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D. Compensation

Persons affected by land resumption will, subject to eligibility, be offered statutory compensation and an ex-gratia allowance.


Eligible persons include the former owner or persons having an interest in the land, such as the tenant.


Statutory compensation


Legal owners are entitled to the open market value of the resumed properties, assessed on a vacant possession basis or tenancy basis, as appropriate, on the date of reversion.


Ex-gratia allowance


Owner-occupiers may also receive an ex-gratia allowance, namely the Home Purchase Allowance (HPA).


The amount of HPA payable to individual owners is the difference between the value of a notional replacement flat (based on a seven-year-old flat of a size similar to the resumed flat and in the same locality) and the open market value of the resumed flat.