Research On Govrnment Guarantee Value Of BOT Construction Model On Public Rental Housing Based On Real Option

Public rental housing is one of point objects of the affordable housing project construction in our country and our nation’s vital people’s livelihood issue to solve. With the rapid development of urbanization, the coverage of housing guarantee in sectional areas in not very enough and with the rapid ascending of house price in the city, small square house stale in the city is not enough for the residents whose income are under the middle level to rent, so the housing problem of that kind of crowd gradually appears out. Simultaneously to the new graduations living in the city and employed people from other places, although having potential buying ability, they can not afford the commercial housing temporarily. Based on the reasons as above, constructing public rental housing is one vital point for perfecting our nation’s guarantee system and a important method for satisfying the housing requirement of middle and low income families, and it has the fatal function for solving the housing problem of "sandwich class" in the city. Since the government implemented the policy of guarantee housing, investment scale and construction strength of public rental housing have being added, but with large task load, urgent time and strong government fund press of the public rental housing construction, in the process of construction, public rental housing still can not satisfy the housing requirement of the mass "sandwich class".Based on the reasons as above, after illustrating the theory research for decision-making method of public rental housing and real option, this article analysis development history and financing status of our nation’s public rental housing, and researches the main financing problem in the process of public rental housing construction. The research indicates that as the construction capital mainly relies on the government investment and there is lack of market institutional investors, the construction fund is not enough and the financing channel of public rental housing is not unimpeded which leads to the construction problem that the number of public rental housing is obviously small. Therefore, to the government, expanding the financing channels of public rental housing has been the instant difficult problem.This article combines public rental housing construction and financing style of BOT. At present, the public rental housing construction mainly relies on the government investment and in the process of construction; the government bears overmuch responsibilities which strong limits further development construction of public rental housing. The financing style of BOT is applied into the public rental housing construction, and the government comes to the agreement with the non-government subject through negotiation and hands the franchise rights of some certain project to the non-government investment subjects and allow them to raise capital to exploit public rental housing project under the stipulated right and time. During this period, non-government investment subjects can operate the public rental housing project and provide supporting service to get the profit to recoup the previous investment cost. When the franchise period expires, the non-government investment subjects sections should deliver the project back to the government according to the agreement. Emulating this kind of operating style can solve greatly the bottleneck problem of public rental housing fund at present, and share the investment risk for the government, and provide the new idea and suggestion for the future further financing.Based on the real option theory, this article builds government guarantee model of public rental housing project. Based on making sure the financing model of BOT of public rental housing, the real option theory builds the government guarantee model of public rental housing project. Solving the model, analyzing the result and the specific analysis to the influence of guarantee upper limit value and lower limit value to government guarantee value can provide much help and suggestions for making better decisions of government. And efficiently according to project risk and proceeds, the relatively reasonable guarantee upper limit and guarantee lower limit can be worked out which not only attracts the different kinds of fund, but also avoids the government financial burden government overmuch guarantee causing. Through the guarantee degree, government can have the choice to make the investment decision.