III. HOUSING BENEFITS GENERAL INFORMATION 1. Housing benefits will be provided to a staff member whose salary is on or above University Scale B Point 6 (or Master Pay Scale Point 34) in accordance with his/her terms of service and subject to regulations governing the grant of different forms of housing benefits as promulgated by the University from time to time. 2. A Home Financing Scheme (HFS) has been introduced to eligible staff of UGC-funded institutions on 1 October 1998. For an eligible staff member appointed on or after this date, HFS will be the only form of housing benefit provided by the University. 3. For eligible staff members joining the University or any one of the UGC-funded institutions before 1 October 1998 and has since served continuously without a break in service in any one of the UGC-funded institutions may opt to join the HFS, or retain their existing housing benefits in either one of the following forms: a. University Quarters b. Private Tenancy Allowance c. House Allowance 4. All forms of housing benefits provided by the University to eligible staff members are governed by the prevention of double housing benefits rules as stipulated by the Government. PREVENTION OF DOUBLE HOUSING BENEFITS OF THE GOVERNMENT 1. The University, as a publicly funded institutions, is required by the Government to enforce the Prevention of Double Housing Benefits Rule when providing housing benefits to its staff members. In essence, these rules are summarized in the ensuing paragraphs. 2. Unless otherwise specified, a staff member may receive only ONE housing benefit at any one time, irrespective of whether or not ' it is provided by the University. "Housing Benefits" refer to benefits of any nature which assist an appointee or the spouse in renting accommodation or acquiring property, and includes also cash allowances with a housing element or which are paid in lieu of housing benefits, irrespective of whether the benefits are accountable or non-accountable, taxable or non-taxable. 3. A married staff member and the spouse may not receive more than one housing benefit at any one time, irrespective of whether or not it is provided by the University, the Government, a public- funded organization or a private employer. The staff member must opt for either the University housing benefits or those provided by the spouse's employer. 4. The term “housing benefits” mentioned in preceding paragraphs refer to element of housing assistance in various forms included in a pay package. The following are examples of housing benefits being provided as part of a pay package: a. accommodation provided by the employer, whether or not rent is payable by the employee; b. a housing loan or any form of subsidy, whether it is for purchasing local or overseas property; c. an allowance for renting accommodation or purchasing property, whether or not it is accountable or taxable; d. a cash allowance provided in lieu of housing benefits, whether or not it is accountable or taxable; e. a cash allowance which is provided to encash fringe benefits including housing, whether or not it is accountable or taxable; (e.g. cash allowances provided by The Legislative Council Commission, the Office of the Ombudsman, the Equal Opportunities Commission, the Office of the Privacy Commissioner for Personal Data; and the Flexible Allowance provided by the Hospital Authority to its staff and by the University of Hong Kong/the Chinese University of Hong Kong to their clinical staff); and f. any portion of a pay package actually claimed by an employee as rental reimbursement for tax purposes in his/ her tax return, (e.g. the tax efficiency schemes offered by some utility companies) 5. If a staff member or the spouse has received any form of housing benefits from the Government or a public-funded organisation, the staff member’s entitlement to the University housing benefits may be reduced or otherwise limited. The main circumstances are: a. If the staff member or his/her spouse has once drawn benefits under any of the following schemes in the Civil Service or in a publicly-funded organisation: i. one which provides assistance for acquiring a property; ii. one which provides assistance that may be used for either renting accommodation or acquiring a property; iii. one which has a limited entitlement period; or iv. a cash allowance which includes a housing element or which is paid in lieu of housing benefits. The staff member may nevertheless apply to join the University housing benefits scheme(s) which provide assistance for acquiring property, currently the Home Financing Scheme (HFS). But the staff member's entitlement period under HFS will be reduced with reference to the period of assistance the staff member or the spouse has obtained from the Government or other publicly-funded organisation. b. If the staff member or the spouse has permanently ceased to be eligible for any housing benefits under the terms of employment in the Government or a publicly- funded organisation (for instance, the staff member or the spouse has claimed the full entitlement of any housing benefit, or has been disqualified from a housing benefit for any reason), the staff member will not be eligible for any University housing or related benefits. 6. A staff member and the spouse are required to relinquish their public housing benefits, examples of which are listed below, before the staff member may enjoy the University’s housing benefits (except where provision is included in the Rules on Home Financing Scheme for the staff member to receive concurrent housing benefits): a. being a tenant or an authorised occupant of a public rental housing flat; b. being an owner or an authorised occupant of a flat sold under the "Home Ownership Schemes" (HOS) [including flats sold under the Hong Kong Housing Authority's Home Ownership Scheme and Private Sector Participation Scheme, and the Hong Kong Housing Society’s Flat for Sale Scheme and Urban Improvement Scheme (only Urban Improvement Scheme flats completed before March 1981)] which is subject to resale restriction; c. being an owner or an authorised occupant of a flat sold under the Hong Kong Housing Society's Sandwich Class Housing Scheme (SCHS) which is subject to resale restriction; d. an owner or an authorised occupant of a flat sold under the Hong Kong Housing Society's Tenant Purchase Scheme which is subject to resale restriction; e. being the recipient or the crucial member of a family in receipt of a loan granted under the Hong Kong Housing Authority's Home Purchase Loan Scheme (HPLS); f. being the recipient or the crucial member of a family in receipt of a loan granted under the Hong Kong Housing Society's Sandwich Class Housing Loan Scheme; and g. being the recipient or the crucial member of a family in receipt of a loan granted under the Hong Kong Housing Society's Home Starter Loan Scheme (HSLS). 7. It is important for staff members who are applying for, or receiving housing benefits provided by the University, to note that non-compliance with the prevention of double housing benefits rules will result in penalties, including recovery of allowances from, and or disciplinary and legal action against the staff member concerned. In this regard, staff members will be asked to make the appropriate declaration by completing a Statement in respect of Housing Benefits (PERS/HSG/F13) when applying for housing benefits. TYPES OF HOUSING BENEFITS A. HOME FINANCING SCHEME 1. A staff member whose salary is on or above University Scale B point 6 shall be provided with a monthly Home Financing Allowance under the Home Financing Scheme for up to a maximum period of 120 months. 2. The Home Financing Allowance may be used for: a. purchasing a local property, in which case the allowance will be used for reimbursing the actual mortgage repayment and will be 50% accountable; or b. renting an accommodation, in which case the allowance will be used for reimbursing the actual rental payment and will be 100% accountable. 3. An eligible staff member may apply to switch from renting an accommodation to purchasing a property at any time during his/ her entitlement period, but not vice versa. 4. The staff member, on joining the Home Financing Scheme, shall forfeit all other housing benefits and housing-related benefits provided, or to be provided, by the University. 5. The staff member will be required to reside in an accommodation or a property for which he/she is receiving the Home Financing Allowance. 6. The Rules on Prevention of Double Housing Benefits as promulgated by the University will apply for a staff member in receipt of the Home Financing Allowance. 7. The Home Financing Allowance is taxable. 8. The provision of the Home Financing Allowance shall be governed by the Rules on the Home Financing Scheme as promulgated by the University from time to time. The set of Rules on Home Financing ] Scheme, relevant application forms and details on rates of allowance are obtainable from the Personnel Office. B. UNIVERSITY QUARTERS Subject to availability of units in the University Staff Quarters at Fotan, serving staff remunerated on or above the University Salary Scale A point 1 (or Master Pay Scale point 45) or staff on overseas term are eligible for quarters as a form of housing benefit, at a rental charge of 7.5 % of their salary. "Serving staff" refers to those who joined the University or another UGC-funded institution before 1 October 1998, and who have not opted for the Home Financing Scheme. 1. Authority of Allocation The allocation of staff quarters, other than units handled by the Personnel Office for short-term visitors/visiting scholars, shall be handled by a Staff Housing Committee, comprising representatives from the Finance Office, Estates Office, and the Personnel Office, and chaired by the Vice-President (Administration) & Secretary. The terms of reference for the Staff Housing Committee are as follows: a. To formulate policies and procedures on staff housing matters for the approval of the Staff Affairs Committee; b. To make decisions on the respective responsibilities of related Offices on staff housing matters; and c. To make decisions on allocation of staff quarters to staff, having regard to prevailing policies and the priority points of staff concerned, and/or as advised by the President & Vice-Chancellor under special circumstances. 2. Mode of Allocation a. Eligible staff will be given direct allocation of quarters. b. Staff quarters falling vacant will be announced through internal circulars, and will be open for application by all eligible staff. 3. Priority Points System a. In the allocation of staff quarters and in the determination of the ranking order for staff to choose available units, each applicant shall have a number of points, calculated as in accordance with the Schedule of Points below: i. Salary Scale "Salary Points" Professorial Scale 22 Scale A 8-10/DPS D1 18 Scale A 4-7/MPS Points 47-49 14 Scale A 1-3/Scale B 13-15/ MPS Points 43-46 10 Scale B 9-12/MPS Points 39-42 8 Scale B 5-8/MPS Points 33-38 6 Scale B 2-4/MPS Points 28-32 4 Scale B 1/MPS Points 22-27 2 DPS = Directorate Pay Scale MPS = Master Pay Scale ii. Service Years "Service Points" For each year of full time continuous 2 service up to and including six For each year of full-time 1 continuous service beyond six iii. Number of family members "Family Points" For spouse residing in Hong Kong 10 For each dependent child in Hong Kong 5 For each dependent child studying abroad 2.5 For a child expected to be born within 5 three months at the time of allocation b. All applicants shall be placed in decreasing order of points scored in Two Listings. The First List shall comprise Deans and senior staff on the Professorial Scale; and the Second List shall comprise all other staff. The First List shall have priority over the Second List in the allocation of quarters and in choosing the units. 4. Alternative Housing Benefits In the event University quarters are not available, staff member concerned may claim other forms of housing benefits as appropriate. 5. Withdrawal of Application/Decline of Allocation Staff who have refused an allocation of quarters or who withdraw an application after the specified deadline may not apply again within 12 months. 6. Change of Quarters Staff may not apply for change of quarters within 12 months of occupancy of the allocated unit. If the change of quarters is initiated by the staff concerned and approved by the Staff Housing Committee, the staff concerned shall be responsible for all the moving costs related to the change as follows: a. moving expenses incurred (including furniture items) from original unit to the newly allocated unit; b. repainting and making good of the original unit if the unit has not yet reached the normal cycle for repainting work; and c. an administrative fee to be determined by the Staff Housing Committee from time to time to defray other expenses related to the move. 7. Furnishing a. With the exception of the units reserved for short-term visitors and guests which will be fully furnished, all units of staff quarters shall be provided with items of heavy furniture in accordance with a standard list as agreed by the Staff Housing Committee. b. The occupant shall be responsible for the installation of telephone(s) in his/her unit, and that all charges on rental, installation and removal as appropriate shall be paid by the occupant to the utility company directly. In the case of new staff arriving from overseas to Hong Kong to take up appointment, he/she could request the Estates Office of the University to arrange for the installation before his/her arrival, with the understanding that the related charges shall be settled between himself/herself and the utility company upon his/her arrival. c. All the units in the new staff quarters are currently not fitted with window bars. Staff who have young children and who would wish to have window bars installed in their units could indicate their wish for such bars to be installed. 8. Rental The occupant of staff quarters shall be charged a monthly rental equal to 7.5% of his/her salary, and this amount shall be deducted from his/her monthly salary payment by the Finance Office. 9. Occupants' Terms of Responsibilities Upon moving into the staff quarters, all occupants would need to sign an undertaking to the effect that they shall agree to maintain the staff quarters in a good condition, and that they shall abide by the regulations on occupancy as laid down by the Staff Housing Committee from time to time. C. PRIVATE TENANCY ALLOWANCE 1. Eligibility Serving staff members remunerated at or above Scale B Point 6 (or Point 34 of the Master Pay Scale), will be eligible to claim a Private Tenancy Allowance for leased residential accommodation appropriate to their salary level and family status subject to a rental charge and the conditions of grant as stipulated below. "Serving staff" refers to those who joined the University or another UGC-funded institutions before 1 October 1998, and who have not opted for the Home Financing Scheme. 2. Scale of Allowance Eligible staff members will be reimbursed the rental costs up to their actual rent payable, subject to the limit of their entitled rates of the allowance as revised by the University Council from time to time. 3. Deduction from Salary Private Tenancy Allowance is payable subject to a rental deduction of 7.5% from the basic monthly salary of the staff member. 4. Conditions of Grant a. Legal Responsibility i. The lease of private tenancy must be signed between the landlord and the member of staff in his/her personal capacity, and the University shall not be responsible for the premises or for any obligation under the lease. ii. The University shall not be responsible for any repairs, renovations, or other works in private tenancy accommodations. iii. Stamp duty on the tenancy agreement, agent's commission (if any), rental deposit (if any), water charges, electricity charges, gas charges, telephone charges, cleaning and other utility charges shall be the personal responsibility of the staff member concerned. b. Lease Period The lease should normally be for a period of two years, unless prior approval from the Personnel Office for entering into a lease of a longer or shorter duration has been obtained. c. Extent of Coverage The Private Tenancy Allowance payable may cover actual rental in respect of the leased tenancy (including rates, management fees and one car park rental for a vehicle owned by the staff member or his/her spouse if payable by the tenant; government rent however will not be covered by the allowance) and should be within the entitled rates of allowance as stipulated by the University from time to time. A staff member may be allowed to take a private tenancy at a rent above the staff member's maximum entitled allowance only if he/she is prepared to pay the excess cost. d. Changes During the Lease Period i. An appointee must notify the Personnel Office within two weeks of any change in family status which may result in a reduction in the maximum limit of his/her private tenancy allowance. ii. If any change occurs in the PTA rate, salary, marital or family status of an appointee occupying private premises for which he/she is paying rent in excess of the approved private tenancy allowance, and the change increases such an allowance, he/she may claim the increased amount with effect from the date of the change. iii. If a staff member wishes to terminate an existing lease before its expiry, he/she should notify the University in writing prior to the date of termination. In case he/she subsequently enters into a new lease, he/she should submit a fresh application and the prevailing rate of allowance shall apply. e. Entitlement i. Private Tenancy Allowance at family or married rate is payable only when the staff member's family or spouse, as the case may be, resides with him/her in Hong Kong, and his/her dependent children must be unmarried and under the age of 21; or aged 19 or 20 but in full-time education/vocational training, or dependent on the appointee as a result of physical or mental infirmity. ii. A member of staff residing in an accommodation wholly or jointly owned by himself/herself, or his/her spouse's immediate family (including parents, brothers, sisters, children and their spouses) or in respect of which they have direct or indirect financial interest, shall not be granted a Private Tenancy Allowance. f. Others i. Private tenancies which qualify for any reimbursement of rent under these rules may not be used for profit or gain, or for any purpose other than residential accommodations. Letting or sub-letting and the taking in of paying guests is prohibited, except where the guest is also a member of the University eligible for accommodation, and the permission of the University has been obtained. The term "paying guest" includes any guest who pays in cash, kind or service for the accommodations occupied. ii. Any false representation on the claim for Private Tenancy Allowance or any abuse of the conditions governing the grant of Private Tenancy Allowance may result in the withdrawal of a staff member's Private Tenancy Allowance and/or any further disciplinary/criminal proceedings. iii. The conditions governing Private Tenancy Allowance may be amended by the University from time to time, and will be promulgated to staff members through the Personnel Office Circulars. 5. Application and Reimbursement a. An application for Private Tenancy Allowance should be made to the Personnel Office by submitting a Private Tenancy Allowance Application Form, duly completed and accompanied by an officially stamped lease agreement of the accommodation. b. When an application is approved, the University will reimburse the staff member the rent (including rates, management fees and one car park rental if payable by the tenant) provided that the amount to be reimbursed will not exceed his/her maximum entitled allowance. In the case of rates, a proportionate amount to represent the monthly amount payable should be included in the monthly rental bill where possible. The University reserves the right to seek advice from the Commissioner of Rating and Valuation Department as to the reasonable rental amounts and the University may only approve rental amounts based on the advice received. c. Reimbursement of rent and rates will be made to eligible staff members in arrears in the month end payroll by the Finance Office on presentation of all relevant certified receipts before the 10th of each month. D. HOUSE ALLOWANCE 1. Staff members eligible for housing benefits but residing in accommodation owned by himself/herself, the spouse, or by a member of either his/her or the spouse's immediate family (defined as parents, brothers, sisters, children and their spouses), or residing as a member of a Government Co-operative Housing Society or Government-built Housing Scheme, may apply for a Housing Allowance. 2. Applications can be made on appropriate forms obtainable on request at the Personnel Office. .