MOHURD: Support the Pilot Program of Housing Properties with Co-Ownership in Beijing and Shanghai
On Sept. 14, 2017, the Ministry of Housing and Urban-Rural Development (MOHURD) promulgated the Opinions on Supporting the Pilot Program of Housing Properties with Co-Ownership in Beijing and Shanghai, to encourage the two cities to carry out exploration bravely on construction pattern, property ownership division, using management, property ownership transfer of the housing properties with co-ownership, with institutional innovation as the center in combination with local conditions. It is expected that reproducible and diffusible experiences can be formed in the pilot programs.
“Housing properties with co-ownership” refer to those housing properties to which medium- and low-income households who cannot afford property and the government share ownership based on their perspective proportions in funding to buy the property. In other words, the residents and the government jointly own the housing properties. What’s more, the residents have the right to “redeem” the property ownership from the government.
The Opinions points out that developing housing property with co-ownership is an important part of accelerating the construction of social housing security and a related supply system. To carry out the pilot program of housing properties with co-ownership, we should adhere to the principle of “houses for living not for speculation.” In addition, with fulfilling new urban residents’ demand for housing as the starting point, with establishing a housing system that enhances both house purchasing and renting as the primary direction, with the market as the main guidance to fulfill the housing demands at multiple levels, and with the government as the main body to provide the fundamental guarantee, efforts should be put into accelerating addressing the housing problem for households with difficulties through a structural reform on the house supply side. It is further clarified in the Opinions that the housing properties with co-ownership should be provided to those households facing housing difficulties who meet the criteria and the priority should be given to those who do not own any properties. The Opinions also requires that when establishing the specific provisions for the management of housing properties with co-ownership, the core is to establish a completed management mechanism, including rules concerning ration pricing, ownership division, using management, property ownership transference, etc., so as to ensure that this type of housing is for living, not for speculation. At the same time, related rights and obligations on the use and maintenance of housing properties with co-ownership should also be made clear. And according to the Opinions, the housing properties with co-ownership should be mainly in medium and small sets with an optimized planning layout, supporting facility and house design, and strict project quality control.