Public Consultation on Urban Renewal Authority Bill

The Government is proposing a new and proactive urban renewal approach and the setting up of a new institutional framework to tackle the problems of urban deterioration.

Under this new approach, the 200 planned urban renewal projects can be completed within an estimated two decades instead of three.

To overcome the inherent difficulties faced by the Land Development Corporation, a newly established statutory body, the Urban Renewal Authority (URA), will be established.

An Urban Renewal Authority White Bill will be published in the gazette in the form of a White Bill tomorrow (Friday) for public consultation until December 3, this year.

The Bill will be introduced into the Legislative Council early next year. Subject to the enactment of the Ordinance, the Government intends to establish the Authority in 2000.

A Government spokesman explained today (Thursday) that the whole purpose of the Bill is to move away from the conventional approach to urban renewal.

"We should plan urban redevelopment and rehabilitation more rigorously and comprehensively for larger areas, with a view to restructuring and replanning more effectively the older built-up areas," the spokesman said.

"More effective and environmentally-friendly transport and road networks could be designed in the process, with incompatible land uses replaced.

"We should also plan for the rehabilitation of buildings not in good repair and the preservation of buildings of historical, cultural or architectural interest in the project areas. Under-utilised industrial areas should also be included in our urban renewal programme for the re-vitalisation of economic activities within these areas," he added.

In an urban renewal strategy study completed recently by the Planning Department, 200 projects for priority redevelopment have been identified, having regard to the age and physical and fire safety conditions of these buildings.

If the conventional approach were used, it would take 30 years or more to complete the projects.

The spokesman said, "At this pace, we could not even catch up with the current rate of urban deterioration. Under the new approach, these projects can be completed with an estimated 20 years.

"The time-consuming land assembly process is the main reason behind the long time taken by the Land Development Corporation to implement renewal projects. To expedite the process, the URA would be empowered to apply for the resumption of land required for urban renewal without first having to negotiate with the owners for the acquisition of land.

"The Chief Executive in Council is the authority to approve such resumption applications and the affected property owners will be compensated fairly under the Lands Resumption Ordinance and the affected tenants will be properly rehoused," he said.

New planning procedures will also be introduced to process projects of the URA. The Government has formulated an urban renewal strategy which identified projects for priority implementation by the URA.

On the basis of Government's urban renewal strategy, the URA will prepare a corporate plan setting out its proposed programme of projects for the next five years and an annual business plan setting out the projects to be implemented in the next financial year for approval by the Financial Secretary.

This procedure will give the URA a high degree of flexibility since it does not have to seek approval on a project-by-project basis as long as it operates within the parameters and guidelines set out in Government's urban renewal strategy.

The planning procedure also ensures an appropriate level of Government supervision of the URA.

Adequate rehousing resources will be provided to the URA. The Government is therefore discussing with the Housing Authority and the Housing Society how they can assist the URA in this respect.

Another essential aspect of the comprehensive renewal of old urban areas, apart from redevelopment, is rehabilitation. The rehabilitation of buildings improves the urban environment and reduces the need for redevelopment.

"We are reviewing the Building Safety Inspection Scheme and the Building Safety Improvement Loan Scheme administered by the Buildings Department with a view to formulating a new proposal for the preventive maintenance of buildings to improve building safety.

"The review will include the co-ordination and division of work between the Buildings Department and the URA within the urban renewal action areas," the spokesman said.

A non-statutory provisional body, to be called the Provisional URA, will be set up to carry out the necessary preparatory work for the establishment of the URA.

The Provisional URA's main tasks will be to prepare for the establishment of the URA and to make arrangements for the transfer of assets and liabilities from the Land Development Corporation to the URA. It will also handle staff transfer matters and to prepare the URA's first draft five-year corporate plan and first draft annual business plan.

The Government is exploring various financing options for the URA to implement the urban renewal programme.

"We are also considering waiver of land premia, exemption of Government/ institution/community facilities within project areas from plot ratio calculation, relaxing plot ration controls for the project areas and packaging redevelopment projects so that financially viable projects can cross-subsidise non-viable ones," he explained.

"The Government may also consider making loans to the URA, if necessary.

"Our ultimate aim is to develop an arrangement which would be self-financing in the long run and, at the same time, provide opportunities for the private sector to participate in urban renewal."

Members of the public are invited to comment on the Urban Renewal Authority Bill. The consultation document will be made available for collection at all District Offices and for downloading from the Internet (Homepage: http://www.ura.org.hk/).

Comments should be submitted in writing on or before December 3, 1999 to the Planning, Environment and Lands Bureau.

End/Thursday, October 21, 1999

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