This web page briefly outlines the Urban Renewal Authority ("URA")'s principles in the acquisition of properties (other than Industrial Properties) from owners affected by URA's urban renewal projects.
- URA will offer an owner-occupier of domestic property the market value (valued on vacant possession basis) of his property plus an ex-gratia allowance, namely Home Purchase Allowance ("HPA"), for purchase of the property. In the assessment of HPA, HPA means the difference between the market value of the property being acquired and the value of a notional replacement flat, which is a notional seven-year-old flat of similar size and in similar locality to the property being acquired and located at the middle floor with average orientation.
- "Owner-occupier" here means an owner who occupies his property as his sole residence. If an owner does not reside in his property as his sole residence, the occupancy status of his property will be treated as "Vacant" and will be offered Supplementary Allowance ("SA") instead of HPA. SA is a percentage of HPA. The criteria for determining whether an owner occupies his property as his "sole residence" will be determined by URA according to URA's prevailing policy.
- An owner-occupier is entitled to receive HPA for no more than three properties in a redevelopment project.
- Property used as sole residence by an owner's "immediate family members" will be treated as being occupied by the owner himself as sole residence for the purpose of ascertainment of his eligibility to HPA. "Immediate family members" of an owner means parents, children, dependent brothers and sisters, grandparents, grandchildren, stepparents, spouse's parents and spouse's stepparents.
- An owner who leaves his property vacant will be offered the market value (valued on vacant possession basis) of his property plus SA.
- An owner who lets his property out will be offered market value (valued on vacant possession basis) of his property and SA.
- An owner of tenanted or vacant properties is entitled to receive SA for no more than two properties in a redevelopment project. (Please see Appendix I for examples of calculation of SA and Appendix II for different SAs available in different scenarios)
- If a property is owned by joint owners (whether as joint tenants or tenants in common) / a company, each joint owner / shareholder of that company will be subject to the same principles applicable to individual owners. The HPA and SA will be calculated pro rata to the shares of each joint owner and the shareholdings of each shareholder in the company.
- In addition to HPA or SA, URA will offer an incidental cost allowance to owners of domestic properties to assist payment of removal expenses and expenditure relating to the purchase of a replacement property. The actual amount of this allowance shall be determined and announced by URA as and when an offer to purchase is made for each individual project.
If the amount of actual expenses reasonably incurred by an owner of domestic property in purchasing a replacement property including (i) removal cost; (ii) stamp duty; (iii) agency fee; and (iv) legal cost exceeds the amount of incidental cost allowance offered by URA, the owner may be reimbursed with the difference, provided that the owner has accepted the initial acquisition offer within the validity period of the offer and the reimbursement claim is made within 12 months after the property is sold to URA.
For the avoidance of doubt, the reimbursable amount for stamp duty and agency fee would be subject to a maximum amount to be calculated on the basis of 110% of the market value plus the sum of HPA/SA of the initial acquisition offer. Subject to the production of invoices / receipts proving payments actually incurred by the owner on condition that the payments are of a reasonable amount, the removal cost and legal cost would be reimbursed by URA to the owner in the purchase of a replacement property. For the avoidance of doubt, URA reserves the right to determine the final amount of the reasonable expenses for purchasing a replacement property in each case.
- If a property has been sub-divided into several flats ("sub-divided flat") and an owner of a sub-divided flat elects not to receive the HPA, subject to eligibility criteria and other requirements, the owner will be offered re-housing.
- The HPA is payable to an owner-occupier of non-domestic property which has been issued with an occupation permit other than for domestic use but nevertheless has been used for domestic purpose for a long time (generally about 10 years) provided that such use is not prohibited under the Government lease of the property.
For URA redevelopment projects which are commenced after the promulgation of the new Urban Renewal Strategy on 24 February 2011:
(i) Subject to the conditions and provisions contained in the "Urban Renewal Authority Flat-for-Flat (Pilot Scheme) Pamphlet" ("the Pamphlet"), domestic owner-occupiers of properties in the redevelopment projects, who are entitled to receive HPA, can opt to participate in URA's "Flat-for-Flat" Pilot Scheme ("the Scheme"). Please refer to the Pamphlet for details of the Scheme.
For redevelopment projects implemented under Demand-led Redevelopment Project (Pilot Scheme), URA will provide the details and option under the Scheme to eligible domestic owner-occupiers only upon the fulfillment of the conditions precedent stipulated in the conditional acquisition offers; and
(ii) Elderly owners of tenanted domestic properties in the redevelopment project will be offered an Elderly Domestic Owner-Landlords Compassionate Allowance ("Allowance"), in addition to the market values of their properties and SA as described in Paragraph 6 above, by URA subject to the elderly owners concerned meeting the eligibility criteria set by URA. Eligible elderly owners can apply for the Allowance after they have accepted the initial acquisition offer from URA both unconditionally and within the validity period of the offer. Please refer to the pamphlet of "Elderly Domestic Owner-Landlords Compassionate Allowance" for details of the eligibility criteria and the arrangement.
For redevelopment projects implemented under Demand-led Redevelopment Project (Pilot Scheme), URA will release the Allowance to the eligible elderly owners of tenanted domestic properties only upon satisfactory proof of the elderly owners' eligibility to the Allowance and the fulfillment of the conditions precedent stipulated in the conditional acquisition offers.
This web page is issued for the purpose of general reference only. The information contained herein is with reference to the principles and practice of the Urban Renewal Authority prevailing at the date of issue of this web page. It shall not constitute any representation on the part of the Urban Renewal Authority or give rise to any expectation whatsoever and shall not be relied on as such. Each case will be considered on its own merits having regard to all factors and circumstances. The terms of acquisition to be offered are subject to the principles and practice of the Urban Renewal Authority prevailing at the time the offer of acquisition is made and are subject to review from time to time as the Urban Renewal Authority shall at its absolute discretion consider appropriate. The Urban Renewal Authority's right to add to, amend or delete the whole or any part of this web page is hereby reserved.