Analysis On The Project Financing Issues Of Public Rental Housing With Nongovernment Capital

In the period of "the twelfth five-year plan", our government will build36million sets of houses for low-incomers, in order to achieve the target of20%coverage of the security housing. The public rental housing, as an important part of the system of the security housing, occupies an increasingly large proportion of the security housing system. The public rental housing is different from the affordable housing and the capped-price housing which can recover the cost by direct selling. The public rental housing can only be rent and cannot be sold and the rental income is lower than the market average. So the public rental housing needs more investment and will produce precipitating cost. Both of China’s national conditions and experience from abroad have demonstrated that such a large-scale construction is too difficult if it only rely on the government’s investment. Nowadays, shortage of capital investment in the construction is becoming the main impediment to development which have caused the problem of slowly-proceeding building work, thus the public rental housing is in short supply. These questions go against the China’s housing security system consummation and are not conducive to solve the housing problem of the "sandwich class".In addition, according to the data announced by National Audit Office of the People’s Republic of China, the outstanding obligation of local governments has exceeded10trillion Yuan. Local finance cannot afford such large-scale construction cost of the public rental housing. The public rental projects need to attract the nongovernmental capital to build the public rental housing and form the governmental and private capital cooperative mode. Only in this way can we ensure the sustainable development of the public rental housing.If we can broaden the financing channels, and make the nongovernmental capital participate in the construction of the public rental housing, and the local governments take some financial subsidies as part of return of the nongovernmental capital, we will enlarge investment scale of the public rental housing by using of the financial leverage and speed up the construction of public rental housing.Therefore, this paper analyzes the current situation of public rental housing in our country, describes the main source of fund and the traditional financing models, points out some problems of the traditional financing models which were used in the public rental project. Based on the experiences of developed countries and regions, this paper puts forward the point that the local governments could attract private capital investment house by using the way of project financing. After that, the analysis of several kinds of project financing mode which can be used in the construction of the public rental project by the nongovernmental capital is another research point. The author of this paper hopes that these methods can raise more funds for the construction and expand investment channels for the nongovernmental capital. Furthermore, to some extent, the author hopes to use these methods to promote development of the public rental project. This article mainly includes the following contents:In the first part of the paper, the author introduces the research background and significance of this paper. Then, the article summarizes recently study status using at home and abroad. Finally, the purpose and the main line of the technique of the research is discussed.In the second part of the paper, the article analyzes the current situation of the public rental project and puts out a series of factors which hinder the development of the public rental project in our country. Then, the topic of the thesis that the financing problems of the public rental project is raised.The third section discusses the specific financing problems of the public rental project. This paper analyzes the traditional financing models and the causes of the problems with them. In the end, the author discusses the causes of our traditional financing trouble.The fourth part is the focus of this paper research part. Based on the experience of the developed countries and regions, this paper puts forward that using nongovernmental capita with the way of project financing in public rental project is very effective. The content in the following is the specific analysis and comparison of these financing models. Finally the author selects ABS financing model as the best financing model for the public rental project and analyzes the detailed operation of the Asset-Backed-Securitization. The last part is the summary of this paper and prospect of future research. In this part, the author summarizes the main research contents of the above paragraphs and points out the deficiency of the thesis. Finally, the author prospects the trends of the financing problems research for public rental project in future.