Caution for Joining as a Founder of Cooperative-Type Private Rental Housing

Gwanak-gu Urges Caution When Joining as Founders of Cooperative-type Private Rental Housing

Cooperative Establishment Report and Member Recruitment Report Have Not Been Completed

No Regulations on Refund of Investment Funds in Founder Status, So Membership Contracts Must Be Carefully Checked

Gwanak-gu (Mayor Park Junhee) is urging caution regarding the recently promoted "Recruitment of Investors for Cooperative-type Private Rental Housing" through promotional centers and the internet, advising people to carefully review the project progress procedures and membership contracts.

"Cooperative-type Private Rental Housing" refers to a cooperative established by five or more founders with the purpose of supplying private rental housing. To recruit members, the cooperative must secure land use rights for at least 80% of the land for private rental housing construction, report the member recruitment to the relevant district office, and then publicly recruit members.

However, at the founder recruitment stage, most land use rights have not been secured, so it is essential to verify the status of land use rights before joining as a founder.

Also, the information promoted during the founder recruitment stage is a "project plan (draft)" and is not finalized, so changes may occur depending on the progress of the project.

Additionally, although the Special Act on Private Rental Housing stipulates refund of membership fees for applicants, there are no regulations on refunding investment funds at the founder recruitment stage, which must be carefully noted.

For more details, visit the Gwanak-gu Office website under the Information by Category menu, then Urban, Housing, Real Estate → Regional Housing Cooperatives section, where major damage cases and precautions are also thoroughly explained.

An official from the district said, "Since there is concern about potential damages related to the 'Cooperative-type Private Rental Housing' project, we ask that you carefully verify the facts before joining and handle the matter prudently."

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