People take photos at a playground in a public housing estate in Hong Kong, Aug 29, 2021. (PHOTO / FILE / AFP)

A new subsidy was launched on Tuesday for new transitional housing dwellers, who currently live in sub-divided flats or have waited at least three years for public housing in Hong Kong.

The Housing Bureau (HB) said that the "Trial Scheme on Special Allowance for Households of Transitional Housing" is a two-year initiative that is expected to benefit 35,000 households.

People who moved into transitional housing units on or after June 16 will be granted a one-off allowance ranging from HK$1,800 ($230) to HK$11,550 depending on the size of the household and the location of the flat.

The grant, which carries no restrictions, aims to help residents with the costs of transferring their children to new schools, buying furniture and relocating appliances as well as rebuilding their community networks.

Following the example of the city’s Comprehensive Social Security Assistance Scheme, Under Secretary for Housing Victor Tai Sheung-shing said people moving into transitional flats in New Territories will enjoy a higher allowance than those who choose flats downtown. He noted that many of those in dire need of proper housing are living in Yau Tsim Mong, Sham Shui Po and Kowloon City, so they need greater help for relocating to the New Territories

Speaking on a radio program on Tuesday morning, Under Secretary for Housing Victor Tai Sheung-shing said one of the goals of the allowance is to provide incentives for residents to live in transitional flats in the New Territories.

Following the example of the city’s Comprehensive Social Security Assistance Scheme, Tai said people moving into transitional flats in New Territories will enjoy a higher allowance than those who choose flats downtown. He noted that many of those in dire need of proper housing are living in Yau Tsim Mong, Sham Shui Po and Kowloon City, so they need greater help for relocating to the New Territories.

Currently, about 1,000 people are eligible for the allowance, according to Tai. The occupancy rate of transitional flats in New Territories is over 86 percent, with 97 percent of those in downtown already taken already. Tai also noted that 6 percent of the transitional flats downtown have been reused to accommodate new households. 

Under the program, transitional housing units located in urban and extended urban areas will be eligible for special allowances ranging from HK$1,800 to HK$5,750. In contrast, units in the New Territories and outlying islands will receive allowances ranging from HK$3,650 to HK$11,550.

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The Society for Community Organization on Monday emphasized that numerous transitional housing units are situated in the New Territories. The provision of subsidies will assist beneficiaries in enhancing their quality of life by facilitating the purchase of essential furniture.

According to a government statement on Monday, residents who have already availed themselves of the subsidy must reside in their transitional housing unit for a minimum of one year, and a second subsidy will not be provided if they choose to relocate again

According to a government statement on Monday, residents who have already availed themselves of the subsidy must reside in their transitional housing unit for a minimum of one year, and a second subsidy will not be provided if they choose to relocate again.

A spokesperson for the Housing Bureau acknowledged that most residents living in transitional housing units belong to a low-income bracket and may face difficulties meeting relocation expenses. Consequently, the Housing Bureau successfully secured a grant of HK$85.2 million from the Community Care Fund in June this year to support this two-year pilot program. 

Applications open on Tuesday. Residents who have completed the procedure for acquiring a transitional housing unit can simultaneously apply for the subsidy through the operating organization. Once the application is received, the organization will disburse the subsidy within 20 working days.

If an approved applicant has not yet moved into their assigned unit, the subsidy will be provided within 10 working days following their official relocation.

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Lawmaker Vincent Cheng Wing-shun, who has been monitoring the living conditions of sub-divided flats residents, welcomed the scheme. In a statement on Monday, Cheng urged the government to beef up efforts promote the transitional flats, with about 10,000 more to be completed in near future, in a bid to encourage those living in sub-divided flats to apply for transitional housing. He said he hoped more measures to boost the supply of public housing could be rolled out in the upcoming Policy Address, slated to be unveiled on Oct 25.

The city offers transitional housing to those who live in sub-divided flats or those who have waited at least three years for public housing. Transitional housing usually comes at a lower rent, typically ranging from HK$2,100 to HK$6,000, compared to market price.