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Housing subsidy policy
The Housing Subsidy Policy (HSP) was implemented on 1 April 1987 with the objective of reducing the housing subsidy to PRH tenants who no longer need it. Under the HSP, households who have been living in PRH for 10 years or more are required to declare their household income biennially.
On 26 June 1997, this policy was extended to households in interim housing (IH).
Public housing tenants who choose not to declare their household income are required to pay double the net rent plus rates, while interim housing tenants who choose not to declare their household income are required to pay double the licence fee plus rates. Those with a household income exceeding the corresponding Subsidy Income Limits (SILs) have to pay 1.5 times or double the net rent plus rates, as appropriate.
The following households are exempt from the application of the HSP:
- households whose members are all aged 60 or above;
- households with all members receiving CSSA; or
- households who are on shared tenancies.
Households who are paying double or 1.5 times the net rent/licence fee plus rates may, as appropriate, apply to pay 1.5 times the net rent/licence fee plus rates or the normal rent/licence fee if their household income falls below the corresponding SILs for three consecutive months. If the drop in household income is of a permanent nature due to the departure/death of income-earning members, or because of the addition of other household members, and the household income no longer exceeds the prescribed limit, households paying additional rent/licence fee may apply for an immediate reduction of the rent/licence fee.
With effect from 23 January 2001, public housing households are subject to the application of the HSP irrespective of the length of their residence in public housing if their applications under various tenancy management policies have been approved after passing the comprehensive means test and satisfying the respective criteria, and they are required to pay normal or 1.5 times the net rent/licence fee plus rates. The rent/licence fee payment level of their public housing flats is reviewed biennially. They are required to declare their household income one year before the review time for the assessment of their rent/licence fee payment level in the following year.