Lately, as a measure to alleviate the adverse impact of this round of COVID-19 on our city, to meet "rigid demand" and improve housing needs, to guard against and defuse risks and hidden dangers in the real estate market, as well as to enhance the steady development and foster a virtuous cycle of the housing market, the general office of Changchun Municipal People’s Government issued the Notice on Measures to Effectively Respond to the Impact of the Pandemic and Enhance the Steady Development and Virtuous Cycle of the Real Estate Market. This includes 20 specific measures such as phased lowering of down payment ratio of housing provident fund loans and reducing personal housing cost burden. Unless otherwise specified, the measures shall be implemented as of the date of promulgation and the term of validity is tentatively two years.

1. Implement “separation of permit application and payment.” For projects that have fully paid back the principal of land transfer fees and outstanding liquidated damages, partial pre-sale is permitted according to the proportion of the principal and liquidated damages. With the payment voucher issued by the taxation office, developers can apply for land title certificate and the demarcation of pre-sale scope at the planning and natural resources department and apply for the pre-sale permit at the housing security and management department.

2. Establish “green channel” for project work commencement. For the new projects that have already obtained the Construction and Land-use Planning Permit and the construction and supervision units have been determined, with the approval of the construction permit examination and approval department, construction of non-major engineering parts prior to the construction of the main part of the project is allowed, such as early entry to the construction site for land leveling, building temporary construction enclosure, establishing temporary water and electricity access, undertaking earthwork and facilities for rainfall runoff, etc. For those projects that have already obtained approval from the administrative department on project planning and design scheme, and construction drawings have been reviewed (evaluated) but failed to obtain construction project planning permit and commencement permit as scheduled due to impacts from COVID outbreak, developers are allowed to carry out the main construction of the project subject to approval of the Municipal Bureau of Planning and Natural Resources and the Municipal Construction Committee, with the specifics of examination and approval procedures to be handled within 30 days.

3. Specialized industrial park projects can apply for divided unit sales and real estate registration. Developers shall fulfill the primary responsibilities of construction, investment promotion and operation. When construction projects have reached pre-sale condition, developers are eligible for the application of commercial housing pre-sale license with reference to the construction application and approval process for commercial real estate projects. Developers shall operate property management and municipal support facilities. The municipal and district governments and the development zone management committee will review and verify the industrial form, output value and tax revenue of recruited tenant enterprises and sign agreements. Sales procedures can commence after assessment requirements have been met, and sales of the commercial house in principal should be sales of the whole building or a whole floor, and the sales areas should not exceed 500 square meters should there be the need to sell in divided units. Real estate listings can commence once the recruited enterprise has settled as tenant and met the output values and tax revenue requirements in the agreement, and with the consent of the municipal and district governments and the development zone management committee.

4. Phased lowering of down payment ratio for provident fund loans. Before December 31st, 2022, the minimum down payment ratio of employees applying for personal housing provident fund for the first time shall not be less than 20%; and down payment ratio shall not be less than 30% for second application of personal housing provident fund.

5. Reducing personal housing financial/cost burden. Support the Chang Chun Housing Provident Fund Management Center and commercial banks to appropriately increase the issuance of personal housing mortgage loans. Encourage commercial banks to provide more favorable housing loan interest rates for households in accordance with the principles of legal compliance, controllable risks and sustainable business.

For families who are already owners of one house and have paid off the purchase loan, the banking and financial institutions will abide by the first-home loan policy when such families apply for a new loan to buy a second house for the purpose of improving living conditions. Before December 31st, 2022, for second-time applicants of personal housing provident fund, the Chang Chun Housing Provident Fund Management Center will apply the same interest rate as first-time personal housing provident fund personal loan currently in effect during the time of application.

6. Support policies on provident fund deferred deposit and payment, and extension of bank loan repayment. Encourage the Chang Chun Housing Provident Fund Management Center and commercial banks to allow those units, employees and individuals who can't properly deposit and repay their housing loans due to COVID-19 infection or participation in disease prevention and control efforts to defer their deposit and payment until September 30th, 2022. During this period, the permitted deferred deposit will not be submitted to credit investigation department as overdue payment, and such records submitted shall be rectified.

7. Pursue the implementation of flexible housing provident fund combination loan model. Provident fund, commercial portfolio fund and combined family housing provident fund may be used for purchasing individual housing by loan. Parents, children and spouse are inclusive in the house-purchasing family members, and combined family housing loan only allows joint repayment by two persons. The policy implementation deadline will be extended from June 30th, 2022 to December 31st, 2022.

Take full advantage of the provident fund and commercial portfolio loan policy, and enable provident fund loan to provide addition support should commercial banks loan interest rate drop significantly.

8. Enhance financial support for real estate enterprises. Encourage commercial banks to explore a credit model that appropriately separates project financing from the overall situation of enterprises on the basis of compliance with laws and regulations and controllable risks; and implement closed-system management of credit projects and provide financing support for high-quality real estate development projects.

Encourage commercial banks to give priority to supporting real estate projects under construction on the basis of legal compliance and controllable risks; ensure the smooth completion of projects and guarantee sufficient investment (including project financing), refrain from using sales to make up for construction costs, and prevent malignant project debts from taking shape. Motivate commercial banks to innovate credit products such as “factory loan” and “property-backed loan” to support enterprise financing of fixed assets. Small and micro enterprises (including individual industrial and commercial businesses) applying for commercial housing mortgage loans and plant mortgage loans shall be contingent on financial support policies for small and micro enterprises, and encourage those meeting the conditions to apply for policy support of start-up guaranteed loans.

Encourage commercial banks to explore the issuance of real estate investment trusts funds (REITs) products, assist real estate enterprises to revitalize their existing assets and expand diversified financial channels, and present appropriate rewards to commercial banks that successfully issue the first such product in our city.

9. Efforts should be stepped up to finance the contractors. Commercial banks are encouraged to address the contractor’s understandable legal loan needs while keeping risk controllable. The bank should supervise the using of the loans in a closer way while issuing the performance bond more quickly within the legal framework so the contractor can be relieved from liquidity stress.

In order to quicken the resumption of the project, the developer and the contractor can conclude an agreement on collateralizing the project and its ownership in exchange for a bank loan, i.e. the project under construction is pledged to the bank for a loan solely used to resume construction.

10. Housing subsidies should be provided as always to the buyers according to the Notice regarding Providing Talent and Rural Buyers of Urban Housing in Changchun with Housing Subsidies and Coupons (No.: CFBMD202125H) and the Notice regarding Shifts in Housing Subsidies for Talent and Rural Buyers of Urban Housing in Changchun (No.: CFBMD202142H). Freshly graduated university students, talent choosing to work in Changchun and rural buyers of urban housing are entitled to housing subsidies. The bank can try using the housing subsidy as part of the installments for a home mortgage to create an environment to retain talent.

11. Tax reduction policy is supported. If the developer suffers heavy losses that severely hit its business operations and activities, or does have difficulty paying property tax or land use change tax (LUCT) because of the Covid crisis, property tax and LUCT reduction or rebates will be provided. If the developer qualifies for a tax reduction, credit or privilege, it can file for such privileges in the tax return.

If the landlord does have difficulty paying property tax and LUCT because of a rent loss from the Covid crisis, he or she can apply for reduction or exemption according to Article 2 of the Notice regarding Property Tax and LUCT Reduction and Rebates (No.: JCGG202214H), jointly released by the Jilin Department of Finance and the Jilin Tax Service of Property.

12. Presale home deposit supervision policy can be shifted. A qualified commercial bank is permitted to issue a performance bond to the developer instead of the home deposit. As for the real property under construction in 2022, the developer can file for payment out of the balance of the deposit account to resume the project. The developer must transfer any subsequent home sale income to the bank to fill the gap.

13. As part of the project, basements and car spaces can be sold to homeowners. If a homeowner desiring a basement or car space of a state-owned nature has got the certificate of property, he or she can apply for a mortgage. The homeowner can apply to register himself or herself as the owner of the basement or clearly-delimited car space, depending on urban planning or air defense requirements.

14. Restraints on property collateralization can be eased. According to the Notice regarding the Collateralization of Real Property under Construction and regarding the Presale of Homes, jointly issued by the Changchun Bureau of Housing and Property Development and the Changchun Bureau of Urban Planning and Natural Resources (No.: CFLZ20215H), first-time registered housing properties for sale can be collateralized in exchange for a loan used for project construction as a priority. The developer may re-register its self-owned properties as housing properties for sale when the sale limitation period expires or the properties are released as collateral.

15. Lump-sum payments for the reserve fund for property maintenance must be deferred as always. Accordingly to the Notice regarding the Deferment of Lump-sum Payments for the Reserve Fund for Property Maintenance, released by the Changchun Bureau of Housing and Property Development on August 30, 2021, the lump-sum payments must be deferred to December 31, 2022.

16. Online property transactions are encouraged. Online property transaction platforms can be established when appropriate to encourage the active participation of developers, financial institutions, media and individual media. There should be policy support and increasing media coverage to meet more fundamental demand for housing and improve housing services.

17. Efforts should be stepped up to construct supporting public service facilities. The government agency should quickly release the information about such public service facilities near the project as schools and hospitals, specifying the progress schedule and dates of completion and commissioning. Efforts should be stepped up to build public service facilities for projects not yet commenced or under construction so the contractor can ensure handovers according to schedule.

18. The parties must have their legal benefits protected. If an act of God arising from the Covid crisis precludes the contractor from commencing or recommencing the project, the contractor can negotiate with the developer on postponing the commencement or recommencement or specifying an appropriate date. If the developer can’t hand over the property to the homeowner as scheduled, it must issue a notice promptly and negotiate an appropriately later date with the homeowner. The parties should negotiate specific articles in detail.

19. Market regulation must be tightened. Homes are for inhabitants and not for flippers. The cardinal guiding principle is stabilizing land price, home price and market anticipation. Consistent efforts must be made to regulate the market. Regulation must be tightened for property development, transaction, rental and property management services to meet buyers’ demand.

20. Online market information must be subject to tight regulation. A sound online media supervision mechanism must be available to promote quick, correct understanding of policies, respond actively to buyers’ concerns, prevent releases of misinformation online and facilitate rational public opinion. Market disruption attempts such as release of misinformation, intentional hype or incitement of panic, and misrepresentation of market forecasts must be penalized stringently.