According to the HA, according to the PRH rent mechanism that is reviewed every two years, it is recommended to increase the rent by 1.17% in 2022, while the average monthly rent in March this year was $2,278. The monthly rent increase is 26 yuan, which will take effect as soon as October 1.
The HA also pointed out that in the first 12 months after the rent adjustment, it is proposed to waive the additional rent payable by tenants due to the rent adjustment, resulting in a deficit of $1.373 billion in the HA's rental housing operating account in 2022-23.
The rent adjustment rate under the PRH rent review in 2022 is proposed to increase by 1.17% (file photo)
The Housing Ordinance stipulates the current PRH rent adjustment mechanism, which requires that PRH rents be reviewed every two years, and the changes in the household income of PRH tenants are used as the basis for PRH rent adjustments.
There is a 10% "cap" arrangement for rent increases.
According to the HA, according to the latest survey data, the average monthly household income of PRH tenants was $24,194 in 2019 and $24,478 in 2021.
As the 2021 income index is higher than the 2019 income index of 1.17%, the latest rent adjustment is 1.17%.
The Housing Ordinance stipulates the existing PRH rent adjustment mechanism, requiring that PRH rents be reviewed every two years.
(file picture)
4000 households plus rent about 60 yuan
The Housing Authority estimates that after the 1.17% rent increase, the rent increase will range from $5 to $66, with 4,000 households going to increase to $61 to $66.
The Housing Authority described the increase as moderate and believed that the impact on public housing tenants would be minimal. It also pointed out that 4% of the tenants were wealthy households, and they were expected to be able to afford the rent increase.
In addition to the 14% CSSA whose rent is paid by the government, the monthly rent of more than 60% of the remaining public housing households will be increased by only $30 or less.
The HA also pointed out that the increase in household income of tenants is higher than that of rent. From 2007 to 2021, household income has increased by 108.6%, but public housing rent has only increased by 70%.
The ratio of the average rent of public housing to the average household income of public housing tenants has dropped from 9.97% in 2007 to 9.56%.
One-year extra rental deficit to be waived will reach 1.373 billion
However, in consideration of the financial burden that may be brought to PRH tenants after the rent increase, the HA proposes to provide special relief measures to PRH tenants, waiving the tenants’ payment due to the rent adjustment for the first 12 months after the rent adjustment. The additional rent paid is the "freeze rent" for the first year.
The HA pointed out that although the rent increase by 1.17% is expected to generate an additional income of $262 million per year, one month’s rent relief will involve $1.696 billion. Therefore, when the relief measures are implemented, the HA will eventually lead to In 2022-23, the rental housing operating account will have a deficit of $1.373 billion, while a total of about $262 million in rental income will be lost in 2022-23 and 2023-24.
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