Director of Housing Rosanna Law said on Friday that most public housing tenants suspected of exceeding income and asset limits have made relevant declarations, and those who haven't done so risk having their homes taken back by the government.

A deadline for some 250,000 so-called "rich tenants" to declare their income and assets passed at the end of last month. People with too much money have to leave their public flats.

Law said around 88 percent of tenants have made declarations, and officials will send letters to the rest next week.

She said those who still don't make declarations could see their tenancy terminated.

"I will remind you again, that if you wish to continue living in the flat, I will give you a deadline to fill in the declaration form and provide a written reply explaining the late submission," Law said on an RTHK programme.

She said those who don't return the form or fail to provide a clear explanation would be considered to have decided not to extend their tenancy, and the flats will be taken back.

Discretion will be exercised if tenants report family members have been out of Hong Kong or in hospital.

Since the start of the latest round of declarations, officials have taken back more than 1,200 flats, Law said. The units will be reallocated after renovation work.

Law said officials are aware of reports that some public flat tenants have been seen driving luxury cars with cross-boundary licence plates. She said in some cases, investigations will be carried out to see whether there has been any wrongdoing in terms of income and asset checks.