Kwun Tong Town Centre Project

Compensation and Re-housing Policies

Acquisition Principles :

The acquisition principles adopted by the Urban Renewal Authority (URA) are based on the revised Home Purchase Allowance (HPA) and ex-gratia allowance for commercial properties endorsed by the Finance Committee of the Legislative Council in March 2001.

According to the existing policy, the URA's acquisition offer for an owner-occupied domestic property is the market value of the property plus an ex-gratia allowance (i.e. HPA). The assessment of HPA is based on the value of a seven-year-old notional flat. Independent community leaders including the President of the Hong Kong Institute of Surveyors or his representatives and the related District Council Chairperson and members will be invited to select by ballot seven qualified professional surveyor firms for the valuation of HPA. For the tenanted and vacant domestic properties, the acquisition offer is the market value of the property plus a supplementary allowance (a percentage of HPA).

Owners of non-domestic properties will be offered the market value of the property plus an ex-gratia allowance (EGA). The EGA of owner-occupied non-domestic properties is 35% of its market value or 4 times its Rateable Value (RV) , whichever is higher. The EGA for tenanted or vacant non-domestic properties is 10% of its market value or one time the RV, whichever is higher.

Please refer to the URA's Property Acquisition Policy (Other than Industrial Properties) for more details.

Re-housing and Ex-gratia Payment Principles :

According the existing URA's policy, domestic tenants (affected by the ex-LDC redevelopment projects) who meet the eligibility criteria for public rental housing of the Hong Kong Housing Authority and Hong Kong Housing Society may opt for re-housing in lieu of cash compensation if they has occupied the subject property under valid tenancies before 9 July 2004. Compassionate re-housing will be considered for those tenants who do not meet the normal eligibility criteria but face genuine hardship.

�mThe Landlord and Tenant (Consolidation) (Amendment) Ordinance�ntook effect on 9 July 2004. Eligible domestic tenants who are not allocated re-housing due to various reasons or who decline re-housing will receive ex-gratia payments. Moreover, eligible non-domestic tenants are entitled to an ex-gratia allowance which is 3 times the RV of the affected premises.

Please refer to the URA's Compensation & Re-housing Policy (Other than Industrial Properties) for more details.

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.

January 2006

Last Update at : 14/04/2008