Gwangju City Promotes Improvement of Local Housing Association Projects

Strengthening Requirements for Cooperative Establishment Approval Starting July

Gwangju City Hall

[Asia Economy Honam Reporting Headquarters Reporter Park Seon-gang] Gwangju Metropolitan City announced on the 30th that it will improve the local housing association projects.

Local housing associations are housing projects promoted by establishing an association of 20 or more people who are either homeless or own one house with a floor area of 85㎡ or less. The project procedures proceed in the order of reporting member recruitment, association establishment approval, project plan approval, construction start, usage inspection, and association dissolution.

The current system allows reporting of member recruitment regardless of securing land use rights, and requires securing more than 80% of land use rights at the time of association establishment approval. Also, there was no legal system against false or exaggerated advertisements during member recruitment.

Accordingly, Gwangju City will improve the local housing association projects starting from July 23, following the amendment of the Housing Act (January 23, 2020).

The main improvements include securing more than 50% of land use rights at the time of member recruitment reporting, securing more than 80% of land use rights and more than 15% of ownership at the time of association establishment approval. With these more specific project promotion conditions, it is expected that the damage to association members will be reduced.

Advertising and procedures for member recruitment will also be improved. Advertisements must specify phrases informing about member recruitment, current status of land acquisition, qualification criteria, etc. When signing contracts, those who wish to join the association will be required to receive explanations on important matters such as project overview, qualification criteria, contribution fees, and land acquisition, and then provide written confirmation.

Funds will be entrusted to trustees for safekeeping, and the association’s progress will be disclosed quarterly to members, thereby increasing transparency in association operations.

Furthermore, if the establishment approval is not obtained within two years after member recruitment reporting, or if project plan approval is not obtained within three years after establishment approval, the project can be terminated through a general meeting, reducing the burden on members caused by project delays or suspensions.

Separately, since July last year, for local housing association projects involving land use zone changes (from Type 1 to Type 2 general residential area), Gwangju City requires the urban planning procedure (district unit plan) to be completed before reporting member recruitment to prevent damage to bona fide association members.

Kim Jong-ho, Director of the Architecture and Housing Division of the city, said, “With the amendment of the Housing Act and improvement of association project procedures, the damage to local housing association members has been reduced. We will continue to thoroughly supervise as an administrative agency.”

This content was produced with the assistance of AI translation services.