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Shanghai Explores New Mechanisms for Old Districts’ Renovation
The Shanghai Municipal Housing Support and Building Administration Bureau lately put forward three measures to explore a new mechanism for old districts’ renovation including consultation before dismantling, set housing supplement, and local resettlement. Related experiments have been carried out in Huangpu, Yangpu, Luwan, Zhabei, and Jing’an Districts.

Consultation before dismantling means that it is up to the residents whether to dismantle the old houses or not and to determine what the specific renovation method should be - in other words, the residents will participate in and monitor the whole process of renovation. There are two rounds of consultation during the renovation. The first round is a consultation on residents’ wishes for the dismantling. If over 90% of the local households are willing to move out of the old houses for renovation, the dismantling of the old houses will be initiated. The second round of consultation is in regard to the renovation methods. A resettlement agreement should be signed by the local residents if they agree with the resettlement conditions. If over two thirds of the households sign the agreement, the renovation will be started; if there are not enough households which choose to sign the agreements, the renovation work will not proceed.

The measure of set housing supplement is meant to face the reality that there are usually no kitchens and bathrooms in the old houses and the value assessments are rather low. There will be a supplement in the resettlement housing for each household including a construction area of 15 m2 for kitchen and bathroom and a financial supplement that is about 20% - 30% of the total house price. The residents whose old houses are dismantled for city renovation can choose the monetary compensation or the housing compensation. And if there are still difficulties in housing after their resettlement, they can also apply for certain amount of extra housing compensation.

The measure of local resettlement is to meet the residents’ housing demands of living in their old community or somewhere nearby. By adjusting construction planning and effectively using land reserves, a certain area of compact housing can be built for the resettlement of local residents.

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