A Private Sector Participation Scheme flat owner has been fined $27,000 for unauthorised alienation, the Housing Authority says.

The owner purchased a Private Sector Participation Scheme flat in 1987 and applied to the Housing Department for premium assessment in 2005.

But the department found he had executed a loan agreement with a charge over the property without prior approval from the Director of Housing.

The authority today reminded owners under the Private Sector Participation, Home Ownership and Tenants Purchase Schemes to strictly observe the alienation restrictions.

Any form of alienation of their flats, or creation of a mortgage or charge over the flats, is not permitted unless with prior approval from the Director of Housing.

Owners seeking re-financing arrangements by charging their flats should pay the assessed premium to the authority to uplift the alienation restrictions before mortgaging the property.

Those with genuine financial hardship, with prior approval from the director, can apply for re-financing of their flats without paying premiums first.