The quota and points system of Hong Kong's public rental housing

Abstract

Prior to 1985, individuals were generally not allowed to apply for public rental housing (PRH) on their own. In 1985, in order to response to the demand from the elderly and those affected by redevelopment or living in temporary housing areas, the restriction was released.

The release of restriction attracts many one-person households to apply PRH. In 1989/90, applicants of age 18 to 24 occupied 4% of the newly registered Waiting List (WL) One-person Applications. But in 2004/05, the age group 18 to 24 applicants occupy 21% of the newly registered applications (Hong Kong Housing Authority, Housing Subsidised Committee SHC 58/2005, p.1 of Annex B).

The Hong Kong Housing Authority found that the sharp increase number of Non-elderly One-person Applicants has adversely impacted to the 3 years rehousing performance pledge. It started to address the housing priority problem through the introduction of Quota and Points System (QPS) in September 2005. The Points System is based on two factors to assign points – the age of the applicant and whether the applicant is a PRH tenant or not. The priority of Non-elderly One-person WL applicants will be determined according to the points received. The more points the Applicant scores, the top priority and the earlier the Applicant will be offered a flat, subject to the fulfillment of all the other PRH eligibility criteria. Housing Authority sets an annual quota for Non-elderly One-person Applicants.

This study aims at reviewing and evaluating the equitable issue of QPS. Equity is to ensure fairness of treatment between households. QPS is an important policy to rationalize housing priority to the Non-elderly One-person Applicants under scarce public housing resources.

This study approaches the equity issue from both a theoretical analysis and a qualitative measurement by questionnaire survey. Based on various literature reviews, the concept of justice, equity, equality and housing needs are elaborated in theoretical analysis. Also, the experience of public housing application in some developed countries is described. The Points System of developed countries and Fordham’s suitability test are taken into account on setting of questionnaire.

Most of the findings under theoretical analysis are agreed with the findings from the questionnaire survey. This study focuses on analysis in equity issue of QPS and to suggest recommendations to improve the equity among applicants.