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Issues regarding the Partial Amendment to the Rental Housing Act

  • Public Land Law Review
  • Abbr : KPLLR
  • 2012, 58(), pp.303-324
  • Publisher : Korean Public Land Law Association
  • Research Area : Social Science > Law

Sunbae Lee 1 Jae Kwang Kim 1

1선문대학교

Accredited

ABSTRACT

The bill, a partial amendment to the Housing Act, is submitted to the Land, Transport and Maritime Affairs Committee of the National Assembly at Congressman Kim Tae-ho’s proposal, with major support of tenants in Kim-hae area. It is argued that the amendment is written for the tenants. The amendment includes some new provisions and other partially amended provisions. The main contents are comprised of provisions regarding the recovery of the full amount of the National Housing Fund, the criteria for appraisal prices relating to the conversion of rental housing for sale and the upper limit, retrospective application of the criteria, approval by the head of a Si, the head of Gun, or the head of Gu of rental conditions, and relevant penal provisions. Those provisions are for lowering the appraisal prices relating to the conversion of rental housing for sale by changing the criteria and ultimately for promoting tenants who reside in public rental housing to own a home. The main point is to retrospectively apply the same criteria for appraisal prices relating to the conversion of rental housing for sale to ten-year public rental housing units, as applied to five-year public rental housing units. Because the appraisal prices relating to the conversion of rental housing for sale directly affects interests between a landlord and a tenant after the tenancy is terminated, it is necessary to analyze the criteria for appraisal prices relating to the conversion of rental housing units for sale, the upper limit, and the timing for the application of the appraisal prices, in terms of the objectives of policies for rental housing and impartiality between landlords and tenants. Especially, after the simulation of the upper limit of appraisal prices relating to the conversion of rental housing for sale in an area such as Pan-gyo where housing prices had dramatically risen, the result turned out that the real prices relating to the conversion of rental housing for sale, if the conversion is made after the termination of ten year rental period, is projected to range from 160 percent to 200 percent of the housing prices (construction cost) at the time of the recruitment of occupants. In cases of ten year rental housing units, since the profits of rental business operators are guaranteed for a rental period by law, the housing prices seems to rise higher. The more housing prices rise in the relevant area, the prices for the conversion of rental housing for sale seems to rise higher. Thus, it turned out that such increase deprived tenants of the opportunity to own a home. Also, the deprivation was against the objectives of the policies for rental housing.

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