City Council Committee Supports Project Normalization
1,270 Units Expected to Be Converted
There is growing interest in whether the E-Pyunhansesang apartment complex in Wonseong-dong, Cheonan-si, Chungnam, which was promoted as a public-supported private rental housing project (New Stay) but has seen move-ins delayed for two years due to conflicts between the developer and the association and the lack of final construction approval, will be converted to general sale.
According to Cheonan City and the city council on the 16th, the City Council's Construction and Urban Committee reviewed the proposed changes to the reconstruction and maintenance plan for the Wonseong-dong housing project and expressed support for the conversion plan to normalize the project.
Following the cancellation of the New Stay designation, the association is pursuing a conversion to general sale to resolve financial issues and reduce burdens, and it is expected that 1,270 out of a total of 1,579 units will ultimately be converted.
Previously, the Ministry of Land, Infrastructure and Transport conditionally canceled the New Stay designation for this project earlier this year.
The conditions include: ▲ returning the floor area ratio incentive ▲ agreeing to terminate the sales contract with Daelim Co., Ltd. ▲ paying a 10% penalty to the REITs company (funded by HUG Housing and Urban Guarantee Corporation) ▲ agreeing with HUG on a plan to repay the association’s project loans, among others.
To fulfill these conditions, the association is in discussions with Daelim E&C, the REITs company (Daelim No. 5), and HUG. Although they initially refused to terminate the contract, it is reported that they have become more proactive in negotiations following the ministry’s decision.
Due to the cancellation of the New Stay designation, the maximum floor area ratio will be lowered from 300% to about 230%. To comply, the association plans to pay the city for 5,954 square meters of land in cash and supply 49 rental housing units.
The city aims to fulfill the ministry’s conditions for canceling the New Stay designation by June 13 and plans to proceed with the announcement of the revised maintenance plan along with review by the Urban Planning Committee.
The timing of the sale will be determined based on when the association finalizes its contract with the sales agency.
City council member Kwon Ohjung said, "Residents are very dissatisfied as the apartment has been left unfinished for over two years," and added, "I hope the directors and managers will work hard to ensure that negotiations are concluded as soon as possible."
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