Abstract

The management of the public rental sector has undergone tremendous change worldwide. Especially in China, given the large supply of public rental housing (PRH) in the short term, the management of PRH (PRHM) has been faced with a series of problems. The existing PRHM is unsustainable and a new scheme has been proposed. In this study we analyze whether this new scheme can solve the former management problems and achieve the reform objectives, so as to explore whether the new scheme can really improve the PRHM. We analyzed the new policy, contracts and bidding documents of 19 pilot projects and interviewed some implementation staffs. We found that the well-intended policy mainly proposed three measures: government procurement, new financial arrangement and guided service contents; but that these measures lack specific financial support. Furthermore, there are very few projects that involve full implementation; most of the projects employed a compromise strategy. In general, the new scheme made progress towards solving some of the existing problems, so even if it is selectively implemented, it is still likely to achieve the reform objectives.

Highlights

  • Chinese Public Rental Housing (PRH), implemented in 2010 [1], has boomed in recent years [2]

  • The management of concentrated public rental housing (PRH) development is becoming more market-oriented, the government still takes a large share of the responsibility for the selection of the external management agency (EMA), the service provided by EMA, and the management fee

  • Especially affluent municipalities, external agencies participated in the public rental housing management (PRHM), the property management fee was still borne by the local housing authorities (LHA) (Figure 2)

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Summary

Introduction

Chinese Public Rental Housing (PRH), implemented in 2010 [1], has boomed in recent years [2]. In October 2018, the MOHURD and Ministry of Finance (MOF) jointly announced the implementation of a pilot program for the government to procure public rental housing management services. This scheme will be carried out in eight provinces. Our research question is whether this scheme can solve the former management problems and achieve the reform objectives, so as to explore whether the new scheme can really improve the PRHM To answer this question, firstly, we collected the policies of several cities in China and summarized several typical management models before the new scheme (Section 4).

Different PRH Provision Models Have Corresponding Managerial Characteristics
Main Participants of PRHM and the Responsibilities Shared between Them
In the UK-Arm’s-Length Management Organizations Program
In Australia-Management Outsourcing Program
In Hong Kong-Private-Sector Involvement Program
Former Management Models and Problems in China
Government-Led Model
Common Problems with the Former Models
New Policy Responses
New Measures
The Local Financial Budget Would Bear the Management Fee
More Service Contents Were Included in the New Policy
Objectives
New service content
Obstacles of the New Policy
What is the Real Situation in Practice?
The New Compulsory Method Was Widely and Strictly Implemented
Diversification of Actual Procurement Contents
Expanded Procurement
Inconsistent Financial Arrangements
Category of Procurement Content Service Contents
Very Few Projects Had Fully Implemented All Three Measures of the New Policy
Findings
Implications and Conclusions
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