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  • Seoul to Initiate “Remodeled Social Housing Project”

    SMG 2106
  • Remodeling old houses turn into rental houses with half the rent fee

    Before and after the remodeling (old houses to social houses)

    Seoul becomes the first city in the country to launch “Remodeled Social Housing Project”, remodeling old housing such as gosiwon (cheap residence for exam preparing students), motels, or vacant office buildings to a social housing. The project provides social housing to vulnerable housing class at 80% (or less) of the price of the surrounding areas for maximum of 10 years.

    Especially, 30% of the residential households are offered firsthand to young households suffering housing poverty at a rate that is 50% cheaper than the rates of neighborhood. It is expected that it could relieve the housing problems of the young who have trouble with high deposit.

    Housing coop unions, social enterprises, and nonprofit organizations as licensees, the Remodeled Social Housing Project purchases and rents old buildings that were built more than 20 years ago, and remodels them. Afterwards, SH corporation recruits potential residents and provides them with the renewed house. Seoul city supports 50% of the total remodeling fee (within 150 million won), and also supports business operators with initial business fee by letting them get a loan as much as 90% of the fee at a low interest (2% in a year) rate for five-year maturity.

    Remodeled Social Housing Project plan

    Additionally, gosiwons, which have been the symbol of poor housing, are to be renewed into a pleasant share house.

    The new housing will ensure individual space of more than 6.5㎡, and by removing unnecessary rooms, the housing will include space for pleasant household areas such as community space(each space within 1m²) such as conference room, lounge, cafeteria, restroom, laundry room, shower room, etc.

    Accommodations like motels, on the other hand, do not require much reconstruction since they already contain restrooms and shower rooms in each room. Such buildings will be renewed to a one-room flat.
    As announced by the city government on February 23rd, this year’s project plans to supply 400 rooms. The government looks for interested business operators for this project any time throughout the year.
    The candidates for the recruitment should be housing coop unions, social enterprises, and nonprofit organizations who have experience and ability in remodeling houses and are interested in housing matters. If qualified, the potential operator must seek buildings to purchase or lease, get a permission of an owner, and register their proposal.

    Building owners of old housing (gosiwons, motels, etc.) of more than 20 years upon its completion are also opened to registration. Seoul city, in turn, plans to match business operators with such building owners.

    Recruitment of potential residents is enacted by SH corporation, with the notification to be announced by this June on the official website.

    Requirements for resident are those in single or two member households with income same or below of the average monthly income of city employees. If they pay the rent which is 80% or less than neighboring price, they can reside for maximum 10 years.

    In order to let medium sized companies (construction, real estate, and lease) participate, Seoul city announced its plan to increase the amount of residential households to 2000 and loosen the requirements of business operators by modifying the city act starting from next year. Seoul is expecting the relief in housing problem of single or two member households including the young by this plan.

     

    ☎ Contact: +82-2-2133-7026 (Housing Policy Office)

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