Scheme to Encourage Provision of Residential Care Home for the Elderly Premises

The Government launched the Incentive Scheme to Encourage Provision of Residential Care Home for the Elderly (RCHE) Premises in New Private Developments (RCHE Incentive Scheme) in July 2003. The Scheme allows developers to be exempted from payment of land premiums for eligible RCHEs when undertaking lease modifications, land exchanges or private treaty grants, on condition that they comply with specific lease conditions and obtain support from the Social Welfare Department (SWD).  

The Chief Executive mentioned in the 2022 Policy Address that the Government would provide more incentives to encourage developers to build and operate RCHEs in private development projects. Upon review, the Financial Secretary announced the enhancement of the Scheme in the 2023-24 Budget. The total gross floor area (GFA) of RCHE premises that can be benefited from the RCHE Incentive Scheme in each development project will increase and such GFA will be exempted. The enhancement measures are made permanent starting from 20 June 2026 after a three-year pilot period. All existing arrangements of the Scheme will remain unchanged. 

For more information about the RCHE Incentive Scheme, you may download the documents below.  For further enquiry, please contact Senior Social Work Officer (Elderly) 5 of the Elderly Branch (Residential Care Services Section) at 2961 7510.