| Abstract: | On 31 December 1991, the Chinese State Council Housing System Reform Leading Group announced this Opinion, setting out targets, principles, and policies for the reform of the system of provisional housing in urban areas. Section 1 of the Opinion provides that the long-term goal of reform is to convert the distribution of housing from a system based on welfare allocation to one based on commodity exchange either by purchase or rental. Section 2 sets the following targets for reform: a) within the period of the Eighth Five-Year Plan, the system will be converted from one of low rent to one in which the calculation of rent will be based on cost of upkeep, administration costs, and depreciation; b) by 2000, the calculation of rent will be based on the above factors, as well as interest on investment and property taxes; and c) in the long term, the calculation of rent will be based on all of the above factors, as well as land rent, insurance premiums, and profit. Section 4 deals with policies for managing various problems such as rent increases and subsidies, sales of housing, financing for housing, the system of investment in and construction of housing, and administration of housing. This Section provides that a three-level housing investment fund based on municipalities, work units, and individuals will be established. |
