|China promises 4 million units of affordable housing in 2011|
Source: People's Daily Online, July 13, 2011
China's central government has ordered local governments to start building 10 million affordable houses before October and to complete 4 million of the total by the end of the year, according to information from a recent meeting on promoting affordable housing nationwide.
It was noted at the meeting that the central government's funds for the construction of affordable housing must not be appropriated, and local governments must increase their capital-raising efforts to ensure there is enough funding. Furthermore, they should take effective measures to accelerate the construction of certain projects, to complete their tasks on schedule, to combat corruption while ensuring the quality and safety of affordable housing.
According to sources, the current lack of supporting funds is still the main difficulty during the construction of affordable housing projects in various places, especially in some places with weak financial resources.
As the quota of affordable housing projects has increased year by year, a considerable portion of lands for the construction of affordable houses come from land expropriation in various places. In particular, land expropriation has become more difficult after the implementation of the "Regulation on the Expropriation of and Compensation for Houses on State-owned Land" at the beginning of 2011, which affected the construction of affordable housing projects and the progress of urban shantytown reconstruction to a certain degree. In addition, housing construction costs have also significantly increased.
Qi Ji, deputy minister of the Ministry of Housing and Urban-Rural Development, proposed six requirements regarding how to promote and ensure the fully operation of affordable housing projects in 2011, including making sure to complete the construction mission in 2011; collecting funds through multiple channels and timely issuance of funds; accelerating the implementation of projects in accordance with plans; ensuring the construction quality of projects; conscientiously strengthening the management of affordable houses, and sincerely formulating the 12th Five-Year Plan for affordable housing.