SH Corporation, Four Seoul Cooperatives Collaborate on 'Garojutaek Redevelopment Project'... Exemption from Price Ceiling System if Rentals Increase

[Asia Economy Reporter Donghyun Choi] Seoul Housing and Communities Corporation (SH Corporation) announced on the 15th that it has signed business agreements with the maintenance associations of four districts in Seoul and will actively promote public-participation street housing maintenance projects.

The street housing maintenance project is a business in which owners of old houses establish associations and renovate or construct houses themselves, based on the "Special Act on the Maintenance of Vacant Houses and Small-scale Housing" enforced since February 2018. The street housing maintenance projects jointly implemented by SH Corporation and the associations this time include a total of 338 households: 29 households at Ingyeong Seojin in Mangwon-dong, Mapo-gu; 132 households at Hanshin Yangjae in Yangjae-dong, Seocho-gu; 88 households at Ogum-dong 143, Songpa-gu; and 89 households at Ogum-dong 147.

According to this business agreement, SH Corporation, as a joint project implementer, will support each association with project financing through the Housing and Urban Guarantee Corporation (HUG) and provide technical and administrative assistance for smooth project progress, while maintaining a close cooperation system to enable transparent project management by the associations.

With SH Corporation's participation, securing more than 10% of public rental housing will allow for lower interest rates on fund loans and may exempt the projects from future application of the sale price ceiling system, thereby reducing the economic burden on the associations. All street housing maintenance projects with public participation and supply of more than 10% public rental housing are expected to be exempt from the price ceiling system, and the fund loan interest rate through HUG will be reduced from 1.5% to 1.2%.

Kim Seyong, President of SH Corporation, said, "Public-participation street housing maintenance projects will play an important role in improving the residential environment in Seoul by renovating existing old houses and securing public rental housing," adding, "We will strive to further activate small-scale housing maintenance projects actively promoted by the Ministry of Land, Infrastructure and Transport and Seoul City through public participation."

Meanwhile, SH Corporation announced a public-participation street housing maintenance project contest together with Korea Land and Housing Corporation (LH) in March, and has been accepting first-round applications from associations wishing to participate publicly from the 11th to the 21st.

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