The Innovation In Financing Modes And Tools Of Chinese Low-rent Housing In New Era

Live in peace and enjoy one’s work is the prerequisite and guarantee for thehealthy development of economic and social stability. For this, each country or regionin the world is making efforts to provide decent housing and stable employment forthe nation. In order to enhance and improve the national housing environment, ourcountry carries out the reform of the public housing system. China raised thedistribution of housing monetization reform in1998and proposed the establishmentof a multi-level housing supply system to meet the needs in housing of differentgroups. The establishment of low-rent housing system for low-income families is oneof the measures. From then on, the low-rent housing system was officially born in ourcountry.Low-rent housing system had effectively provided housing support forlow-income families with housing difficulties and solved their housing needs.However, with the development of the country’s rapid economic and the speeding upof the immigrants flock into cities, limited supply and strong demand for housing hasexposed contradictions which included a series of problems and difficulties of thelow-rent housing system. For example, lack of coverage, huge funding gaps, entry andexit mechanism is inadequate and the participation of local government is not enough,and so on. Standing at the starting point of the Twelve-Five, Our state puts forward astrategy that China will build36million units of affordable housing in the next fiveyears and the coverage of affordable housing will improve to20%in the end ofTwelve-Five. The number of affordable housing will be10million and7million in2011and2012respectively. To this end, the central budget subsidies to the local￥103billion, mainly used for public rental housing and low-rent housing. However,it is estimated that￥1.3-1.4trillion will be needed for the10million units ofaffordable housing. Excluding the funds raised by companies or employees that usedfor property-affordable housing, commercial housing prices and reconstruction ofshanty towns, there are nearly500billion needed to be raised. So how to solve thehuge funding gap will be the key to achieve the goal.Accordingly, this article will explore a new method of solving the plight of thefunds raised for low-rent housing in order to provide an effective path for the fullimplementation of the low-rent housing system.Specifically, based on the welfare and nonprofit of low-rent housing, this paperanalyzes the situation of capital demand and supply of China’s low-rent housingconstruction. Combined with the characteristics of demand and fully considering thefactors that affecting financing of low-rent housing, this paper designs principlesaccording to financing mode and borrows ideas from the more mature financingsystem used in construction of urban infrastructure. This paper discusses a newpattern about financing of low-rent housing which includes government-led, market operation, multilateral participation, benefit sharing, risk-sharing. Low-rent housingfinancing mode is divided into two paths-endogenous path and exogenous path.Endogenous path is the support of financing mode. In this situation, the governmentleads the financing mode and it sets up a financing platform, provides preferential taxas well as a legal, financial and political environment to achieve the smoothlyoperation of the platform. Exogenous path explores the application of emergingfinancing tool in low-rent housing and realizes tool innovation to provide a valid pathfor the social and private capital to participate in the construction of low-rent housing.