Enhancement Plans of Housing Improvement Project for Low-income Households in the Private Rental Market

Associate Research Fellow Hoobin Lee, et al.

Summary

1. Housing improvement projects are required for quality management of aging private rental houses and improvement of tenants’ residential environment

  - Upgrading the housing condition of private rental houses by enhancing housing improvement projects that invest public resources

2. Identify policy blind spots by comparing households residing in aging houses and support targets for housing improvement projects

  - (Households) Nearly half of households residing in urban aging houses are low- and medium-income tenants

  - (Support Targets) Housing improvement projects in the central government and Seoul are focused on house owners (households living in their own houses)

  - (Blind Spot) Comparing to increasing inventories of aging houses, policy supports for improving the residential environment of low-income tenants are insufficient

3. Identify key tasks for projects enhancement through structural analysis of housing improvement projects for private rental houses

  - (Coordination of complicated interests) Conflict of interest between government (residential stability for tenants) and landlords (increase of rent)

  - (Effectiveness of imposing conditions on support) Insufficient government’s measures to force landlords fulfill the obligations in case of violating support conditions

  - (Limitations of people-centered management) Difficulties in systematic management of supporting housing in case of move out of tenants

Future Tasks

① Introduction of win-win agreements as a framework for coordinating interests

  - Secure the tenant's legal rights related to support conditions through agreements involving all stakeholders

② Adjustment of support conditions by encouraging landlords’ participation and considering tenants’ residential stability

  - Review how to extend the rental period while allowing a limited rent increase

③ Strengthening of the government’s measures to force obligations’ fulfillment for managing the implementation of support conditions

  - (Short-term) Conduct thorough follow-up management continuously, (Long-term) Review how to allow exercise of self-enforcement rights*

  *The power or right for the government or public organizations to force anyone, who did not fulfill obligations, fulfill the obligations

④ Introduction of house-oriented 'management history system' (tentative name) to improve the quality of private rental houses

  - Implementation of public management as long as there is physical improvement effect, regardless of the move of support targets