The Housing Authority has sufficient financial resources to meet recurrent expenditure and implement its construction and maintenance programmes for the 2016-17 to 2020-21 period.
The authority made the statement yesterday, saying its projected cash and investment balance will decrease from $57 billion in early April 2016 to about $18 billion at the end of March 2021. The fall is caused by anticipated rise in construction and operating costs.
The projected total construction expenditure during the five-year period is $117.8 billion. The authority’s Finance Committee Chairman Prof Raymond So said the authority’s cash and investment balance will continue to decrease to attain the public housing supply target.
“The Government’s funding support to the authority will become necessary in the longer term,” he said. “The authority will exercise strict economy and reprioritise to ensure public funds are used in the most cost-effective manner.
” The Government’s public housing supply target from 2017-18 to 2026-27 will be 280,000 units, including 200,000 public rental housing units and 80,000 subsidised sale flats.