URA’s ‘Flat-for-Flat’ arrangement provides an additional choice for affected owner-occupiers
The Board of the Urban Renewal Authority (URA) today (Monday) approved the implementation arrangements for the 'Flat-for-Flat' (FFF) option under the new Urban Renewal Strategy (URS).
Speaking at a media briefing, the Chairman of the URA, Mr Barry Cheung, said careful considerations have been given to the principles and arrangements of the FFF option which will be implemented as a pilot scheme.
Mr. Cheung said FFF would provide an alternative choice for owner-occupiers affected by URA's redevelopment projects.
FFF is only applicable to domestic owner-occupiers who are affected by URA projects commenced after 24 February 2011, the date when the new URS was formally promulgated.
Under the new URS, the FFF option is offered as an alternative to cash compensation. It is not intended to enhance the level of compensation.
Domestic owner-occupiers who wish to opt for FFF must first accept the cash compensation calculated on a seven-year-old flat formula in the first round of acquisition offered by the URA.
They then could have a choice of 'in-situ' flats in the new development or flats in Kai Tak development. Owners will be given preliminary floor plans for reference.
For the in-situ flats in the new development, they will be small-and medium-sized flats located at the lowest 5 to 8 domestic floors which will be divided into two zones, each with a fixed unit price.
The fixed unit price per square foot of saleable area of the new flat is based on the average market price of units assessed for the new building to be erected on the redevelopment site as at the time of acquisition offers will apply.
These would enable domestic owner-occupiers to reckon their financial commitment on a new flat of their preferred size in the new development, and thus to make an informed choice between cash compensation and FFF.
1,000 units of saleable area ranging from 400 to 600 square feet would be built at the 1.1-hectare Kai Tak development site for FFF. There will be 500 units in the first batch, scheduled for completion in 2016. The Kai Tak blocks will have around 23 storeys and will be divided into different vertical zones each with a fixed unit price.
URA will develop the Kai Tak project itself and will incorporate a series of sustainable development elements in the project.
Once an owner-occupier has made a firm decision to go for FFF, a certain amount of the cash compensation of the existing property will be stake-held by URA. The stake-held amount is about 30 per cent of the price of the new flat, and the remaining amount of cash compensation will be released to the owner-occupier.