On December 2, the Seoul Metropolitan Government announced it will expand the support for the difference in interest on loans for project funds to activate 'Human Town 2.0' aimed at improving the living environment in low-rise residential areas.
Human Town 2.0 is a policy that supports the construction and remodeling of non-apartment dwellings such as multi-family and multi-household housing. To promote the Human Town 2.0 project, the Seoul Metropolitan Government has been supporting part of the interest on construction fund loans when constructing non-apartment-type dwellings in the target area. This time, the support target has been expanded.
Previously, support was only available to those qualified as business operators, such as individuals or corporations. However, now all builders, including individuals, individual business owners, and corporations, can apply.
The types of dwellings supported have also been diversified. A new 'multi-dwelling' category has been added to the existing multi-family, multi-household, and row houses. Multi-dwellings are studio-type residences where students or workers can stay long-term, with independent bedrooms but shared cooking facilities.
The application timeline has been moved forward to reduce the preparation burden on builders. Previously, applications could only be made after the building permit was fully processed, but now applications can be submitted as soon as the building permit is received.
The standards for the area of neighborhood living facilities have also been adjusted to reflect reality. Previously, it was limited to 30% of the ground floor area. Going forward, it has been specified to be 30% or less of the total floor area, including basement levels, to encourage residential-centered housing maintenance.
New exceptions have been established considering the builder's living plans. Previously, the exclusive area of all households had to be 85㎡ or less, but now a builder can construct a dwelling exceeding 85㎡ only for one household that they themselves will occupy. However, the construction cost of that household exceeding 85㎡ will be excluded from support.
The scale of support for the difference in interest on project fund loans will remain the same as before. Up to 3 billion won in construction fund loans per site will be supported at a differentiated rate of up to 3.0% per annum, depending on the loan interest rate level.
The support period is a maximum of three years from the start date of construction. Support ends once the overall dwelling sales are completed or the transfer of ownership is completed after construction.
The Seoul Metropolitan Government will accept applications under the improved system until December 31. Applications will close once the budget of 225 million won is exhausted.
Applicants must visit the Seoul Housing Environment Improvement Division after receiving a pre-approval for construction-related loans from Shinhan Bank. For further details, inquiries can be made to the Seoul Housing Environment Improvement Division.