Introducing REITs Financing Mode To Public Rental Construction From A Legal Prospective

Housing security is not only a problem of people's livelihood,but also a development issue.It plays an important role in the country,s political stability and social-economic development,and it is also an important part of a well-off society.In 2010,the State Council promulgated the<Guidance on speeding up the development of public rental housing?,which proposed to primarily focus on public rental housing as part of housing security system.In December of 2014,Ministry of housing and construction urban and rural areas,Ministry of finance,National Development and Reform Commission released ? Notice on public rental housing and low rent housing merger operation>,since 2014,local public rental housing and low rent housing started operation merger,referred to as public rental.There is great significance of public rental construction in solving the housing difficulties of urban low-income groups and improving the national housing security system.At present,China construction of public rental is primarily funded by the government,and there is very little social capital investment.Faced with financing difficulties,the construction of public rental housing in China has encountered a bottleneck.How to solve this problem is an important issue for the government.In this paper,through theoretical analysis,eomparative study,empirical research methods,it addresses the issue on China's public housing construction from the law perspective and how to introduce REITs financing.Starting from analyzing the current financing difficulties of China's public rental housing,then exploring the significance of the introduction of REITs public rental construction financing models.First of all,by summarizing and analyzing the financing difficulties of construction of public rental,four major difficulties are discovered:First,the construction of public rental social funds is low;the second is the central government and local financial investment division of responsibility is unknown;Third,local government financial input pressure,weak incentives;fourth is not lack of independent financing platform,professionalism,and efficiency.The second part is the basic theory and significance of REITs.REITs will be introduced into the mode of construction of public rental.Meaning there are REITs financing mode to broaden the financing channels for public rental construction,provide real estate investment opportunities for social capital,preserve value of state-owned assets,and promote financial innovation in China's real estate market.The third part is to address the legal obstacles when introducing of REITs of public rental construction financing.The main reasons are the following:specific law and legislation on REITs are not complete,the trust system is not well designed,public rental income from legal property REITs is unknown,and public rental REITs tax system is absent.The fourth part is to explore feasibility of REITs financing in the public rental construction and possible ways to achieve it.The feasibility is largely depend on the relevant legal environment,investment demand from private sector and institutions,the development of China,s trust industry and learning from the experience of foreign REITs.Therefore,legislations and laws on REITs,perfecting the legal system of trust,defining the legal attribute of the public rental REITs receipts,introducing public rental housing tax policies,improve the regulatory system of public rental REITs are crucial to REITs financing mode.