The City Government aims to conduct the Phase 3 housing policy of the 4^th elected mayor by innovating housing refurbishment projects, including redevelopment and reconstruction projects, which have been implemented in an unreasonable fashion for the past 40 years, in a way that best serve customers’ interests. By so doing, the City Government seeks to rapidly implement the “Urban Housing Environment Improvement Plan (by using the reserve budget and allocating an extraordinary budget), following the policy requiring the disclosure of housing supply costs, the policy requiring the public sale of housing upon completion of construction (Phase 1), and the supply of long-term rental homes SHIFT( phase 2). 

• May 29, 2009 Formation and operation of a Housing Environment Advisory  Committee  and working-level implementation taskforce
• January 15, 2009   Submission of Phase 1 proposal on housing environment improvement
  • - 12 measures in 5 fields      
    • Measures to address concerns about housing supply for  working-class people: 2 measures
    • Development of a system for managing districts for refurbishment
    • Pursuit of diversification of types of housing
    • Measures to expand public sector’s role in refurbishment projects: 4 measures
    •  Improvement of systems for coping with changes in residential areas: 4 measures

Causes of problems

• Project implementation process that fails to reflect the reality (corruption among cooperatives, disputes)

• rrationality in the selection of agencies and implementing companies and contracting, and inadequate disclosure of information and gathering of residents’ opinions

Reaction of public sector

• Passive oversight of projects, citing the nature of such projects led by the private sector, and neglecting of refurbishment projects

• Excessive uniformity of housing styles resulting from a policy focused on the construction of apartments

• Designation of districts for refurbishment projects without any plans for the construction of infrastructure for wider areas

Problems

• Low ratio of resettlement among original residents (Increase in sizes of housing, emergence of gap in capacity to shoulder housing expense burden, low resettlement ratio)

• Instability in working-class housing supply and environment (decline in supply of small, low cost housing, regular hikes in monthly and lump sum deposit-based jeonse rental home prices, instability in housing supply)

• Damaging of natural landscape, and inclusion of districts with fairly good residential environment in refurbishment project areas (Damaging of landscape due to construction of high-rise buildings and apartment buildings)

Implementation goals

1. Secure transparency in refurbishment projects

1-1 Improvement of selection timing and management of implementing company
1-2 Introduction of Public Management System
1-3 Introduction of Cleanup System
1-4 Improvement of procedure for gathering residents’ opinions
1-5 Development of program for calculating estimated project expenses
1-6 Development of implementation manual for public management
1-7 Expansion of loans for implementation of refurbishment projects
1-8 Formulation of rational standards for allocating burden of infrastructure facilities expenses
1-9 Ward office chief’s assistance in setting refurbishment project plans
1-10 Improvement of system for managing refurbishment project management industry
 

2. Stabilization of working-class people’s housing supply and environment

2-1 Expansion of supply of affordable housing
2-2 Implementation of measures to support residents’ financial capacity to shoulder housing burden
2-3 Management of housing supply and demand regarding refurbishment projects
2-4 Implementation of measures to support and protect tenants
 

3. Coping with changes in the residential environment

3-1 Implementation of measures to diversify types of housing
3-2 Preservation and management of quality housing areas
3-3 Adjustment of requirements for designating refurbishment districts
3-4 Establishment of comprehensive management plans for residential districts
3-5 Streamlining and improvement of laws and regulations on urban refurbishment and development

Completion of, and progress with, system improvement regarding refurbishment projects

• Completion of systems: 18 laws and regulations revised (Attachment 3)

• Progress in system improvement: 6 measures discussed, 3 measures under long-term review

  • Discussions: Improvement of selection timing and management of implementing company, introduction of Public Management System, and improvement of process in incorporation of residents’ opinions, development of programs for calculating estimated project expenses, development of program for calculating refurbishment project budget

• Long-term review: Adjustment of conditions for designation of refurbishment project areas, establishment of plan for general management of residential areas, and streamlining of urban development-related laws and regulations

Pilot implementation of the Public Management System

• Project name: Housing Redevelopment Project in Seongsu Strategic Refurbishment District

• Project overview: July 2009 ~ Sep 2009

  • (1 billion won provided to support public management of four refurbishment districts)

  • Key elements of pilot project

• Public manager: Seongdong ward office chief

• Scope of work: Management and supervision of refurbishment project via the formation of a preparatory committee

<Projects implemented in 2009 >

Expansion of projects subject to the Public Management System

- Expansion of pilot project districts according to application by cooperatives in autonomous districts and progress with preparations (about 10 areas)

Construction of Cleanup System for redevelopment

- Construction of a system that enables cooperative members and others to access data  generated in the course of refurbishment project implementation

Education and training of working-level officials, including the members of preparatory committees and the executives of cooperatives

- Briefing on key elements of the Public Management System, procedure of refurbishment project implementation and key processes

Preparation of work manual for Public Management, and development of program for calculating estimated project expenses

- Preparation of work manuals for people concerned and phases, and development and introduction of a program for calculating estimated project expenses

Execution of pilot urban residential home projects

- Construction of pilot studio-type housing (847 in Banghwa-dong), multi-unit house complex(Umyeon district 2) (ground broken in December 2009)

Follow-up measures, including the enactment and revision of ordinances in preparation for the revision of laws and regulations

<Projects implemented in 2010 >

Establishment and operation of training programs for civil servants in charge of Public Management at autonomous district offices

- Human Resources Development Center to establish training programs on Public Management, and conduct training for civil servants in charge at autonomous district offices

Execution of consulting aimed at streamlining of laws and regulations on housing and urban refurbishment, and at establishment of a plan for comprehensive housing management

⇒ Execution of consulting service by the City Government in collaboration with the

Ministry of Land, Transport and Maritime Affairs

- Urban Housing Environment Improvement Act, Urban Redevelopment Promotion Act, andUrban Development Act ⇒ Housing Environment Improvement Act, and Urban RegenerationAct

- Establishment of a comprehensive housing management plan encompassing the infrastructure plan, refurbishment project plan, and residential district management plan

Rational adjustment of the cost burden of infrastructure facilities

- Improvement of measures, including the principle of burden sharing, the expansion of parties subject to the relevant rules, and the selective application of incentives

Construction of a system for coordinating housing supply and demand, and implementation of projects to manage low-rise residential districts 

<Reserves fund>: 947 million won
1. Construction of Cleanup System for redevelopment projects

• Construction: Construction of a website integrating the relevant websites of the City Government and 25 autonomous district offices, and development of the related software

• Budget: 947 million won (Expenses for system construction)

* There is a need for the early construction of a system in line with the submission of the Public Management System bill, and the implementation of pilot projects.

<Extraordinary budget for project>: 3.539 billion won
1. Expansion of pilot projects subject to Public Management

• Key element: Provision of a public management budget for housing refurbishment projects in line with the expansion of pilot projects subject to the Public Management System by autonomous district offices.

• Subsidies (subsidies in current account): 2.5 billion won⇒250 million won *10 districts

* Individually review projects for eligibility based on criteria for providing financial assistances and subsidies for pilot projects for Public Management.

2. Construction of a server for the Cleanup System for redevelopment projects

• Construction: Construct and operate integrated websites by automatically integrating the websites of the City Government, 25 autonomous district offices, and cooperatives (2010~)

• Budget: 1.039 billion won (Expense for server construction)

• Establishment of an organization exclusively in charge of implementing Public Management (Attachment 2)

• Reshuffle of organization at the City Government (draft)

• Phase 1 (Year 2009) – Mayoral Ordinance No. 345 (July 27, 2009)

  • -  Need: Implementation of housing environment improvement policy, including introduction of the Public Management System
  • -  Direction of reshuffle: Establishment of an organization in charge of introducing and implementing Public Management projects at the Housing Bureau (1 division)
  • -  Adjustment of organization (draft): 1 bureau, 1 taskforce, 5 divisions, 1 section, 25 teams à 1 bureau, 1 taskforce, 6 divisions, 1 section, 28 teams (addition of 1 division, 3 teams)
    • ※ Staff: 126 à 136【Establishment of the Housing Renewal Management Division -14 staff members (internal recruitment of 4 staff members)】

• Phase 2 (Year 2010)

  • -  Needs
    • ▷ Full-swing implementation of the Hangang Renaissance (areas by the Hangang River)
  • development program
    • ▷ Implementation of the Basic Construction Ordinance, establishment of a basic plan for
  • wide area construction
    • -  Direction of reshuffle: Expand organization to the Housing Policy Office, to be supported
  • by the Director of Housing Policy Planning and the Director of Architectural Policy Planning
    • -  Adjustment of organization (draft): 1 bureau, 1 taskforce, 6 divisions, 1 section, 28 teams –> 1 office, 2 directors, 8 divisions, 1 section, 34 teams (addition of 1 office, 1 director, 2 divisions, 6 teams)

• Reshuffle of organization in autonomous district offices (recommendation): Establishment of one division under the Urban Management Bureau (Renewal Project Management Division)

• Administrative Issues

• Issues requiring cooperation between different offices

-  Management & Planning Office: Secure organization and budget for project implementation

• Allocation of staff (Director of Organization Management), project budget, and budget for operation of offices (Director of budget)

-  Administration Bureau: Secure office spaces and appoint staff members

• Refurbish office spaces and install telephones, etc. (General Affairs Division), organize staff and organizations (Personal Management Division)

• Establishment of training program for civil servants in charge of Public Management (Human Resources Development Center)

-  Seoul Housing (SH) Corp: hosting of academic seminars, etc.

• Seminar on the achievements of pilot Public Management projects, and training of cooperatives’ members

• Public relations plan – Separately develop and implement detailed plans

-  Promotion of project implementation (issuance of press releases, etc)

• Announce areas selected for pilot projects, announce criteria for the selection of implementing companies, and announce the Ten Best Projects in terms of the disclosure of cooperatives’ information.