The Hong Kong government said it has issued buyback offer letters to homeowners of the fire-hit Wang Fuk Court, moving forward with its plan to acquire property titles from displaced residents.

The government said on Thursday that it has distributed “letters of offer” to flat owners of the seven blocks affected in the massive inferno in November that killed 168 people – Hong Kong’s deadliest blaze in decades.

The move follows the authorities’ announcement in February that they would spend up to HK$6.8 billion to buy back flats from owners. The budget consists of HK$4 billion in taxpayers’ money and HK$2.8 billion from a support fund largely made up of public donations.

Owners can choose cash or a flat swap for a new government-subsidised unit under a special sales scheme, according to the February plan.

The government has established a company named Wang Fuk Court Property Rights Acquisition Limited, which has distributed the offer letters to owners, it said on Thursday.

Owners have until August 31 to sign a “letter of acceptance” enclosed with the offer letter and return it to the company if they choose to accept the acquisition, it said.

“Upon receipt of the owners’ duly signed ‘Letter of Acceptance,’ the government will make every effort to promptly assist in completing the Agreement for Sale and Purchase and the [Deed of] Assignment,” a government spokesperson said in a statement.

Early flat selection

For owners who opt for cash, authorities will expedite the payment for them to make purchases in the private market, the government said.

Those who want to participate in the government’s special sales scheme will be allowed to select their flats earlier if they accept the buyback offer quickly, authorities added.

They will receive priority if they return the letter of acceptance by June 30.

For homeowners of Wang Chi House, the only block not affected by the blaze, the government said that if 75 per cent of owners sign the letter of acceptance by June 30, the buyback plan will be made available to them. The government previously said buying out Wang Chi House would require an additional HK1 billion.

The Thursday statement did not mention what arrangements were available for those choosing not to accept the government’s buyback offers.

Amid calls from some residents for the housing estate to be rebuilt at its original location, the government has said that the buyback plan is final.

Authorities said the seven towers hit by flames suffered “irreversible” internal damage, and that they would be torn down to build a park or other community facilities.

However, some residents expressed scepticism about the government’s proposal after a public inquiry into the fire revealed that damage was concentrated in a number of buildings.

Some residents also expressed a desire to return to the estate after they were allowed to return to their homes to retrieve their personal belongings and found their flats largely unscathed, according to local media.

Deputy Financial Secretary Michael Wong, who is leading the buyback plan, said in February that the government would study whether “special legislation” would be needed if some owners refuse to sell their flats.

Some Wang Fuk Court residents have said they “are given no choice” over the government’s plan to buy back their flats, urging authorities to reconsider rebuilding the fire-hit estate on site.

Residents continued to return to the housing complex in Tai Po on Wednesday, half a year after the massive fire in November, which killed 168 people and displaced thousands. They were permitted to visit their flats for a second time to retrieve personal belongings, following an initial round of trips last month.

Speaking to the media outside the cordoned area, several residents expressed dissatisfaction with the buyback plan. The government has given flat owners until the end of August to accept the offer, while those who opt in before June 30 will be given priority in selecting flats in a special sales scheme.

“We are given no choice,” a Wang Tao House resident surnamed Lee told reporters in Cantonese. “It’s either sell your flat or sell your flat,” she said.

A Wang Shing House resident, surnamed Sze, said his family were inclined to accept the buyback plan, calling it the “only rational option.”

“We have concerns about how to conduct our lives after selling the flat, because it has not been made clear,” Sze told InMedia in Cantonese. “It’s not an easy decision [to sell the flat], but people will understand that, in our situation, we don’t really have many options.”

A Wang Tao House resident, surnamed Lai, criticised the government’s June 30 deadline for early flat selection as “putting the cart before the horse.”

“A sensible way would be to let us pick what we really want to buy, before making us sell the flat,” he told local media outlet The Collective in Cantonese.

Another Wang Shing House resident, identified only as Mrs Wong, similarly slammed the deadlines in the government buyback plan.

“Why do we have to decide before June 30 or the end of August? Why can’t we wait until the report by the independent committee?” she said in Cantonese. She was referring to a public inquiry that is due to report on a range of issues relating to the blaze by September.

She also questioned how the HK$2 billion fire insurance covering Wang Fuk Court would be claimed if the government decided not to rebuild the estate.

“Why can’t you use that HK$2 billion to rebuild? We can wait. I am not dying,” she told The Witness. “But [the government] is not giving us a choice.”

‘Never communicated directly’

Lee, the Wang Tao House resident, said her flat was not affected by the fire and expressed hope that she could live there in the future. She supports the idea of rebuilding the estate, she added.

She also called on the government-appointed administrator, Hop On Management, to organise an owners’ meeting to facilitate communication and improve transparency.

Wang Tao House resident Lai also appealed for an owners’ meeting, saying it would allow residents to communicate their preferences regarding the government buyback plan as well as to communicate directly with the government.

“Often, residents’ voices are only heard through the media. In fact, the government has never communicated with us directly,” he said.

More residents have been calling on the government to reconsider rebuilding Wang Fuk Court in media interviews. Some have also expressed this wish through handmade posters and drawings displayed in their flats’ windows.

The second round of visits will run until May 29. It is unclear whether residents will be allowed to make more trips in the future.

The authorities have said the buyback plan is final. So far, there have been no announcements regarding the arrangements for those choosing not to accept the buyback offers.

Deputy Financial Secretary Michael Wong said in February that the government would study whether “special legislation” would be needed if some owners refused to sell their flats.