"Certification", "Registration", "Exemption":
Three BHU Statuses Explained
"Certification", "registration" and "exemption" are three entirely different legal statuses, each with its own legal effect, fees and deadlines. The most common confusion is between "registration" and "certification" — landlords assume that completing grace-period registration amounts to obtaining BHU recognition. In fact, registration only provides a temporary protection period, while recognition is the ultimate legal basis for letting. This guide clarifies the differences so landlords can tell which stage they are at and what to do next.
Certification vs Registration vs Exemption
| Status | What it is | Legal effect | Fee | Deadline |
|---|---|---|---|---|
| Grace-period registration | Temporary registration of an existing subdivided unit | May continue to be let during the 36-month protection period (until 2030-02-28) | $0 (within the period) | Deadline 2027-02-28 |
| BHU recognition | Formal certification that the unit meets the minimum standards of living conditions | The ultimate legal basis for letting; valid for 60 months | $0 / $1,500 / $3,000 (Schedule 2 three tiers) | Recommended by end of 2028-02 (for $0) |
| Exemption | Specific property categories entirely outside the Ordinance | No registration, no recognition required | N/A | None |
Source: Basic Housing Units Ordinance (Cap. 658), Sections 6, 9, 16, 17 and Schedules 2 and 4
1. Three concepts clarified
The Basic Housing Units Ordinance (Cap. 658) has been in force since 1 March 2026, and around subdivided units it creates three statuses that are often conflated:
- Grace-period registration: a transitional arrangement under Part 3 of the Ordinance (Sections 9–15). For any flat whose subdivided units were the subject of a residential tenancy at any time between 4 July and 3 October 2025, the owner may register with the Housing Bureau free of charge before 28 February 2027. Registration confers a 36-month protection period during which letting may continue without committing the Section 8 offence.
- BHU recognition (certification): the formal certification scheme under Part 4 of the Ordinance (Sections 16–31). After a specified professional conducts a site visit and certifies that a subdivided unit meets the Schedule 1 minimum standards of living conditions, the Housing Bureau grants recognition valid for 60 months. A recognised subdivided unit is legally a "basic housing unit".
- Exemption: specific property categories listed in Section 6 and Schedule 4 (public housing, subsidised sale flats without premium paid, hotels, and 10 other categories) are entirely outside the Ordinance — no registration, no recognition.
The essential distinction: registration means "temporarily lawful", recognition means "formally lawful", and exemption means "no need to become lawful at all". The comparison table above sets out legal effect, fees and deadlines side by side; each is explained below.
2. Grace-period registration: what it is, how to apply, what it costs
Grace-period registration is a transitional protection mechanism for "existing" subdivided units. Under Section 9(1), a flat qualifies if its subdivided units were the subject of a residential tenancy at any time between 4 July and 3 October 2025.
- Fee: $0. Under Schedule 2, a grace-period (registration) application made within the registration period (1 March 2026 to 28 February 2027) is entirely free; only if the registration period is extended would applications made on or after 1 March 2027 cost HK$745 per flat.
- Deadline: 28 February 2027. Section 10(1)(d) requires applications to be made within the 12-month period starting 1 March 2026; late applications are not accepted (unless the Secretary extends the period by gazette notice).
- Effect: a 36-month protection period. Under Section 9(3), registration remains valid until 36 months after the registration application period ends (i.e. 28 February 2030). During the protection period, non-recognised subdivided units in a registered flat may continue to be let without Section 8 prosecution.
Note that registration covers the whole flat, not individual subdivided units, and lapses when the protection period ends. Registration merely buys the owner time; it does not guarantee that the units can eventually be let lawfully.
3. BHU recognition: what it is, how to apply, what it costs
BHU recognition is the Ordinance's formal certification scheme and the only long-term legal basis for letting a subdivided unit. Under Section 17, the application must be made by the owner of the principal flat (or someone with the owner's written consent) and be accompanied by:
- A report from a specified professional certifying that the subdivided unit meets the Schedule 1 minimum standards of living conditions and that all specified statutory commands, notices or directions have been complied with. Schedule 3 names three eligible professional types: registered architects; registered professional engineers in the building services, civil, fire, structural or construction disciplines; and registered professional surveyors in the building surveying division. Under Section 17(2), the report must be based on an actual site visit to the principal flat (including the subdivided unit) — a paper review alone is insufficient.
- The prescribed fee: Schedule 2 sets three tiers — owners who registered between 1 March and 31 August 2026 pay $0 if they apply for recognition by 28 February 2029 (early-bird, fully waived); owners who registered between 1 September 2026 and 28 February 2027 also pay $0 if they apply for recognition before 29 February 2028; applications between 1 March 2028 and 28 February 2029 cost HK$1,500 per subdivided unit; and applications after that, or without a valid registration, cost HK$3,000 per subdivided unit. In other words, owners who register now still pay $0 for recognition if they apply before end of February 2028. The recognition renewal fee is HK$2,400 per basic housing unit.
- An application in the prescribed form (Form BHU-01), submitted to the Housing Bureau in the specified format and manner.
Under Section 16(2), recognition is valid for 60 months from the date of recognition. Once recognised, the subdivided unit becomes a "basic housing unit" and may be let lawfully until the recognition expires; renewal must be applied for before expiry.
4. Exemption: which units don't need to do anything
The third status is fundamentally different from the first two: exemption is not a status you apply for — the law simply does not apply. Under Section 6 and Part 2 of Schedule 4, the following property categories are entirely outside the Basic Housing Units Ordinance:
- Subsidised sale flats (HOS, Green Form Subsidised Home Ownership Scheme, etc.) with unpaid premium
- Flats rented out by the Hong Kong Housing Authority or Hong Kong Housing Society (public rental housing)
- Bedspace apartments (Bedspace Apartments Ordinance, Cap. 447)
- Units under transitional housing schemes
- Units under the Light Public Housing scheme
- Units let on a non-profit basis by non-profit organisations
- Units acquired by the Urban Renewal Authority under its projects
- Hotels or guesthouses (Hotels and Guesthouses Accommodation Ordinance, Cap. 349)
- Residential care homes for the elderly (Cap. 459) and residential care homes for persons with disabilities (Cap. 613)
- Child care centres (Cap. 243) and drug addiction treatment centres (Cap. 566)
- Units let to students by registered schools, post-secondary institutions or educational bodies
In addition, compartments formed by building works contravening the Buildings Ordinance (Cap. 123) on rooftops, podiums, gardens or courtyards (Section 4(4)), and units that do not meet the Section 4 "subdivided unit" definition (such as a flat with only one rented compartment), are simply outside the Ordinance's scope. See the complete BHU exemption checklist for the full list and a self-assessment method.
⚠️ "Nothing to do" does not mean "unregulated"
Exempt units need no BHU registration or recognition, but other laws still apply. For example, illegal rooftop structures are outside Cap. 658, yet they still contravene the Buildings Ordinance (Cap. 123), and the Buildings Department can order their demolition; using an industrial unit for residential purposes may also breach the land lease and the Buildings Ordinance. Exemption only means "Cap. 658 does not apply" — it does not mean the unit is problem-free at every level of law.
5. The most common misjudgement: "registered = done"
"Registered = done" is the most common landlord misjudgement since the Ordinance took effect. Grace-period registration only marks the beginning of the protection period, not the end of compliance. Three key dates must be remembered:
- 28 February 2027: registration applications close. Owners who have not registered commit an offence under the Section 8 offence provisions from 1 March 2027 if they let non-recognised subdivided units.
- 1 September 2029: the countdown period begins. From this date, even if a unit still has valid registration, it may not enter into new leases unless it has been recognised (see the 2029 lease ban explained).
- 28 February 2030: the 36-month protection period ends. Every non-recognised subdivided unit must obtain recognition or cease to be let before this date.
In other words, registration exists to buy the owner up to 36 months for improvement and application. The longer the delay, the higher the fee (Schedule 2's $0 / $1,500 / $3,000 tiers increase over time) and the narrower the window in which the unit can be let.
6. Frequently Asked Questions
Are registration and certification the same thing?
No. They are two entirely separate statutory procedures under the Basic Housing Units Ordinance (Cap. 658). Grace-period registration covers the whole flat, is processed by the Housing Bureau, is temporary in nature, and must be applied for by 28 February 2027. BHU recognition covers an individual subdivided unit and requires a report from a specified professional based on a site visit, certifying that the unit meets the minimum standards of living conditions; it is valid for 60 months. Completing registration does not mean the unit has been recognised.
I've registered — does that mean I can skip certification?
No. Grace-period registration only provides a 36-month protection period (until 28 February 2030), during which non-recognised subdivided units in a registered flat may continue to be let. Once the protection period expires, a subdivided unit without a valid BHU recognition cannot be let. In addition, from 1 September 2029, units without recognition may not enter into new leases even while the protection period is still running. Landlords should complete certification as early as possible rather than waiting until the last moment.
After certification, do I still need to maintain the registration?
No. Once a subdivided unit obtains BHU recognition, it legally becomes a "basic housing unit", and the recognition — not the grace-period registration — serves as the legal basis for letting it. The recognition is valid for 60 months from the date of recognition; renewal must be applied for before it expires, at a fee of HK$2,400 per basic housing unit.
What's the difference between exemption and registration?
"Exemption" means a unit is entirely outside the scope of the Basic Housing Units Ordinance (for example, the categories listed in Section 6 and Schedule 4, such as public housing, subsidised sale flats without premium paid, and hotels), so neither registration nor recognition is required. "Registration" is a temporary transitional arrangement for subdivided units that ARE subject to the Ordinance. Exemption means "nothing ever needs to be done"; registration means "letting is temporarily permitted, but recognition is still required afterwards".
Can I apply for certification after the registration period has passed?
Yes, but without any protection period. After 28 February 2027 you can still apply for BHU recognition at the standard fee of HK$3,000 per subdivided unit; landlords who completed grace-period registration enjoy reduced fees of HK$0 or HK$1,500 depending on registration and application timing. However, without registration protection, once the Section 8 offence provisions take effect on 1 March 2027, letting a non-recognised subdivided unit in an unregistered flat constitutes an offence, and the landlord bears the corresponding criminal liability.