Addressing long-standing problems

1. Buildings in disrepair, unauthorised building works and dilapidated signboards pose problems of public safety and scar our city outlook.
2. According to the Buildings Department, there are around 42 000 private buildings territory-wide. About 153 000 are 20 to 40 years old and are more susceptible to maintenance problems, particularly those without proper management. Some 600 new buildings are completed each year. There are around 220 000 signboards and 560 000 unauthorised building works including illegal rooftop structures. In 2001-2006, about 239 000 unauthorised structures were removed/ irregularities rectified and about 9 600 signboards were removed/repaired.

Consultation with our community

3. In February 2000, Government set up a task force under the then Planning and Lands Bureau to formulate a comprehensive strategy for building safety and timely maintenance. From November 2000 to March 2001, the team consulted widely: the Legislative Council, the Land and Building Advisory Committee, all 18 District Councils, numerous professional and representative bodies and owners' corporations and similar associations. More than 70 discussion sessions were arranged; over 200 submissions and commentaries received.

4. Government determination has been acknowledged and the comprehensive strategy warmly supported by the community. The general consensus is that:

   1. responsibility for maintenance and management rests with owners; and
   2. the role of Government is to assist and support those responsible and to action against the non-compliant.
5. With all in the community working in partnership, we can look forward to a safer built environment and a better city outlook.

A multi-prong strategy

6. The Secretary for Development will steer, co-ordinate and monitor implementation. The multi-prong strategy comprises different solutions for different groups of private buildings, according to both their age and condition. Its main features are:

   1. enhanced support for owners in need;
   2. a new co-ordinated approach to enforcement;
   3. focus on the importance of forward planning for maintenance;
   4. devolution of authority and responsibility to professionals and contractors as partners in building safety;
   5. recourse to market forces and economic considerations; and
   6. community participation and sustained public education for positive attitudes.

   This is a strategy of firm action with practical assistance. In this connection, Government is providing extra resources as investment in public safety.

For immediate action

Comprehensive support for owners

7. On financial assistance, we are operating a Building Safety Loan Scheme with a $700-million fund to meet all practical requirements for improving the safety and maintenance of private buildings. Owners in hardship, e.g. elderly and other persons with very low income, will be given more flexible repayment terms. The Buildings Department will review arrangements from time to time.

8. On professional support, the Director of Buildings will designate building co-ordinators, each for a pool of buildings, to provide district-based "one-stop" service for owners. The Buildings Department has published a layman's guide "Building Maintenance Guidebook", in June 2002, to advise on:

   1. technical aspects of maintenance and procedures for compliance with statutory orders;
   2. engagement of professional and technical services;
   3. model tender and contract documents; and
   4. indicative information on costs and professional fees for different types of maintenance and repair works.
9. On management issues, at the Headquarters level of the Home Affairs Department (HAD), a dedicated team has been set up to coordinate all building management matters, for both policy and execution purposes. At district level, District Building Management Liaison Teams (DMBLTs) have been set up in all the 18 District Offices to provide assistance to owners and OCs in resolving their building management problems.

Pilot co-ordinated maintenance scheme

10. In November 2000, the Director of Buildings launched a pilot Co-ordinated Maintenance of Buildings Scheme. The Buildings Department, in collaboration with other enforcement departments, surveys target buildings to advise owners and owners' corporations of the works required. Where necessary, joint enforcement action will be taken. In 2004, the department completed the assessment on the effectiveness of the scheme. Based on the assessment results, Buildings Department began to operate a modified scheme in February 2005 with the participation of the Hong Kong Housing Society, a non-government and non-profit organization, in addition to other enforcement departments.

Maintenance reserve funds and public liability insurance

11. In readiness for repairs and improvement works, we encourage owners of existing buildings (through public education and outreach efforts) to set up maintenance reserve funds. They may contribute by setting aside a reasonable percentage of the monthly management fees. We will promote the merits of taking out public liability insurance for common parts of buildings.

Measures for new buildings

12. Some developers and professionals with long-range vision and good market sense already plan and construct new buildings with an eye on the higher aspirations of their prospective clientele. They have taken measures to prepare for future maintenance and management such as:

    1. designing buildings to be not only safe but also manageable and maintainable;
    2. using durable and easily maintainable materials and providing longer defects liability warranty;
    3. setting out a schedule for future major maintenance works for owners' reference; and
    4. opening an account for advance payments from buyers towards a maintenance reserve fund.

    These are positive selling points that help to enhance corporate image and attract buyers, particularly prospective owner-occupiers.

13. We will, through the introduction of new guidelines for deeds of mutual covenants, require owners, or the management, of new buildings to set up maintenance reserve funds for future major repairs. We will also legislate to require owners to take out public liability insurance for common parts.

Classification of buildings

14. Classifying buildings brings market forces into play as encouragement for owners to take up their maintenance responsibility. Buildings attaining satisfactory standards will be rated higher and result in better market value. We see this starting with private initiatives as a voluntary scheme for independent rating by professional institutes and associations of banks, insurance agencies and building management companies. The Buildings Department will co-ordinate with other departments to set the safety and maintenance benchmarks for assessment. Ratings will be based on owners' performance and compliance with these standards. Results will be widely publicised for the information of prospective buyers and tenants. In this connection, BD has commissioned a consultancy study on a broad framework of building classification assessment criteria and scoring system. We are studying the recommendations in consultation with the academic institutions and the industry.
15. Owners responsibly repairing and maintaining their building will be encouraged to come forward for assessment. A basic rating can also be assigned to buildings clearing unauthorised building works or carrying out improvement works under enforcement action. We will review in the light of experience and consider whether a mandatory scheme is feasible.

Revising the enforcement policy

16. The Buildings Department has been enforcing the law against unauthorised building works in accordance with its enforcement policy promulgated in 2001 for wider scope for action.

Stepping up enforcement action

17. The Director of Buildings has been conducting "blitz" operations to clear at one go all external unauthorised works on hundreds of buildings. This has considerably raised owners' compliance. The Buildings Department will adopt this approach for major clearances, particularly those items on the external walls of buildings 20 to 40 years old and some on podiums and rooftops or in yards and lanes. Such clearances will target 1000 buildings each year. These operations will remove 150 000 to 300 000 unauthorised building works in five to seven years.
18. Owners not responding to the Buildings Department's advisory letters will be served with statutory orders. Those not complying with orders will be prosecuted. Where appropriate, the department will take over the works and recover costs from the owners.
19. The department will also stop new or re-erection promptly. It will respond to community reports and commission special patrol teams.

Introducing "minor works" control regime

20. Under the Buildings Ordinance, "building works" (except for "exempted works") require the Building Authority's prior approval of plans and consent for commencement of works. It is therefore necessary for building professionals to be engaged for preparation and submission of the requisite plans. Otherwise, the building works are "unauthorised" and subject to enforcement.
21. However, many "unauthorised building works" are relatively simple amenity features not provided in the original design of older buildings. These are now considered essential to daily living: eg light-weight canopies and drying racks. Some of them pose less risk than major building works and do not require the present level of control under the Ordinance. In this light, there is scope for professionals and contractors, as partners in building safety, to have greater authority and responsibility.
22. Building control should be commensurate with the degree of risk. The Buildings Department has drawn up a new category of "minor works" to be carried out and certified by professionals and registered contractors without the need for approval of plans. A new register of "minor works contractors" will be created under the Buildings Ordinance. The department will then focus on more significant building works and on audit control. The relevant Buildings (Amendment) Ordinance 2008 and Building (Minor Works) Regulation were passed by the LegCo in June 2008 and May 2009 respectively. The Department is currently preparing the consequential subsidiary legislation. It is anticipated that the minor works control system will be fully implemented in the Year 2009-2010. Before the implementation of the system, the department will launch a large-scale publicity and public education programme to introduce the new system to the public and professionals.

Strengthening deterrent

23. In order to strengthen the deterrent, we have amended the Buildings Ordinance with effect from 31 December 2004

    1. to upgrade advisory letters (which most offending owners ignore) to statutory warning notices registrable against the title; and
    2. to increase penalties for offences relating to unauthorized building works.

    The aim is to stop proliferation and persistence of unauthorized building works.

Removing risk from illegal rooftop structures

24. To remove the serious fire risk, the Buildings Department aims to clear 12 000 illegal rooftop structures on the 4 500 single-staircase buildings. The Buildings Department is continuing its efforts in this aspect. The Housing Department will rehouse the affected occupants according to their eligibility and in step with the Buildings Department's clearances.
25. As stated in paragraph 19, the Buildings Department will promptly remove new unauthorised building works, once identified. This also applies to new illegal rooftop structures and those vacated by occupants themselves or by enforcement action.
26. There will be better inter-departmental co-ordination. The power companies, the Rating and Valuation Department and the Water Supplies Department will collaborate more closely with the Buildings Department to identify new illegal rooftop structures for their prompt removal.
27. To promote positive attitudes, we will sustain multi-media public education. We will drive home clear messages of owners' responsibility and merits of timely maintenance, risk from unsafe building works and liability from illegal structures.
28. Community participation is crucial. Members of the public should report building safety problems. District Councils, with their role to advise the Government on matters affecting the well-being of people living and working in the districts, are well placed to join forces with the Government to achieve our objective.

Further initiatives for implementation

Financial assistance for owners via owners' corporations

29. The Building Management Ordinance now specifies that owners' corporations may inter alia register charges against flats in certain circumstances. To prevent improvement works being delayed by irresponsible or missing owners not paying their fair share, we plan to extend the existing arrangements to help willing and responsible owners. HAD is also considering empowering owners' corporations under the Ordinance to apply for loans from the Government (paragraph 7). The detailed proposal is to be worked out.

Registration of building management companies

30. The Administration has an open mind on the introduction of a regulatory system for property management companies. We hope that private property owners, OCs, the property management industry, professional bodies and the public will thoroughly discuss the subject and continue to express their views to us.

Preparing for maintenance

Owners' declaration

31. An idea of requiring owners, before transfer of title, to appoint professionals to certify that their property carries "no unauthorised building works on external walls" has been criticised as impinging on property rights and incurring expenses to owners. To minimise costs to owners, particularly those without unauthorised building works, we are now considering self-declaration by owners.
32. Meanwhile, the Law Reform Commission has consulted the public on its recommendation for a Vendor's Information Form with a statement on structural additions and alterations. We will follow up as appropriate.

Outcome of the strategy

33. With this comprehensive strategy, we aim within seven years (counting from 2001):

    1. to improve the safety, condition and outlook of buildings 20 to 40 years old including removal of unauthorised building works;
    2. to clear the illegal rooftop structures on all single-staircase buildings;
    3. to regulate and control all signboards;
    4. to raise community awareness of unauthorised building works as a liability; and
    5. to enhance appreciation of the benefits of timely maintenance.

    It will provide many training and employment opportunities for our workforce.

Appendix

Revised enforcement policy against unauthorised building works

The revised enforcement policy against unauthorised building works re-focuses priorities and broaden the scope for enforcement action. Resources will be directed to the removal of:

1. items constituting obvious or imminent danger to life or property;
2. new items, irrespective of the date of completion of the building where they have been carried out;
3. items in or on buildings, on podiums and rooftops, in yards and lanes (including unauthorised site formation works) constituting a serious hazard or a serious environmental nuisance, as determined by the Building Authority;
4. major individual items;
5. items in or on individual buildings with extensive unauthorised building works;
6. items identified in buildings or groups of buildings targeted for large-scale operations or maintenance programmes; and
7. unauthorised alterations to or works in environmentally friendly features of a building (eg balconies, sky or podium gardens) for which exemption from calculation of gross floor area has been granted by the Building (g) unauthorised alterations to or works in environmentally friendly features of a building (eg balconies, sky or podium gardens) for which exemption from calculation of gross floor area has been granted by the Building Authority.

On other items, the Buildings Department will issue statutory warning notices registrable against property title (paragraph 23(a)).