Cash-strapped Hong Kong urban renewal body set to reveal proposed payout changes
Development minister Bernadette Linn gives timeline for reviewing URA’s compensation mechanism, with consultation set for next year
Hong Kong’s cash-strapped Urban Renewal Authority (URA) will consult the public next year about its preliminary proposal to revamp a financially unsustainable compensation scheme for flat owners affected by redevelopment, a minister has said.
Secretary for Development Bernadette Linn Hon-ho on Friday gave a timeline for reviewing the statutory body’s compensation mechanism, which provides payouts equivalent to the market price of a comparable seven-year-old home in the same district.
In his annual policy address on Wednesday, Chief Executive John Lee Ka-chiu said that three sites in the Kwu Tung North and Fanling North new development areas would be set aside for the authority to build replacement flats for those losing their homes due to urban renewal projects.
Linn said that the authority did not only look for profit in redevelopment projects, but also provided community facilities.
“Alongside its seven-year compensation mechanism, it faces significant financial pressure,” she said.
“The government cannot just hand over the redevelopment task to such a good partner and then leave someone to fend for themselves. The government is concerned about its finances, but land resources are continuously being made available.