Public Direct Implementation Reconstruction · Redevelopment… What is the gain or loss of understanding?

As the government introduced the'public direct implementation maintenance project' method in the 2nd and 4th supply measures, each reconstruction and redevelopment promotion complex is busy looking at the differences from the existing methods to find the gains and losses of understanding.

In particular, it is an atmosphere of weighing business participation by comparing how this method differs from the'public reconstruction and redevelopment' method that the government encouraged participation until just before the announcement of the second and fourth measures.

There are no complexes that show unconditional rejection because of the'label' of'public', but the Korea Land and Housing Corporation (LH) and the Ministry of Land, Infrastructure, and Transport argue that if you carefully examine the merits of public participation projects, they will be considered sufficient.

According to LH and the Ministry of Land, Infrastructure and Transport, various incentives are given for both public reconstruction and redevelopment announced last year and the public direct-implemented maintenance project this time compared to the cooperative-led method.

In public reconstruction and redevelopment, LH or SH do not directly implement the project, but the association conducts the project, but the public participates in the implementation, analyzing and supporting the feasibility of the business.

The key is to shorten various licenses and provide incentives such as floor area ratio.

In the case of public reconstruction, the floor area ratio is granted from 300 to 500%, and the maximum number of floors is increased from 35 to 50, allowing the number of houses to be increased.

However, half of the increasing floor area ratio must be donated to public housing.

Public redevelopment increased the floor area ratio to 120% of the legal limit, and 20-50% of the additional floor area ratio received was to build a national housing scale housing to accept donations.

While raising the floor area ratio to 1.2 times the legal upper limit, it is attractive that the donation acceptance ratio is lower than that of general redevelopment (50-75%).

In addition, the introduction of a'fast track' method that supports obtaining licenses such as project cost loans, construction deliberation, environmental impact assessment, etc., which excludes the application of the pre-sale price limit, reduces the time required for the project to less than half of the previous one is one of the advantages.

The public direct implementation maintenance project introduced this time is literally a method in which the public directly implements reconstruction and redevelopment, and leads the project and sales plan.

Above all, it is regarded as the biggest incentive to not apply the redevelopment excess profit return system (re-return), which has been considered an obstacle to the reconstruction promotion in some complexes, and not to apply the two-year residency obligation for members.

In this method, all business sites are owned and supplied by public companies, so there is no need for a union.

Existing unions go through the dissolution procedure, but if sunk costs are compensated and a contractor is selected, the company will succeed.

Instead of the union, a resident representative meeting is organized to collect residents' opinions on important issues such as selection of a contractor.

With this, it is possible to construct a brand apartment other than LH.

Specialized design can also be done by designating special construction zones.

By omitting procedures such as union meetings and management disposition approval, and applying integrated deliberation, the business period that previously took 13 years or more is drastically reduced to within 5 years.

Like existing public reconstruction and redevelopment, incentives are given to increase the level of the first stage or increase the legal floor area ratio by 120%, and the development profits are used to expand living SOC and protect tenants.

In particular, the existing residents are guaranteed a 10-30% higher rate of return than their existing business.

Although it may be different depending on the complex situation, such as the speed of the maintenance project, the government is promoting the advantages of the public direct implementation method by offering incentives such as exemption from re-recruitment and not applying the 2-year residency obligation.

The Ministry of Land, Infrastructure and Transport said, "Public reconstruction and redevelopment are basically a management and disposal method, so the union has to take risks such as an increase in the member share according to changes in construction cost until the end of the project. It is a form that the public is taking, so it will be beneficial to the residents.”

However, most of the members are not fully aware of and review the various alternatives proposed by the government since it is right after the policy announcement.

After the Lunar New Year holidays, the government plans to hold a business briefing session for residents and construction companies in candidate sites such as public direct-implemented maintenance projects to explain the details of public development projects and to determine their intention to participate in the project.