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1. Draft Mid-Levels East Outline Zoning Plan amended

2. Housing Authority faces $2.6b payout to developers

1. Draft Mid-Levels East Outline Zoning Plan amended

The Town Planning Board (the Board) today (May 24) announced amendments to the draft Mid-Levels East Outline Zoning Plan (OZP). One of the amendments involves the stipulation of development restrictions in the Notes of the OZP for all sites zoned "Residential (Group B)" ("R(B)"). A maximum plot ratio of 5.0 and a maximum building height of 30 storeys including carports are stipulated with a view to preserving the existing character of the area and avoiding overloading the road capacity. Several sites at Kennedy Road are re-designated from "R(B)" to "R(B)1" and "R(B)2" with specific building height restrictions incorporated to ensure that public views, particularly from Bowen Road and Wan Chai Gap, can be preserved. Other amendments involve the rezoning of six sites at Bowen Road, Stubbs Road and Kennedy Road from "R(B)" to "Residential (Group C) 1" ("R(C)1") to preserve the low-rise and low density character of the neighbourhood and due to the generally sub-standard road conditions. These sites are subject to a maximum building height of four storeys including carports. A site at 34 Stubbs Road is also rezoned from "R(B)" to "R(C)2" subject to a building height restriction of 12 storeys over one storey of carport in order to preserve public views from upper Stubbs Road and to ensure that any redevelopment would conform to the existing landform and character of the neighbourhood. The zoning boundaries of some areas within the existing residential zonings, which do not form part of the building lots with no development rights and are well-vegetated slopes, are rezoned to "Green Belt" to reflect the planning intention to conserve and protect the high landscape value of these areas. The draft Plan No. S/H12/7 incorporating the above amendments is now available for public inspection until June 14, 2002 at the Secretariat of the Board, the Hong Kong District Planning Office and the Wan Chai District Office. Any person affected by the amendments may submit a written objection to the Secretary of the Town Planning Board, 15th Floor, North Point Government Offices, 333 Java Road, on or before June 14, 2002. Copies of the draft Plan are available for sale at the Map Publications Centres in Yau Ma Tei and North Point.

[Source: Hong Kong Government, 24 May 2002]

2. Housing Authority faces $2.6b payout to developers

The cash-strapped Housing Authority faces a $2.6 billion compensation payout to developers because of the Government's ban on the sale of Home Ownership Scheme flats. The compensation would go to developers of two projects, in Kwai Chung and Tin Shui Wai, built under the so-called private sector participation scheme. The projects, involving 760 and 4,100 flats respectively, were built by the developers for the Housing Authority on the understanding that they would share in the profits from their sale. However, the authority was forced to rent the flats out instead following the imposition of the sales ban last September. A Housing Authority source said an internal report had estimated compensation for the Kwai Chung project at $520 million, and for the Tin Shui Wai development at $2.08 billion. The developers were not identified. The anticipated payout represents 16 per cent of the Housing Authority's fast-dwindling $16 billion cash reserves. The source said a similar problem could arise with another Tsing Yi project, involving 500 flats. Housing Authority member Wong Kwan said: "It seems the Government has no intention of discussing a new financial arrangement with the authority. If the situation continues, I am afraid the authority would have to fold soon. "The problem of the ban looks much bigger than we have expected. We do not know how much more it would cost the authority." He said the authority would discuss the payout next week. The sales ban, imposed without consulting the authority, was criticised at the time as kowtowing to developers, who had claimed that subsidised flats were driving prices down. In the wake of the sales ban, the Housing Authority estimated it would lose $8.6 billion in the current financial year and $12.6 billion in 2003/04, draining its reserves. The authority will not be allowed to sell more than 9,000 flats a year even after the ban is lifted at the end of next month. There was no official comment from the Housing Authority or the Housing Bureau.

[Source: SCMP, 25 May 2002]