Amendment to Special Act on Private Rental Housing pushed as follow-up to Sept. 7 housing supply measures
The Ministry of Land, Infrastructure and Transport is pushing to give homeless tenants displaced by urban redevelopment projects priority access to publicly supported private rental housing. The plan is part of the government's Sept. 7 housing supply measures announced last year, aimed at minimizing the displacement of existing residents and accelerating redevelopment projects. A package of bills designed to shorten the redevelopment timeline is also awaiting a full National Assembly floor vote, raising expectations that the current administration's housing supply drive will pick up pace.
According to industry sources Thursday, the ministry is pursuing a partial amendment to the Enforcement Rules of the Special Act on Private Rental Housing. <style ref="s0">The core of the amendment is to give homeless residents in redevelopment zones priority access to nearby publicly supported private rental units.</style>
Under current rules, publicly supported private rental housing must allocate at least 20 percent of units to special supply and cap general supply at 80 percent. Those eligible for priority general supply have included residents of housing construction sites, members of social cooperative publicly supported rental housing associations, and landowners who agreed to negotiated acquisition in supply-promotion districts. The amendment would add a new category: existing residents of nearby redevelopment zones.
The plan follows a commitment the ministry made under the Sept. 7 measures to "lay the groundwork for redevelopment projects." At the time, the ministry said it would "minimize the displacement of existing residents" by supporting priority access to public rental housing near redevelopment sites and, where demand for mandatory rental units is high, extending that priority to rental units built through floor-area-ratio relaxations.
Tenant resistance to relocation has repeatedly stalled redevelopment projects in Seoul. <style ref="s1">A prominent example is the Lotte Castle East Fall apartment complex in Jayang-dong, Gwangjin-gu — built on the former Jayang District 1 zone — where some tenants refused to move out and staged protests, delaying the ground-breaking.</style>
<style ref="s2">The Singil District 10 project in Yeongdeungpo, now being redeveloped as Summit Clavion, also faced delays after some tenants of the former Nam Seoul Apartment complex refused to leave.</style> Because the project proceeded as a reconstruction rather than a redevelopment, those tenants were ineligible for residential relocation compensation. The dispute ended only after the association won an eviction lawsuit, allowing demolition and relocation to proceed.
The government's announcement of a priority supply policy for publicly supported private rental housing has raised hopes that relocation and demolition at redevelopment sites will move faster. An official at a Seoul redevelopment association said the plan was "positive in that it guarantees housing continuity for displaced tenants," but added that "conflicts with commercial tenants and others remain a difficult problem to resolve."
Separately, the ruling party is awaiting a full floor vote on legislation to speed up redevelopment projects — another follow-up to the Sept. 7 measures. The National Assembly's Land, Infrastructure and Transport Committee passed a partial amendment to the Special Act on the Promotion of Urban Renewal at a plenary committee session in February, but the bill has yet to be placed on the full Assembly floor agenda, prompting concerns that momentum was fading.
With local elections now concluded, however, observers predict a floor vote is imminent. The amendment would allow redevelopment projects in semi-industrial zones to apply the legally permitted floor-area ratio and would permit the establishment of basic redevelopment plans to proceed in parallel with the designation of redevelopment plans and zones. It also includes provisions under which consent to a request for a redevelopment plan would be deemed consent to the formation of a promotion committee and a redevelopment association, along with measures to strengthen construction cost verification and dispute resolution.
hss@heraldcorp.com