Establishing Detailed Regulations for the Full-fledged Implementation of the Fast Track for Redevelopment Projects
The government is planning to revise the enforcement ordinance of the Urban and Residential Environment Improvement Act to actively promote the fast track for redevelopment projects.
This amendment aims to increase the speed of reconstruction and redevelopment projects while introducing streamlined procedures utilizing electronic methods to achieve efficient housing supply.
Operating the Fast Track for Redevelopment Projects
Recently, laws related to real estate have been revised to simplify the reconstruction and redevelopment procedures. This will take effect from June 4, 2023, with the main changes as follows:
First, the local survey procedures by local governments for reconstruction diagnosis have been abolished. Consequently, upon request for reconstruction diagnosis, the plan must be notified within 30 days. Additionally, some existing reconstruction diagnosis reports can be reused, simplifying the entire procedure.
Second, the requirements for forming a promotion committee for consortium establishment have been relaxed. Now, a promotion committee can be formed even before the designation of the redevelopment area. However, if there is a difference of more than 10% in area when formed early and at the final designation of the redevelopment area, a separate approval process must be undertaken.
Third, special provisions for recognizing the consent of landowners have been introduced. If any one of the requests for drafting a redevelopment or reconstruction plan, proposal for drafting, or consent for forming the promotion committee is agreed upon, the remaining consents will also be considered accepted. However, this provision applies only if consent is not withdrawn before the permission application.
Finally, the notification period for sales announcements has been shortened. The period for notifying owners about the sales details has decreased from 90 days to 30 days and can be extended by an additional 30 days for redevelopment projects.
These amendments are expected to contribute to simplifying procedures in the reconstruction and redevelopment processes and enhancing efficiency. Whether this will have a positive impact on the future real estate market is being closely watched.
Strengthening Requirements for Utilizing Electronic Methods
Recently, significant changes have been made regarding the establishment of consortiums and the operation of general meetings.
Firstly, electronic signatures are now recognized on the consent form for forming a consortium. This will take effect from December 4, and local governments will allow the use of electronic signatures after verifying prevention of forgery and identification procedures. This change is expected to enhance the efficiency of the consortium establishment process.
Secondly, electronic voting has been introduced at general meetings. This system, effective from June 4, allows for online voting at consortium general meetings. Procedures and possible durations for exercising voting rights must be announced in advance, providing members with the opportunity to participate more easily in decision-making.
Lastly, online general meetings and electronic voting become possible. This new system, effective from December 4, allows consortium members to participate in the general meeting online and exercise their voting rights. After undergoing identification procedures, members can actively communicate through Q&A and express their opinions.
In particular, as members often reside far from project sites in reconstruction and redevelopment investments, this solution addresses difficulties attending meetings. The introduction of online general meetings and electronic voting will enable members to easily participate in decision-making without being constrained by location, leading to smoother procedures.
Simplification and Rationalization of Redevelopment Project Procedures
1. Relaxation of requirements for establishing reconstruction consortiums (effective May 1)
The consent requirement for welfare facilities in establishing reconstruction consortiums will be relaxed from 1/2 to 1/3. Additionally, if the number of separately owned welfare facilities increases after the designation of the redevelopment area, it will also be possible to establish the consortium with a 1/3 consent. This change will help facilitate the reconstruction process.
2. Improvement of public and trust method procedures (effective June 4)
When various agreements are concluded prior to a public or trust company being designated as the project implementer, the consent of at least 30% of landowners must be secured. This measure aims to strengthen the transparency and basis of cooperation in the project and is expected to have a positive impact on future projects.
Government's Expected Effects and Future Plans
The Ministry of Land, Infrastructure and Transport expects that the latest amendments will accelerate the progress of reconstruction and redevelopment projects and lay the foundation for expanding housing supply in urban areas. Additionally, there are plans to hold nationwide briefing sessions to enhance understanding of the system and continuously develop support measures for redevelopment projects.
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