A report came in that a member who joined a local housing association and dreamed of owning a house had recently made an extreme choice while paying off debt.
He said he joined the union six years ago when he saw an advertisement saying that he could enter a new apartment at 40% cheaper than the market price.
He said that he could move in within three years, so he paid 122 million won for the 2nd and 3rd additional contributions, but there was no progress in the project.
The number of members recruited in the first round of this local housing association was over 180 confirmed.
The local housing association system, which started in 1977, is less complicated than the redevelopment or redevelopment process, and has the advantage of reducing the developer's profits, land finance costs, and other costs.
However, the success rate of moving in is only 17% nationwide and 8.5% in Seoul.
Since 2000, there are 730 local housing associations.
What are the reasons why local housing associations are not settling down? A local housing association must secure ownership of at least 95% of the land for housing construction in order to receive approval for a business plan.
However, most cooperatives are collecting members and carrying out business with the money without obtaining permission to establish a cooperative.
According to the current law, a local housing association can be promoted if only 50% of the consent for the use of the site is obtained.
Most of them recruit members only after obtaining a non-binding consent form.
It is said that union members who rebel against the sluggish business follow the whereabouts of the money belatedly, but most of the tens of billions of won they have already paid have disappeared.
Where are the members' contributions?
This week's SBS <News Story> will cover the problems of local housing associations that are repeated even after the revision of the housing law, and focus on ways to reduce the damage to the homeless people.