Affordable Housing Financing Problem Research In China

Affordable housing system plays a significant role in Chinese social welfaresystem, which associates with the interests of large numbers of middle-andlow-income families; however, capital fund is the development bottleneck foraffordable housing. The development of affordable housing needs plenty of fundsupply, but the channels and instruments of fund financing in our government areextremely simply. It is very difficult to satisfy the need of capital fund that onlydepends on this pattern.The drafts of government’s12th Five-Year Plan indicate that affordable housingwill be made available to20percent of the country’s urban households and thenumber will be thirty-six million. The local governments at all levels will face theproblems about affordable housing financing during a long period. It has a realisticsignificance in the development of affordable housing and government’s long-termand low-profit community project by analyzing how government solve the problemsabout affordable housing fund financing and arranging and evaluating the pattern ofaffordable housing.This paper first introduces the research background and significance, methodsand ideas on the research status of domestic and foreign financing of affordablehousing. And then a brief introduction about the construction process and situation ofaffordable housing’s financing. Then introduces the affordable housing financingmodel in developed countries and regions, according to the analysis of the financingmodel of United Kingdom, Japan, Singapore and Netherlands, summarized severalenlightenments by using the experience in foreign financing model. Based on theanalysis, proposed a framework for financing model that can expand financingchannels to ease the financial pressure, guiding and promoting private capitalinvestment, to guard against the risk of loans to build the credit guarantee system andimproving the affordable housing policy of the financial system. The last part of thispaper is conclusion.