Replies to LegCo questions

LCQ7:Homes for elderly operating in commercial/residential building

Following is a question by the Hon Audrey Eu and a written reply by the Secretary for Health, Welfare and Food, Dr Yeoh Eng-kiong, in the Legislative Council today (June 18):

Question :

It has been reported that the High Court has recently ruled that a home for the elderly operating in a commercial/residential building falls into the category of "hostels" and thus violates the terms in the deed of mutual covenant of the building that no hostels shall be established in that building. The Court subsequently orders the home for the elderly to be vacated from the building. In this connection, will the Government inform this Council of:

(a) the number of homes for the elderly currently operating in commercial/residential buildings in Hong Kong; and

(b) the measures in place to address the situation in which the homes for the elderly referred to in (a) are forced to be relocated and consequently closed down as a result of the above court ruling?

Reply :

(a) As at April 30, 2003, there were 575 private residential care homes for the elderly (RCHEs) with a total capacity of 45 000 and an enrolment of 31 000 elderly residents. Other than about 50 private RCHEs located in New Territories Exempted Houses, nine in low rise buildings with single owner, two in Public Housing Estates (PHEs) and another 16 in Government-owned premises, we believe that the majority of the remaining around 495 private RCHEs are located in commercial or residential buildings under co-ownership governed by Deed of Mutual Covenant (DMC). In addition, there were 123 subvented RCHEs with 48 being located in purpose-built premises and 75 at PHEs not subject to DMC.

(b) Currently, the majority of private RCHEs set up in private developments maintain good communication and co-operation with other owners/residents and co-exist harmoniously with the Incorporated Owners (IOs) concerned (if any). According to Social Welfare Department's (SWD's) operational experience, most of the initial disputes between RCHE operators and owners/residents of the concerned buildings are resolved at an early stage when mutually agreed measures like having separate entrance for the RCHE, clear delineation of common areas, sensible management of the RCHE environment by the operator, etc. have been adopted. Disputes between owners/residents and the RCHE operators resulting in lawsuits are the exception rather than the norm. Government departments concerned will continue to endeavor to mediate in such disputes to enable smooth operation of RCHEs in private buildings.

In the event that a court order is made restraining the use of certain premises as RCHE on grounds that such use is in breach of the DMC of the building, SWD will closely monitor the situation and provide assistance to the elderly residents as necessary. In respect of the RCHE affected by the recent court ruling, as we understand it, the operator is still considering to appeal against the court decision. The operator has also indicated that contingency arrangements will be made to decant the elderly residents, either by relocating the RCHE to nearby suitable premises or by transferring the elderly residents to branch RCHEs under mutual consent. Where necessary, SWD will provide support to ensure that alternative welfare arrangements are made for the elderly residents concerned. As at April 30, 2003, there were 45 000 places in 575 private RCHEs with an average occupancy of about 70 per cent. There is thus sufficient supply in the market to meet the care needs of elders affected.

As a long term objective, we are of the view that RCHEs should preferably operate in purpose-built premises. Thus, in consultation with the Elderly Commission, the Government has launched various initiatives to increase the supply of quality RCHE premises. Under the premises-led approach, the Government will continue to build, or to pay developers to build RCHE premises on the Government's behalf and on an entrustment basis. We have reserved about 6 000 residential places mainly in PHEs, or under urban renewal/railway-related development projects in the next ten years. The number of places to be provided will be adjusted in light of demand. The Government has also opened up Government supplied purpose-built RCHE premises at nominal rent for competitive bidding by both non-governmental organisations and the private sector. Since December 2001, five homes have been contracted out providing a total of 504 subsidized places and 213 non-subsidized places. To encourage developers to incorporate purpose-built RCHE premises in their new private developments, the Government is finalizing details of a premium concession scheme.

However, private buildings will remain an important source of premises for private RCHEs. On the advice of the Elderly Commission, the Lands Department has since February 2001 expressly disallowed prohibition of RCHE in DMCs for new residential developments where commercial uses are normally permitted in the lowest three floors.

End/Wednesday, June 18, 2003
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