Supply of 2,000 'Gonggong Jiwon Min-gan Imdae Jutaek' Units... Private Sector Letters of Intent Accepted

[Asia Economy Reporter Jeon Mewon] The call for proposals for the '2020 1st Publicly Supported Private Rental Housing Private Proposal Project' to supply 2,000 units of publicly supported private rental housing is underway.

The Ministry of Land, Infrastructure and Transport and the Housing and Urban Guarantee Corporation (HUG) announced on the 22nd that they will accept letters of intent to participate in the 'Publicly Supported Private Rental Housing' private proposal project, which offers rental rates lower than the surrounding market prices and allows residents to live securely for more than 8 years, from the 26th of this month until the 1st of next month.

The publicly supported private rental housing private proposal project involves a real estate investment trust (REIT) established through joint investment by the Housing and Urban Fund and private entities, which either purchases or constructs rental housing on sites proposed by the private sector.

The private proposal project call was introduced to more effectively select high-quality private rental projects. Eligible sites include those where housing construction can begin immediately without urban planning changes or sites currently under construction.

Starting with the first call recruiting around 2,000 units, HUG plans to conduct four calls within the year to promote a total of approximately 8,000 units of private proposal-type public projects.

For selected projects, support such as fund investment, loans, and rental REIT housing project financing guarantees will be provided after HUG’s fund investment review.

Only businesses that submit letters of intent will be able to submit project applications on May 28-29, with preferred negotiation candidates selected in June.

Choi Jeongmin, Director of the Private Rental Policy Division at the Ministry of Land, Infrastructure and Transport, explained, "This call will actively reflect quality inspection standards and guidelines for shared private rental housing to ensure housing quality and revitalize residential services, as well as benefits related to residential service certification."

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