At a meeting discussing the proposed amendment to the existing economic housing law, a representative from the administration clearly stated that economic housing units would never become private housing, even after the transfer of ownership following the legally stated resale restriction period.
With the provision concerning the resale of such properties proposed to be tightened, other provisions in the proposal will likely be relaxed.
For instance, the law as it stands forbids members of the immediate family from purchasing an economic housing unit at any time regardless of their role in the family. The current proposal suggests that this be relaxed: a non-owner or non-signee of an ownership contract in the immediate family can purchase another economic housing unit under the premise of getting married and having lived for 10 years in the unit owned by the immediate family.
Under the new proposal, future resale of economic housing units can only be conducted with the approval of the Housing Bureau. The Bureau and qualified potential economic housing owners are prioritized buyers.
Income from and assets of the non-local spouses of economic housing buyers are proposed to be included in the total asset calculation for buyer qualification. However, such spouses would not be considered part of the immediate family. The relevant Legislative Assembly Committee questioned the legality of this provision, as the current laws state that cohabitation is a factor of a spousal relationship.
Future resale price of economic housing units would be calculated proportionally to the consumer price index and the rate of depreciation. Staff reporter
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