Until now, the issue of public housing policy has been caused by suppliers, not by the residents. The suppliers are postponing selling the residential units despite of termination of lease period. In addition, they are taking advantage of the public h...
Until now, the issue of public housing policy has been caused by suppliers, not by the residents. The suppliers are postponing selling the residential units despite of termination of lease period. In addition, they are taking advantage of the public housing system to make big fortune. We have seen some realty fraud using the loophole of the National Public Housing Fund(국민주택기금).
A part of public housing industry are provided with land for public housing below the market price, enjoy favorable tax advantages and get financial support from the government. Unfortunately, however, they have consistently betrayed us by committing moral hazard.
The priority should be placed on the assessment of adequate price of public residential unit, if the public housing system should contribute to solving shortage of reasonable living place for the poor. If a person can not afford to pay the rent for a public housing unit, the government should pay on behalf of him. The volume and size of public residential unit should be provided in a customized manner. Additionally, the system should be set up which aims to monitor meeting the requirements of residence of people living in the public housing units.
To guarantee the success of public housing system, the residents(or tenants) should participate in representative meetings, in which they can claim the various support from the government. The measures should also be established in which the suppliers and customers can make a compromise on a particular issue.
This research focused on transparency of the public housing system, limiting the subject to the price of public housing units and the ways of providing them. One of the main issues covered in this research is lack of adequate system, opaqueness of the existing one and irrational method of the cost of land for housing. To address this problem, information in the course of policy-making, such as the designation of housing land, should be treated in a confidential way. Furthermore, transparency should be ensured in the structure and operation of policy-making institutions.
Currently, the components of land costs are composed of very ambiguous 10 items such as general operating costs or other costs. Those collective components should be divided into more than 30 specific items and the information on calculation should be open to the public.
Transparency, another theme of this research, can be boiled down to two major issues; one is about unreasonable standard in selecting target group for public housing, and the other is about lack of transparency in the management of residents. To solve these problems, discretionary power of supply side should be reduced and the measures to prevent speculation on real estate is essential. In the end, transparency in selecting residents for the public housing should be ensured.