Housing Authority extends rent relief

March 2, 2020

The Housing Authority today announced it will extend the 50% rent concession for its retail and factory tenants for six months from April 1 to September 30 to align with the Government's relief measures.


The Financial Secretary announced on February 26 the reduction of rentals by 50% for another six months from April 1 for eligible tenants of government properties and government land, among others.


A total of about 2,450 retail and 3,300 factory tenants will benefit from the concession, the authority said, adding it does not cover rates and air-conditioning charges.


The authority in September and October last year endorsed the arrangements for granting a 50% rent concession for its retail and factory tenants from October 1 to March 31.


Total rent forgone for the 12-month rent concession is estimated at about $778 million.


The rent concession will apply to all eligible tenancies that are in force during the concession period, while no rent concession will be granted for tenancies that are under a rent-free period during the concession period.


For retail and factory tenancies due to expire during the extended rent concession period, the authority will adopt a flexible approach to deal with them as a transitional arrangement.


To enable tenants to continue their use and occupation of the premises upon expiry of the existing tenancies, licences will be granted at the existing rent while pending agreement on the rent for the new tenancies, the authority said.


Upon finalisation of the rent for the new tenancy, it will take retrospective effect from the original effective date of the new tenancy and the licence fee paid shall be applied to the payment of rent under the new tenancy.


The arrangement will allow more time for the authority and tenants to grasp additional market information for consideration and decision-making, the authority added.

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