Publicly Supported Private Rental Housing Private Proposal Project Open for Applications

[Asia Economy Reporter Lee Chun-hee] The Ministry of Land, Infrastructure and Transport and the Housing and Urban Guarantee Corporation (HUG) announced on the 28th the '2020 2nd Publicly Supported Private Rental Housing Private Proposal Project Contest.'

Publicly supported private rental housing is housing where tenants can live safely for more than 8 years at rent levels up to 85% cheaper than the surrounding market prices. This private proposal project involves a real estate investment trust (REITs) established jointly by the Housing and Urban Fund and private entities investing in project sites proposed by the private sector, which then purchase or construct publicly supported private rental housing. This contest was introduced to more effectively select high-quality private rental projects, targeting sites where housing construction can begin immediately without changes to urban planning or projects currently under construction. Selected projects through the contest will receive support such as fund investment, loans, and rental REIT housing project finance guarantees after HUG’s fund investment review.

HUG previously conducted the 1st contest in March and is currently in the process of selecting operators. Including this 2nd contest, HUG plans to hold four contests this year, aiming to promote approximately 8,000 units of private proposal-type contest projects.

Detailed information about this contest will be available on the HUG website starting from the 29th. Subsequently, letters of intent will be accepted from the 11th to the 17th of next month. Only operators who submit letters of intent will be able to submit project applications on August 6th and 7th, with the priority negotiation candidates planned to be selected within August.