The Housing Authority recorded a $775-million deficit in its consolidated operating account this year owing to the Home Ownership Scheme's sales moratorium and its subsequent cessation.

The Authority also forecasts an operating deficit of $524 million next year.

The budget is subject to a number of external factors, Housing Authority Chairman Cheng Hon-kwan explained. 

Nevertheless, the Authority's finances are expected to remain reasonably healthy with a projected cash balance of $11 billion by the end of the next financial year, he added.

To streamline its cost structure, the Authority is evaluating its overall financial position.

Dr Cheng said it will explore long-term options for negotiating with the Government on a sustainable financial arrangement.

On April 1, the Authority will operate with a streamlined structure, cutting the number of standing committees from eight to six.

The six committees are:

* Strategic Planning;

* Commercial Properties;

* Subsidised Housing;

* Building;

* Tenders; and

* Finance.

Dr Cheng said the move is in line with the housing policies announced in November last year as the Authority has shifted its role from directly selling subsidised flats to promoting home ownership.

At today's meeting, the Authority also endorsed its 2003/04 Corporate Plan, which strives to help all families in need gain access to adequate and affordable housing.

It will submit the plan and the budget to the Chief Executive for approval.