Democratic Party's Cheon Junho Proposes Public Small-Scale Reconstruction Activation Act... Targeting 60,000 Households in Seoul

[Image source=Yonhap News]

[Asia Economy Reporter Park Cheol-eung] On the 7th, National Assembly member Chun Jun-ho of the Land, Infrastructure and Transport Committee announced plans to propose a revision to the "Special Act on the Maintenance of Vacant Houses and Small-scale Housing," aimed at revitalizing public small-scale reconstruction projects.

If public project operators such as LH and SH participate as implementers, incentives for floor area ratio (FAR) and regulatory relaxations will be applied. The project is described as one that secures transparency, feasibility, and speed to supply high-quality new housing and improve residential environments in aging small-scale housing complexes (apartments, row houses, etc.).

Specifically, the revision includes incentives for FAR up to 120% of the legal maximum and relaxation of building regulations such as sunlight rights and floor restrictions. For example, the FAR for a Category 3 General Residential Area is 250% according to Seoul city ordinances, but if promoted as a public small-scale reconstruction project, the legal maximum FAR of 300% plus a 1.2 times incentive can raise it up to 360%. The revision also includes integrated reviews to shorten project periods and expansion of land area incorporated into the project zone if necessary.

The donation ratio for FAR relaxation is set between 20% and 50%. While the usual donation ratio for public rental housing in FAR incentives is 50%, it can be lowered to 20% to secure project feasibility.

To support the resettlement of original residents who lack funds, legal grounds for supplying equity-type housing under the current "Urban and Residential Environment Maintenance Act" have also been established. Equity-type housing is a concept where the purchaser and the implementer co-own the property for up to 10 years. Plans to consider extending the co-ownership period are underway.

According to member Chun, the target areas for public small-scale reconstruction projects in Seoul alone amount to 2,070 complexes with 60,384 households. All conditions must be met: project area under 10,000㎡, fewer than 200 households in existing housing, and more than two-thirds of buildings being old or substandard.

Member Chun stated, “This revision bill is a follow-up to last year’s government measures to strengthen the supply base in the metropolitan area (May 6). Public small-scale reconstruction projects can be a new alternative for improving residential environments in aging row house complexes and expanding housing supply within urban areas.”

This content was produced with the assistance of AI translation services.