Recently, the Ministry of Finance (MOF) and the Ministry of Housing and Urban-Rural Development (MOHURD) have jointly released the Administrative Measures for Subsidy Funds of Central Government for Urban Affordable Housing Projects (the "Measures"), with effect on the date of release.
The Measures specify that the subsidy funds will be used to support the housing security, urban village renovation, renovation of old urban areas, and the renovation of shantytowns (urban dilapidated houses). Subsidy funds will be allocated based on the principle of combining rewards and subsidies, using a factor-based method considering factors such as the renovation tasks and performance evaluation results of each province. According to the Measures, 80% of the funds will be allocated based on the renovation tasks of each province, and adjustments will be made based on the level of financial difficulty, which is determined by the financial difficulty coefficient specified in the measures for the balanced fiscal transfer payments from central to local governments. 20% of the funds will be allocated as incentive funds, determined by weighting the performance adjustment coefficient based on the performance evaluation results of each province's affordable housing projects tasks, with adjustment made to allocation based on factors such as the task of each province.