Up to 30 September 2006, all the 77 key activities covered in the Corporate Plan for 2006 / 07 were either completed or on schedule / on-going / partially completed. No key activity was behind schedule. The progress is highlighted below.

As at end September 2006, some 2 400 flats were built. We allocated 8 279 public rental housing (PRH) flats to Waiting List (WL) applicants and re-housed 1 199 households affected by the Comprehensive Redevelopment Programme. As of end September 2006, the average waiting time was 1.9 years for all WL applicants and 1.3 year for elderly one-person applicants.

To rationalize the provision standard of small flats, new design principles were drawn up and endorsed by the Building Committee. These principles would be applied in new projects to be completed from 2010 / 11 onwards. Structural condition surveys were being conducted to assess the feasibility and cost-effectiveness of enhancing the sustainability of our aged PRH stock. So far, surveys on four PRH estates were completed and those on another five estates were underway. In addition, we have put in place the Housing Construction Management Enterprise System for better project management, planning and budgeting. New technologies, such as grid connection of small scale renewable energy power systems and machine-room-less lift, were also being tested in pilot projects.

We are also committed to lifting the standard of workmanship. All existing trades in both building contracts and minor maintenance works require 100% trade tested workers. The accident rate also fell from 21 cases per 1 000 workers in 2005 to 11.1 cases for the first half of 2006 / 07.

We launched a public consultation on the initial findings of the Ad Hoc Committee on Review of Domestic Rent Policy between 9 March 2006 and 9 June 2006. The consultation generated animated public discussions on the proposals for reforming the Housing Authority (HA)'s domestic rent policy. A total of 425 written submissions were received. Members of the Committee and HD's representative also attended over 100 forums / meetings in connection with the consultation exercise.

Having carefully considered all the views received, the Committee has drawn up the Report on the Review of Domestic Rent Policy setting out its final recommendations. One of the most important reform proposals put forward by the Committee is the development of an income-based rent adjustment mechanism which provides for both upward and downward adjustments in PRH rent according to the changes in tenants' household income. The Report was considered and endorsed by the HA on 27 November 2006.

Under the Quota and Points System (QPS), a quota of 1 600 PRH units was set for 2006 / 07 for eligible non-elderly one-person applicants. We will review the operation of the QPS after one year of implementation.

We also spared no efforts in combating abuses of public housing resources. During the first six months of 2006 / 07, the Public Housing Resources Management Sub-section (formerly known as the Task Force Against Abuses of Public Housing Resources) investigated some 3 000 cases suspicious of occupancy-related tenancy abuses and conducted intensive checkings into some 3 600 doubtful or randomly selected cases on income and asset declarations. Publicity programme to encourage public report on suspected abuse cases was also launched through leaflets and the Housing Authority / Housing Department Web Site.

As at end September 2006, a total of 4 624 PRH flats were recovered from sitting tenants for reallocation apart from those recovered from internal transfers.

To ensure timely and proper maintenance of the HA's PRH stock, 64 maintenance ambassadors were deployed to perform in-flat inspections in PRH estates under the Total Maintenance Scheme (TMS). New performance pledge on general handy repair works identified during TMS in-flat inspections was also put in place. Ad hoc teams were set up to deal with maintenance issues relating to major building components.

In April 2006, the HA announced the tentative sales programme of some 16 600 surplus HOS flats, which would be put for sale in an orderly manner starting from 2007. A total of 3 056 surplus flats would be offered in the first phase of sale in early January 2007.

To improve the operational efficiency of the HA's non-domestic commercial properties, we kept the existing mode of management and operation under review and made reference to practice in the private sector. A package of measures was introduced to fully realize the business potential of our commercial properties. These included extra-rent free period, adjustment of car parking charges, more flexible letting strategies and conversion of less popular retail premises / car park facilities to welfare and community use, etc.

Interest surcharge on arrears of rent was increased from prime rate plus 2% per annum to 2% per month with effect from 1 June 2006 with a view to deterring tenants from late rent payment.

The Finance Committee approved the detailed arrangements of the HA's Phase 1 investment strategies in April 2006. A Funds Management Sub-Committee was established to keep the performance of fund managers and the HA's investment strategies and asset allocation under regular review.

Efforts were continuously made to keep the HA's organization structure lean and dynamic. In 2006 / 07, a total of 332 posts would be deleted, representing a 3.7% cut over the establishment of 9 068 posts at the beginning of the year.