Some dormitories will be built and existing ones renovated in order to prevent group rentals and improve living conditions for low-income earners, the Shanghai Housing, Land and Resource Administration said, according to the Oriental Morning Post.

The new buildings will be constructed in economic development zones or industrial parks, where a large number of people from other parts of the country live and work, the newspaper said.

The administration started to work on the policy after a Shanghai People's Congress member made a proposal that strict measures should be taken to control group rentals. A group rental is an apartment that is illegally divided into a number of smaller units.

Zhang Yayu, dean of the neighborhood committee in No. 3 Tianshan Residental Area, Changning District, received a written reply from the administration last week.

The government admitted in the letter that there was a serious lack of houses suitable for migrant workers. It also said that the government would build or renovate some dormitories for the special use, according to the report.

Group rentals have emerged in the past few years as low-income earners team up to share a divided apartment to save money.

The practice can lead to many disputes between tenants and home owners in the building. Other problems such as security, fire control and health issues have also been raised, the report said.

Following a crackdown last year, more than 6,600 residents were ordered to move out of group rentals at about 200 residential complexes in the city.

To create better living conditions for everyone, some districts have worked out successful methods. For example, the Minhang District government has built apartments in Xinzhuang, an area where many people from other provinces live. They converted some idle workshops into dormitories and rented them at affordable prices.

Officials of the Shanghai Housing, Land and Resource Administration said they were also working on new laws to better regulate the housing rental market.

(Shanghai Daily July 7, 2008)