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Ministry of Housing and Urban-Rural Development Studies Withdrawal Mechanism for Indemnificatory Housing
According to JIANG Weixin, the Minister of Housing and Urban-Rural Development, the Ministry has started studying the withdrawal mechanism for indemnificatory housing. It is expected that via controlling the indemnificatory apartment area, the indemnificatory households will naturally withdraw from the indemnificatory housing system after they get enough economic capacity.

JIANG Weixin declared that in the next five years, China will construct 360 million sets of urban indemnificatory apartments and shanty area reform housing; and by the end of the 12th Five-year Plan period, the coverage rate of national indemnificatory housing will reach around 20%, so that the housing problem of urban low-income families and certain proportion of medium-low-income families can be solved, the housing difficulty of newly employed employees can be ameliorated, and the housing conditions of immigrant workers can be improved.

It is planned that totally 10 million sets of urban indemnificatory apartments and shanty area reform housing will be constructed in 2012, in which 1.65 million are low-rent housing, 2.27 million are public rent housing, 1.10 million are affordable housing, 0.83 million are price-limited housing, and 4.15 million are shanty area reform housing. Besides, about 0.6 million more households will receive rent subsidy for low-rent housing.

JIANG Weixin said that since some of indemnificatory housing projects are located in suburban area where the construction of supporting facilities lagged behind, residents either stop moving into the new housing or face practical living inconveniences after moving. In certain areas, the control on design, implementation, supervision, and acceptance inspection of indemnificatory housing is loose, and even unqualified construction materials are applied in some projects, which lead to potential construction safety dangers. Meanwhile, deception on renting or buying indemnificatory apartments also happened in certain areas. And some families refuse to move out of indemnificatory apartments after their income has grown to a certain level, which is strongly complained by other people.

In view of the situation, the Ministry of Housing and Urban-Rural Development decided to study on the withdrawal mechanism for indemnificatory housing. By restricting the indemnificatory apartment area, it is expected that the original indemnificatory households will be guided to withdraw from the indemnificatory housing system after their economic conditions are improved. At the same time, regarding indemnificatory housing for rent, efforts should be put into making appropriate, dynamic, and withdraw-easy rent standards; and for purchasable indemnificatory housing, regulations on benefits adjustment in house trading should be further improved and followed, so as to eliminate the margin space and ensure a fair and rational utilization of the indemnificatory housing.

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