Housing minister Winnie Ho said on Monday that a plan to criminalise serious abuse of public housing isn't about prosecuting people or getting them out of their homes, but ensuring the proper use of public resources.

Under proposed legal changes, people deemed to have seriously abused their tenancy, such as subletting their flat or using it for commercial purposes, would risk a prison term of up to 12 months and a fine as high as HK$500,000.

Ho said if all goes smoothly, officials plan to table the relevant bill to the legislature in the next quarter, with a view to the law coming into effect in the second quarter of next year at the earliest.

At a Legco housing panel meeting, she told lawmakers that tenants would be allowed to work from home, as long as business activities don't take place inside the unit.

"Many people nowadays work from home. Also, many people are interested in making some handicrafts and they sell them somewhere else, instead of using the flat for commercial purposes. All these will be allowed," the minister said.

Ho said tenants won't be allowed to "run the flat like a tuition centre or a gym room" with many people going in and out or price lists available, even if they also live in the unit.

She called on tenants to exercise caution if they use the address for business registration purposes, because it might raise suspicions.

The minister stressed that the authorities will use common sense when they handle breaches of the rules.