HA can cover costs

January 04, 2013

The Housing Authority has projected in its latest budget and forecast exercise for the period 2012-13 to 2016-17 that it will continue to have sufficient financial resources to meet its recurrent expenditure and implement its current public housing construction and maintenance programmes.
 
During the five-year period, the authority will maintain an annual production of about 15,000 public rental housing flats on average to keep the average waiting time for general waiting list applicants at about three years.
 
Following the Government's announcement in 2011, the authority is responsible for providing 17,000 Home Ownership Scheme flats over four years from 2016-17 onwards. It is anticipated that the first batch of flats will be completed in 2016-17 and be put up for pre-sale in 2014-15. It also plans to put up the remaining 800 surplus HOS flats for sale early this year.
 
After the authority’s Finance Committee meeting today on its 2013-14 Proposed Budget, committee chairman Prof Raymond So said: "While the authority's financial position remains steady in the short to medium term, its cash and investment balance is projected to decrease significantly in the coming few years, mainly due to projected price increases in construction costs and operating costs, as well as additional construction costs."
 
The authority will continue to exercise prudent financial control and ensure cost-effective use of its resources to meet its policy objectives.
 
The committee today endorsed the 2012-13 revised budget and the 2013-14 proposed budget. It also noted the 2014-15 to 2016-17 financial forecasts. The budget will be tabled for approval at the authority’s general meeting on January 24.