The city's development chief said on Tuesday that the government has no plans to lower its compensation offer to property owners affected by the administration's redevelopment projects, despite the low cash position of the Urban Renewal Authority (URA).

The authority announced last week that it recorded a loss of HK$3.5 billion in the last financial year, its first deficit in nearly a decade.

At a Legco development panel meeting, development chief Bernadette Linn acknowledged concerns about the URA's financial position and how it may impact the city's redevelopment work.

But Linn said the administration has no plan to alter the compensation strategy.

Under the current policy, property owners are compensated based on a seven-year-old flat that's of comparable quality and location as their affected property.

“We [are] expediting redevelopment works. If we need to tighten the criteria, this may lead to a counterproductive effect,” Linn said.

“In terms of cash flow, there are bound to be challenges, so the government will continue to give its full support to the URA,” she said, citing the lifting of the authority's borrowing limit from HK$6 billion to HK$25 billion.

During the panel meeting, lawmaker Doreen Kong questioned why old buildings in 13 parallel streets in To Kwa Wan have still not been scheduled for redevelopment, despite being listed as highlight projects.

"Do you accord priority based on money or based on the needs of redevelopment?" Kong asked.

She said buildings in the area are dilapidated with concrete falling inside flats.

"Some units are so dilapidated that they are now vacant," she added.

Linn, in response, said mandatory building inspection notices were issued to the To Kwa Wan blocks, and the URA would work on some of the buildings on behalf of the owners.

However, she stressed that owners also have a responsibility to comply with inspection notices, and can't "just wait with folded arms".