Operation Building Bright
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1 Notes on Application for Category 1 Target Buildings Operation Building Bright Application Period: From 7 May 2009 to 6 June 2009 Please submit the completed application form together with the required documents in an envelope specifying Operation Building Bright by post to Hong Kong GPO Box No on or before 6 June 2009.
2 Introduction As a specific measure for Preserving Jobs, the Financial Secretary announced in the Budget that the Government, in collaboration with the Hong Kong Housing Society (Housing Society) and the Urban Renewal Authority (URA), will launch a $1-billion Operation Building Bright (the Operation) for two years to provide subsidies and one-stop technical assistance to assist owners of about 1,000 old buildings to carry out repair works, including old buildings without owners corporations (OCs). The Operation aims to achieve the dual objectives of creating more job opportunities for the construction sector in the near future and improving building safety and the cityscape. Target Buildings The Operation will cover two categories of target buildings: Category 1 Category 1 covers buildings with OCs. The OCs which consider that their buildings fulfill the Eligibility Criteria in item 4 of these Notes may submit applications for joining as Category 1 target buildings by completing the Application Form for Category 1 Target Buildings. Category 2 A steering committee comprising representatives from the Buildings Department (BD), the Housing Society and the URA will select buildings having difficulties in coordinating repair works (e.g. buildings without OCs), which have structural safety problems and defective sanitary facilities as Category 2 target buildings, and assist the owners to carry out the repair works.
3 Operation Building Bright - Notes on Application for Category 1 Target Buildings 1. Submission of Application 1.1. The applicant (i.e. OC) should submit the completed Application Form for Category 1 Target Buildings together with the following supporting documents in an envelope specifying Operation Building Bright by post to GPO Box No on or before 6 June The postal date chop shall be taken as the submission date of the application Copy of the minutes of meeting recording that the management committee (MC) of the OC has endorsed the building s application for the Operation and authorized its member as representative to sign the application form. Such meeting should be held on or before 6 June The authorized representative should actively participate in meeting the requirement of the Operation and provide the necessary information; Copy of the minutes of meeting of the MC / owners endorsing the execution of the repair works items (such repair works items should comply with the requirement of the Operation. Please refer to item 5 Use of Grant of these Notes for details); Copy of the occupation permit of the building. (obtainable from the BD at a fee) 1.2. If there are more than one OC within the same building, the OCs may choose to apply jointly by submitting one application form. (Each OC should individually complete pages 1 to 7 of the application form and submit the same together under one envelope. The Housing Society/URA will only assign one priority number for the jointly submitted application form.) The Housing Society/URA reserves full right to define same building and accept or reject any joint applications Each OC should submit one application form only. The Housing Society/URA will disqualify all applications of the OC if it submits more than one application form The Housing Society/URA will send an acknowledgement letter to the OC upon receipt of the application form After the application period, the Housing Society/URA will determine the priority for processing the applications by computer ballot. 2. Processing of Application 2.1. The URA will process and approve applications for buildings within URA target areas, while the rest of applications will be processed and approved by the Housing Society. For any enquiries on the application, the OC should upon receipt of the acknowledgment letter directly contact the relevant organisation responsible for processing its application The OC should prepare to submit the following documents upon the application is processed by the Housing Society/URA: PMAC-OBB-notes on application (ENG-version) 1
4 2.2.1 Copy of the Certificate of Registration of the Owners Corporation; Copy of the recent demand notes for rates issued by the Rating and Valuation Department in respect of different types of residential units in the building (i.e. residential units in the high, middle and low zones); Order or advisory letter in respect of the building common areas issued by the Buildings Department or other government departments (if any); Copy of the Deed of Mutual Covenant of the building; and Other information or supporting documents relating to the repair works. (Please refer to the Vetting Procedures and Requirements in item 7 of these Notes for details) 3. Amount of Grant 3.1. Once an application is approved, the owners of the target building concerned (including residential and commercial units ) can receive a grant amounting to 80% of the cost of repair of the common areas, subject to a ceiling of $16,000 per unit (whichever the lower). The repair items in common areas should fulfill the requirements stated in item 5 Use of Grant of these Notes Elderly owner-occupiers aged 60 or above living in the approved target buildings can apply for a grant to cover the full cost of repair of the common areas, subject to a ceiling of $40,000 (whichever the lower). The elderly owner-occupiers concerned should complete the Application Form for Grant for Elderly Owner-occupier of the Operation and submit the applications within the specified time limit Once an elderly owner-occupier is granted with the subsidy under item 3.2 above, the relevant unit will not be granted subsidy under item 3.1 above. 4. Eligibility Criteria Target buildings of the Operation should meet the following criteria: 4.1. the building is a private residential or composite building aged 30 years or above (counting from the date of the Occupation Permit of the building, the building shall be aged 30 years or above as at 6 June 2009, i.e. the Occupation Permit should be dated on or before 6 June 1979); 4.2. the whole estate or whole building comprises no more than 400 residential units; 4.3. the average annual rateable value of the residential units: - not exceeding HK$100,000 for properties in the urban area (including Hong Kong Island, Kowloon, Shatin, Kwai Tsing and Tsuen Wan); - not exceeding HK$76,000 for properties in other areas; (OC may make reference to the rateable values as stated in the recent rates demand notes of the residential units in the high, middle and low zones within the building) 4.4. with OC formed; and 4.5. the building lacks maintenance or is in dilapidated condition, requiring repair and maintenance works (examples include buildings subject to statutory orders issued by the BD). PMAC-OBB-notes on application (ENG-version) 2
5 5. Use of Grant 5.1. The grant must first be used on repair and maintenance works in common areas of target buildings relating to the structural and fire safety of buildings as well as sanitary facilities with all works in compliance with the statutory requirements, including: repair of building structure, e.g. repairing loose, cracked, spalled or defective concrete; repair of external walls of buildings, e.g. repairing defective rendering and mosaic tiles; repair or replacement of defective windows; repair of building sanitary services, e.g. repairing, maintaining and replacing defective soil, waste, rainwater, vent pipes and underground drainage; and repair of defective fire safety constructions, and fire service installations and equipment of buildings. Maintenance work in association with the works in items to above, including investigation works and professional services; and any incidental or consequential works, such as touch-up and finishing works arising from the repair or remedial works, may also be covered After covering the cost of works stated in item 5.1 above, any remaining grant may be used for additional repair and improvement works in the common areas with all works in compliance with the statutory requirements, including: removal of unauthorized building works and illegal rooftop structures; improvement of fire safety constructions, and fire service installations and equipment of buildings; improvement of building services and facilities, e.g. repairing, maintaining and replacing lifts, electrical wiring, gas risers and fresh water pipes; maintenance or improvement works for slopes and retaining walls; and repair of water-proofing membranes at rooftops and flat roofs and works to alleviate water seepage problems. Maintenance works in association with the works in items to above, including investigation works and professional services; and any incidental or consequential works, such as touch-up and finishing works arising form the repair or remedial works, may also be covered Repair and maintenance works stated in item 5.1 above are essential works under the Operation. If the application is approved, the grant must first be used for works stated in item 5.1. Upon all the repair and maintenance works in relation to item 5.1 necessary to be carried out at the common areas of the target building are satisfactorily completed with the certification by an Authorized Person, the remaining grant after covering the cost of works stated in item 5.1 may then be used for repair and improvement works in item 5.2. PMAC-OBB-notes on application (ENG-version) 3
6 5.4. The grant is not applicable to works with contracts already awarded to contractors before 25 February 2009 (i.e. the date when the Financial Secretary delivered the Budget Speech). Nevertheless, OCs of eligible buildings may apply for grants under the Operation to carry out works which fall within the ambit set out in items 5.1 and 5.2 above but are not covered by the contracts so awarded. For works with contract awarded on or after 25 February 2009, if the concerned building satisfies the eligibility criteria and the works and tendering procedures satisfy all the prescribed requirements, the OC of the building may also apply to participate in the Operation. Such application, together with all other applications, will be assessed and prioritized in accordance with the relevant procedures. 5.5 Repetition of the same items of repair works which had been completed in the last five years is not eligible for grants under the Operation, unless the areas/facilities relating to such works have become dilapidated again. 6. Other Incentives 6.1. Repair works of the target buildings granted with subsidy under the Operation shall not be granted simultaneously the incentive or loan of the following schemes : Housing Society : Building Maintenance Incentive Scheme URA : Building Rehabilitation Material Incentive Scheme Building Rehabilitation Loan Scheme 6.2. If the applicant is currently applying for the Building Maintenance Incentive Scheme of the Housing Society or the Building Rehabilitation Material Incentive Scheme / Building Rehabilitation Loan Scheme of the URA, the applicant should withdraw such application if its application under the Operation has been approved and the repair works have commenced. However, the OC of the target building receiving the subsidy of the Operation may still apply to the Housing Society or the URA for subsidy in relation to the procurement of third party risks insurance for the building common areas. 7. Vetting Procedures and Requirements 7.1. Once the application for the Operation is approved, the OC will receive a letter of Approval-in-Principle (AIP) issued by the Housing Society or the URA. The Housing Society or URA will reserve the relevant amount of subsidy for such building. The OC should then sign an undertaking confirming agreement to proceed with the repair works diligently in accordance with the guidelines and requirements of the Operation The Housing Society and the URA will require the OC to adopt open tender procedures to appoint a consultancy company and an Authorized Person (AP) for co-ordinating the repair works and a registered general building contractor (RGBC) for carrying the works according to the category of works within specified time frame. The tender procedures should be carried out in accordance with PMAC-OBB-notes on application (ENG-version) 4
7 the Guidance Notes for Repair and Renovation Works for the Operation issued by the Housing Society and the URA, the requirements of the Building Management Ordinance (Cap. 344), and with reference to the Building Maintenance Toolkit jointly published by the Housing Society and the Independent Commission Against Corruption (ICAC) If a consultant and an Authorized Person have already been appointed before the OC submits the application, the concerned consultant and the AP should sign an Undertaking confirming their agreement to comply with the requirements of the Housing Society or the URA in respect of the Operation and to confirm that no extra charge will be levied arising from the building s participation in the Operation If a consultant has been employed but with no appointment of AP prior to OC s submission of the application, the OC should follow the timetable specified in item 7.5 below to appoint an AP to coordinate the repair works. The consultant company and AP should both sign an Undertaking same as that mentioned in item 7.3 above confirming their agreement to comply with the requirements of the Housing Society or the URA in respect of the Operation and to confirm that no extra charge will be levied arising from the building s participation in the Operation The repair works of the target building must comply with the following timetable: Period from the date of AIP Required Progress within 2 months Appointment of Consultant and AP for coordination of repair works within 4 months Submission of repair works proposal and project cost estimate by AP within 6 months Tendering for appointment of RGBC within 9 months Appointment of RGBC and commencement of works If the OC fails to comply with the above timetable, the AIP granted earlier may be cancelled. The reserved amount of grant will be allocated to other eligible target buildings according to the priority previously assigned by computer ballot. The OCs should submit supporting documents from time to time to the Housing Society or URA for vetting according to the above progress timeframe. 7.6 OC should prepare the consultancy contract and the repair works contract in accordance with the guidelines issued by the Housing Society and the URA and submit the required documents to the organisations accordingly. Failure to submit the required documents may affect vetting progress and release of grant. The usual required documents are listed below for reference. (Sample of the required documents will be given to the OC after AIP is granted.) PMAC-OBB-notes on application (ENG-version) 5
8 Documents to be provided in relation to appointment of Consultant and AP: Copy of tender opening record of consultant and AP Confirmation in compliance of Probity Commitment and Anti-collusion Clauses duly signed by consultant and AP Declaration confirming the compliance of Ethical Commitments Clauses duly signed by consultant and AP Copy of consultancy contract duly signed by OC and consultant Undertaking mentioned in items 7.3 and 7.4 above signed by consultant and AP Confirmation of Appointment of AP duly signed by both consultant and AP AP should submit the relevant documents relating to the repair works: copies of building condition survey report and repair works proposal (including detailed scope of works) duly signed by AP copies of draft tender documents with scope of works and cost estimation report prepared by AP Documents to be provided in relation to appointment of RGBC: Tender opening record for RGBC and 2 copies of tender evaluation and recommendation report drafted and endorsed by AP Confirmation in compliance of Probity Commitment and Anti-collusion Clauses duly signed by RGBC Declaration confirming the compliance of Ethical Commitments Clauses duly signed by RGBC copies of contract documents duly signed by OC and RGBC Documents to be submitted during works period: Claim form copies of the interim payment certificate certified by AP Copy of works insurance policy Variation instruction endorsed by AP (if applicable) copies of relevant and valid test reports, certificates and warranties Documents to be submitted upon completion of works: Claim form copies of Practical Completion Certificate and latest payment certificate signed and certified by AP Completion report against works listed in building condition survey report duly endorsed by AP, including 2 copies of relevant and valid test reports, certificates and warranties PMAC-OBB-notes on application (ENG-version) 6
9 7.7. The OC should incorporate probity and anti-collusion clauses, including prohibition of acceptance of advantage, and declaration of conflict of interest provisions in the tender documents and in the contract with the Consultant / RGBC Staff members of the Housing Society and URA or their representatives will conduct assessment on the repair items, cost estimates, quotations and progress of works before and after works commencement. The OC should assist and facilitate staff members of the Housing Society or URA or their representatives for site inspection to the building common areas In relation to the tender price of the repair items, Housing Society or URA has absolute discretion in determining the amount of the grant based on the current market rate assessed by the independent professional consultant employed by Housing Society or URA If works have been commenced / completed / concealed prior to the submission of the application such that confirmation of the works on site is impossible, documents proving the carrying out of such works should be submitted to the Housing Society or URA for approval. Otherwise, the subsidy amount of such repair items will be deducted accordingly In case there is any material variation to the contract terms or repair costs (whether it is addition or deduction), the OC should notify the Housing Society or URA immediately in writing and submit relevant documents for approval; otherwise, the subsidy amount will be affected The determination of the Housing Society and URA of any disputes arising from the eligibility of application or release of grant shall be final and conclusive Notwithstanding any contrary provision contained in these Notes, the Housing Society or URA is entitled at any time to reject the application or stop payment or recover any grant released or adjust the amount of grant, whether or not the AIP is issued, on reasonable grounds or under reasonable situation and the Applicant is not entitled to raise any objection. 8. Release of Grant Grant will be released by the Housing Society or URA to the OC by phases (maximum of 4 phases) according to the progress of works, for payment of completed eligible repair works items under the Operation. The amount of grant released in each phase will be calculated according to the percentage of the completed eligible repair items subject to a ceiling of 80% of the cost of the repair items. Subsidy of consultancy fee can be applied together with each phase of grant mentioned above. 9. Access to Information The OC joining the Operation agrees and permits the Housing Society and URA to publish the name of the OC on promotional/open publications and announce to the public that the building has applied for the grant under the Operation together with information regarding the application status and details of the building concerned. The OC should also provide assistance (e.g. hanging of banners) to the Housing Society / URA in promoting the Operation. PMAC-OBB-notes on application (ENG-version) 7
10 10. Notes on Collection of Personal Data and Information of OC and Building Purpose of collection of personal data and information of OC and building The personal data and information of OC and building provided by the applicants will be used for the following purposes: a. assessing applicants eligibility under the Operation Building Bright and other related purposes; or b. promoting and implementing the Operation and providing information and services in relation to the Operation; or c. conducting research relating to the Operation Building Bright. The provision of personal data and information of OC and building to the Housing Society and URA is on a voluntary basis. If the applicant does not provide sufficient information, the Housing Society or the URA may not be able to process the application and this may result in delay or even rejection of the application. Please ensure that the information provided is accurate. If there are any changes in the information provided, please notify the Housing Society or the URA immediately Transfer of personal data and information of OC and building and the categories of assignees The personal data and the information of OC and building provided by applicants will be made available to appropriate persons of the Housing Society and the URA on a need-to-know basis. Apart from this, the information may be disclosed to the parties listed below : a. Third parties that provide service under the Operation Building Bright ; or b. Government departments, such as the Development Bureau, Transport and Housing Bureau and ICAC etc. ; or c. Persons/organizations the disclosure to whom is authorized by or consented to by the applicants; or d. For personal data, persons/organizations the disclosure to whom is authorized or required in accordance with the Personal Data (Privacy) Ordinance Access to personal data Data subjects have the right of access to and correction of their personal data. The right of access includes the right to obtain a copy of the personal data subject to payment of a fee Enquiries Enquiries concerning the personal data and information of OC and building collected by the Housing Society or the URA and the request for access and correction should be addressed to: PMAC-OBB-notes on application (ENG-version) 8
11 The Hong Kong Housing Society: Assistant General Manager (Property Management) Property Management Advisory Centre (Main Office) Shop 3, Shopping Arcade, June Garden, 28 Tung Chau Street, Tai Kook Tsui, Kowloon. Tel : Fax : The Urban Renewal Authority: 10/F, Low Block, Grand Millennium Plaza, 181 Queen s Road Central, Hong Kong. Tel: Enquiries The Hong Kong Housing Society Tel. : hsadvisorycentre@hkhs.com Website: The Urban Renewal Authority Tel.: inquiry@mail1.ura.org.hk Website: Note: (1) The Housing Society and the URA are public bodies under the regulation of the ICAC and the Ombudsman. Any incident suspected to be related to corruption will be reported to ICAC immediately. (2) The Housing Society and the URA are public bodies under the Prevention of Bribery Ordinance. All the staff members of the Housing Society and the URA are subject to the said Ordinance and are not allowed to solicit and accept any forms of advantages from customers, contractors, suppliers, APs or any person. For the appointment of APs, project consultants and contractors for building repair works, staff of the Housing Society and the URA will only provide general guidance and are prohibited from taking part in any form of leading and influencing the OCs in the selection of APs, project consultants and contractors. (3) The application form and these Notes are not legally binding on the Housing Society and the URA. The Housing Society and the URA are not liable to any person for any loss or damages which may be incurred or sustained by relying on any information contained in the application form and these Notes. (4) The Housing Society and the URA reserve the right to modify the above contents at any time without prior notice. PMAC-OBB-notes on application (ENG-version) 9
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