Taipei Gov't to launch conceptual FSR Bank
By Chi-hao James Lo ,The China Post
March 19, 2014, 12:07 am TWN
The Taipei City Municipal Conference passed the “Taipei City Floor Space Ratio to Payment Application Autonomous Regulation for Urban Planning” (台北市都市計畫容積代金施行自治條例) regulation yesterday, promising a more efficient system that will benefit the general Taipei City populace.
Known as FSR Bank, the regulation is set to put an end to the practice of land donation in exchange for floor space ratio (FSR), and give rise to a new policy that will benefit the general public of the city after its implementation, the Taipei City Government said.
In the past, contractors and consortiums had the option to donate land to the government in exchange for higher volumes of FSR. However, most donated land was either roads that couldn't be developed or property that could be reclaimed after a certain period of time. As a result, the profits for construction companies, after gaining higher FSR for more apartment units, vastly exceeded the benefits to the government.
According to Taipei Mayor Hau Lung-bin (郝龍斌), should the regulation pass deliberation by the Taipei City Council, developers will have to make payments to the city government for extra FSR grants. The government will then use the payments to purchase properties reserved for developing public facilities. The estimated increase in FSR volume following the completion of the urban renewal of Taipei is approximately 592 hectares, with a predicted net worth of NT$640 billion. The regulation will face a three-year grace period, after which the old trend will no longer be in effect.
New Taipei City to Construct Social Housing
New Taipei City Mayor Eric Chu (朱立倫) announced yesterday that a new policy is underway and ready for examination by the Ministry of Interior today, in which the city government will construct publicly owned social residences on expropriated lands in order to preserve property equity.
After deducting the projected amount of land reserved for public facilities and marketable properties, the city government promised to plan residential areas with units that can only be leased and not purchased from the government.
Projects will be featured in various districts where each social housing unit will be engineered with different designs and specifications. Residents who qualify for the residential areas are given a lease 20 percent less than that of the regular market, with no extra managerial fees enforced. Families with special needs will be further granted promotions and subsidies, paying a rent 40 to 60 percent less than the market today.
By erecting a government-owned residential area on expropriate properties instead of selling it to contractors, the New Taipei City Government hopes to prevent further inflation in the New Taipei City property market.