Study On The Public Housing Financial System

Housing problem is one of the most important livelihood issues which have got world wide attention. At present, with accelerated urbanization and rapid labor mobility, that rigid housing demand and household income does not match have together given birth to our country’s housing issues. To solve this problem, the central government has greatly promoted the construction of public housing as we can see the plan of building36million sets in the "12th five-year plan". However the fact is that both the public housing program and the low-income residents are facing financial difficulty, which make this ambitious goal hardly to achieve. Reasons contribute to this phenomenon can be distinguished in two aspects. On one hand, relying on existed means of gathering the funds can’t meet the new program’s requirements. On the other hand, the low-income residents also can’t get enough money to purchase their house with existing available financial instruments which should have played a policy-oriented role. Financial support system is a series of institutional arrangements based on the financial means to support the economic agents’financial activities. To found an efficient public housing financial system is the most effective way that solve this low-income residents housing problem.In this paper, China’s current public housing financial system is analyzed and discussed based on the its support to the construction of public housing and consumer financial activities. Qualitative and quantitative analysis as well as summarize and comparison methods are adopt to help concluding the defects of our public housing financial system, then some advice will come out according to the developed countries’advanced practice. The details are arranged as follows:Firstly, the introductory section presents the background, significance, objects, range and recent achievement of this research in order to lay the thesis base. Secondly, discuss the operating effects of our existing public housing financial system with qualitative and quantitative methods from the perspective of financial policies, support institutions, financial instruments. Then conclude the defects and problems which affect its operation. Thirdly, through foreign successful public housing finance models, institutional arrangements and financial instruments to provide reference for our reform. Finally, based on the conclusions above, give the development proposal for our public housing financial system.Compared to the previous research, this paper strives to achieve the following innovations:First, the research discussed from the overall perspective and proposed directional improvements from a macro point of view. Second, previous relevant arguments about public housing policy, policy housing finance and housing finance system have been concerned and involved in the discussion that may offer reference for future research. Third, concerned the role of government played in this system, and explored the impact of government in improving the operation of the system.Through research, the main conclusions and proposals are draw as follows:Firstly, our government did not give a full play to its function in the public housing financial system. Compared to foreign governments, we should strengthen our central government’s leading role in the system so as to encourage social resources to invest in public housing construction. In addition, a clear division of functions between central and local governments must be made for the improvement in system operation.Secondly, we should make improvements to the system according to the existing defects. These include:First, establish a multi-housing financial model with reasonable arrangements for the policy housing finance and commercial housing finance. Second, improve the housing public accumulation fund system in order to make low-income residents enjoy the policy advantage. Third, establish specific housing financial institutions which can manage residential housing fund and directly issue loans to the residents who want it. Fourth, search and creative a variety of new financing channels combine with new financial instruments, so that the existing situation of merely relying on bank loans can be changed.Thirdly, it is necessary for our government to formulate relevant laws and regulations. In addition, the management should be reinforced towards existing illegal use of project funds and illegal distribution of public house to ensure the orderly operation of the public housing financial system.