Low-income housing projects opened to private investment
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E-mail Xinhua, June 29, 2012
China on Friday issued a notice to lure investment into the construction of low-income homes in the country, a move to further relax restrictions on private capital entering state-dominated sectors.
Private investors are encouraged to participate in the construction of low-rent, public-rent, affordable and price-capped housing, as well as the renovation of rundown houses, according to the jointly released by seven ministries including the Ministry of Housing and Urban-Rural Development.
The investors may join the construction through various means such as direct investment and agent-construction, and can rent or sell low-income homes at contracted prices to qualified candidates approved by the government, the notice said.
Under the notice, banks are asked to support private investors according to government policy on financial support for low-income housing.
Local governments can offer discounted loans to private investors that participate in the construction and operation of local public-rent homes, but the loans should not be used for other purposes, according to the notice.
Private investors are also allowed to issue corporate bonds, the value of which should not exceed that of the investment, to fund their construction, it added.
Private investors that help fund low-income housing projects are also to be offered preferential tax rates, and exempted from administrative service fees and other government charges.
Meanwhile, private investors participating in public-rent housing projects are allowed to design and build supporting service facilities for the projects and undertake their property management, the notice continued.
The move, part of government efforts to spur a slowing economy, came after the country opened its gates to private capital in sectors including transport, finance and insurance.
China's government has vowed to build 36 million affordable housing units during the 2011-2015 period to meet demand from low-income families. In 2011, it started construction of 10 million units.
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