Popular 'Gonggongchamyeohyeong' Small-Scale Housing Maintenance Projects... 2,000 Units to Be Supplied by 2023

[Asia Economy Reporter Lee Chun-hee] The public participation-type small-scale housing maintenance projects, promoted as one of the government's supply expansion measures, have been successfully completed. It is expected that 2,000 housing units will be supplied through these 29 project sites by 2023.

The Ministry of Land, Infrastructure and Transport announced on the 7th that the joint public recruitment for the first and second rounds of the street housing maintenance projects (Ministry of Land, Seoul City, Korea Land and Housing Corporation (LH), Seoul Housing and Communities Corporation (SH)) and the joint recruitment for autonomous housing maintenance projects (Ministry of Land, LH, Korea Appraisal Board), both conducted for the first time this year to strengthen the public nature of small-scale housing maintenance projects and make it easier for residents to participate, have been completed with great interest from residents.

These projects provide incentives such as low-interest project financing at an annual rate of 1.2~1.5%, expansion of project area (from 10,000 to 20,000㎡), and exemption from the price ceiling system for sale prices, if public nature requirements are met, such as participation of public enterprises as joint implementers or supply of sale housing and public rental housing at prices lower than market prices.

Overview of Public Participation-Type Street Housing Maintenance Project (Provided by LH)

First, the street housing maintenance projects, which maintain the existing street blocks while renovating old residential areas on a small scale within 20,000㎡, received a total of 58 applications: 22 in the first round of recruitment in May and 36 in the second round last month. In the first round, 11 sites were finally selected as joint project implementation districts after comprehensively considering project implementation requirements and residents' willingness to jointly implement the project. The second round sites will be selected by March next year through the same procedure.

LH and SH are currently proceeding with procedures for joint project implementation through consultations with the 11 sites selected in the first round. The Ministry of Land plans to enable some projects to visualize progress by signing agreements and establishing associations as early as this year.

Case Study of Public Participation-Based Voluntary Housing Maintenance Project

The autonomous housing maintenance project is a project where owners of detached houses, multi-family houses, and row houses with fewer than 20 units renovate or construct by themselves. The nationwide recruitment was conducted in August, divided into 'LH participation-type recruitment' where LH participates as the project implementer, and 'Appraisal Board support-type recruitment' where the Korea Appraisal Board supports design costs.

In the LH participation-type recruitment, 24 sites applied, and after surveys on project conditions and feasibility evaluations of development plans, 15 sites capable of joint projects were finally selected. For these 15 sites, joint project implementation agreements are expected to begin as early as this year, with full-scale projects starting next year.

For the Appraisal Board support-type recruitment, which supports design costs of 15 million KRW each for large-scale projects over 10 billion KRW, three sites applied for design cost support. All three passed evaluation criteria such as project feasibility and appropriateness of basic plans and were finally selected. Currently, all three have started basic design with the support and plan to proceed with detailed design and construction from next year.

The Ministry of Land expects that about 2,000 housing units will be supplied by 2023 through the 29 sites finally selected in this year's public participation-type small-scale housing maintenance project recruitment (11 sites from the first round of street housing maintenance projects and 18 sites from autonomous housing maintenance projects). Among these, 500 units will be supplied as public rental housing.

The Ministry plans to conduct public participation-type small-scale housing maintenance project recruitments again next year and expand the target areas and participating public institutions. This year, the public participation-type street housing maintenance project was conducted only in the Seoul area, but next year the target area will be expanded nationwide. Furthermore, not only LH, SH, and the Korea Appraisal Board but all local public corporations nationwide will be allowed to participate in both projects.

Lee Ji-hye, Director of the Housing Regeneration Division at the Ministry of Land, said, "Small-scale housing maintenance projects can quickly supply quality housing and improve the residential environment in aging low-rise residential areas. We will actively collect residents' opinions and continuously discover institutional improvements to further revitalize small-scale housing maintenance projects."

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