A Study On The Financing Models Of Affordable Housing Projects In China

In order to solve the housing problems for middle-and-low income people, and to achieve the goal that people enjoy their rights to housing,the Party Central Committee and the State Council have decided to promote the construction of affordable housing projects in a large scale, and determined to start the construction of 36 million units of urban indemnificatory housing and shantytown renovation housing during the 12thFive-year Plan period. The large-scale construction of affordable housing projects needs huge amount of financial support. However, the current sources of construction capital for affordable housing projects come from quite narrow channels, which has restricted the vigorous development of construction of affordable housing projects in our country. Therefore,how to innovate financing models, broaden financing channels and draw social capital into the construction of affordable housing projects under the new budget system seem extremely important, which is also the objective and significance of this thesis.On April 2nd, 2014, the State Council executive meeting decided to step up shantytown renovation, effectively combining policy support with market mechanism together, and make fully use of the “blood-supply”function of development finance that is based on national credit, serving for national strategies, and with low-profit funds investment, which will provide legal and convenient financing channels with appropriate costs and stable sources to accelerate shantytown renovation, and thus ensure funds demand of renovation tasks.Firstly, this thesis defines relevant concepts such as affordable housing projects and their financing, and meanwhile explains the basic financing theories of affordable housing projects, which would provide theoretical foundation and reference for the following study. Secondly,it introduces the development course and current situation of affordable housing projects in our country; by analyzing the present financing status of affordable housing projects, finding out existing problems and learning from international experience, it discusses the financing models that development finance supports affordable housing projects under the new budget system, which part is the emphasis of the thesis that brings forward the financing ideas of based on PPP models and supplemented by integration of investment and loan, and debt loan portfolio. Finally, it offers some policies and suggestions for implementing the models that development finance supports affordable housing projects.