Government Low Cost housing, first built in 1962, was intended for the low income families (less then $500 per month and subsequently raised to $600 in 1970) who did not qualify for resettlement and lived in overcrowded and sub-standard accommodation.  Later, a portion of flats were allocated for lower ranking civil servants. 

The estates were built by the Public Works Department but handed over to the Housing Authority for selection of tenants and estate management.  The standard of accommodation was the same as the Mark III through Mark VI resettlement blocks, at 35 sq.ft. per adult.  However, finishes in Government Low Cost Housing differ from the Housing Authority in that the latter were of better quality.  Also, more children’s play space and equipment, community rooms and kindergartens were provided in the Housing Authority estates.