New building maintenance council to operate on user-pays basis, says Paul Chan

The government will establish the new Building Maintenance Support and Services Council as a non-profit entity operating on a user-pays model to recover costs, Financial Secretary Paul Chan Mo-po said on Saturday, following recommendations from the independent committee inquiry into the fatal Wang Fuk Court fire.

The proposed non-statutory company, to be wholly owned by the Financial Secretary Incorporated, is designed to assist property owners through the complete cycle of building maintenance and rehabilitation, including overseeing tendering procedures and contractor evaluations on their behalf for a service fee.

Speaking on a radio program, Chan explained that cost recovery is necessary because private property owners carry the primary legal responsibility for maintaining their own residential buildings. He estimated that the service fees would vary depending on the scope of the required works, averaging roughly several thousand dollars per flat.

Targeted subsidies for elderly and low-income residents

Addressing affordability concerns, Chan acknowledged that Hong Kong has numerous aging districts where elderly residents may struggle to bear the full cost of major repairs. In such cases, targeted government subsidies will be made available to alleviate the financial burden on vulnerable homeowners.

He noted that a one-size-fits-all subsidy scheme would be inappropriate, pointing out that more affluent owners typically place greater value on professional guidance and independent oversight rather than direct cash handouts.

Vetted contractor lists and operational timeline

To enhance public confidence and prevent irregularities, the council will publish a pre-screened directory of qualified professionals and contractors. Chan described the vetting process as government-verified, giving property owners greater assurance when selecting industry practitioners.

The administration has earmarked HK$300 million to support the initiative, comprising HK$100 million in initial start-up capital and HK$200 million designated for owner subsidies.

The new council is slated to commence operations by the end of this year, with the recruitment process for its chief executive already underway.

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