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More than 5,000 additional households will become eligible for public rental housing, which houses one-third of the local population, under a government plan to raise the income and asset limits.

Permanent Secretary for Transport and Housing Thomas Chan said in the Legislative Council housing panel meeting yesterday that the government planned to raise the income and asset limits by an average of 5.5 percent and 3.1 percent from the 2007-08 fiscal year.

Under the proposal, a single-person household can earn as much as HK$7,300 a month under the plan, HK$500 more from the existing limit. The income limit for a two-person household will be raised from HK$10,800 to HK$11,200.

A three-person household can earn HK$12,600 a month, which is also HK$500 more than the existing limit. The income limit for a four-person household will be capped at HK$15,300 instead of HK$14,600.

The asset limits for a one-person household will increase from HK$176,000 to HK$181,000. The limits for a two-person household will increase from HK$238,000 to HK$245,000. A three-person household can have assets worth HK$320,000 instead of HK$310,000, and the limits for a four-person household will increase from HK$362,000 to HK$373,000.

The asset limits will double should there be an elderly person in the household.

The government has considered inflation when raising the limits.

The bureau estimated that some 104,900 households in the private sector will be eligible for public housing after the adjustment, up 5,100 from the current 99,800 households.

But Chan said the increased number of eligible households will not affect the three-year waiting period for public housing, as the government has already taken the adjustment into account when planning housing resources.

Unionist legislator Wong Kwok-hing suggested that the income limit for households living with elderly persons be further raised to encourage youngsters to live with elderly family members.

"Some households are denied a public housing unit because their income has slightly exceeded the limit, making it difficult for them to take care of their elderly family members," he said.

The proposal will be implemented on April 1, if approved by the Housing Authority at a meeting this month.

(HK Edition 03/04/2008 page1)