Analysis On Problems And Solutions Of Financial Management Of Affordable Housing Construction In Chengdu

In China, affordable housing construction is an important project of peoples’ living standard. In the twelfth five-year plan, the Chinese government lays special stress on the demands of fundamental housing, and the government decides to increase the supply of different kinds of affordable housing.Because of the imbalanced development, the constructions of affordable housing is a much heavier task in the western part of China than other parts of China. As the center city of western part of China, Chengdu also needs to construct the affordable housing quickly. The Housing Support Center of Chengdu is the institution belonging to the Urban and Rural Housing Authority of Chengdu. As the key institution in housing constructions and management of Chengdu, the housing support center holds about thirty projects of different types of affordable housing, such as low-cost housing, public rental housing, economy applicable housing, price-limited commercial housing and shantytowns reforming. With the heavy task of constructions, the Housing Support Center now is hand-tied in financing budget and accounting. As a member of the financial apartment in the Housing Support Center, the author elaborates on the different problems in affordable housing constructions in Chengdu. Based on the knowledge acquired from books, this paper analyzes the underlying causes of the problems and gives some feasible suggestions.This paper is discussed with the core point of financial management target of affordable constructions in Chengdu. The clue of the passage is in order to get the financial management target,what need to do from the financing, funds operation, accounting, budgets, which are main processes of financial management.what’s the problems of the four sides of financial management now, why the problems happenes, what’s the answers of the problems. First of all, the paper introduces the policy of affordable constructions, such as the sorts of affordable constructions,and the tax incentives based on related laws. And then show the goal and the current situation of financial management in the Housing Support Center.The author summaries the funding channels of affordable constructions, shows how to get adequate cash-flow. The author regards suggestions on financial management--diversifying the ways of financing, such as trust financing and issuing private debt.This paper shows the operations of funds and related regulations and some applications in work. In order to get accurate information, the proper accounting is very necessary.This paper gives lots of examples of accounting with three channels of housing supply. And how to get a comprehensive budget is very useful to get enough financial allocation. Finally, the author talks about the analysis of financial situation with profitability, solvency and cash-flow.This paper aims to find out ways to get enough funds for construction, conduct comprehensive budget management and apply proper accounting.