This chapter sets out the 80 key activities of the Housing Authority (HA) in four main areas, namely Construction and Building Control, Subsidized Housing, Commercial Properties and Corporate Services.
Construction and Building Control
Construction
The Development and Construction Division plans, designs and constructs the HA's public housing estates and associated facilities. Its key activities in 2007 / 08 would be geared towards optimizing the potential of public rental housing (PRH) sites, building for sustainability and cost-effectiveness, and monitoring contractors' performance in respect of their compliance with the relevant labour protection requirements.
Building Control
Independent Checking Unit
The Independent Checking Unit is responsible for applying building control practices to new HA projects and existing HA buildings. It models its standards and practices on those of the Buildings Department (BD) and the Buildings Ordinance.
Lift Ordinance Enforcement Unit
The Lift Ordinance Enforcement Unit would continue their efforts to regulate the operation of new and existing installations in accordance with the requirements of the Lifts and Escalators (Safety) Ordinance, and investigate accidents involving HA lifts and escalators.
Objectives
The objectives of construction and building control operation are:
- To construct PRH flats, retail space and car parks in accordance with the Public Housing Construction Programme, and optimize the development potential of housing sites.
- To map out strategies on the provision of retail and ancillary facilities to meet community needs.
- To adopt site specific design and continue to be innovative in building design and construction technology in order to enhance functional and cost-effective design and sustainability of housing developments.
- To continue to enhance construction quality and site safety through procurement practices and collaboration with service providers.
- To apply the new modular flat design principle for family flats and small flats to site specific design projects to ensure consistency of provision.
- To step up monitoring of building contractors' performance in respect of their compliance with the relevant labour protection requirements.
- To strive to enhance social sustainability in PRH estates.
- To implement building control measures in new housing projects and existing HA buildings with reference to the practices of the BD and the requirements of the Buildings Ordinance.
- To manage the HA's stock of lift and escalator installations under the requirements of the Lifts and Escalators (Safety) Ordinance.
Key Activities
Meeting Production Targets
- To construct 16 400 PRH flats[4], 6 800 square meters (m2) gross floor area[4] of retail facilities and 340 car / lorry parking spaces[5].
Building For Sustainability and Cost-Effectiveness
- To adopt site specific design to best utilize site potential, address site constraints and meet community needs.
- To develop site responsive design with social, environmental, energy and cost-effective merits.
- To enhance the social sustainability of PRH estates.
- To apply the findings of the researches sponsored by the HA Research Fund and other suitable researches for sustainable design.
- To monitor the cost-effectiveness of the building design by benchmarking against buildings of similar standard in the private sector.
- To make effective use of information technology (IT) in improving design, operation efficiency and effectiveness.
- To ensure the quality and consistency in provision and design, and the adoption of Universal Design principles in PRH development.
Enhancing Building Quality and Site Safety
- To continue to improve procurement practice.
- To lift the standard of workmanship through the establishment of a quality workforce.
- To lift the standard of construction by joint efforts of stakeholders and the local construction industry.
- To improve safety performance of construction sites.
Monitoring Contractors' Performance in Respect of Labour Protection
- To strengthen the monitoring of contractors' performance in respect of relevant labour protection requirements.
Strategies on the Provision of Retail and Ancillary Facilities
- To develop suitable models on the provision of retail and ancillary facilities to suit specific needs of the estates and the local communities.
Implementing Building Control
- To implement building control in accordance with BD practices on new projects.
- To introduce building control modeled on BD practices on other HA domestic and non-domestic buildings.
- To regulate the use and operation of the lift and escalator installations in accordance with the requirements of the Lifts and Escalators (Safety) Ordinance.
Budget
Expenditure for 2007 / 08 is budgeted at $5,928 million, up $1,995 million (50.7%) as compared with the 2006 / 07 Revised Budget expenditure of $3,933 million. The higher forecast expenditure for 2007 / 08 is due to the higher level of construction activities planned for the next few years.
The 2006 / 07 Revised Budget ($3,933 million) was lower than the original Approved Budget of $5,609 million mainly because of construction programme adjustments, slow progress of some projects, savings arising from design enhancements, deferred release of outstanding payments pending agreement of final accounts, and the recovery of $236 million from a consortium of insurers upon settlement of disputes in connection with a piling contract.
Subsidized Housing
The main focus of the HA's subsidized housing programme is to allocate, manage and maintain the HA's domestic rental properties. In 2007 / 08, our emphasis would be placed on following up the outcome of the domestic rent policy review, managing public housing resources effectively, timely and proper maintenance of our PRH stock and monitoring of service contractors' compliance with the relevant labour protection requirements.
The surplus Home Ownership Scheme (HOS) flats would be put up for sale in an orderly manner from 2007 onwards.
Objectives
The objectives of the subsidized housing operation are:
- To follow up the outcome of the review of domestic rent policy.
- To maintain the average waiting time for PRH application at around three years.
- To manage public housing resources effectively.
- To tackle domestic rent arrears.
- To help foster caring and harmonious living conditions for residents.
- To reduce the vacancy rate of domestic units.
- To implement the Total Maintenance Scheme (TMS) to ensure proper and timely maintenance of PRH estates.
- To enhance the quality of maintenance services and performance of maintenance contractors.
- To step up the monitoring of service contractors' compliance with the relevant labour protection requirements.
- To review outsourcing and tendering strategies.
- To maintain estate cleanliness and environmental hygiene for healthy living.
- To promote environmental protection in PRH estates.
- To promote wider use of IT application and e-Business.
- To work in partnership with customers and stakeholders.
- To launch the sale of surplus HOS flats in phases.
Key Activities
Efficient and Rational Allocation of Public Housing Resources
- To follow up the outcome of the review of domestic rent policy and to put in place a more flexible and sustainable rent adjustment mechanism.
- To maintain the average waiting time for PRH application at around three years.
- To combat abuses of public housing resources through effective tenancy control and implementation of the Biennial Declaration System and the Housing Subsidy Policy.
- To continue to tackle domestic rent arrears in PRH estates.
- To review relevant housing policies and schemes to encourage young families to live with their elderly parents.
- To reduce the vacancy rate of PRH units.
- To optimize the use of surplus Housing for Senior Citizens units.
- To provide opportunities for relief of overcrowding.
Timely and Proper Maintenance
- To adopt a proactive and comprehensive approach in identifying maintenance problems.
- To make prompt response to tenants' requests on building works.
- To enhance promotional and educational programmes for the TMS.
- To continue to implement the Structural Investigation Programme in aged PRH estates.
Monitoring Service Contractors' Compliance with the Relevant Labour Protection Requirements
- To promote the awareness of contractors and non-skilled workers of the labour protection requirements.
- To implement the tightened measures on tender evaluation, contract administration and contractor list management.
- To step up the detection of exploitation of non-skilled service workers in PRH estates.
Reviewing Outsourcing and Tendering Strategies as Well as Improving Service Contractors' General Performance
- To modify the scope for outsourcing to facilitate better maintenance services to tenants.
- To explore strategic partnership arrangement in the delivery of outsourced services.
- To enhance tender assessment criteria of property services contract to encourage good performance from property services contractors.
- To lift the standard of workmanship and customer service through the establishment of a quality workforce.
Sustaining Estate Cleanliness and Care for the Environment
- To tighten prevention of mosquito breeding.
- To continue implementation of the Marking Scheme for Estate Management Enforcement in PRH estates.
- To maintain effective control on dog-keeping.
- To step up enforcement action against illegal cooked food hawkers.
- To promote environmental care awareness in PRH estates.
- To reduce domestic waste.
Partnership with Customers and Stakeholders
- To arrange partnering workshops with tenants' representatives.
- To encourage Estate Management Advisory Committees to hold community building activities.
Optimizing the Use of Human, Financial and IT Resources
- To continue to develop the Estate Management and Maintenance System for the Estate Management Division.
- To identify and implement application of IT solutions to enhance service quality.
Disposal of Surplus Home Ownership Scheme (HOS) Flats
- To launch the sale of surplus HOS flats in phases from 2007 onwards.
Budget
Rental Housing Operating Account
Income and expenditure of the rental housing operating account for 2007 / 08 are budgeted at $11,183 million and $12,494 million respectively. An operating deficit of $1,311 million (before exceptional item) in 2007 / 08 is forecast, as opposed to an operating deficit of $1,173 million in the 2006 / 07 Revised Budget. The higher operating deficit is mainly due to the expected loss in rental income resulting from the rent reduction of 11.6% upon introduction of the new rent adjustment mechanism [8]. It is also due to the increase in maintenance and improvement expenditure, depreciation charges, and other recurrent expenditure (such as cleansing and security services) as the housing stock continue to grow. Home Ownership Assistance Operating Account
Income and expenditure of the home ownership assistance operating account for 2007 / 08 are budgeted at $9,787 million and $7,093 million respectively. The operating surplus of $2,694 million is significantly higher than the $325 million estimated in the 2006 / 07 Revised Budget. This is mainly due to the scheduled sale of surplus HOS flats from 2007 onwards, and lower Mortgage Subsidy Scheme / Home Purchase Loan Scheme / Home Assistance Loan Scheme subsidy payment upon expiry of the residual cases, partly offset by the significant decrease in sale of Tenants Purchase Scheme (TPS) flats after TPS Phase 6B.
Commercial Properties
As at 30 September 2006, the HA run approximately 1 496 050 m 2 internal floor area (IFA) of commercial and other non-domestic properties (including retail, government lettings, welfare, kindergarten, flatted factories and others) and 27 225 car parking spaces. In 2007 / 08, we would strive for enhancing the operational efficiency of these facilities, boosting the letting rate and tackling rent arrears.
Chart 5: Non-domestic Properties Portfolio by Space
Objectives
The objectives of the commercial operation are:
- To continue to review the mode of operation and management of non-domestic properties.
- To map out strategies on the provision of retail and ancillary facilities to meet community needs.
- To promptly review the letting strategy of newly completed shopping centres to tie in with the prevailing market practice.
- To closely monitor and reduce the vacancy rate of retail premises.
- To tackle rent arrears.
- To implement the Enhanced Marking Scheme for tenancy-related misdeeds in the HA's shopping centres and markets.
Key Activities
Improving Operational Efficiency
- To explore the possibility of further divestment of the HA's non-domestic properties.
- To make effective use of private sector resources in the delivery of shopping centre and car park services.
- To develop suitable models on the provision of new retail and ancillary facilities to meet local community needs.
- To develop new computer system to enhance operational efficiency and data maintenance.
Reducing Vacancy Rate
- To adopt flexible leasing strategy and trade mix in line with the prevailing market practices.
- To introduce short-term lettings for shops and shopstalls through open instant tender and walk-in applications.
- To monitor the vacancy rate of the HA's commercial properties and develop site specific measures to improve the occupancy position.
- To explore the conversion of less popular retail premises and car parks for welfare / community use.
Tackling Rent Arrears
- To step up rent chasing actions.
- To encourage auto-pay and other alternative rent payment methods.
- To review regularly the effectiveness of prevailing interest surcharge on late rent payment.
Enhancing Business Environment
- To optimize the business potential of new shopping centers by tapping private sector experience in trade mix and shopping centre design.
- To implement the Enhanced Marking Scheme for the HA's commercial properties to improve their environmental conditions.
- To promote environmental hygiene and environmental protection through publicity and Incentive Award Schemes.
Budget
For 2007 / 08, we forecast an income of $1,300 million against an expenditure of $975 million. The operating surplus before exceptional items is projected at $325 million, which is $10 million or 3% higher than the 2006 / 07 Revised Budget of $315 million. The modest increase in projected operating surplus is mainly due to the assumption of rental income growth for some shops, shopstalls and car parks as well as addition of new commercial premises over the year.
Corporate Services
Corporate services comprise a wide range of support services that facilitate the efficient operation of the HA and the Housing Department. These include general administration, human resources management, legal services, financial management services, corporate and community relations, management consultancy / advisory services and IT.
Objectives
The objectives of corporate services are:
- To make the best use of human resources to meet corporate goals.
- To make the best use of IT to enhance business efficiency and support various business initiatives.
- To work in partnership with customers and other stakeholders.
- To facilitate business operations of the HA through the provision of general administration, management consultancy, legal and various supporting services.
- To promote environmental and safety understanding and practices in HA's workplace and PRH estates.
- To provide an open, fair, transparent and cost-effective procurement environment.
- To maintain sound financial and fund management for the HA in meeting its missions in a sustainable manner.
Key Activities
Optimizing the Use of Human and IT Resources
- To sustain a lean and dynamic organizational structure through regular staffing requirement reviews in response to the evolving operational requirement.
- To communicate changes to staff and obtain feedback to enhance operational effectiveness.
- To develop a motivated workforce in the HA to sustain continuous improvement in service delivery.
- To develop a service-oriented organization culture and uplift the service level of our business units and contractors by enhancing customer service training.
- To organize training for staff to enhance their competence in supporting business initiatives.
- To ensure cost-effective and timely delivery of business applications.
- To enhance the effectiveness and efficiency of business and IT operations.
Enhancing Partnership and Communication with Customers and Stakeholders
- To enhance communication with the general public.
- To enlist the support of customers and stakeholders in promoting the HA's policies and initiatives.
Facilitating operations of the HA
- To provide legal services to different divisions.
- To provide management consultancy services to support corporate goals and initiatives.
- To enhance value-for-money in procurement and strengthen procurement related training.
- To implement and review a wage monitoring system for our contractors.
Financial Management
- To finalize with the Government new financial and administrative arrangements having regard to the present day circumstances.
- To monitor and review the HA's investment strategy.
- To review funds management framework including staff resources and training, monitoring arrangements and publicity strategy.
Promoting Environmental Friendliness and Safety Practices
- To enhance staff awareness and knowledge about environmental issues.
- To enhance and promote occupational safety and health system, and monitor compliance.
- To promote environmental awareness among PRH tenants and continue our joint efforts with green groups in publicizing environmental awareness.
Budget
The 2007 / 08 proposed budget of $468 million is slightly lower than the 2006 / 07 revised budget by 0.5%. The decrease is mainly due to lower personal emoluments, partly offset by the additional IT maintenance expenses arising from new systems.
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