Notice on Further Promoting Reform of Existing Public Housing in China (1999)

Notice on Further Promoting Reform of Existing Public Housing by Ministry of Housing and Urban-Rural Development

Timeliness: Currently in effect Issuing authority: Ministry of Housing and Urban-Rural Development Document number: JZZF [1999] No. 209 Date of issuance: August 13, 1999 Date of implementation: August 13, 1999 Level of effectiveness: Departmental normative document

To: Housing System Reform Leading Group (Housing Committee) of all provinces, autonomous regions, municipalities directly under the central government, planned single-city districts, and provincial capitals

Continuing to actively and prudently promote 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 'Notice of the State Council on Further Deepening the Reform of Urban Housing System and Accelerating Housing Construction' (Guo Fa [1998] No. 23, hereinafter referred to as the 'Notice'), the following issues regarding the further promotion of reform of existing public housing are hereby notified:

1. Each region should further clarify the scope of salable and non-salable public housing. In general, urban existing public housing, except for the housing that needs to be demolished and renovated in the near future according to the plan, housing that cannot be separated from party and government organs, scientific research institutions, and colleges and universities, housing with historical commemorative significance, severely damaged and dilapidated houses, and other housing that is determined by the local people's government as not suitable for sale, all belong to 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 complete sets of public housing directly managed by housing management departments in each region, except for those that are not suitable for sale according to regulations, should be sold to current residents who have the intention to purchase. Public housing self-managed by state-owned units should, in principle, be sold to employees of the unit and non-unit current residents who are transferred for normal work according to the above requirements. The specific regulations encouraging units to sell current housing to employees shall be determined by the local people's government.

3. For existing public housing within the salable scope, the property rights unit should prepare and submit the sales plan in advance. The housing reform department should complete the approval work within 15 working days upon receiving the unit's sales plan and simultaneously copy the approved document to the real estate transaction and property rights registration department. After receiving the approved sales document, the property rights unit should actively organize the sales work and, within 20 working days after signing the purchase agreement with the purchasing employee and receiving the purchase payment (or deposit), organize or assist the purchasing employee to complete the transaction and certificate procedures at the real estate transaction and property rights registration department. The real estate transaction and property rights registration department should complete the surveying, transaction, and certificate issuance work within one month after receiving the application.

4. For housing with disputed 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 housing management unit after providing a written guarantee to the local real estate management department. After deducting the proportionate repair fund according to the prescribed ratio, the sale proceeds should be deposited in the designated account of the local government for sealing, and transferred to the original property rights unit after the original property rights relationship becomes clear.

5. Market prices shall be implemented for selling current housing to high-income families, and cost prices shall be implemented for selling current housing to middle and low-income families. The determination and advance publication of the cost price should be carried out in accordance with the seven factors stipulated in the 'Decision of the State Council on Deepening the Reform of Urban Housing System' (Guo Fa [1994] No. 43, hereinafter referred to as the 'Decision'), and it should be gradually coordinated with the prices 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 rent reform of salable public housing, within the reasonable expenditure range of employee households, in order to promote employee home purchases. The increase in rent standards should be combined with the increase in employee income. For social relief objects and other low-income families designated by the Civil Affairs Department, as well as retired and retiring employee families who still have difficulties after receiving rent subsidies, the increase in rent should be reduced or exempted.

7. For housing that employees have purchased at the standard price, employees should be encouraged to pay the remaining housing price and interest based on the cost price on a voluntary basis. After the employees have paid the remaining housing price and interest based on the cost price, the housing property rights belong to the individual employees.

8. Housing reform and real estate administrative departments in all regions 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 explanations should be provided to residents living in non-salable public housing, and units with the conditions should be encouraged to sell housing to employees through housing exchange methods.