Going forward, local governments will not be able to demand excessive contributed acceptance when granting permits for dwelling construction projects, even if there are changes between zoning districts. The aim is to accelerate the supply of dwellings by ensuring that a reasonable level of contributed acceptance is implemented in housing projects.
The Ministry of Land, Infrastructure and Transport said on the 3rd that it will issue, through administrative notice until the 24th, a partial amendment to the Notice on Operating Standards for Contributed Acceptance of Infrastructure in Dwelling Construction Projects, prepared to prevent excessive contributed acceptance of infrastructure such as roads and parks at the time of permitting dwelling construction projects and to improve project conditions. This is a follow-up to the Sept. 7 housing supply plan.
The operating standards for contributed acceptance of infrastructure in dwelling construction projects were enacted to stipulate the burden level of contributed acceptance so that a reasonable level of contributed acceptance can be implemented in housing projects. The standards restrict the project-approval authority (local governments) from demanding additional contributed acceptance during the permitting process.
Under this amendment, the Ministry of Land, Infrastructure and Transport (MOLIT) will limit the contributed acceptance burden rate for changes between zoning districts, which could previously be imposed without separate restrictions. When a change between zoning districts is made at the time of permit for a dwelling project, such as changing from a type 3 residential district to a commercial district, a new rule will allow the authority to demand contributed acceptance of infrastructure up to a maximum of 25% of the project site area by adding 17 percentage points (p) to the base burden rate (8%).
Currently, when a change within a zoning district is made, such as changing from a type 1 residential district to a type 3 residential district, the addition to the base burden rate is limited to 10 percentage points (up to a maximum of 18%). However, in the case of changes between zoning districts, the approval authority is allowed by regulation to impose contributed acceptance without separate limits, leading to cases where excessive burdens are placed on dwelling construction businesses.
MOLIT will also establish a new provision to reduce the contributed acceptance burden rate when a project is recognized as an industrialized dwelling applying industrialized construction methods such as modular or precast concrete. When recognized as an industrialized dwelling, the base contributed acceptance burden rate can be reduced by up to 15%, the same as for green building certification. Industrialized dwellings are a new technology with advantages such as rapid supply, environmental protection, reduction of industrial accidents, and improved construction quality. If both industrialized dwelling recognition and green building certification are obtained, overlapping application of the reduction provisions will be allowed up to a maximum of 25%.
Kim Young-a, head of the dwelling construction supply division at MOLIT, said, "By easing the level of contributed acceptance burdens on businesses, we expect to see fewer cases where supply is hindered by excessive contributed acceptance," and added, "We plan to actively review opinions raised during interagency consultations and the administrative notice process and to take measures such as guiding related matters to local governments."