Residential Redevelopment Districts in Seryuand Maekyodong Lifted

Suwon City has lifted the designation of the urban planning district for Suwon 113-5 area near Maegyong Station, which had its residential redevelopment business association approval cancelled, effective the 18th in accordance with the Urban and Residential Environment Improvement Act.

The district in question had its association establishment approval cancelled on April 24 of last year after more than half of the landowners applied for association dissolution. The city proceeded through the legally required procedures including resident public disclosure announcements, city council opinion hearings, and urban planning committee deliberations, ultimately lifting the urban planning district designation (terminating the redevelopment project) under the Urban and Residential Environment Improvement Act.

Under the current Urban and Residential Environment Improvement Act, the regulations stipulate that when association establishment approval is cancelled, the urban planning district must be lifted. With the lifting of this planning district, the zoning and planning infrastructure in the Suwon 113-5 area (Maekyoand Seryu-dong) that were changed through the planning project shall revert to their status prior to the designation.

Although the Suwon 113-5 area association previously filed for administrative appeal and administrative litigation regarding the cancellation of its establishment approval, with this lifting of the planning district, Suwon City's total redevelopment areas have been adjusted from 20 sites to 18 sites.

A city official stated, "To date, no associations or contractors have applied for subsidies or tax write-offs related to buried costs from association dissolution," and added, "When applications are received in the future, we will provide detailed guidance on relevant procedures and conduct thorough verification to ensure reasonable subsidies within the budget for a portion of the costs used by the association."

Meanwhile, as the urban planning district has been lifted due to the cancellation of association establishment approval, the issue of buried costs previously incurred by the association has come to the fore. As the Urban and Residential Environment Improvement Act was amended and implemented on January 14, a new provision recognizing tax write-offs for buried association costs has been established.

According to the new provision, when contractors, design firms, specialized urban redevelopment management firms, and other entities wish to waive claims against promotion committees and associations in accordance with the Special Taxation Act and have these recognized as tax deductions, they must reach an agreement with the relevant promotion committee or association and submit a certificate of claim verification to the mayor or county governor. The deadline for submission of the certificate of claim verification under the amended regulations is within six months from the date of enforcement of this law.

Furthermore, both Gyeonggi Province and Suwon City's ordinances on urban and residential environment improvement stipulate that a portion of association-used costs can be subsidized.

According to Suwon City's ordinance provisions, when association establishment approval is cancelled, the mayor may subsidize a portion of the costs used by the association within the budget range following verification by a verification committee. Subsidy applications must be filed by August 1, 2015 for buried costs in accordance with the amended law.