Laws of the Shanghai Province

Chapter I General Provisions

Article 1

In order to further standardize the acts of construction, supply and administration of accessory commodity housing and moderate and low-priced ordinary housing in this Municipality, optimize the market structure of real estate in this Municipality, improve the living conditions of citizens, these Procedures are formulated in accordance with the "Regulations of Urban Real Estates Development, Operation and Administration" and the provisions of the "Procedures on the Administration of Economical, Appropriate Housing" promulgated by four central departments including the Ministry of Construction, and in the light of the actual circumstances of this Municipality.

Article 2

The accessory commodity housing mentioned in these Procedures (hereinafter referred to as the "Accessory Housing" ), are the policy-related commodity housing supplied to the residents to be relocated for construction projects such as major engineering works and the reforming of key old areas in this Municipality, for which the government provides the preferential policy and sets construction standards.

The moderate and low-priced ordinary commodity housing mentioned in these Procedures (hereinafter referred to as the "Moderate and Low-priced Housing" ), are the policy-related commodity housing supplied to the moderate and low-income households in this Municipality, for which the government provides the preferential policy and sets construction standards.

Article 3

The construction, supply and administration of Accessory Housing and Moderate and Low-priced Housing in the administrative area of this Municipality shall conform to these Procedures.

Article 4

The Municipal Administrative Leading Group of Accessory Housing and Moderate and Low-priced Housing (hereinafter referred to as the "Leading Group" ), consisting of the persons-in-charge of the municipal departments of construction and communications, development and reform, housing, land and resources, planning, finance, municipal administration, water affairs, education, public health, electric power, traffic, etc. and the district/county governments concerned, is responsible for the overall coordination and promotion of the construction of Accessory Housing and Moderate and Low-priced Housing and shall, according to their respective duties, implement these Procedures. The office of the Leading Group is set up in Shanghai Municipal Housing, Land and Resources Administration.

The Shanghai Municipal Housing, Land and Resources Administration is responsible for the administration on construction and supply of Accessory Housing and Moderate and Low-priced Housing in this Municipality.

District/county governments are responsible for the construction and administration of Accessory Housing and Moderate and Low-priced Housing in their respective administrative areas.

The district/county departments of development and reform, construction and communications, housing, land and resources, etc. shall, according to their respective duties, coordinate in implementing these Procedures.

Chapter II Land Use Development

Article 5

The Shanghai Municipal Housing, Land and Resources Administration shall, according to the comprehensive planning of Shanghai and the short-term construction plan as well, organize the formulation of the lay-out planning of Accessory Housing and Moderate and Low-priced Housing for the whole Municipality and shall, after the overall balance made by Shanghai Municipal Urban Planning Administration, submit the lay-out planning to the municipal government for examination and approval.

The construction of Accessory Housing and Moderate and Low-priced Housing shall be in line with the approved lay-out planning and regulatory plans.

Article 6

The district/county administrative department of housing, land and resources shall, jointly with the relevant departments, work out the annual land use plan for the construction of Accessory Housing and Moderate and Low-priced Housing, in accordance with the actual situation of the house demolition and relocation volume and the supply structure of commercial residential housing market owning to urban construction projects such as key engineering works in its own administrative area, and integrate such plan into the district/county annual land use plan and, upon the consent of the district/county government after examination and verification, submit it to Shanghai Municipal Housing , Land and Resources Administration.

Article 7

The site selection of Accessory Housing and Moderate and Low-priced Housing shall be in line with the following principles:

1. In the areas where public service facilities are mature or relatively mature;

2. Overall distribution shall be made in the light of construction projects of suburban towns and central villages or the Accessory Housing projects under construction;

3. In the areas where public infrastructure facilities of traffic, etc. are relatively complete.

Article 8

Those construction projects in conformity with the annual land use plan of Accessory Housing and Moderate and Low-priced Housing, and the requirements of the site selection planning, shall be submitted to Shanghai Municipal Housing, Land and Resources Administration for project identification by district/county land and resources administrative department.

Real estates development enterprises may change the construction projects that have legally acquired land and meet the requirements of the site selection planning for Accessory Housing and Moderate and Low-priced Housing to the construction projects of Accessory Housing and Moderate and Low-priced Housing, and submit the latter projects to Shanghai Municipal Housing, Land and Resources Administration for project affirmation.

In respect of the affirmation of the submitted construction projects of Accessory Housing and Moderate and Low-priced Housing, Shanghai Municipal Housing, Land and Resources Administration shall practice joint examination, give a single official written reply and assign the land use plan.

Article 9

For the construction projects of Accessory Housing and Moderate and Low-priced Housing under municipal and district/county administration, Shanghai Municipal Housing, Land and Resources Administration and the district/county land and resources administrative departments shall respectively organize relevant land reserves organs to carry out early stage development and do a good job of all preparatory work prior to the land transfer.

Article 10

The construction projects of Accessory Housing and Moderate and Low-priced Housing adopt the form of public bidding to determine real estate development enterprises.

Article 11

For the construction projects of Accessory Housing, and Moderate and Low-priced Housing under municipal and district/county administration, Shanghai Municipal Housing, Land and Resources Administration and district/county land and resources administrative departments shall respectively be responsible for the organization of public bidding for the projects.

Article 12

The bid price for the sale transfer of the right to use state-own land and the ceiling average price for residences in the construction projects of Accessory Housing and Moderate and Low-priced Housing, shall be listed in the project bidding documents after the examination and approval of Shanghai Municipal Housing, Land and Resources Administration.

1. The bid price for the transfer of the right to use state-own land of Accessory Housing and Moderate and Low-priced Housing shall be determined on the basis of the direct cost of the early stage development of land;

2. The ceiling average price for residences in the construction projects of Accessory Housing and Moderate and Low-priced Housing shall be determined on the principle of the cost of development, construction and administration plus meagre profit.

Article 13

The real estate development enterprises competing for bidding shall possess excellent development achievements and social prestige, and provide corresponding design schemes and selling prices. The selling price shall be determined by the enterprises competing for bidding in bidding documents, in accordance with the ceiling price range released in the project bidding documents.

Evaluation of project bidding shall mainly be based on design schemes, selling prices, and corporate qualification, development achievements and social prestige as well.

Article 14

The real estate development enterprise who wins the bidding shall sign the project construction agreement with Shanghai Municipal Housing, Land and Resources Administration and the district/county land and resources administrative department, clearly defining the contents of construction requirements, supply mode, selling price and liabilities for breach of contract. The project construction agreement signed by the district/county land and resources administrative departments shall be submitted to Shanghai Municipal Housing, Land and Resources Administration for the record.

Upon the signing of the project construction agreement, the district/county land and resources administrative department shall sign with the real estate development enterprise who wins the bidding a contract for the transfer of the right to use state-own land, in which shall be indicated the land use purpose of "construction land use for Accessory Housing" or "construction land use for Moderate and Low-priced Housing" .

Article 15

The real estate development enterprise who wins the bidding shall go through the examination and approval formalities of feasibility study report at Municipal Development and Reform Commission or the relevant district/county investment administration department.

Chapter III Development and Construction

Article 16

Accessory Housing and Moderate and Low-priced Housing shall be developed and constructed in accordance with the provisions of "Regulations on the Development, Operation and Administration of Urban Real Estates" .

Article 17

The planning and design of the construction of Accessory Housing and Moderate and Low-priced Housing shall conform to the following provisions:

1. Conforming to the planning index of plot ratio and building density, etc. as defined by the planning department.

2. Residential houses shall take a suite of two bedrooms and one drawing room with a floor space of 70 square meters as the main housing model, with an appropriate allocation of households having one bedroom and one drawing room with a floor space of 50 square meters and an allocation of a small number of households having three bedrooms and one dining room with a floor space of 90 square meters.

3. Conforming to the technical norms and standards of the State and this Municipality concerning housing construction.

Article 18

Relevant municipal departments, when examining for approval the planning and design scenarios and preliminary design schemes of Accessory Housing and Moderate and Low-priced Housing under municipal administration, shall solicit the opinions of Shanghai Municipal Housing, Land and Resources Administration. Relevant district/county departments, when examining for approval the planning and design scenarios and preliminary design schemes of Accessory Housing and Moderate and Low-priced Housing under district/county administration, shall solicit the opinions of district/county land and resources administrative departments.

Article 19

Administrative institutional charges for the construction and operation on the projects of development and construction of Accessory Housing, Moderate and Low-priced Housing shall be reduced or exempted according to law, and specific procedures shall be worked out separately by the departments of Shanghai Municipal Finance Bureau jointly with Shanghai Municipal Commission of Construction and Communications Administration and Shanghai Municipal Housing, Land and Resources Administration.

Chapter VI Administration of Supply and Transaction

Article 20

Real estate development enterprises shall, according to supply mode and selling price clearly defined in the construction project agreements on Accessory Housing or Moderate and Low-priced Housing, sell in advance or sell commodity houses.

For Accessory Housing or Moderate and Low-priced Housing to be sold in advance, the advance-sale permit of commodity houses shall be obtained. The advance-sale permit shall clearly indicate "Accessory Housing" or "Moderate and Low-priced Housing" .

Article 21

Shanghai Municipal Commission of Construction and Communications Administration shall, jointly with Shanghai Municipal Housing, Land and Resources Administration work out the annual supply plan of Accessory Housing, according to the overall annual construction plan of Accessory Housing constructed under overall arrangements for the whole Municipality and a certain proportion of the total amount of house demolition and relocation for major engineering construction projects and projects of reforming key old areas in the whole Municipality.

Where the resettlement housing sources for the demolition and relocation as required by construction projects are listed in the annual supply plan of Accessory Housing, the relevant competent departments of the district/county governments in the localities of the projects shall, after the construction unit of the project obtains the approval of the filing of the planning of construction projects, submit an application for utilization of housing to Shanghai Municipal Commission of Construction and Communications Administration, and housing sources shall be allocated upon the approval the approval made by Shanghai Municipal Commission of Construction and Communications Administration jointly with Shanghai Municipal Housing, Land and Resources Administration.

Provisions of the drawing up of the supply plan of Accessory housing and the application for and approval of utilization of houses, shall be separately set by district/county governments themselves.

Article 22

Accessory Housing shall be supplied in priority to poverty-stricken families due to key engineering projects of the relocation base of urban construction with stress on major engineering projects and the matter shall be handled according to the procedure of making the housing sources known to the public, accepting applications, checking and ratifying the conditions, drawing up the supply sheet and signing the advance-sale (sales) contracts for Accessory Housing.

District/county governments shall set provisions on and announce the specific supply objects and supply procedure for Accessory Housing.

Article 23

Shanghai Municipal Housing, Land and Resources Administration shall, according to the annual construction plan of Moderate and Low-priced Housing and the demand situation of each district/county, work out the annual supply plan of Moderate and Low-priced Housing, and each district/county shall, according to the plan, arrange the utilization in time.

The supply of Moderate and Low-priced Housing shall adopt the method of combining district/county self supply in dominance and overall supply arrangement for the whole Municipality as the supplement. Where self constructed projects can basically satisfy the demand in the local area, the district/county shall organize the supply by itself; if the self constructed projects cannot satisfy the demand in the local area, Shanghai Municipal Housing, Land and Resources Administration shall make unified arrangements for housing sources.

Article 24

Any families who simultaneously meet the following conditions may apply to purchase one suite of Moderate and Low-priced Housing:

1. Having obtained permanent residence status of town/township in this Municipality for a fixed number of years;

2. The disposable income per capita of a family is below the prescribed criteria.

3. The floor space per capita of a family is below the prescribed criteria.

The specific conditions prescribed in the proceeding paragraph shall be separately formulated by Shanghai Municipal Housing, Land and Resources Administration.

The purchase of Moderate and Low-priced Housing shall be handled in accordance with the procedures of making public information on housing sources, filling in the application form for purchase, examining and verifying the conditions for purchase, opening information on the application for purchase, taking out the permit of purchase, taking turns to wait for purchase and signing the advance-sale contract. Shanghai Municipal Housing, Land and Resources Administration shall formulate and promulgate the "Procedures on the Administration of the Supply and Transaction of Moderate and Low-priced Housing" .

Article 25

The residents relocated owing to the house demolition and families with moderate and low-income that meet the conditions prescribed in these Procedures, may purchase Accessory Housing or Moderate and Low-priced Housing, and may also lease Accessory Housing or Moderate and Low-priced Housing.

Shanghai Municipal Housing, Land and Resources Administration shall formulate and promulgate the specific procedures on the leasing of Accessory Housing or Moderate and Low-priced Housing.

Article 26

Real estate development enterprises shall issue to buyers of Accessory Housing or Moderate and Low-priced Housing "Guarantee for the Quality of Newly-built Residential Housing in Shanghai" and "Manual for Newly-built Residential Housing in Shanghai" , and undertake responsibility for guaranteed repairs according to law.

Article 27

Buyers of Accessory Housing or Moderate and Low-priced Housing shall attend to the real estates registration according to the provisions set in the "Regulations on the Real Estate Registration in Shanghai" . The real estate registration agency shall, in the "remarks" column of the real estate title deed, indicate the wording "Accessory Housing" or "Moderate and Low-priced Housing" .

Article 28

Accessory Housing or Moderate and Low-priced Housing shall not be transferred or leased within 5 years from the date of receipt of the real estate title deed.

In case the house owner really needs to transfer the house within 5 years from the date of receipt of the real estate title deed, he/she shall make application to Shanghai Municipal Housing, Land and Resources Administration or the district/county land and resources administrative department, and the said administration or department shall purchase back the house in accordance with the prescribed price.

Those who transfer their Accessory Housing or Moderate and Low-priced Housing after 5 years from the date of receiving the real estate title deed, shall pay the government their income in certain proportion to the price difference between the then ordinary commodity housing in the same road section and Accessory Housing and Moderate and Low-priced Housing. The specific proportion shall be separately provided by the municipal government.

Chapter V Supplementary Provisions

Article 29

The construction, supply and administration of Accessory Housing for resettlement of peasants in the house demolition and relocation shall be handled by reference to these Procedures.

Article 30

Shanghai Municipal Housing, Land and Resources Administration is responsible for the interpretation of these Procedures.

Article 31

These Procedures shall become effective on the date of their printing and distributing. The construction projects of Accessory Housing and Moderate and Low-priced Housing put on file before the implementation of these Procedures shall be executed in accordance with these Procedures.

Shanghai Municipal Housing, Land and Resources Administration

November 15, 2005