3000 Demand-Oriented Purchase Rental Housing Units for Young Artists and Elderly Open for Application

Specific Theme-Type 1,700 Households · Private Proposal-Type 1,300 Households
Construction of 30 or More Households, Low-Interest Loans Supported Based on Progress Rate

The Ministry of Land, Infrastructure and Transport announced on the 6th that it will open a public contest for the 'Specialized Purchase Rental Housing Project,' which features space arrangements and services tailored to the characteristics of residents such as artists, athletes, persons with disabilities, and the elderly, starting from the 7th. The total scale of the contest is 3,000 households.

Specialized Purchase Rental Housing 'Arts Stay Yeongdeungpo' View / Photo by Ministry of Land, Infrastructure and Transport

Specialized purchase rental housing refers to public rental housing where the private sector proposes rental housing with space arrangements and services suited to the characteristics of residents, and the public sector purchases and provides them at prices lower than market rates. This contest will be conducted in two categories: 'Specific Theme Housing' (1,700 households) and 'Private Sector Free Proposal Housing' (1,300 households).

Specific Theme Housing is a type where the Ministry of Land, Infrastructure and Transport purchases housing from private construction companies that match themes pre-determined in collaboration with related ministries such as the Ministry of Health and Welfare and the Ministry of Culture, Sports and Tourism. These collaborating ministries support specialized operations of the purchase rental housing, including resident selection and provision of specialized programs. The number of units supplied by theme is 360 units for 'Artist and Athlete Support Housing,' 340 units for 'Independent Living Support Housing for Persons with Disabilities,' and 1,000 units for 'Elderly Specialized Housing.'

The contest will be held in regions where actual supply is needed, based on a review of resident demand and other factors. Artist and Athlete Support Housing will be contested in the metropolitan area and major cities, considering resident preference and areas with a high concentration of young artists. Independent Living Support Housing for Persons with Disabilities targets local governments participating in the 'Pilot Project for Community-Based Independent Living Support for Persons with Disabilities' (such as Uiwang and Jeju). Newly supported this year, Independent Living Support Housing for Persons with Mental Disabilities will be recruited nationwide. The contest areas for Elderly Specialized Housing include the metropolitan area and major cities where it is easy to connect with various communities such as health and care, as well as 33 local governments (such as Chuncheon and Jincheon) conducting the 'Pilot Project for Integrated Elderly Medical and Care Support.'

Private Sector Free Proposal Housing is a type where the private sector constructs housing based on themes they propose through a public purchase agreement method. Specialized services for residents are also provided by the private sector. Representative examples include 'Anam Saenghwal' in Seongbuk-gu, Seoul, and 'Arts Stay Yeongdeungpo' in Yeongdeungpo-gu, Seoul. The Ministry of Land, Infrastructure and Transport plans to incorporate various themes utilizing private sector creativity into public rental housing, including customized housing supply considering the operation stage.

To ensure stable supply of specialized purchase rental housing, the Ministry of Land, Infrastructure and Transport provides low-interest loans monthly according to the progress rate to construction businesses building 30 or more units. According to the 'Urban Housing Special Project Financing (PF) Guarantee' established in April, the Housing and Urban Guarantee Corporation (HUG) provides loan guarantees to financial institutions for up to 90% of project costs, allowing project operators to receive interest rates approximately 2 percentage points lower than general PF loans. Additionally, for specialized purchase rental housing with 100 or more units in the metropolitan area, the purchase price is calculated by setting appropriate building construction costs based on the actual design quality of the building. This adopts the 'Construction Cost-Linked Building Purchase Price Calculation Method,' where construction costs submitted by private construction companies are verified by external professional institutions.

Lee Gi-bong, Director of Housing Welfare Policy at the Ministry of Land, Infrastructure and Transport, said, "We hope that the specialized purchase rental housing contest project will provide high-quality public rental housing that combines various private sector ideas and high-level residential services," adding, "We plan to strengthen cooperation with ministries that provide theme-based services."

Meanwhile, contest details can be found on the Korea Land and Housing Corporation (LH) subscription plus platform starting from the 7th. LH will announce the final selected projects by the end of this year after screening and negotiating purchase costs.