Hong Kong Group to Build 1,020 Transitional to Fix City’s Housing Crisis

A community group in Hong Kong has obtained government funding to build 1,020 transitional homes for low-income families in Yuen Long, in response to Beijing’s demand that the city resolve its housing crisis by 2049. The New Territories Association of Societies (Community Services) Foundation was given approval and funding of HK$576 million (US$74 million) by the Transport and Housing Bureau for its project in Kam Tin. The group is leasing two lots close to Kam Sheung Road MTR station that totalled 17 hectares (42 acres) from the government and Henderson Land Development at a nominal rent for seven years. The lots are currently used to store construction equipment, with woodlands nearby. This is the first time the pro-Beijing association, which established its community group in 2002 to provide social services for low-income residents, is taking part in a housing project. “Our resources may not be much, but all along we have a good network of low-income families in the New Territories, so we have a more comprehensive understanding of people’s livelihoods, especially the housing issue in Hong Kong ... and after Beijing has sent a message to solve the problem of subdivided units and cage homes,” said Chan Yung, chairman of the association, who is also a delegate to the National People’s Congress. Under the association’s plan, six four-storey buildings will be constructed, with enough flats to house 2,750 people. The first batch is expected to be completed and occupied in the middle of 2023 and the second phase is likely to be finished in the middle of 2024 at the latest. Eligible applicants include those who have been waiting for public housing for at least three years, those currently living in unsuitable dwellings and low-income families who need more support. Leung Che-cheung, honorary president of the association and a lawmaker with the Democratic Alliance for the Betterment and Progress of Hong Kong, said the flats would be best suited for younger families. “Since it’s so near the MTR, we hope those with jobs can come here to stay. It will be really convenient for them to go to work,” he said, adding that the rent level would be determined by how much tenants could afford but lower than the market rate in the same district. Rent will be capped at 30 per cent of the income limit that allows families to qualify for public housing. Transitional housing is a government initiative to help low-income groups living in poor conditions who have not been able to move to public housing. The average waiting time for such homes in Hong Kong is 5.8 years. In a bid to ease the shortage, Chief Executive Carrie Lam Cheng Yuet-ngor more than doubled the budget for transitional housing from HK$2 billion to HK$5 billion in her policy address last October. But housing officials were later forced to seek lawmakers’ approval to inject an extra HK$3.3 billion into the scheme, as the original amount was not enough to meet their target. Lam’s administration is using temporarily available land or vacant premises leased by the government or private developers for transitional housing.