The Housing Bureau’s Dedicated Team on Subdivided Units today began accepting applications for registrations of pre-existing substandard subdivided units (SDUs), as well as applications for Basic Housing Unit (BHU) recognition of SDUs that comply with minimum living condition standards.

Under the Basic Housing Units Ordinance, which took effect today, the BHU regime for the letting of SDUs in residential buildings is being rolled out in phases.

The criminal offence of illegal letting of SDUs with no registration and no recognition will only come into effect in a year's time, on March 1, 2027.

During the first year of the new regime, the bureau is primarily concerned with motivating owners of pre-existing SDUs to submit their registration applications as soon as possible. This means they will be granted a 36-month grace period to get their tenancies and alteration works in order. 

The application procedure for grace-period registration is simple and no application fees will be charged. 

Under the regime, transitional arrangements will be in force until February 28, 2030. The Government highlighted that the registration and grace-period arrangements will give owners and operators reasonable time to carry out necessary alteration works and submit recognition applications. 

Pre-existing SDUs, regardless of whether they comply with minimum living condition standards or not, can apply for registration and obtain the grace period at no cost.

Starting from the second year of the new regime's implementation, from March 1 next year, the bureau said that to ensure SDU households are not displaced due to enforcement actions, it will adopt a pragmatic, people-oriented and risk-based approach to enforcement against illegal letting of SDUs with no registration and no recognition.

In terms of relocations, the bureau, through its six District Service Teams (DSTs), covering various regions of the city, will assist affected households that need to find alternative accommodation on the private market, and co-ordinate the use of other housing resources such as transitional housing (TH), Hostels for Single Persons, interim housing and transit centres as required.

To encourage SDU owners and operators to submit applications for registration and recognition as early as possible, the Government is offering an "early-bird" reduction/waiver on recognition application fees.

In addition, in accordance with the ordinance, the Chief Executive appointed has members to an appeals panel for a period of three years starting from today.