Cheonan City Urges Caution Regarding Joining the Rental Housing Resident Committee

No Legal Basis for Lease-type Cooperative Housing Associations

Recently, as the 'Rental Housing Residents' Committee' has become popular in Cheonan, Chungnam, the city has issued a warning to be cautious when joining.

According to the city on the 8th, there has been a surge in activities related to the 'Rental Housing Residents' Committee,' a group similar to a rental-type cooperative housing association, promoted through information centers, the internet, and banners.

The cooperative-type private rental housing project involves establishing a cooperative or social cooperative and supplying private rental housing to its members. While joining as a member allows for purchasing housing at a lower price than general sales, if the project is delayed or canceled, members are not legally protected and may suffer investment losses.

In particular, the recently popular 'Rental Housing Residents' Committee,' which is a group similar to a rental-type cooperative housing association, differs from regional housing cooperatives or cooperatives that recruit members according to relevant laws. Instead, it recruits members and proceeds with the housing construction project using membership contract deposits.

The problem is that this membership-based recruitment is not regulated by laws such as the Housing Act or the Special Act on Private Rental Housing, so if the project is delayed or fails, members may not be able to get their contract deposits back.

The Cheonan city government has expressed concern that members of such groups may suffer losses by joining without fully understanding the contract details or the feasibility of the project, and strongly advised them to check whether there are regulations regarding the return of contract deposits before joining.

A city official said, "When joining as a member of a rental housing group, you must carefully review the membership contract and the terms regarding the return of the contract deposit," and repeatedly urged, "Please exercise special caution when joining membership-based groups related to the recruitment of prospective tenants for rental housing."