Seoul City to Increase Rental Housing for Youth and Newlyweds through 'Public Small-Scale Housing Maintenance'

[Asia Economy Reporter Kim Hyemin] The Seoul Metropolitan Government has encouraged 'public participation' in autonomous housing maintenance projects and street housing maintenance projects to supply rental housing for young people and newlyweds.

The autonomous housing maintenance project is a project in which owners of old detached and multi-family (row) houses improve or construct houses by mutual agreement. It is based on the "Special Act on the Maintenance of Vacant Houses and Small-scale Housing," which has been in effect since February 2018.

Seoul plans to purchase houses built through the autonomous housing maintenance project and supply them as rental housing for young people and newlyweds. Last year, 13 locations (186 households) in Eunpyeong-gu, Jungnang-gu, Gangdong-gu, and Dobong-gu applied for purchase through this purchase rental public offering. Houses, excluding those for landowners' re-occupancy, are planned as public rental housing but can apply the legal maximum floor area ratio.

The city is currently accepting applications for this year's public offering through the Seoul Housing and Communities Corporation (SH) until November 30.

Seoul is also focusing on expanding street housing maintenance projects involving public implementers. The street housing maintenance project renovates old residential areas on a small scale while maintaining the existing street blocks. Unlike large-scale redevelopment or reconstruction, the procedures are simplified, allowing for rapid progress. Project financing loans are also available through the Housing and Urban Guarantee Corporation (HUG).

When conducting the so-called 'public participation' street housing maintenance project with public implementers, the project implementation area can be expanded about twice. If 20% or more of the total number of households or total floor area is supplied as public rental housing, construction up to the legal maximum floor area ratio under the National Land Planning Act is possible. Additionally, relocation loan amounts can be supported up to 70% of the previous asset value or the average regional jeonse price.

Last year, Seoul jointly held a public offering for public participation street housing maintenance projects with the Ministry of Land, Infrastructure and Transport, SH, and the Korea Land and Housing Corporation (LH). As a result of the first public offering, four locations including Mangwon-dong, Ogeum-dong, and Yangjae-dong applied, and 24 additional locations have applied and are currently proceeding with the projects.

This year, after the related laws and regulations are revised according to the 2·4 supply plan, detailed implementation plans will be established in the first half of the year to promote public offerings.

Yang Yongtaek, Director of Regeneration Policy Planning at Seoul City, said, "We will actively support various permits and approval procedures so that public participation street housing maintenance projects and autonomous housing maintenance projects in Seoul can proceed smoothly," adding, "We will promote the regeneration of old residential areas that citizens can feel."