Guidelines will be established for the 'operation of small-scale housing maintenance project associations,' which have experienced conflicts due to the excessive expenditure of association operating expenses relative to their scale, as there were no separate standards until now.
On the 21st, Seoul City announced that it has established the 'Guidelines for Reducing Operating Expenses of Small-Scale Housing Maintenance Project Associations' to alleviate the financial burden on association members and support rational project implementation. The guidelines will be distributed this month to 25 autonomous districts and small-scale housing maintenance project sites.
Since last year, following the deregulation related to the 'Street Housing Maintenance Project' introduced by the city to revitalize Moa Town and Moa Housing, the number of street housing maintenance project sites in Seoul has increased by 19 (from 42 to 61), raising interest in association operations.
Last year, the city relaxed standards for street housing maintenance projects through ordinance amendments within Moa Town, including ▲floor height relaxation in Type 2 General Residential Areas (up to 7 floors → up to 10 floors → average up to 13 floors), ▲planned removal of floor height limits in Type 2 General Residential Areas (up to 15 floors), ▲relaxation of aging criteria (from 67% or more to 57% or more), ▲relaxation of elapsed years for apartment buildings under 660㎡ floor area (from 30 years to 20 years), and ▲relaxation of public rental housing construction ratios when compensating tenant losses.
Small-scale housing maintenance projects have smaller project implementation areas compared to general redevelopment or reconstruction projects, but due to the lack of standards for association operations, they have been applying the standard articles of association for maintenance projects under the 'Urban and Residential Environment Maintenance Act.' This has led to concerns that operating expenses are excessive relative to the project scale, increasing the burden on association members.
Seoul City focused on including measures suitable for the project characteristics in the 'Guidelines for Reducing Operating Expenses of Small-Scale Housing Maintenance Project Associations,' such as ▲reducing labor costs, ▲integrated operation of association offices, ▲selection of registered specialized maintenance project management companies, and ▲transparent information disclosure plans.
First, to prevent excessive appointment of executives and staff participating in association operations, the guidelines provide appropriate numbers of executives according to project scale to help reduce labor costs. Although small-scale associations appoint one association head, 3 to 5 directors, and 1 to 3 auditors, there are no detailed standards by scale, which has led to the election of executives and operation of boards and delegates regardless of project size, causing unnecessary operating expenses. The guidelines propose appropriate personnel numbers based on project scale.
Additionally, in cases where multiple associations are adjacent, such as in Moa Town, the guidelines suggest integrated office operation with willing associations to encourage management cost reduction. When operating integrated offices, the two associations will agree to hire necessary full-time staff, and a 'Joint Office Use Agreement (draft)' will be distributed to prevent disputes between associations. Integrated office operation can reduce the monthly management cost burden on associations, such as office rent, and by sharing and cooperating on issues arising during project implementation, it is expected to create synergy effects in project promotion.
Furthermore, when selecting specialized maintenance project management companies, the guidelines require choosing 'Seoul City registered companies' to ensure transparent and smooth project operation and prevent cases of illegality and conflicts. The city plans to take administrative actions such as correction orders against project entities if unregistered companies are found to be acting on their behalf. Since 'specialized maintenance project management companies' act on behalf of associations and have significant influence over contractor and service provider selection directly related to project costs, selecting incompetent companies may cause project delays or disputes due to excessive cost increases.
Finally, the city plans to enhance transparency and trust in small-scale housing maintenance projects by disclosing various information, including expenditure details related to association operations, through the 'Maintenance Project Information All-in-One' website operated by the city. The city will encourage transparent disclosure of information in accordance with the 'Seoul Metropolitan Government Maintenance Project Association Standard Budget and Accounting Regulations' and the 'Maintenance Project Information All-in-One Website Operation Guidelines' through these guidelines.
Han Byung-yong, Director of the Seoul Housing Policy Office, said, "We expect that these guidelines for reducing association operating expenses will help the smooth implementation of small-scale housing maintenance projects and reduce the burden on association members. We will continue to provide multifaceted support to rapidly improve the residential environment in low-rise residential areas throughout Seoul."
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