Shanghai：Public Accumulation Fund Balance Used as Loan to Support Renewal of Old Areas

Source: Shanghai Morning Post

The reporter learned from the media briefing on this Municipality’s old area renewal yesterday that during the “12^th five-year plan” period, 3.5 million square meters lane housing below level 2 in this Municipality’s central urban area would be renewed, among which, four districts including Changning, Luwan, Jingan, Xuhui would almost complete the renewal of lane housing below level 2.

Besides, such new mechanisms as the pre-consultation system, the “floor area plus legally subsidized area” policy for residential houses compensation and resettlement, or providing neighborhood settlement, should be continuously carried out for trial implementation.

300,000 sets of resettlement houses used for old area renewal

Ni Rong, deputy director of Shanghai Urban Construction and Communications Commission, revealed that 2.4 million square meters lane housing below level 2 in central urban area would be renewed from the year 2010 to the year 2012. Those old and dangerous houses of towns in suburbs featuring by poor structure, multi-safety problems, less public supporting facilities should also be renewed.

Ni Rong indicated that in the process of renewal demolition of old houses, notification system would be implemented in an all-round manner to make demolition process entirely transparent and settlement results fully open, so as to ensure policy consistency, “Legal Demolition”, and “Sunshine Demolition”.

The reporter learned that as for the demolition compensation problem mostly concerned by citizens, with regard to the newly-approved house demolition projects, the compensation for residential houses demolished should be determined on the basis of the appraisal market price and the subsidy. The demolition of old-lane type houses, shelters, and non-set and non-separately used residential houses may be subsidized with additional floor area. Residents who still have difficulty in housing after being resettled in line with the compensation standard may apply for housing guarantee subsidy in accordance with relevant provisions on housing demolition. The specific procedures should be otherwise formulated by the Municipal People’s Government.

With respect to house sources, this Municipality will accelerate the construction of demolition resettlement houses. Ni Rong indicated that about 300,000 sets of houses would be provided to residents whose houses were demolished due to old area renewal or the construction of major projects from the year 2008 to the year 2012. .

Collecting funds for old area renewal through multi-channels

With respect to the financing problem for old area renewal, this Municipality prepares to solve it through multi-channels including financial loans. From the year 2010 to the year 2015, The municipal, district/county people’s government will respectively set up the special fund for old area renewal through making an overall plan of the land transfer income, the net accumultive fund obtained from selling pubic houses and the corresponding increment income, the demolition compensation payment for public houses directly managed by the government, the arranged funds from financial budget, etc. The special fund for old area renewal should be mainly used for the renewal of lane housing below level 2, and the fund of the municipal level should be mainly used to support the renewal of houses in such key old areas as Yangpu, Zhabei, Hongkou, Putuo, Huangpu, which were determined by the Municipal People’s Government.

Ni Rong revealed that the pilot work of using balance of public accumulation fund as loan to support old area renewal would be practiced. In accordance with the Implementation Opinions on the Pilot Work of Using Housing Accumulation Fund as Loan to Support the Construction of Low-income Houses made by seven departments including the Ministry of Housing and Urban-Rural Development, at present, this Municipality’s balance of public accumulation fund may be loaned to support the construction of neighborhood demolition resettlement houses for old area renewal in central urban areas under the condition that the drawing of fund by employees, the individual housing loan, and sufficient reserves are ensured.

The construction of demolition resettlement houses for old area renewal, and demolition resettlement houses for old area renewal collected though purchase may enjoy tax preferential policies for affordable houses in accordance with the provisions of the State.

“Sleeping land parcels” may be retrieved

As for those land parcels for old area renewal transferred for years but not ready for renewal or once started the renewal but stopped now, relevant departments will take active measures to urge the development unit to start the renewal and make promise on the completion time. With respect to those land parcels where the renewal fails to be started on time, the local people’s government shall negotiate with the transferee to take back the use right of such land, or start the procedures to take back the use right of such land according to law.

The comprehensive renewal of old houses does not only take the way of “mass demolition and mass construction”. Ni Rong remarked that we would improve residents’ housing condition and environmental quality through multi-channels and multi-ways such as complete-set renewal of old houses, comprehensive rectification, changing flat roof to slop roof, dismantling and reconstruction, etc. Relevant districts shall formulate and perfect the planning for protecting historic sites and outstanding historical buildings, make clear the reservation method and way of use, and actively carry out protective rectification and renewal.