The Research On PPP Model For Low-Rent Housing In China

As a main solution to the housing problem for urban low-income residents, low-rent housing is that by way of rent subsidies or renting in kind, the government provides some ordinary housing with social security for those families, which meet the minimum living guarantee standards for urban residents and have housing hardship. Low-rent housing system is a welfare housing security system, which is specifically set up to guarantee the families with poor housing conditions and income levels, and also is one of the core of the implementation of housing security system in our country.Since the State Council's No.23 document in 1998 first put forward the concept of "low-rent housing", the development and implementation of the low-rent housing system in our country has gone through for 10 years. So far, all cities and most of the counties have issued some documents to establish and implement a low-rent housing system, and the development of Chinese low-rent housing system has achieved a certain effect. However, mostly because of lacking for funds, the process of development is always laggard. According to the current laws, regulations and documents, the main sources of funding for construction of low-rent housing is net value of the housing fund, net income of the Land Transfer Fees, financial budgets and subsidies form the central and local government, and so on. Generally speaking, the construction of low-rent housing mainly relies on the Government's financial investment, so the process of financing is simplex. In order to guarantee the current huge groups with low income and difficult housing condition, the government's financial investment is also very large, but the input current is limited and far from meeting the real demand for funds. Therefore, this paper researched into the problem that how to break the financing plights of low-rent housing by using the PPP (Public Private Partnership) model.At first, the paper elaborated on the development history of the low-rent housing, the construction, the guarantee and its financing needs and investment situation, and then analyzed the current financing difficulties and its cause of low-rent housing construction. Then, by drawing on domestic and foreign experiences, the paper designed operational framework of PPP for the low-rent housing construction, and build the mechanism to safeguard the operation of the project from the legal environment of policy, the supervision and management, the returns and the risk partaking. In addition, because the risk management is the key of the success of PPP projects and the risk sharing is the core, with that the paper made in-depth analysis of risk identification, risk assessment and risk sharing of the PPP model in low-rent housing construction. By that, the risk sharing framework and processes for the PPP projects in the low-rent housing construction. Finally, the paper briefly described the PPP model, and then expounded the prospects of the application of the PPP model in low-rent housing construction from the strong points of the PPP model, the own characteristics of low-rent housing, the practical experience of the PPP model in our country, the huge private capital, the immature financial instruments, the relaxed policy environment and so on.