Incentive Regulation And Pricing Of Public Rental Housing Construction Under PPP Mode

The effective method solving our country "in-bewteens" community housing problem is public rental housing, which is the core measure for "improving the housing support system and increasing the indemnificatory housing supply" in the 12th five-year plan. However, solely depending on government finance supporting public rental housing development is unfeasible and unsustainable. One effective way to manage public rental housing financing is to introduce PPP mode. The private capital in PPP mode brings a certain degree of privatization, which needs government to supervise the public rental housing’s construction and operation. Price is key to the supervision. The price regulation of PPP constitutes the regulation system of the basic incentive framework, which is one of the key factors whether the PPP mode can run smoothly.This paper summarizes the current widely used PPP mode in the construction of the infrastructure project, and attempts to design suitable public rental housing PPP project by extending the PPP financing model upon the public rental housing. The incentive pricing mechanism can be utilized to achieve the balance of the social welfare and the private corporations based on private-public cooperation motivation and benefit distribution theory. The rental fee of the public housing PPP project is determined by the relationships between the balancing control of appropriate private capital, social affordability from the low and middle-income crowd and the reasonable government subsidies, which serves as the theoretical foundation of the government policy. To explore and put the new financing modes into practice is beneficial to tackle the current public rental housing issue, which is the construction of the public rental housing is heavily depended on the purely policy-oriented funding, such as fiscal allocation and the social welfare. It is imperative to accelerate the public rental housing privation and increase the opening depth and efficiency of such so as to better national housing system and make the "A Place to Live for All" dream more available for more low-income individuals.