Section B: Estate Management and Rent Policy Chapter 8: Policy on Grant of New Tenancy The Housing Authority has implemented the Policy on Grant of New Tenancy (GNT) since 5 February 1999. Upon the death of a tenant, the surviving spouse who is an authorised occupant (AO) of the public rental housing (PRH) flat may take over the tenancy unconditionally. Where there is no authorized surviving spouse, the tenancy may be granted to a family member who is an AO living in the PRH flat. However, this household has to undergo a comprehensive means test (CMT) covering both income and assets in order to assess the eligibility for grant of a new tenancy and determine the rent payable. Households whose members are all 60 years of age or above; households receiving Comprehensive Social Security Assistance; households who have joined the Family with Elderly Persons Priority Scheme and Enhancement Scheme for Sitting Tenants and have appointed an elderly as tenant before 5 February 1999; or compassionate and special cases recommended by the Social Welfare Department can be exempted from the CMT. The income and asset limits adopted for the CMT are the same as those used in the Housing Subsidy Policy and the Policy on Safeguarding Rational Allocation of Public Housing Resources. The following limits took effect from 1 April 2008 and are subject to annual review - Household Size Income Limits (per month) Net Assets Limits      (2 times the 2008/2009 Waiting List Income Limit) (3 times the 2008/2009 Waiting List Income Limit) (84 times the 2008/2009 Waiting List Income Limit) 1 person $14,600 $21,900 $620,000* 2 persons $22,600 $33,600 $950,000* 3 persons $25,200 $37,800 $1,060,000* 4 persons $30,600 $45,900 $1,290,000 5 persons $35,800 $53,700 $1,510,000 6 persons $41,800 $62,700 $1,760,000 7 persons $45,000 $67,500 $1,890,000 8 persons $48,200 $72,300 $2,030,000 9 persons $52,400 $78,600 $2,210,000 10 persons or more $55,400 $83,100 $2,330,000 * The net asset limits for 1-person, 2-person and 3-person households with all members aged over 55 are the same as that of a 4-person household, i.e. $1,290,000. Households whose income do not exceed two times the Waiting List Income Limits (WLIL) will be granted a new tenancy on normal rent payment. For households whose income is between two and three times the WLIL, they will be allowed to take over the tenancy on payment of 1.5 times net rent plus rates. As regards those who are earning more than three times the WLIL but whose net asset value do not exceed the specified limits, they will be granted a new tenancy on payment of double net rent plus rates. Households acquiring a new tenancy under the GNT Policy will be required to declare income and assets every two years irrespective of their length of residence in PRH so as to assess their eligibility to continue renting a PRH flat. For families with income and net asset value both exceeding the prescribed limits or those who choose not to declare household income/assets, they will not be granted a new tenancy and are required to surrender their PRH flats. Those who still have a need to stay temporarily in the PRH flat may apply to stayput for not more than 12 months. During the period of temporary stay, they are required to pay licence fee equivalent to market rent. If an extra-rent payer or licence holder can prove that his/her total household income or net asset value has dropped below the prescribed limits for a continuous period of three months, he/she may apply for reversion to payment of lower rent or reconsideration of grant of new tenancy respectively. If the drop in income or asset value is of permanent nature, they may apply immediately. The implementation of the GNT Policy is also applicable to licensees of interim housing.

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