Home and youth affairs chief Alice Mak on Friday said the government is exercising caution when using the Tai Po fire fund, which stands at about HK$3.8 billion.

Mak made the remarks on an RTHK programme after the latest announcement that Wang Fuk Court homeowners will get an annual rental subsidy of HK$150,000 over the next two years.

Mak explained how officials arrived at the figure.

"The annual subsidy of HK$150,000 works out to about HK$12,000 per month, which is similar to rental levels in the same district as well as Wang Fuk Court which we have taken as a reference," she said.

"The public has to understand that the support fund aims to provide homeowners with longer term support, including their future needs. So we need to cautiously control the expenses of the fund."

As for the HK$50,000 one-off relocation subsidy for each affected household, Mak said tenants will not be entitled to the money if they hope to continue living in transitional housing until the end of May when rent is no longer waived.

Homeowners, meanwhile, will get the subsidy, though they would have to start paying rent upon receiving the money if they decide to stay in transitional housing units.

Those wishing to stay will have to talk to respective operators to see if they are eligible to do so, she added.

The minister stressed the government will be offering those affected with other forms of support as well, including social welfare and medical assistance.