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Tuesday, Dec 06, 2022

Housing Authority extends 75pc rent waiver for non-domestic tenants

The Housing Authority on Thursday approved a further extension of the 75 percent rent concession for eligible non-domestic tenants and licensees for three months from October 1 to the end of this year.
The rent concession also applies to carpark users for monthly parking of commercial vehicles.

Eligible tenants and licensees of the non-domestic premises under the Authority may continue to apply for a 100 percent rent concession for the period during which their operation is required to be closed under Covid rules or government's orders.

It is estimated that around 8,500 of the non-domestic tenants and licensees, including about 2,600 retail and 1,380 factory tenants; licensees of some 80 advertising signboards; some 40 tenancies of bus kiosks; and about 4,400 carpark users will benefit from the extension of rent concessions.

“The Housing Authority's extension of rent concessions for eligible non-domestic tenants is in line with the government's measure announced on September 16 to ease the operating pressure on businesses,” a spokesman said.

To safeguard the efficient use of resources, in this round of extension, rent concessions for the trades of convenience stores, personal stores and fresh/chilled/frozen food will be subject to the tenants' application and production of proof of sales drops, in line with that currently applicable to supermarkets, the statement read.

Specifically, if the tenants suffer a drop in gross sales during the extended rent concession period as compared to that of the same period the year before, a rent concession at the same percentage will be provided to them, capped at 75 percent.

The spokesman added that the HA would continue to adopt a flexible approach in dealing with tenancies which expire before the end of the extended rent concession period as a transitional arrangement.

The rent foregone for this three-month extension of the 75 per cent rent concession is estimated to be around HK$352 million.

The total rent foregone for rent concessions granted by the Authority for the 39-month period from October 1, 2019, to December 31, 2022, is estimated to be around HK$4 billion.
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