URA to issue advance payment of acquisition offers for URA’s Chun Tin Street/Sung Chi Street Development Scheme soon
The Urban Renewal Authority (URA) will issue acquisition offers to the property owners affected by the Chun Tin Street/Sung Chi Street (KC-008(A)) development scheme in Kowloon City next week, following the approval by the Land, Rehousing and Compensation Committee of the URA today (Wednesday).
Eligible owner-occupiers of domestic properties will be offered the market value of their domestic properties and the Home Purchase Allowance (HPA), both of which were assessed at the commencement date of the project on 6 May 2016 by way of advance payment. The offer is $11,349 per square foot of saleable area, which is equivalent to the unit rate of a notional replacement flat of seven-year-old situated in similar locality and of similar size.
The KC-008(A) development scheme includes the same buildings of a previous KC-008 development project and Chun Tin Street. The KC-008 project was withdrawn and discontinued immediately on 6 May 2016. Taking into consideration of the unique circumstances of KC-008(A) project, the URA introduces a one-off special compensation package to the affected owners and tenants of the development scheme. The one-off special compensation measure will not set a precedent for other existing or future projects of the URA.
Under the one-off special compensation package, the URA will make offers to owner-occupiers the market values of their domestic properties and the HPA assessed at the commencement date by way of advance payment of the market values and the HPA to be assessed at the date of approval of the KC-008(A) project. When the KC-008(A) project is approved by the Chief Executive in Council, the URA will assess the market value of the properties and HPA at the date of approval. Should the assessed market value and HPA at the date of approval be higher than the market value and HPA assessed at the commencement date, affected owners will be paid the difference by the URA.
In line with the established mechanism, the URA has appointed seven independent valuation firms for the valuation of the unit rate of the seven-year-old notional replacement flat.
The Chun Tin Street/Sung Chi Street (KC-008(A)) development scheme affects about 70 property interests. Property owners will have 60 days to consider the URA's offers.
The one-off special compensation package also covers tenants. Upon completion of the property acquisition, domestic tenants residing in the acquired properties can elect either accepting ex-gratia payments from the URA or continuing their current tenancy agreements at the existing rent until the KC-008(A) project is approved by the Chief Executive in Council, by which time public housing can then be offered to the eligible tenants.
In addition, there is also a special one-off rehabilitation package offered to affected owners and tenants of KC-008(A) project who elect to stay to provide technical and financial assistance to them for the carrying out of rehabilitation works to their units and building.
The URA will organise briefings for the affected owners and tenants to explain to them the acquisition and compensation and rehousing arrangements.
The URA's initial proposal is to redevelop the site to provide about 12,270 square metres of residential floor area for about 310 flats (mainly small to medium sizes), including some units of lower levels to be reserved for flat-for-flat option. Some 2,454 square metres of commercial/retail floor area will also be provided in the new development. The project is tentatively scheduled for completion by 2025/2026.