Notice on the Reform of Public Housing in China

Notice on the Reform of Public Housing in China

To the Housing Reform Leading Group (Housing Committee) of all provinces, autonomous regions, directly-administered municipalities, planned single-city districts, and provincial capital cities:

Continuing to actively and prudently promote the reform of existing public housing is of great significance for enhancing the awareness of urban residents towards housing commodification, expanding residential housing consumption, and promoting national economic development. In accordance with the provisions of the 'Notice of the State Council on Further Deepening the Reform of Urban Housing System and Accelerating Housing Construction' (State Development [1998] No. 23, hereinafter referred to as the 'Notice'), the following issues regarding further advancing the reform of existing public housing are hereby notified:

1. Each region should further clarify the scope of salable and non-salable public housing. Generally, existing public housing in urban areas, except for housing that needs to be demolished and renovated according to recent planning, housing that cannot be separated from party and government institutions, scientific research institutes, and colleges, housing with historical significance, severely damaged or dilapidated houses, and other housing specified by local governments as non-salable, all fall within the scope of salable public housing. The specific scope of salable and non-salable public housing shall be determined and announced by the local people's government.

2. All set public housing under the direct management of local housing management departments should be sold to current residents who are willing to purchase, except for those specified as non-salable according to regulations. Public housing managed by state-owned units should, in principle, be sold to employees of the unit and current residents not employed by the unit who are undergoing normal job transfers, in accordance with the above requirements. The specific provisions on encouraging units to sell current residential housing to employees shall be determined by the local people's government.

3. For existing public housing within the salable range, the property rights unit should prepare and submit a sales plan in advance. The housing reform department should complete the approval process within 15 working days after receiving the unit's sales plan, and simultaneously copy the approval documents to the real estate transaction and property rights registration departments. After receiving the approval documents for the sale of housing, the property rights unit should actively organize the sale work and within 20 working days after signing the purchase agreement with the purchasing employees and receiving the purchase payment (or deposit), organize or assist the purchasing employees in completing the transaction and certificate procedures at the real estate transaction and property rights registration departments. The real estate transaction and property rights registration departments should complete the survey, transaction, and certificate issuance within one month of receiving the application.

4. For housing with disputes over property rights between state-owned units, if it falls within the salable housing range, it should, in principle, be approved for sale to individual employees by the current managing housing unit after issuing a written guarantee to the local real estate management department. After deducting the repair fund in accordance with the prescribed proportion, the proceeds from the sale should be deposited into a designated account by the local government for sealing until the original property rights relationship becomes clear, and then transferred to the original property rights unit.

5. Housing sold to high-income families should be priced at market value, while housing sold to middle and low-income families should be priced at cost. The cost should be determined, announced, and implemented annually based on the seven factors specified in the 'Decision of the State Council on Deepening the Reform of Urban Housing System' (State Development [1994] No. 43, hereinafter referred to as the 'Decision'), and gradually linked to the price of economically affordable housing.

6. In accordance with the provisions of the 'Decision' and the 'Notice,' efforts should be made to increase the reform of existing public housing, especially the reform of rent for salable public housing, within the reasonable expenditure range of employee families, in order to promote employee home purchases. The increase in rent standards should be combined with the increase in employee income. For social assistance recipients designated by the civil affairs department, other low-income families, and retired employee families who still face difficulties after receiving rent subsidies, the increase in rent should be reduced or exempted.

7. For housing that employees have already purchased at standard prices, employees should be encouraged to voluntarily supplement the housing price and interest based on the cost price. After employees have supplemented the housing price and interest based on the cost price, the housing property rights belong to the individual employee.

8. Local housing reform and real estate administrative departments should effectively strengthen the guidance, publicity, and supervision of the sale and rent increase of public housing, and take practical measures to promote the smooth implementation of the reform of existing public housing based on the actual situation. Proper propaganda and explanation work should be done for residents living in non-salable public housing, and units with conditions should be encouraged to sell housing to employees through housing exchange methods.