The management disposal plan for the housing redevelopment projects is designed to convert the former land and building owners' rights into new ones and thus, strike a balance of value between their former and new assets.
The management disposal pl...
The management disposal plan for the housing redevelopment projects is designed to convert the former land and building owners' rights into new ones and thus, strike a balance of value between their former and new assets.
The management disposal plan is a basis for developmental profits and additional burden as well as for calculation of the conversion ratios affecting the success of the projects.
However, the conversion ratios have been distorted enough to allow for unbalanced asset distributions and tax evasions, impeding a correct management disposal plan, and therefore, counter-measures against such practices should be urgently designed and implemented.
The purpose of this study was to examine the structure of the conversion ratios determined by the management disposal plan, and thereupon, survey the influence of the distorted conversion ratios over value of rights or additional burdens, and thereby, determine the scope of the optimal conversion ratios, and thus, explore the ways to design a correct management disposal plan.
For this purpose, the researcher sampled 5 housing redevelopment projects implemented in Seoul since 2000, and thereby, collected the data about the conversion ratios under the management disposal plans. The sample projects were 'No. 13 District of Dapsimri,' 'No. 3 District of Wolgok,' 'No. 5 District of Gilum,' 'No. 6 District of Gilum' and 'No. 4 District of Haengdang.' The management disposal plans for the sample districts were examined in terms of 'total value of the former land or buildings' (total price of the former assets), 'total estimated value of the sites and buildings after completion of the project' (total estimated asset price after completion of the project), 'total project cost,' 'conversion ratio,' 'sales price for members' and 'sales price for the general public.' Then, the formula of the conversion ratios and the models for estimation of 'value of rights' and 'additional burdens' (or refund) were applied to determine the factors affecting the conversion ratios, value of rights and additional burdens, and thus, the relations among such factors were analyzed, and thereupon, a desirable management disposal plan was suggested, focusing on the optimal conversion ratios.
As a result, it was found that values of the former assets and those of the sales price for members could affect the conversion ratios and value of the rights, but not the additional burden or refund on the parts of the members, and that when values of the former assets and sales price for members were raised with the total project cost lowered, the conversion ratios and value of the rights rose but members' additional burdens or refunds fell.