Study On REITs Based Affordable Housing Financing Model

Affordable housing system is an important component of China's social security system. The development of Affordable housing is related with the interest of the majority low-income residents, while the funds is the bottleneck for affordable housing development. The devlopments of affordable housing needs a huge amount of funds, while China's financing supply channels and tools for affordable housing are single, which is very difficult to meet the demands relying solely on the current mode of financing. Financial innovation is The basic way to resolve the problem of affordable housing financing channels. Real Estate Investment Trust Fund,which is currently the popular, has gained a great success in foreign countries, So, the introduction of REITs in the field of housing finance for domestic economy has a strong theoretical and practical significance. In this paper, the in-depth study on the development status of domestic and international REITs was conducted, and the foreign experience on REITs mode operation was refined. Based on the actual situation of the domestic operation of REITs and the characteristic of affordable housing, the necessity and feasibility to resolve the financing plight of affordable housing by applying the REITS was introduced. Finally, an attempt was made to design affordable housing REITS models, including goals, ideas, form, structure and profit model, as well as mode of operation of the protection mechanism.