Public-led reconstruction and redevelopment promotion… Extra benefits such as exemption from real residence

‘Public Gong-led 3080’ Supply Plan
“Reconstruction charge, exemption from the duty of actual residence, completed within 5 years”

Photo = News 1

Photo = News 1

In order for the government to expand the supply of urban housing through redevelopment and reconstruction, public institutions, not cooperatives, directly promote the project. It is to create a new type of maintenance business model and proceed. If the public directly implements it, it will provide a variety of benefits, such as the reconstruction excess profit return system and the exemption from the two-year real residency obligation for members. However, it is pointed out that it will not be easy to achieve the target because there are many homework to be solved, such as conflict due to disagreement between members and compensation issues with landlords.

On the 4th, the government came up with a plan to supply’Gong Gong-judo 3080′ with these contents as the main point. One of the core contents of this 2·4 supply plan is the’public direct implementation maintenance project’. Through this, a goal was set to supply a total of 136,000 households, including 93,000 households in Seoul, 21,000 households in Gyeonggi-Incheon, and 22,000 households in local metropolitan cities. Existing redevelopment or reconstruction is promoted on the premise of the establishment of a cooperative, but this project is directly implemented by public institutions with the consent of the residents.

Where there is an existing maintenance cooperative, the implementation of maintenance projects of public enterprises begins at the request of a majority of the members. In areas where there is no union, the majority of owners, such as land, apply and obtain consent of at least two-thirds within one year.

When the project is promoted, the general meeting of the union or the procedure for approving management disposition is omitted, and an integrated deliberation by local governments is applied.
In this case, the maintenance project that previously took 13 years or more can be completed within 5 years. The floor area ratio can be increased up to the first stage or up to 120% of the legal upper floor area ratio.

If it is difficult to apply a vertical increase or legal floor area ratio due to location conditions, it is guaranteed at least 1.5 times the previous number of households and, if necessary, the floor limit is relaxed. To ease the number of floors, Seoul plans to change the basic urban plan by the second half of this year. The donation collection rate was set at 9% for reconstruction and 15% for redevelopment.

As the public directly implements the project, the application of the reconstruction excess profit return system is exempted, which greatly improves business feasibility. As the union is dissolved, there is no obligation to reside for two years as a member of the reconstruction union. City regulations such as the right to sunlight and the distance between buildings are eased by applying the agenda for special construction zones. For members, the pre-sale price of members is calculated on the basis of guaranteeing an additional profit of 10-30% points compared to the existing maintenance business. In addition, a method of prepaying the expenses borne in the maintenance project process in kind and then settlement is applied. In this case, capital gains tax is also exempted. In this case, the SOE will bear all business risks due to ownership transfer. The construction company is selected by the residents.

In order to prevent the inflow of speculative demand, the relevant area is designated as a land transaction permission area when applying for the sole implementation of public enterprises. Priority apartment supply rights are not granted if real estate is purchased in the maintenance area, such as transfer of member status after this day. Housing supplied as a business is supplied at a rate of 70 to 80% for public pre-sale and 20 to 30% for public rental and private homes.

The intention is to supply houses secured by development projects mainly for pre-sale apartments. Along with this, small-scale maintenance projects, in which land owners implement maintenance projects, will also be activated. Through this, it plans to supply a total of 110,000 homes nationwide, including 62,000 homes in Seoul. Small-scale redevelopment projects will be established in areas less than 5000㎡ within the station area and semi-industrial areas. Land owners can apply to local governments by deciding the boundaries of the project area according to local conditions. At this time, consent of more than a quarter of the landlord is required. For small-scale redevelopment, if the project plan is approved after obtaining the consent of at least 4/5, the right to confine the land to the residents who do not participate in the project is granted.

For the station area, the floor area ratio can be raised to 700% by raising the area of ​​use to quasi-residential, and half of the increase in floor area ratio is donated to local governments, and the local governments use it for public use, rental housing and public shopping centers. Small-scale housing maintenance management zones are newly established in low-rise residential areas. It is a low-rise residential area that is difficult to develop over a wide area due to a mixture of new and old houses, and is designated in areas where only old houses need to be maintained on a small scale. Here, the agenda is applied to the establishment and change of district unit plans or activation plans, enabling rapid maintenance.
Experts’ opinions differ over the proposal that various benefits would be given to the public if the project was given full authority. It is positive about the benefits, but it is pointed out that the competitiveness of the apartment complex will be weak if it is led by the public. There is also a controversy over private property infringement. The backlash from landlords who do not want to do business is also expected.

Reporter Choi Jin-seok [email protected]

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