A Study On The Mode And Operational Mechanism Of Affordable Housing Fund In China

As an important part of one country's housing system, affordable houses have theresponsibility to improve public welfare, so that they always attract much more socialattentions. Government's investments on affordable housing are the special subsidiesfor low-income families, and have tremendous impacts for secondary distributionfairness and welfare improvements on low-income families. Over the past two decades,China has finished52.57%of urbanization as of2012. Due to the governments'excessive emphasises on economic growthes and local political performance, hugegaps between the deveplment of commercial housing and affordable housing came out.The absence of affordable housing market makes commodity housing prices soarrecent years. Difficulty of low-income housing deteriorated seriously, it become thenew key points of social contradictions. After the year of2010, Chinese governmentwith an eye to the constrution of affordable housing, and put forward the target of thetwelfth “Five-year" plan, which includes building36million units of affordable houses.The improved system will give a significant strick on our country's housing system. Asthe housing industry is the capital-intensive industry, this huge amount of constructionneed a large number of capitals input which Chinese government hard to bear. Only ifit attracts private capitals invest in affordable housing construction, can the plan becomplete. Literature researches also suggest that due to the complexity of organizationstructuring and institutional absence, state runs' public utilities tend to be low efficientand waste of money. Developed countries tend to adopt “Public-Private Partnership”approach to operate public utilities.Thus it provide us a theroitical and practical basisof running and building affordable housing constructions.This paper includes seven parts, through which we discuss the therotical base ofprivate financing on public area, property rights arrangement on Affordble HousingREITs, optimum choice of affordable housing coverage, accurate data of affordablehouses financing breach, the feasibility of affordable housing fund, fund structureapproaches, and the shortcomings in existing legal regime and, with literature researchmethods, such as qualitative analysis, quantitative analysis, comparative analysis, caseanalysis and so on. It comes out the conclusion that it is nessessary and feasible todevelop affordable housing funds at the present stage. At the end of the paper, wepresent an exercisable mechanism of affordable housing fund. With the guide ofEurope's and Amercia's development experience in financing market, we can establisha sustainable market for REITs and other kinds of housing finance.The first chapter mainly discusses the writing background of this article andwriting arrangement. Put forward the thesis writing background is affordable housingconstruction lag, the housing difficulties of low-income people needs to be solved, inthe huge funding gap, affordable housing construction single financing way. In theorythis paper writing to expand the financing theory of public goods and deepen theprincipal-agent theory, the principal-agent relationship between fund leveldevelopment provides the basis. And the establishment of housing fund for enrichingthe research achievements of housing finance, to resolve the housing fund predicament,provides the high quality financial products, form a healthy sustainable housing operation mode has important practical significance. Also expounds the main contentof the article, the research ideas, research methods, and research emphasis of the article,the research difficulties and innovation point of carding, form a clearer researchframework.The second chapter relating to the housing fund at home and abroad at present, allkinds of combed and summarized the research status. Mainly from the "affordablehousing system construction and the economic effect research status","affordablehousing financing and funding gap calculation research status","research status aboutthe real estate trust fund" three point of view, the theory and practice of affordablehousing and fund is analyzed, and it is concluded that the domestic and foreignscholars study of real estate funds more from the Angle of the general housing andcommercial housing, and basic research on affordable housing financial stay level,broaden the financing channels of the method. Institutional arrangement of publichousing fund, raising mode, operation mode, supervision methods and detailed rulesfor the implementation of the research is less. The development of affordable housingfund to increase the supply of affordable housing, have important positive role tostabilize the real estate market, is a frontier subject has important application value.The third chapter focuses on the affordable housing folk financing theory. Ofpublic goods and the financing theory according to its developing process, through theanalysis concludes that under the condition of the property right clear, public goodscompletely can be done through the folk financing, and classification of folk financingway, pointed out that different public-private system mode of property right change,providing theoretical basis for housing the folk financing. Secondly, combing to ourcountry housing property, analysis of different types of affordable housing propertyrights model, clarify the property right structure of different types of affordablehousing and the scope of the folk capital operational feasibility analysis of thedevelopment of affordable housing fund and scheme selection.The fourth chapter as an important section of the paper, a detailed discussion onthe affordable housing financing scale, respectively from the theory of scale, the actualgap both come to the conclusion by means of quantitative calculation. In the firstquarter of2000-2010in29provinces and cities in our country affordable housingconstruction area of panel data analysis of the impact of the price of house in China,affordable housing construction of commercial housing prices has negative impact, anda causal relationship, therefore improve the housing supply in our country can achievethe goal of stable commercial housing market. Using threshold model in the secondquarter, with the introduction of "diamond model" of income-consumption theory,affordable housing construction level is derived to improve actual consumption levelof residents' personal wealth effects. It is concluded that housing coverage wealtheffect for the "inverted U", the theoretical optimal coverage level, makes the residents'consumption level optimization. Then through the1999-2010panel data of29provinces and cities of empirical test, the analysis conclusion, and reasonably come tothe affordable housing coverage rate is around20%. Third section comb through to ourcountry current affordable housing financing policy and financing present situationanalysis, public housing fund development necessity conclusion.: in the current ourcountry's economic level and the level of social security, relying on government poweralone can meet the demand of affordable housing construction and sustainable development, also cannot achieve reasonable housing cover level, so you need tothrough the way of encouraging private capital financing development of affordablehousing system, the emergence of affordable housing fund at the same time also helpsto speed up the real estate enterprises rely on bank loans financing predicament,two-way for real estate enterprises and Banks. The fourth quarter is based on the statusquo of affordable housing construction in China, analysis and forecast for theconstruction of the "twelfth five-year" period funding gap, provide a basis fordetermining initial financing affordable housing fund scale.The fifth chapter analyzes the financing structure, public housing fund through theanalysis of the international REITs general structure and the feasibility of the caseunder the current laws and regulations in China, it is concluded that China's affordablehousing fund company should be taken to model the conclusion of REITs. This chapterto each kind of affordable housing investment and recycling situation analysis, fromthe level of fixed number of year of the speed of capital turnover, the turnover andprofit, etc., through specific cases and data calculation, provide financial basis for thedevelopment of affordable housing fund. In addition this chapter try to set up thehousing fund investment system standard, the constraints of the cash investmentdirection and enjoy preferential tax and the premise of the lowest project such asholding periods, specification of affordable housing fund operation.The sixth chapter according to the present our country the systematic obstacles ofthe development of affordable housing policy Suggestions are put forward.Standardization on the one hand, our country should strengthen the legislative work ofassets and the trust assets, make the innovation of financial products, first of all, to beexecutable, on the other hand, need to be involved in the foundations of affordablehousing fund further elaboration and improve the land property rights system, therebyensuring the possibility of housing fund exists circulation, the third aspect in thecultivation of qualified investors and enhance the investment market, investmentconsciousness and talents strengthening construction from the market, in order todevelop a molding of affordable housing fund market.The establishment of public housing fund from the government, the affordablehousing market, capital market and investors running Angle is a significant move, theestablishment of housing trust fund can not only solve the large-scale construction ofaffordable housing market in our country, the requirement of improving the affordablehousing system, and can form the long-term health of operation mode, affordablehousing for the innovation of real estate enterprises in China equity financingarrangements and transformation of the mode of operation of real estate enterprise alsotest the waters and drive effect.