The Research Of PPP Mode In Low-rent Housing Financing

Low-rent housing is a concept first proposed in China during the housing system reform,it's defined as the social security function implemented by government and working unit in the housing field to supply the relatively cheap ordinary house for the families which have the lowest income and the registered permanent residence of town and city.As a result of the social welfare of low-rent housing,the development and construction financing of low-rent housing project is still the financial allocation,social security funds and other policy-based funds.Single source of funds,limited number and unstable supply have being the biggest bottleneck of low-cost housing construction.PPP mode,which means public-private partnership,is a form of mutual cooperation based on an item which participated by public sector and private sector.It's a modern financing model bases on"win-win"cooperation to all those who participated in the item.Its essence is to give private companies the long-term franchise and profitability rights to speed up the construction of infrastructure projects and improve its operational efficiency.Now,PPP model have been introduced in the construction of infrastructure projects in many countries and regions.Its application has achieved good results:not only make for achieving financial savings,as well as to reduce construction costs,and to improve building efficiency and the level of public services.This paper studies the theory and practice of PPP both at home and abroad, analyses the problems and the causes of China's low-rent housing project financing, discusses the necessity and feasibility of the introduction of PPP model in low-rent housing projects in our country,studies the operation objective and mode of low-rent housing PPP project,and uses principal-agent model to optimize the cooperative efficiency of low-rent housing PPP project,then discusses the two key issues of the low-rent housing:risk identification and distribution as well as financial recovery, finally,brings forward the views of running indemnification of low-rent housing projects,in order to provide theoretical references to the financing innovation of China's low-rein housing project construction.