Hong Kong’s Housing Authority on Friday endorsed the tightening of "well-off tenants policies" (WTP) and the rationalization of some of the implementation details.

The tightening came following announcement by the chief executive in his 2024 Policy Address that the well-off tenants policies of public rental housing (PRH) will be tightened up by raising the additional rent and lowering the income limit of well-off tenants.

“In this connection, the HA has reviewed various arrangements to expedite the circulation of PRH flats and encourage upward mobility of well-off tenants," a spokesman for the HA said in a statement.

To allocate resources properly, the Subsidized Housing Committee (SHC) of the Housing Authority has endorsed reducing the subsidies for well-off tenants by raising their additional rents.

Households whose family income exceeds two times and not more than three times the prevailing PRH income limits will be required to pay 2.5 times net rent plus rates; those whose family income exceeds three times and not more than four times the prevailing PRH income limits will be required to pay 3.5 times net rent plus rates; households whose family income exceeds four times and not more than five times the prevailing PRH income limits will be required to pay 4.5 times net rent plus rates.

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With the increase in additional rents for well-off tenants, the average rent to total household income of well-off tenants will account for about 11 percent.

“While this is still much lower than the median rent-to-income ratio of 31.5 percent for households renting private residential flats, it is comparable to general PRH tenants, which is more reasonable," the spokesman said.

The new additional rent level will take effect from the declaration cycle in October this year, and the first batch of well-off tenants will pay rent in accordance with the new additional rent level on Oct 1, 2026.

The SHC also endorsed that PRH tenants with income levels exceeding four times but not five times the PRH income limits after two declaration cycles must also vacate their flats.

“This adjustment will not affect tenants whose financial condition has just begun to improve, and it will also enable better-off PRH tenants to make early arrangements for vacating their PRH flats to ensure the proper use of public housing resources," added the spokesman.

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The SHC also endorsed the suggestions to adjust the quota allocation ratio of Green Form and White Form to 50:50 starting from the next home ownership scheme (HOS) sale exercise.

Under new arrangements to be implemented from Oct 1, well-off tenants paying additional rents can retain their Green Form status for four years after voluntarily moving out from their flats.

The Housing Authority also agreed to explore the introduction of new arrangements in the sale exercise of subsidized sale flats in helping well-off tenants stand a better chance of purchasing flats that they desire and increase their chances of success in home ownership.

To encourage and enable the upward mobility of PRH tenants and with the completion of more SSFs in the future, the HA will continue to allow them to rent their existing PRH flats until their surrender of the PRH flats or deletion of the subject member from the tenancy after assignment.

During this period, PRH tenants can continue to pay the prevailing level of rent.

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Enhancing the declaration arrangements, the HA will require each family member to declare individually whether they own any domestic property in Hong Kong under the WTP declaration.

The member who has made false declarations will be subject to a five-year debarment for the application of PRH and liable to prosecutions.