Gyeonggi-do to Supply 470 Units of 'Specialized Purchase Rental Housing' for Youth

Gyeonggi Provincial Government

Gyeonggi Province will supply 470 units of ‘specialized purchase rental housing social housing’ targeting youth this year through Gyeonggi Housing and Urban Corporation (GH).

Specialized purchase rental housing is a type of housing where private entities such as social economy organizations (non-profit corporations, public interest corporations, social cooperatives, etc.) propose spaces and services tailored to the characteristics of tenants, and after construction, the public sector purchases the housing and grants the proposer the rights to select tenants and operate rentals.

Rental operators such as social economy entities provide differentiated residential services by supporting programs that enable various community activities for tenants.

This year’s supply includes ▲‘new construction purchase type’ (320 units), where private entities secure land and propose projects ▲‘public land utilization type’ (30 units), where GH provides land it owns ▲‘non-residential remodeling’ (120 units), which involves changing the use of existing lodging and office facilities.

GH completed the application process for the specialized purchase rental housing project from private entities including social economy organizations at the end of July.

Going forward, after procedures such as purchase review and design consultation, purchase agreements (supply) will be signed in December. Once the purchase agreements are signed, tenant recruitment will begin as early as the second half of next year.

Meanwhile, in August, GH signed a business agreement with the Housing and Urban Guarantee Corporation (HUG) for the ‘Urban Housing Special Guarantee.’ The Urban Housing Special Guarantee is a product that guarantees repayment of loan principal and interest borrowed from financial institutions by businesses that have signed new construction purchase agreements with public institutions (purchase agencies) to finance their projects. Gyeonggi Province expects this to enable smooth financing for private entities such as social economy organizations.

Lee Eun-seon, Director of the Housing Policy Division of Gyeonggi Province, said, "Social housing is a residential model that moves away from supplier-centered housing supply to reflect the demands of users and realize social value through community revitalization," adding, "We will continuously pursue various measures to activate the supply of social housing."

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