Ministry of Land, Infrastructure and Transport Promotes Activation of Autonomous Housing Maintenance Projects... Strengthening Public Support for Homeowners

[Asia Economy Reporter Moon Jiwon] The Ministry of Land, Infrastructure and Transport announced on the 22nd that it will strengthen public support to revitalize the autonomous housing maintenance project in aging low-rise residential areas within urban regeneration New Deal project sites.

The autonomous housing maintenance project is a small-scale lot project where two or more homeowners of single-family houses (fewer than 10 units) or multi-family houses (fewer than 20 households) form a resident consensus body and then construct apartment buildings.

Although it is a key unit project for improving residential welfare in urban regeneration areas, it has been difficult to activate due to the characteristics of the deteriorated urban regeneration New Deal project areas, where securing profitability is challenging and residents lack expertise.

Accordingly, the Ministry of Land, Korea Appraisal Board, and Korea Land and Housing Corporation (LH) decided to strengthen support for homeowners wishing to promote the project.

First, the entire design cost required for business feasibility analysis will be fully supported to significantly reduce the initial burden.

For residents hesitating due to lack of construction experience and expertise, LH will sign a joint implementation agreement with the resident consensus body and promote a resident-LH joint project implementation method, with LH participating as the overall project manager.

When LH participates and supplies more than 20% of public rental housing, loans up to 90% of the total project cost at an annual interest rate of 1.2% are available through the Housing and Urban Fund.

Support will also be strengthened for projects without public implementers to encourage active participation of private sector experts.

The Korea Appraisal Board Integrated Support Center will support consultations with residents and local governments so that private experts proposing projects can be granted priority in design and construction, and will assist in ensuring smooth progress of various administrative procedures such as permits and cadastral organization until completion.

The Ministry of Land plans to hold explanatory meetings by province for two weeks starting from the 27th. One-on-one meetings will also be conducted upon request from local governments or residents.

Lee Soyoung, Director of the Housing Regeneration Division at the Ministry of Land, said, "This year marks the fourth year of the urban regeneration New Deal project, and it is time to produce results that residents can feel," adding, "We will realize residential regeneration projects that residents can experience through public support."

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