Section B: Estate Management and Rent Policy Chapter 5: Policy on Safeguarding Rational Allocation of Public Housing Resources The Housing Authority endorsed in April 1996 the implementation of the Policy on Safeguarding Rational Allocation of Public Housing Resources (SRA) whereby household income and net asset value are adopted as the two criteria for determining public rental housing (PRH) households' eligibility to continue to receive public housing subsidy.  Interim Housing (IH) licencees are also subject to SRA to declare assets with effect from 26 June 1997.  According to the SRA, households paying double net rent/licence fee plus rates under the Housing Subsidy Policy (HSP) have to declare assets at the next cycle of declaration (two years from the last declaration under the HSP) if they wish to continue to live in public housing. The current asset limits are set at about 84 times of the 2008/2009 Waiting List Income Limits (WLILs). These limits will be reviewed annually.       The prescribed Income and Net Asset Limits effective from 1 April 2008 are as follows :  Household Size Income Limits (per month) (3 times 2008/2009 WLIL) Net Asset Limits (84 times 2008/2009 WLIL) 1 person $21,900 $620,000* 2 persons $33,600 $950,000* 3 persons $37,800 $1,060,000* 4 persons $45,900 $1,290,000 5 persons $53,700 $1,510,000 6 persons $62,700 $1,760,000 7 persons $67,500 $1,890,000 8 persons $72,300 $2,030,000 9 persons $78,600 $2,210,000 10 persons or more $83,100 $2,330,000 * The net assets limits for small households at sizes of 1-person to 3-person with all members aged over 55 are the same as that of a 4-person household i.e. $1,290,000. On 5 February 1999 the Housing Authority reviewed the SRA and decided that households whose total household income and net assets value both exceed the above prescribed limits, or those who choose not to declare assets (including households who fail to provide sufficient information to prove that their total net household assets do not exceed the prevailing assets limits) are required to vacate their public housing flats. Households who are required to vacate their public housing flats but have a temporary housing need may apply for a fixed-term licence to stayput in the public housing flat for a period of not more than 12 months, during which licence fee equivalent to the double net rent plus rates or market rent (whichever is the higher) will be charged. During the period of temporary stay, if the household can prove that either the total household income or net assets value has dropped below the prescribed limits for a continuous period of three months, they may apply for reconsideration of grant of tenancy and payment of a rent at lower level. If the drop is of permanent nature, they may apply immediately. Households with members all aged 60 or above or all are receiving Comprehensive Social Security Assistance or households on shared tenancies are exempted from income and assets declarations. Furthermore, with effect from 23 January 2001, public housing households are subject to the application of the SRA 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 double net rent/licence fee plus rates. Their eligibility of renting a public housing flat will be reviewed biennially. They will be required to declare their household assets one year before the review time for the assessment of their eligibility of renting a public housing flat in the coming year.

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