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

Notice on Further Promoting the Reform of Existing Public Housing by the Ministry of Construction

Validity: Currently in effect Issuing Authority: Ministry of Construction Document Number: Jian Zhu Fang [1999] No. 209 Date of Issuance: August 13, 1999 Effective Date: August 13, 1999 Level of Authority: Regulatory Document of the Department

To: Housing System Reform Leading Group (Housing Committee) of Provinces, Autonomous Regions, Direct-Controlled Municipalities, and Planning Single-Column Cities, as well as Provincial Capitals

Continuing to actively and steadily promote the reform of existing public housing is of great significance for enhancing the awareness of urban residents' housing commodification, expanding residential housing consumption, and promoting the development of the national economy. 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' (Guo Fa [1998] No. 23, hereinafter referred to as the 'Notice'), the relevant issues for further promoting the reform of existing public housing are as follows:

1. Each region should further clarify the scope of salable and non-salable public housing. Generally, urban existing public housing, except for housing that needs to be demolished and transformed according to recent planning, housing that is inseparable from party and government, scientific research institutions, and universities, housing with historical commemorative significance, severely damaged and dilapidated houses, and other non-salable housing stipulated by the local people's government, 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 sets of public housing directly managed by local housing management departments, 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 current residents not working for the unit 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 range, the property unit should prepare and submit a sales plan in advance. The housing reform department should complete the approval work within 15 working days after receiving the unit's sales plan and copy the approved document to the real estate transaction and property rights registration department. After receiving the approved sales document, the property unit should actively organize the sales work and within 20 working days after signing the purchase agreement with the purchasing employees and collecting the purchase funds (or down payment), organize or assist the purchasing employees in handling 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 certification 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 be approved for sale to individual employees by the current managing housing unit after providing written guarantee to the local real estate management department. After deducting the repair fund according to the prescribed proportion, the sales funds 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 is clarified.

5. The sale of current housing to high-income families should follow market prices, while the sale of current housing to middle and low-income families should follow cost prices. The cost prices should be determined, announced, and implemented annually according to the seven factors specified 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 gradually linked 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 reform of rental prices for salable public housing, within the reasonable expenditure range of employees' families, to promote employees' home purchases. The increase in rental standards should be combined with the increase in employee income. For social relief recipients and other low-income families and retired employees' families who still have difficulties after receiving rental subsidies, the newly added rent should be reduced or exempted.

7. For housing purchased by employees at standard prices, employees should be encouraged to voluntarily make up the price and interest based on the cost price. After employees make up the price and interest based on the cost price, the property rights of the housing belong to the individual employees.

8. Local housing reform and real estate administrative authorities should effectively strengthen the guidance, publicity, and supervision of the sale and rental work of public housing, take practical measures according to the actual situation, and promote the smooth implementation of the reform of existing public housing. For residents living in non-salable public housing, sufficient publicity and explanation work should be done, and units with conditions should be encouraged to sell housing to employees through housing exchange methods.