Suggestions Concerning Accelerating Development of Public Rental Housing Jointly Released by Seven National Departments
In order to address the housing problems of low medium-income families, China’s seven national departments, headed by the Ministry of Housing and Urban-Rural Development, officially released the Suggestions Concerning Accelerating Development of Public Rental Housing on Jun. 12.
The Suggestions clarifies that the public rental housing is mainly for the low medium- income families with housing problems. And for certain areas, the new employees and the migrant workers who have stable jobs and have been living in the city for a certain period of time can also be covered. The municipal and county governments are at the position to determine the supply scope of the public rental housing, including the income criteria and housing condition of the housing targets, as well as the rent level. The households who have got the material subsidy for low-rent housing or the economically affordable housing lose their qualifications for public rental housing application. And the households who meet the criteria for low-rent housing guarantee can apply for rent subsidy when they choose to rent the public rental housing.
The source of the public rental housing is realized through constructing, renovating, purchasing, and long term leasing from the housing market. The newly constructed public rental housing should be mainly as allocated part of real estate projects, and might also be constructed in concentration as well. In addition, the municipal and county government should encourage and guide the investment on public rental housing construction around the development zones and industrial parks with the concentration of a great number of migrant workers. Since the newly constructed public rental housing is mainly for elementary housing demand, the floor area of a set of public rental housing is limited within 60 m2.
According to the Suggestions, the local governments should include the land-use for public rental housing into their annual land provision plan, supported with preferential guarantee measures; and the financial input on public rental housing should also be enhanced, including the financial complement by the Central Government. Meanwhile, preferential taxation policies should be applied for the construction and operation of public rental housing, and the administration charge for it should be in accordance with related policies for economically affordable housing. The rents gained from public rental housing invested by the government should be used on paying back the loans for public rental housing, as well as the maintenance, management, and investment of the public rental housing.
Moreover, efforts should be put into stimulating financial institutes to provide medium and long-term loans for public rental housing projects, encouraging qualified enterprises to collect funds through releasing medium and long-term bonds, and expanding the fund collection channels by utilizing insurance funds, trust funds, and real estate investment trusts. The public rental housing that is constructed through investment of the government should be included into the experimental projects of social housing that is supported by housing accumulation fund loans. The construction of public rental housing follows the principle of “benefits goes to investors”, and the rights and interests of investors can be transferred according to related regulations.