LDC with
  reference to
• The statutory requirements
• 1983 rateable value
• Current rateable value

6
Principles of cash compensation

• Compensation, including principal tenants and
  sub-tenants, is calculated on
• Areas exclusively used or controlled them
• Pro-rata share of common areas

7
Details of cash compensation

• Before 1992, either
• 8 to 16 times the 1983 rateable value
• 2 times the current rateable value
• Whichever was higher
• After Dec. 1993
• 5 times the current rateable value
• The statutory requirement is only 1.7 current
  rateable value

8
Conditions of compensation

• Tenants opt for cash compensation will
  automatically forfeit their right to relocation
• Principal tenants not residing in the units will
  only receive compensation which is the excess of
  rental received from his sub-tenants

9
Conditions of compensation

• Principal tenants will receive all cash
  compensation for vacant rooms or rooms vacated by
  sub-tenants
• All illegal structures built on or after the
  announcement of redevelopment will not be
  included for calculation

10
Payment

• Tenants after signing the compensation agreement
  will receive half of the cash compensation, the
  balance will be given when they vacate the
  premises
• Cash compensation will be paid either in cash or
  by cheque

11
Land Development Corporation

• Development

12
Reasons for Relocation

• LDC stated
• it is the Corporations stated policy that no
  genuine tenants affected by its redevelopment
  projects would be rendered homeless.
• As old urban areas are redevelped for the overall
  benefit of all the people in H.K.
• affected tenants (lower income one) must be
  appropriately looked after

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Eligibility

• Tenants
• living in LDC redevelopment project areas
• Tenants must be lawful H.K. residents
• Be affected to the announcement date of
  redevelopment

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Arrangements

• Single / Two-person household
• Single / two-person dormitories
• Households with three persons or more
• Family units
• One month rent-free period for current occupied
  unit
• May move out early or after deadline through
  application

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Rentals of Family Units
Average household income per month Full market rental
Up to 8,500 23
8,501 - 12,000 35
Over 12,000 52

• Rates and management fees included
• Water and electricity charges excluded

16
Rentals of Dormitory Accommodations
Dormitory unit Monthly rentals
Bedspace 250
Single-person cubicle 350
Two-person cubicle 700

• Rates, management fees and electricity and water
  charges included

17
Other Rental Details

• Rentals renew every two years
• Incomes will be reviewed every two years
• Tenants may appeal to the LDC for adjudication
• Tenants may appeal to pay a lower rental

18
Facilities of Rehousing Unit

• Basic facilities are provided
• Management services

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Removal Allowance

• Principal living areas - 5 psf saleable area
• Subsidiary areas - 2.5 psf saleable area
• Universal rates 500 for bunks
• Universal rates at 600 for bedspaces
• Minimum amount offered - 1,000

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Urban Renewal Authority

• Compensation

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Eligibility

• Tenants affected by URA redevelopment projects
  will be offered re-housing. 
• Tenants who are not allocated re-housing unit may
  receive basic cash compensation
• Basis of cash compensation is in accordance with
  Landlord and Tenant (Consolidation) Ordinance
  (LTO).

22
Principles of Basic Cash Compensation

• The formula for calculating statutory
  compensation is as follows Rateable Value (RV) -
  HK     first 30,000 RV 7 times
  RV
• next 30,000 RV 5 times RV
• next 30,000 RV 3 times RV
• remaining RV Statutory Compensation 1 times RV
• A minimum amount of HK70,000 - one-person
  household
• HK80,000 for a two-person or larger household

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Details of Cash Incentive

• 70 of the basic cash compensation for tenants on
  ex-gratia basis
• Residents (legal domestic tenants only) - moved
  within the project boundaries after the project
  occupancy survey
• receive LTO compensation plus a 20 incentive

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Payment for Principal Tenants

• Absentee principal tenants - before the date of
  project occupancy survey
• HK10,000 plus an incentive provided they accept
  the offer within a specified period
• Absentee principal tenants - after the project
  occupancy survey
• HK5,000 without any cash incentive.

25
Payment Arrangement

• Half of the total amount
• paid upon the execution of surrender agreement
  and
• remaining half
• paid after the delivery of vacant possession.

26
Urban Renewal Authority

• Relocation

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Eligibility

• Tenants affected by the project area
• prevailing eligibility criteria for public
  housing of the HKHA and the HKHS will apply.
• Domestic tenants living in the project area
  before the project freezing survey

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Arrangements

• Eligible domestic tenants
• Be re-housed in units provided by
• the Hong Kong Housing Authority (HKHA) or the
  Hong Kong Housing Society (HKHS)
• Can opt for other subsidized housing schemes
  provided by HKHA and HKHS.

29
Ex-gratia Removal Allowance

• Tenants re-housed as a result of a URA project
• an ex-gratia removal allowance offered
• Half of the total amount of ex-gratia removal
  allowance
• paid upon the execution of surrender agreement
• remaining half
• paid after the delivery of vacant possession.

30
Eligibility of Compassionate Re-housing

• Households
• do not meet the normal eligibility criteria

31
Basic Ex-gratia Allowance

• Non-domestic tenants - tenancies are terminated
  by their landlords
• not entitled to any compensation or other
  payments.
• URA prepared to pay 3 times the RV of the
  affected premises as an ex-gratia allowance

32
Cash Incentive

• 10 of the basic ex-gratia allowance will be
  offered to non-domestic tenants, who are in
  occupation before the project occupancy survey.

33
Payment Arrangement

• The whole package of basic ex-gratia allowance
  and incentive
• payable to tenants who accept the offer within a
  specified period.
• Half of the total amount of basic ex-gratia
  allowance and cash incentive
• be paid upon the execution of surrender agreement
  
• the remaining half
• paid after the delivery of vacant possession.

34
Comparison between Land Development Corporation
and Urban Renewal Authority
35
Compensation

• LDC only provide compensation for tenants without
  self-owned domestic properties or other living
  quarters but URA do not
• In LDC, tenants must be lawful Hong Kong
  residents but in URA, tenant can be unlawful
  residents

36
Compensation

• In LDC, only for tenants who have been or are
  living on the affected premises prior to the
  announcement date of redevelopment
• In URA, tenants can also have compensation after
  the project occupancy survey

37
Compensation

• The compensation provided by the URA is better
  than that provided by the LDC
• Ex- gratia removal allowance is provided in URA
  but not in LDC
• Payment arrangement is the same for URA and LDC

38
Comparison of Relocationexecuted by the two
bodies
39
Comparison of Eligibility to Relocation

• Both should be domestic tenants living in the
  affected area before the announcement of
  redevelopment
• For URA, the tenant should also satisfy the
  eligibility criteria for public housing of the
  HKHA and the HKHS, though those should not
  satisfy the criteria for URA may be offered
  compassionate rehousing

40
Comparison of Relocation Arrangement

• Single or double person households will be
  allocated to single or double person dormitories
  for LDC
• All households will be allocated to housing units
  of HKHA or HKHS regardless of the number of
  family members in the household for URA

41
Comparison of Payment of Rentals for Housing
Units allocated

• The amount payable monthly for LDC by the tenants
  bases on their total household income.
• The amount payable monthly for URA is the same as
  the rental for public housing of HKHA or HKHS

42
Other Differences

• Non-domestic tenants for URA whose tenancies are
  terminated by their landlords will be compensated
  with basic ex-gratia allowances (about 3 times
  the RV of the affected premises)
• Cash incentives are also payable to the
  non-domestic tenants for those who are in
  occupation before the project occupancy survey.
• The two arrangements above are not present for
  LDC

43
Comment on Relocation

• The URA shows more compassion for the
  single/double person household
• The URA has also paid attention to the
  non-domestic tenants