Page 74 - Urban Renewal Authority 2023-24 Annual Report

MANAGEMENT DISCUSSION AND ANALYSIS

Expediting the Renewal Process
To speed up the redevelopment of old and dilapidated buildings by private sectors, the Government tabled the
Land (Compulsory Sale for Redevelopment) (Amendment) Bill 2023 (“the Amendment Bill”) to the Legislative
Council in December 2023 with suggestions to lower the compulsory sale application thresholds and streamline
the legal process of compulsory sale regime. The Bill was passed in July 2024 and is expected to be effective at
the end of the year. Such legislation change will help expedite the urban renewal process in the long run.
Commissioned by the Dedicated Office for Support Services for Minority Owners under Compulsory Sale under
the Development Bureau, URA assisted in setting up the Support Service Centre for Minority Owners under
Compulsory Sale (SMOCS) to provide assistance to minority owners who are subject to compulsory sale
applications, in a bid to facilitate the negotiation process between owners and private developers. To align with
the new compulsory sale application threshold requirements, the Urban Redevelopment Facilitating Services
Company Limited, a wholly-owned subsidiary of the URA, is also considering lowering the threshold requirement
for applying for and triggering the Joint Sale services, along with a study to examine the feasibility to include lots
adjoining the applicant building in a joint-sale for increasing the redevelopment’s financial viability.

One of the biggest challenges in redevelopment is the various planning, acquisition and clearance processes
which often take years to complete. To this end, the URA has been working closely with Government
departments to compress the project delivery cycles according to the streamlined public consultation process for
planning applications and the streamlined land grant approval process. In addition, the URA has been exploring
ways to shorten the acquisition process in verifying tenants’ eligibilities, calculating compensation, and providing
assistance for relocation, thereby expediting the relocation process and enabling the clearance of project sites
for tender at an appropriate time. This in turn helps expedite the return of funds and reduce future interest
expenses. At the same time, the URA is also exploring opportunities to carry out advanced works such as ground
investigation, soil decontamination, and underground utilities diversion works to facilitate the early
commencement of site works upon taking over the sites by the JV developers.

Fostering Preventive Maintenance with New Initiatives
As Hong Kong currently lacks dedicated land and financial reserves for large-scale urban redevelopments amid
the accelerating pace of urban decay, there is an imminent need to extend the service life of existing aged
buildings which are still in acceptable conditions, to create a window for focusing resources on redeveloping
those dilapidated old buildings that are beyond repair.

In this connection, the URA has taken a proactive approach to encouraging property owners to carry out repair
and maintenance works through subsidising rehabilitation works, analysing the legal obligations in building
rehabilitation and exploring ways to step up property maintenance and management. To provide a framework
for owners to devise building maintenance and financial plans for undertaking preventive maintenance
effectively, URA has completed the trial version of the Guidelines and Templates for preparing the Maintenance
Manual for Residential and Composite Buildings (GTMM) and is carrying out consultations with over 100
stakeholders including Government departments, professional institutes and trade associations before publishing
the GTMM for wider application in 2024. The URA also launched the new Preventive Maintenance Subsidy
Scheme (PMSS) in April 2024 to encourage the preparation of maintenance manuals and owners’ regular
contributions to a special fund for future maintenance. The GTMM supports applicants of PMSS and other
owners to prepare maintenance manuals for their buildings. The proposed clauses for carrying out preventive
maintenance and enhancing the property manager’s right to handle water seepage problems in the Deed of
Mutual Covenant (DMC) of eResidence Tower 3 was approved by the Legal Advisory and Conveyancing Office
of the Lands Department in August 2023. Recommendations have been submitted for the Government’s
consideration to incorporate into the DMC Guidelines.

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