As the mandatory lease period for approximately 100,000 public-supported private rental housing units (formerly known as 'New Stay') nationwide, including in Incheon, is coming to an end, legislation to introduce a 'priority purchase for tenants' system is being promoted.
On the 12th, Heo Jong-sik, a member of the Democratic Party of Korea representing Dong-gu Michuhol-gu Gap in Incheon, announced that he has taken the lead in proposing the "Partial Amendment to the Special Act on Private Rental Housing," which grants existing tenants priority rights to purchase after the lease period of public-supported private rental housing expires, thereby resolving tenants' housing instability.
Public-supported private rental housing is built with public support such as housing and urban fund assistance and floor area ratio relaxation. However, current laws lack provisions regarding priority sales or conversion to purchase, raising concerns about tenants' resettlement issues when the mandatory lease period expires.
In response, Representative Heo has prepared an amendment that allows landlords to give tenants priority in purchasing public-supported private rental housing.
Since landlords receive public support such as housing and urban fund assistance, floor area ratio relaxation, land development cost supply, and tax relief (acquisition tax and capital gains tax), they should play a role as a housing ladder by alleviating tenants' housing insecurity. Regarding housing sale prices, necessary matters will be negotiated with tenants, and prices cannot exceed the appraised value.
Representative Heo emphasized, "As the mandatory lease period for 100,000 private rental housing units built with public benefits is approaching expiration, proactive measures to ensure tenants' housing stability must be promptly prepared."
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