Hanam Mayor Lee Hyun-jae Requests Ministry of Land to Improve '10-Year Public Rental Housing Conversion Price Calculation'

[Suwon Ilbo=Reporter Eom In-yong] Mayor Lee Hyun-jae of Hanam announced on the 17th that "to ensure residential stability for low-income households living in 10-year public rental apartments, I have requested the Ministry of Land, Infrastructure and Transport to improve the system so that the conversion price calculation standard for public rental apartments is converted to the same level as 5-year public rental apartments."

At a press conference held at the city hall situation room on the same day, Mayor Lee said, "The conversion price calculation standard for 10-year public rental apartments is much more disadvantageous than that of 5-year public rental apartments, shattering the dreams of low-income households to own homes."

The core of the problem lies in the 'conversion price calculation method' between 10-year and 5-year rental housing.

Currently, 10-year public rental housing is structured so that the conversion price cannot exceed the appraised value, which is the 'current market price.' As a result, the rapidly rising real estate market price in recent years effectively becomes the conversion price as is.

In contrast, 5-year public rental housing has its conversion price set by the arithmetic mean of the 'initial construction cost' and 'current market price (appraised value)' divided by 2.

In other words, 5-year rental residents receive at least half the benefit of the initially low 'construction cost,' but 10-year rental residents are placed in a very unfavorable situation where they must purchase homes at 100% of the current market price without that benefit.

These homes were originally supplied with public funds such as the National Housing Fund to ensure 'residential stability for low-income households,' but residents who have lived there for 10 years face the crisis of being evicted due to unaffordable conversion prices, let alone achieving homeownership.

This problem is particularly severe in Hanam City. In the Misa Riverfront City and Gamil and Wirye districts, there are a total of 9 complexes with 6,237 units of 10-year public rental housing.

Recently, a complex in Hanam's Gamil District (based on 84㎡) had an initial move-in price of approximately 294.58 million won, but when an appraisal was conducted for recent conversion, the expected price soared to approximately 784.13 million won. This represents a 166% (approximately 2.66 times) increase from the initial price.

Given this situation, residents are making urgent complaints mixed with despair, saying "the dream of homeownership has turned into desperation," demanding an improvement to the unfair calculation standard.

Mayor Lee Hyun-jae formally requested an amendment to the 'Enforcement Rules of the Public Housing Special Act,' arguing that the conversion price calculation method for 10-year public rental housing should also be changed to the same as 5-year rental housing, using the formula '(construction cost + appraised value)/2.'