LH Actively Supports Autonomous Housing Maintenance Projects... 90% of Project Costs Offered as Low-Interest Loans

Daejeon Dong-gu Panam-dong Self-Renovation Housing Project Site (Provided by Ministry of Land, Infrastructure and Transport)

[Asia Economy Reporter Chunhee Lee] The autonomous housing maintenance project, a small-scale housing maintenance project in which the public sector supports up to 90% of the project cost, is set to be actively promoted.

Korea Land and Housing Corporation (LH) announced on the 7th that it signed a "Business Agreement for the Activation of the Autonomous Housing Maintenance Project" with the Korea Appraisal Board, the Korea Housing Builders Association, the Korea Institute of Architects, and the Architectural Institute of Korea at the Korea Appraisal Board's Seoul office.

The autonomous housing maintenance project, one of the government's key urban regeneration policies, is a small-scale regeneration project where two or more owners in aging low-rise residential areas form a resident consensus body to renovate or construct houses.

This agreement was prepared to establish a systematic cooperation system among related organizations with the goals of activating the autonomous housing maintenance project, supporting policies, and discovering candidate sites. According to the agreement, LH will take charge of overall management, including participation in the autonomous housing maintenance project and joint project implementation. The Korea Appraisal Board will operate the integrated support center, and the Korea Housing Builders Association, the Korea Institute of Architects, and the Architectural Institute of Korea will be responsible for recommending excellent construction companies and architects, conducting related surveys, research, promotion, and education, and sharing information.

To enhance the expertise and driving force of the project, LH plans to encourage excellent private companies to participate in the project and cooperate mutually with related organizations in various fields such as surveys and research related to maintenance projects, and policy and system improvements.

Earlier, LH announced that as a result of the "LH Participation Autonomous Housing Maintenance Project Contest" held in August, a total of 24 resident consensus bodies (16 in the metropolitan area and 8 outside the metropolitan area) requested participation in the public project. LH plans to select the final project sites through selection procedures such as project condition surveys, development planning, purchase reviews, and resident consultations for the submitted areas, and to sign joint project implementation agreements within this year.

Candidate sites selected through this LH-participated autonomous housing maintenance project and with joint project agreements signed will receive various benefits. Low-interest loans at an annual rate of 1.2% will be provided for up to 90% of the total project cost, and pre-purchase commitments for newly built houses will be made for up to 100%, alleviating concerns about unsold units. For original residents, relocation loans and re-occupancy support will be provided to prevent displacement and ensure adequate housing quality.

Byun Chang-hoom, President of LH, stated, "As housing supply other than apartments is rapidly decreasing in urban areas such as Seoul, the autonomous housing maintenance project will be a groundbreaking alternative to quickly supply housing in aging low-rise residential areas. Taking this agreement ceremony as an opportunity, we will create a successful project model through public-private collaboration and establish a solid platform that can expand maintenance projects led by residents."

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