Building Rehab Energises Society

A 53-year-old building on Fa Yuen Street near Prince Edward, like most of the buildings in Yau Tsim Mong District, was in poor condition two years ago. Walls, both inside and out, were worn down, staircases were broken, and with electrical installation panels exposed on the outside. 

But with the help of various subsidy schemes launched by the Government and Urban Renewal Authority, older buildings are being given a new lease of life. The schemes include Operation Building Bright 2.0 (OBB 2.0), the Fire Safety Improvement Works Subsidy Scheme (FSWS) and the Lift Modernisation Subsidy Scheme (LIMSS).

 

Helping hand

Octogenarian owner-occupiers Leung Ting-lam and Chu Lai-chun have lived in this building on Fa Yuen Street for more than two decades. They welcome the improvements, which include a new metal gate and lift.

“Modernising the lift was done so quickly. It only took a few months and that was the most satisfying part,” said Mr Leung. Ms Chu agreed that the lift no longer breaks down so regularly.

It cost $800,000 just to modernise the lift. Add to that the other repair and maintenance works, and the total cost exceeded $3 million. Those who own a flat had to shoulder tens of thousands of dollars in the 10-storey building containing 19 units.

For seniors on a fixed income, it is not easy to cover the full cost of repair works. With the government subsidies, they no longer have to worry about the financial burden of upgrading their buildings on their own.

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The lift modernisation work under the LIMSS is assisted by the Electrical & Mechanical Services Department. The department’s Assistant Director Raymond Poon said the subsidy can cover up to 60% of the total cost of the works - plus a consultation fee - with a cap of $500,000 per lift for eligible buildings.

For elderly owner-occupiers, they can receive the full cost of relevant works capped at $50,000 per domestic unit.

Up until August 1, the department received around 1,171 applications for the scheme involving nearly 5,000 lifts in the first round of applications. This far exceeded the quota of 1,400 lifts set for the round, a response Mr Poon described as overwhelming.

Apart from the LIMSS, owner-occupiers can also apply for OBB 2.0 and other schemes to cover maintenance costs.

In one 58-year-old Hung Hom building, residents had to spend more than $800,000 to paint the common areas, replace above-ground drainage pipework and other structural upgrades.

The building’s owners’ corporation has applied for several funding schemes to get some financial relief, including OBB 2.0. Under this scheme, elderly recipients can receive the full cost of the work, subject to a cap of $50,000. Other owner-occupiers can receive 80%, capped at $40,000.

As of August, the owners or owners’ corporations of 479 Category One buildings were prepared to carry out the prescribed inspection and repair works for the common areas of their buildings under OBB 2.0. They can do so on a voluntary basis to comply with the Mandatory Building Inspection Scheme (MBIS) statutory notices.

These buildings are in 13 districts. Among them, Yau Tsim Mong has the largest number of applications, followed by Kowloon City and Sham Shui Po.

More help ahead

In the future, another $3 billion will be injected into OBB 2.0. This means a total of $6 billion will be used to benefit 5,000 buildings.

Development Bureau Principal Assistant Secretary Jasmine Choi said they have received feedback from the community which hopes the operation will eventually allow younger buildings to join the rehabilitation schemes.

Upon review, buildings between 40 and 49 years old with an outstanding MBIS statutory notice not yet complied with will be accepted in the next round of applications.

Apart from these younger structures, OBB 2.0 will also accept buildings aged 50 and older, even if they do not have an outstanding notice.