Seoul Housing and Urban Development Corporation (SH) said on the 29th that it will push follow-up measures to the "Moahousing activation plan" that Seoul City released in Aug.
First, to resolve uncertainty over project feasibility, the feasibility analysis that had been limited to sites within Moa Towns will be expanded to all Moahousing projects. The resident consent rate required when requesting a feasibility analysis will be lowered from 30% to 20% to reduce the initial verification hurdle. In addition, for all Moahousing projects, SH will review ▲ estimated cost-sharing calculations ▲ floor area ratio simulations ▲ project cost estimates, provide feasibility analysis information, and support verification of estimated cost-sharing.
A new financing product dedicated to Moahousing will also be introduced. In this regard, SH recently signed a business agreement with Seoul City and Hana Bank and is developing a financial product tentatively named "Moaddndeun Fund" for Moahousing projects involving SH.
Moaddndeun Fund will offer a low-interest loan with a 0.6 percentage point (p) rate cut from existing levels for up to 70% of total project costs, and is slated for an official launch in the first half of next year.
Public management of Moa Towns will also be expanded. Previously, after district office solicitations and the selection of candidate sites, SH supported the establishment of management plans. Going forward, before the candidate selection stage, SH will introduce a "public proposal-type Moa Town" model in which it directly formulates and proposes management plans.
The purchase price criteria for rental housing will also be raised. The construction cost basis for public rental housing built with floor area ratio incentives will be adjusted upward from the current "standard construction cost" to "80% of the basic construction cost" to reduce residents' burdens and encourage the supply of high-quality rental housing.
Hwang Sang-ha, president of SH, said, "To successfully advance Moahousing and Moa Towns, we will focus all of the corporation's capabilities to drive tangible improvements in aging low-rise residential areas."