Land Development Corporation & Urban Renewal Authority

Compensation & Relocation

Land Development Corporation

Compensation

Eligibility

Tenants living in LDC redevelopment project areas but without self-owned domestic properties or other living quarters
Tenants must be lawful Hong Kong residents

Eligibility

Tenants who have been or are living on the affected premises prior to the announcement date of redevelopment

Principles of cash compensation

Cash compensation is offered by LDC with reference to

The statutory requirements 1983 rateable value Current rateable value

Principles of cash compensation

Compensation, including principal tenants and sub-tenants, is calculated on:

Areas exclusively used or controlled them & Pro-rata share of common areas

Details of cash compensation

Before 1992, either:

8 to 16 times the 1983 rateable value 2 times the current rateable value * Whichever was higher

After Dec. 1993:

5 times the current rateable value
* The statutory requirement is only 1.7 current rateable value

Conditions of compensation

Tenants opt for cash compensation will automatically forfeit their right to relocation
Principal tenants not residing in the units will only receive compensation which is the excess of rental received from his sub-tenants

Conditions of compensation

Principal tenants will receive all cash compensation for vacant rooms or rooms vacated by sub-tenants
All illegal structures built on or after the announcement of redevelopment will not be included for calculation

Payment

Tenants after signing the compensation agreement will receive half of the cash compensation, the balance will be given when they vacate the premises
Cash compensation will be paid either in cash or by cheque

Land Development Corporation

Development

Reasons for Relocation

LDC stated: it is the Corporations stated policy that no genuine tenants affected by its redevelopment projects would be rendered homeless. As old urban areas are redevelped for the overall benefit of all the people in H.K. affected tenants (lower income one) must be appropriately looked after

Eligibility

Tenants
living in LDC redevelopment project areas Tenants must be lawful H.K. residents Be affected to the announcement date of redevelopment

Arrangements

Single / Two-person household

Single / two-person dormitories

Households with three persons or more

Family units

One month rent-free period for current occupied unit May move out early or after deadline through application

Rentals of Family Units

Average household income per month Full market rental

Up to $ 8,500 $ 8,501 - $ 12,000 Over $ 12,000

23% 35% 52%

Rates and management fees included Water and electricity charges excluded

Rentals of Dormitory Accommodations

Dormitory unit Bedspace Single-person cubicle Two-person cubicle

Monthly rentals $250 $350

$700

Rates, management fees and electricity and water charges included

Other Rental Details

Rentals renew every two years Incomes will be reviewed every two years Tenants may appeal to the LDC for adjudication Tenants may appeal to pay a lower rental

Facilities of Rehousing Unit

Basic facilities are provided Management services

Removal Allowance
Principal living areas - $ 5 psf saleable area Subsidiary areas - $ 2.5 psf saleable area Universal rates $ 500 for bunks Universal rates at $ 600 for bedspaces Minimum amount offered - $ 1,000

Urban Renewal Authority

Compensation

Eligibility

Tenants affected by URA redevelopment projects will be offered re-housing. Tenants who are not allocated re-housing unit may receive basic cash compensation Basis of cash compensation is in accordance with Landlord and Tenant (Consolidation) Ordinance (LTO).

Principles of Basic Cash Compensation

The formula for calculating statutory compensation is as follows: Rateable Value (RV) - HK$ first $30,000 RV 7 times RV next $30,000 RV 5 times RV next $30,000 RV 3 times RV remaining RV Statutory Compensation 1 times RV
A minimum amount of HK$70,000 - one-person household HK$80,000 for a two-person or larger household

Details of Cash Incentive

70% of the basic cash compensation for tenants on ex-gratia basis Residents (legal domestic tenants only) moved within the project boundaries after the project occupancy survey receive LTO compensation plus a 20% incentive

Payment for Principal Tenants

Absentee principal tenants - before the date of project occupancy survey

HK$10,000 plus an incentive provided they accept the offer within a specified period

Absentee principal tenants - after the project occupancy survey

HK$5,000 without any cash incentive.

Payment Arrangement

Half of the total amount

paid upon the execution of surrender agreement and

remaining half
paid after the delivery of vacant possession.

Urban Renewal Authority

Relocation

Eligibility

Tenants affected by the project area prevailing eligibility criteria for public housing of the HKHA and the HKHS will apply. Domestic tenants living in the project area before the project freezing survey

Arrangements

Eligible domestic tenants Be re-housed in units provided by the Hong Kong Housing Authority (HKHA) or the Hong Kong Housing Society (HKHS) Can opt for other subsidized housing schemes provided by HKHA and HKHS.

Ex-gratia Removal Allowance

Tenants re-housed as a result of a URA project

an ex-gratia removal allowance offered

Half of the total amount of ex-gratia removal allowance

paid upon the execution of surrender agreement

remaining half
paid after the delivery of vacant possession.

Eligibility of Compassionate Re-housing

Households
do not meet the normal eligibility criteria

Basic Ex-gratia Allowance

Non-domestic tenants - tenancies are terminated by their landlords

not entitled to any compensation or other payments. URA prepared to pay 3 times the RV of the affected premises as an ex-gratia allowance

Cash Incentive

10% of the basic ex-gratia allowance will be offered to non-domestic tenants, who are in occupation before the project occupancy survey.

Payment Arrangement

The whole package of basic ex-gratia allowance and incentive payable to tenants who accept the offer within a specified period. Half of the total amount of basic ex-gratia allowance and cash incentive
be paid upon the execution of surrender agreement

the remaining half

paid after the delivery of vacant possession.

Comparison between Land Development Corporation and Urban Renewal Authority

Compensation
LDC only provide compensation for tenants without self-owned domestic properties or other living quarters but URA do not In LDC, tenants must be lawful Hong Kong residents but in URA, tenant can be unlawful residents

Compensation
In LDC, only for tenants who have been or are living on the affected premises prior to the announcement date of redevelopment In URA, tenants can also have compensation after the project occupancy survey

Compensation

The compensation provided by the URA is better than that provided by the LDC Ex- gratia removal allowance is provided in URA but not in LDC Payment arrangement is the same for URA and LDC

Comparison of Relocation executed by the two bodies

Comparison of Eligibility to Relocation

Both should be domestic tenants living in the affected area before the announcement of redevelopment For URA, the tenant should also satisfy the eligibility criteria for public housing of the HKHA and the HKHS, though those should not satisfy the criteria for URA may be offered compassionate rehousing

Comparison of Relocation Arrangement

Single or double person households will be allocated to single or double person dormitories for LDC All households will be allocated to housing units of HKHA or HKHS regardless of the number of family members in the household for URA

Comparison of Payment of Rentals for Housing Units allocated

The amount payable monthly for LDC by the tenants bases on their total household income. The amount payable monthly for URA is the same as the rental for public housing of HKHA or HKHS

Other Differences

Non-domestic tenants for URA whose tenancies are terminated by their landlords will be compensated with basic exgratia allowances (about 3 times the RV of the affected premises) Cash incentives are also payable to the nondomestic tenants for those who are in occupation before the project occupancy survey. The two arrangements above are not present for LDC

Comment on Relocation
The URA shows more compassion for the single/double person household The URA has also paid attention to the non-domestic tenants