Support from Housing and Urban Fund for Office Remodeling Rental Housing Supply

Up to 70 Million KRW per Household and 1.8% Low-Interest Support... Apply at Woori Bank Branches Nationwide

[Image source=Yonhap News]

[Asia Economy Reporter Kangwook Cho] It has become possible to receive housing and urban fund support even when remodeling vacant non-residential facilities such as offices and lodging facilities in urban areas to supply them as public-supported private rental housing.

The Ministry of Land, Infrastructure and Transport and the Korea Housing & Urban Guarantee Corporation announced on the 29th that they will promote housing and urban fund support for the "Non-Residential Remodeling Rental Housing Project."

The "Non-Residential Remodeling Rental Housing Fund" is a follow-up measure to the "Revolutionary Expansion Plan for Housing Supply in Metropolitan Areas (2.4 Plan)" and is a plan to supply housing by remodeling vacant commercial spaces, offices, lodging facilities, and other non-residential buildings in response to the increasing housing demand of single-person households.

The support target is owners of non-residential facilities registered as public-supported private rental business operators, who can receive remodeling funds to convert non-residential facilities into housing or quasi-housing under the "Private Rental Housing Act."

The loan limit is based on the lesser amount between the comprehensive appraisal value of the building and the remodeling costs, within a maximum limit of 70 million KRW per household. The loan interest rate is 1.8% per annum with a 14-year maturity and lump-sum repayment.

Businesses receiving the fund must comply with the rental conditions of public-supported private rental housing under the Private Rental Housing Act after completion, including initial rent at 85% or less of the special supply market price, 95% or less of the general supply market price, and at least 20% special supply for youth and newlyweds among the total households or homeless applicants. Failure to comply may result in penalties such as loan recall or additional interest charges.

Applicants wishing to apply can visit any Woori Bank branch nationwide.

Kim Hongmok, Director of Housing Welfare Policy at the Ministry of Land, Infrastructure and Transport, said, "We expect that support for non-residential remodeling funds will contribute to housing stability for single-person households such as youth."

Meanwhile, the Ministry of Land, Infrastructure and Transport plans to add "dormitories remodeled from non-residential buildings" to the scope of quasi-housing that can be registered as private rental housing through an amendment to the Enforcement Decree of the Private Rental Housing Act, which is scheduled to be implemented next month.