The BTT Model Research Of Affordable Housing Financing

Recently, with the improving of the national economy and the continuous improvement ofpeople’s living standard, people’s material and cultural needs and the contradiction between thecurrent material culture can’t satisfy people’s demand is rising, people`s requirement of housing isthe epitome of a clear, by contrast, some low-income family can`t afford their houses which due topersonal economic problems, have stand out more apparently. The government have also caused ahigh degree of attention, embarked on a low-income housing project, through the construction ofaffordable housing to low-income people living security interests, in order to ensure that affordablehousing construction smoothly, our country in absorbing the foreign advanced experience ofaffordable housing construction at the same time, also in combination with its own nationalconditions, formulate a set of regulations for affordable housing construction with Chinesecharacteristics. However, due to our country’s basic national conditions, our country is in and willbe in the primary stage of socialism for a long time. Everything there is a lack of or need to learnand improve. As the focus of this article: housing finance has the following problems:○1Theconstruction scale is big, however, the construction funds can`t be collected in place.○2Thefinancing model is old, low profits, or long payback period of investment, or financing efficiency islow, or operation is difficult, and so onThe main cause of these problems are:○1Excessivedependence on government funding, which is deep in debt.○2The lack of innovation in financingmodel and financing channel.○3Financing system lack of legal protection.Aiming at these problems, you can know the main research content of this article isinnovation of affordable housing financing mode, this paper proposes a new type of affordablehousing financing mode-the BTT financing mode. Its main operating mode is similar to thetraditional pattern of BOT, the government sell the land at lower price, the project company shouldbuild the affordable house in return. After the completion, the houses is handed over to thegovernment to implement low-cost housing, after a certain period, handed over to the projectcompany again,by the project company in the performance of the provisions of the contract afterholding periods, the project can dispose the project assets.In order to help the project company to participate in decision-making, decision-making phaseof this paper includes two parts:○1Using Stan kohlberg model under dynamic game model ofgame theory, combined with backward induction, it is concluded that one can achieve a win-winsituation of the project company holding period, which can be written in tender documents.○2Theproject company considered their technical and economic level, use the net present value method,combined with the holding period specified in the tender documents to make a decision, whether ornot to participate in the project construction.Through the detailed analysis of this paper, there is no doubt that the BTT financing model forour country’s affordable housing construction, is feasible and has low risk, high yield, shortpayback period, etc. If the system of form can be improved completely in the future, the BTTfinancing model will provide financing of affordable housing construction in our country into astream of fresh blood.