Direct implementation of public institutions, similar to public participation in incentives
Exemption from re-invitation and not applying the 2-year residency obligation for members is advantageous for members
As the government introduced the’public direct implementation maintenance project’ method in the 2nd and 4th supply measures, each reconstruction and redevelopment promotion complex is busy looking at the differences from the existing methods to find the gains and losses of understanding.
In particular, it is an atmosphere of weighing business participation by comparing how this method differs from the’public reconstruction and redevelopment’ method, which the government encouraged participation until just before the announcement of the second and fourth measures.
There are no complexes that show unconditional rejection because of the’label’ of’public’, but if you carefully examine the merits of public participation projects, the Korea Land and Housing Corporation (LH) and the Ministry of Land, Infrastructure, and Transport explained that it will be considered enough.
According to LH and the Ministry of Land, Infrastructure and Transport on the 6th, various incentives are given for both public reconstruction and redevelopment announced last year and the public direct-implemented maintenance project released this time compared to the cooperative-led method.
In public reconstruction and redevelopment, LH or SH do not directly implement the project, but the association conducts the project, but the public participates in the implementation, analyzing and supporting the feasibility of the project. The key is to shorten various licenses and provide incentives such as floor area ratio.
In the case of public reconstruction, the floor area ratio is granted from 300 to 500%, and the maximum number of floors is increased from 35 to 50, allowing more houses. However, half of the increasing floor area ratio should be donated to public housing.
Public redevelopment increased the floor area ratio to 120% of the legal limit, and 20-50% of the additional floor area ratio received was to build a national housing scale housing to accept donations. While raising the floor area ratio to 1.2 times the legal upper limit, it is attractive that the donation acceptance ratio is lower than that of general redevelopment (50-75%).
In addition, the introduction of a’fast track’ method that supports obtaining licenses such as project cost financing, construction deliberation and environmental impact assessment at once, excluding the application of the pre-sale price limit system, is also considered as an advantage of reducing the time required for the project to less than half of the existing one.
The public direct implementation maintenance project introduced this time is literally a method in which the public directly implements reconstruction and redevelopment, and leads the project and sales plan.
Above all, it is regarded as the biggest incentive to not apply the redevelopment excess profit return system (re-return), which has been regarded as an obstacle to reconstruction in some complexes, and not to apply the two-year residency obligation for members.
In this method, since all business sites are owned and supplied by public enterprises, there is no need for a union.
Existing unions go through the dissolution procedure, but if the sunk cost is compensated and a contractor is selected, the company will succeed. Instead of the union, a resident representative meeting is organized to collect residents’ opinions on important issues such as selection of a contractor. Through this, it is possible to construct a brand apartment other than LH. Specialized design can also be done by designating a special building area.
By omitting procedures such as union meetings and management disposition approval and applying integrated deliberation, the project period that previously took 13 years or more will be drastically reduced to within 5 years.
/ Reporter Kim Do-hyun [email protected]
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