The Ministry of Land, Infrastructure and Transport (MOLIT) said on the 28th that, together with the Korea Housing & Urban Guarantee Corporation (HUG) and the Korea Land & Housing Corporation (LH), it will hold a call for operators on the 29th to supply 6,000 units of public-supported private rental dwellings.
The Ministry of Land, Infrastructure and Transport (MOLIT) plans to supply about 4,000 units of general public-supported private rental dwellings and about 2,000 units of Silver Stay, by type.
General public-supported private rental dwellings are private rental dwellings operated for at least 10 years at rents lower than market rates. They are supplied to households without dwellings, and at least 20% of the units are specially supplied to young people, newlyweds, and older adults.
Rent levels are at or below 95% of market rates for general supply and at or below 75% of market rates for special supply.
Silver Stay is a private rental dwelling supplied to allow priority residence for at least 20 years to older adults aged 60 or older without dwellings, at or below 95% of the rent for facilities such as senior welfare dwellings (with rent increases capped within 5% upon renewal).
Operators may supply all units as Silver Stay, or they may develop a mixed Silver Stay complex in which public-supported private rental dwellings are supplied alongside general units.
This project will proceed with a real estate investment company (REITs) established with joint investment by the housing & urban fund and the private sector constructing or purchasing rental dwellings.
It is divided into a "private proposal call," which supplies rental dwellings on sites proposed by the private sector, and a "land call," which supplies rental dwellings on public land.
Once selected as an operator, and after a fund investment review by HUG, one can receive housing & urban fund equity and loan support and financial guarantees.
In this call, the private proposal call will cover about 4,000 units. Of these, 3,000 units are general public-supported private rental dwellings, and 1,000 units are Silver Stay. For Silver Stay, this is the first private proposal call since the pilot project.
The land call will cover about 2,000 units. The three project sites are Paju Wadong A2 block, Wonju Musil S1 block, and Uiwang Chopyeong A1 block.
Paju Wadong A2 block and Wonju Musil S1 block will be supplied as Silver Stay, and Uiwang Chopyeong A1 block will be supplied as general public-supported private rentals with a 20-year mandatory rental period.
In addition, for Wonju Musil S1 and Uiwang Chopyeong A1 blocks, the two sites will be bundled into a single project to select a single preferred negotiation partner. The Paju Wadong A2 block will be offered through a standalone call.
The Ministry of Land, Infrastructure and Transport (MOLIT) plans to accept letters of intent to participate in the project from Jan. 19 to 23 next year. After reviews in the first half of next year, it plans to select the preferred negotiation partner.