Hong Kong Development Bureau: Urban Renewal Emphasizes Both Restoration and Reconstruction. The funding for building repairs has reached HK$19 billion.

The director of the Hong Kong Development Bureau, Mr. Ning Hanhao, responded in writing to inquiries from legislators, stating that the government has been using a strategy of simultaneous repair and redevelopment to address the aging of urban areas. In terms of building repairs, the government has allocated a total of HK$19 billion since 2018, through various building repair support programs launched by the Housing Authority. The government has been handling its finances cautiously and making every effort to maintain a sound financial position in the long run. She mentioned that, in order to address the challenges posed by economic and property market conditions to the continuous promotion of urban renewal, the Housing Authority periodically reviews and/or adjusts the planning and pace of different redevelopment projects in response to market conditions and building conditions. This allows for flexible allocation of resources in order to balance financial stability, effective promotion of old area renewal, and response to community expectations, while continuing to carry out the urban renewal mission in an orderly manner. To maintain the momentum of urban renewal, the government has been providing financial support to the Housing Authority, including selling land to the Housing Authority symbolically at nominal premiums (the total amount of land premium forgone by the government since the establishment of the Housing Authority exceeds HK$25 billion); earmarking nearby "government, institution or community" land within appropriate redevelopment projects for the Housing Authority to increase the overall development potential of the redevelopment projects; and providing financing for redevelopment projects, such as the allocation of two sites in Hung Hom Baker Street and Area 137 of Tseung Kwan O to the Housing Authority last year through private treaty and at nominal premiums. Mr. Ning Hanhao mentioned that after consolidating ownership, the Housing Authority generally puts redevelopment sites on the market for developers to bid on, and works with private sector organisations to promote redevelopment projects. Before inviting tenders for new projects, the Housing Authority enhances project information transparency and strengthens communication with the market through project development facilitation services. The Housing Authority can flexibly adjust tender terms as needed to optimise project arrangements and enhance developers' confidence in bidding, such as providing arrangements for staged payment of tender amounts. As for planning tools for plot ratio transfer, the government will relax existing arrangements to allow cross-district plot ratio transfer and widen previous planned arrangements, which will also apply to projects of the Housing Authority. The government has consulted on the proposal, listening to the views of stakeholders (including the Housing Authority Board, professional bodies, and industry organisations), who generally support the direction of our proposal. The aim is to finalise and implement specific measures in the third quarter of this year. Building maintenance can effectively prolong the lifespan of buildings and alleviate the pressure of building redevelopment. The government believes it is worth continuing to provide assistance to owners in need, and will comprehensively review the "2.0 Action" subsidy scheme in the 2026-27 Budget to develop a new subsidy scheme based on past experience, with a budget allocation of HK$3 billion. The review work will be completed early next year and details of the new subsidy scheme will be formulated, with consultation to be conducted with the Legislative Council Panel on Development Affairs at that time. In response to the trend of an aging population, the Social Welfare Department revised Chapter 3 of the Guidelines in 2018 in accordance with the suggestions of the Elderly Services Programme Plan, incorporating and updating population-based planning standards for elderly services and facilities, including requirements for floor area and planning ratio for elderly centres, elderly community centres, community care services, residential care services, etc., in order to effectively align with the goal of strengthening elderly services. In terms of inter-departmental coordination, the Development Bureau has established an Urban Renewal Office responsible for overseeing the overall operation of the Housing Authority and coordinating communication and cooperation between the Housing Authority and other departments to promote new ideas and projects for urban renewal. The Project Facilitation Office under the Development Bureau also assists in the Housing Authority's redevelopment projects (such as the Kwun Tong Town Centre Renewal Plan) by coordinating with relevant departments in processing development approval applications related to the projects.