Study On The Subsidy Of Public Rental Housing And Security Boundary Definition

As a policy of rental housing, public rental housing is put forward under the situation that the accelerated urbanization, the continuing rise in housing price, narrow coverage of housing security, and the highlighted housing issues have been going on. Government wants to solve the housing problems of the low and medium income residents through establishing the public rental housing system, and connecting all kinds of houses exist in China include public housing and ordinary commercial housing. However, how to choose the pattern of public rental housing subsidy? How to determine its subsidy standards and security boundary? How to connect the various types of houses? The solution to these problems will help perfect the public rental housing policy and housing security system, and has a significant role in the public policy.Based on the study of housing subsidy, this paper analyses subsidy standard and security boundary of public rental housing, and then builds up a type of rental housing security systems, whose main part is public rental housing. The main conclusions of this paper are as follows:First, it is recommended that government should change the current pattern that we use the residents’income and living space to determine the objects of public rental housing; we should determine the objects by the index of rent-to-income ratio or monthly repayment-to-income ratio, combining with the residents’living space. Second, government should offer different patterns of housing subsidy according to the objects’housing affordability and housing consuming preferences.Specifically, as for the objects whose rent-to-income ratio is greater than0.72, government should supply low-rent housing for them; as for the objects below0.72, government should supply rent subsidy for them; for the objects whose monthly repayment-in-income ratio is more than0.5and that prefer to purchasing houses, government should supply affordable housing or price-control housing for them; for the objects below0.5, government should offer some incentive measures for them, such as tax exempted and loan discount. Third, government should impose the objects of low-rent housing symbolic and lower rent, supplying larger housing subsidies; as for the objects of public rental housing, regardless of the subsidy’s patterns, government should establish a multi-level system of subsidy, whose maximum standard is58%. Fourth, government should define the security boundary according to the financial capacity and the residents’housing affordability. Specifically, when the financial burden is heavier, government should decline the upper bound or reduce the subsidy, in order to reduce the housing security expenditure; when the financial burden is lighter, and vice versa.at last, as for building the rental housing security system, government should merger the low-rent housing, affordable housing and price-control housing into the rental housing security system, supplying different forms of housing subsidies according to the objects’ housing affordability and their preferences.