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SEOUL METROPOLITAN GOVERNMENT ORDINANCE ON SUPPORT, ETC. FOR PROMOTION OF SOCIAL HOUSING

CHAPTER I GENERAL PROVISIONS Article 1 (Purpose) The purpose of this Ordinance is to prescribe matters necessary for promoting social housing so as to improve dwelling conditions of socially and economically disadvantaged people and to foster and support social economic entities for housing.

Article 2 (Definitions) The terms used in this Ordinance shall be defined as follows: <Amended by Ordinance No. 6244, May 19, 2016; Ordinance No. 6303, Jul. 14, 2016; Ordinance No. 6597, Jul. 13, 2017>
1. The term "social housing" means rental housing units, etc. supplied by social economic entities for housing to socially and economically disadvantaged people;
2. The term "socially and economically disadvantaged people" means the following people:
(a) The vulnerable social group defined in subparagraph 2 of Article 2 of the Social Enterprise Promotion Act and Article 2 of the Enforcement Decree of said Act;
(b) Housing-disadvantaged persons defined in subparagraph 1 of Article 2 of the Act on the Support for Housing Disadvantaged Persons including Persons with Disabilities and the Aged;
(c) Residents in rental housing units owned by the State, the Seoul Metropolitan Government, Seoul Housing and Communities Corporation, or by Korea Land & Housing Corporation, among public housing units defined in subparagraph 1 of Article 2 of the Special Act on Public Housing;
(d) Non-home-owning household members entitled to occupy publicly owned rental housing units, as prescribed by other municipal ordinances or rules;
(e) Single youth households and other households determined eligible for assistance appropriate for stable dwelling conditions and that meet the criteria separately determined by the Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor");
(f) Any other persons specially recognized by the Mayor.
3. The term "social economic entities for housing" means the following:
(a) A nonprofit corporation provided for in the Civil Act;
(b) A public corporation incorporated under the Act on the Establishment and Operation of Public Interest Corporations;
(c) A cooperative, a federation of cooperatives, a social cooperative, or a federation of social cooperatives established under the Framework Act on Cooperatives;
(d) A social enterprise certified under the Social Enterprise Promotion Act;
(e) A Seoul-type social enterprise designated under the Seoul Metropolitan Government Ordinance on the Promotion of Social Enterprises;
(f) An enterprise engaging in a construction business, real estate or leasing business, or science and technology service business (limited to architectural design and any relevant service business), among small and medium enterprises provided for in the Framework Act on Small and Medium Enterprises.

Article 3 (Assistance to Social Economic Entities for Housing) The Mayor, the heads of autonomous Gus, and the President of Seoul Housing and Communities Corporation (hereinafter referred to as "Mayor and other relevant authorities") may render assistance to social economic entities for housing in the following manners, within the budget: <Amended by Ordinance No. 6303, Jul. 14, 2016>
1. Provision of funds and human resources and investment in kind;
2. Provision of the land for the construction of social housing units;
3. Management and entrustment of social housing units;
4. Loans or subsidies for security deposits, etc. for social housing units;
5. Loans or subsidies for expenses of management of social housing units;
6. Loans or subsidies for expenses of construction, reconstruction, or remodelling of social housing units;
7. Loans or subsidies for housing expenses to residents in social housing units;
8. Assistance in other matters that the Mayor deems necessary for improving dwelling conditions of socially and economically disadvantaged people.

Article 4 (Principle of Social Benefit from Assistance) (1) In principle, the Mayor and other relevant authorities shall render assistance only where social benefits, tangible or intangible, are expected from such assistance, when they invest or lend public finance or funds to social economic entities for housing, invest or provide assistance, in kind, with public assets or assets from a fund, or fully or partially exempt such entities from local taxes, etc.
(2) When the Mayor and other relevant authorities assess social benefits under paragraph (1), they may include the reduction of direct and indirect expenses of public institutions and public investment institutions at the present and for the future, out of profits attributable to project entities, the creation of jobs, ripple effects to the economy, etc. in the assessment.

Article 5 (Principle of Preservation of Public Assets) In principle, a social economic entity for housing to whom the Mayor or other relevant authority has provided public land or the land owned by a fund or any other asset for assistance in kind shall return the property in its original state to the investing authority, when the relevant project is completed or discontinued: Provided, That such property shall be returned in the state at the time of discontinuance or completion of the relevant project, if it is impracticable to restore the property to its original state, because a building or any other asset still has a depreciable or residual value.

CHAPTER II ASSISTANCE, ETC. IN PROMOTION OF SOCIAL HOUSING Article 6 (Formulation of Master Plans) (1) The Mayor shall formulate a master plan for assisting in the promotion of social housing in the Seoul Metropolitan Government (hereinafter referred to as "master plan") for every five years so as to promote the improvement of dwelling conditions of socially and economically disadvantaged people and efficient assistance to social economic entities for housing.
(2) The master plan shall stipulate the following elements:
1. The direction of policies on the improvement of dwelling conditions of socially and economically disadvantaged people and assistance to social economic entities for housing, schemes for implementing such policies, and the system for assistance;
2. Schemes to establish and operate an integrated support center of the Seoul Metropolitan Government for social housing;
3. Establishment and operation of systems for cooperation between private and public sectors, such as a social housing committee in the Seoul Metropolitan Government;
4. Search for the land to be supplied for social housing and current conditions of such land;
5. Other matters necessary for the improvement of dwelling conditions of socially and economically disadvantaged people and assistance to social economic entities for housing.
(3) When the Mayor intends to formulate a master plan, he/she shall collect residents' opinions as much as possible.
(4) When a master plan is formulated under paragraph (1), the contents thereof shall be reported to the relevant Standing Committee of the Seoul Metropolitan Council. <Amended by Ordinance No. 6597, Jul. 13, 2017>

Article 7 (Formulation and Announcement of Implementation Plans) (1) The Mayor shall formulate and execute an annual implementation plan for assisting the promotion of social housing in the Seoul Metropolitan Government (hereinafter referred to as "implementation plan") every year in accordance with the master plan under Article 6.
(2) The implementation plan shall include the following elements:
1. The direction of the implementation of relevant policies and a plan for major projects;
2. Schemes for administrative and financial assistance for implementing projects;
3. Matters concerning the criteria for eligibility for assistance, the scale of assistance, the procedure for assistance, etc.;
4. Other matters necessary for the improvement of dwelling conditions of socially and economically disadvantaged people and assistance to social economic entities for housing.
(3) When the Mayor formulates and executes an implementation plan, he/she shall ensure that the plan conforms to major policies of the Seoul Metropolitan Government.
(4) The Mayor shall publicly announce the implementation plans under paragraph (1) through the web-site of the Seoul Metropolitan Government and by other means.

Article 8 (Formulation of Urban Plans, etc. for Promotion of Social Housing) When the Mayor formulates a master urban plan under the National Land Planning and Utilization Act, a comprehensive housing plan under the Housing Act, etc., he/she shall endeavor to include schemes to promote the supply of social housing units for socially and economically disadvantaged people in such plans.

Article 9 (Preparation of Sites for Social Housing through Urban Development, etc.) (1) When formulating or rearranging any of the following plans, the Mayor shall endeavor to secure sites that can be supplied to social economic entities for housing: <Amended by Ordinance No. 6597, Jul. 13, 2017>
1. An urban development plan formulated under the Urban Development Act;
2. A rearrangement plan formulated under the Act on the Improvement of Urban Areas and Residential Environments;
3. An urban renewal acceleration plan formulated under the Special Act on the Promotion of Urban Renewal;
4. A strategic urban regeneration plan or a plan to promote urban regeneration formulated under the Special Act on Promotion of and Support for Urban Regeneration.
(2) The Mayor may lease the land alloted in recompense for development outlay in urban development districts, to social economic entities for housing in accordance with the criteria established under relevant regulations and municipal ordinances.
(3) The Mayor may lease land, which is public property, to a social economic entity for housing which implements a joint project with the Mayor and other relevant authority pursuant to Article 10; and the lease rate may exceed 10/1,000, notwithstanding Article 26 (1) of the Seoul Metropolitan Government Ordinance on Public Property and Commodity Management. <Amended by Ordinance No. 6779, Jan. 4, 2018>

Article 9-2 (Relaxation of Standards for Installing Parking Lots) Where a social economic entity for housing supplies social housing units, it shall install a parking lot pursuant to Article 27 of the Regulations on Standards, etc. for Housing Construction: Provided, That the following relaxed standards for installing parking lots may apply to studio-type housing specified in Article 10 (1) 1 of the Enforcement Decree of the Housing Act:
1. Area for exclusive use of 30 square meters or less: 0.35 car per household;
2. Area for exclusive use of more than 30 and less than 50 square meters: 0.4 car per household.
[This Article Newly Inserted by Ordinance No. 6597, Jul. 13, 2017]

CHAPTER III IMPLEMENTATION OF JOINT PROJECTS BY MAYOR AND RELEVANT AUTHORITIES Article 10 (Implementation of Joint Projects by Mayor and Relevant Authorities) The Mayor or other relevant authority may jointly implement a housing project, such as a project for leasing or management of housing units, with social economic entities for housing by investing capital in cash or in kind or providing human resources.

Article 11 (Procedure for Implementation of Joint Projects, etc.) (1) If a social economic entity for housing wishes to jointly implement a project under Article 10, it shall submit a project proposal, stating the following matters therein, to the Mayor or other relevant authority:
1. The prospective project site;
2. Objectives of the project and subject matters of the policy;
3. Details of the project;
4. Management plans, including a financing plan;
5. Matters for which assistance from the Mayor or other joint project implementer is required and allocation of work duties, expenses, and responsibilities between joint project implementers;
6. Social benefits expected from the project.
(2) Upon receipt of a project proposal under paragraph (1), the Mayor or other relevant authority shall decide whether to jointly implement a project after hearing opinions from the integrated support center of the Seoul Metropolitan Government for social housing and other related agencies. In such cases, necessary matters, such as the procedure and method for decision-making, shall be determined by the Mayor.
(3) Joint project entities may be changed or added by an agreement between project entities in the course of hearing and reviewing opinions under paragraph (2).
(4) A joint project selected under paragraph (2) shall be implemented under an agreement made between project entities. In such cases, a special-purpose corporation may be established under an agreement between project entities.

Article 11-2 (Evaluation, etc. of Joint Projects) (1) A social economic entity for housing which implements a joint project pursuant to Article 11, shall faithfully implement matters mutually agreed upon; and the Mayor shall evaluate the status of operation and management of social housing annually.
(2) The Mayor may entrust the evaluation to be conducted under paragraph (1), to a specialized evaluation institution; and shall make public the results of evaluation on the website of the Seoul Metropolitan Government.
(3) The Mayor may additionally subsidize expenses incurred in supplying and operating social housing, for a social economic entity for housing which has received an outstanding evaluation.
[This Article Newly Inserted by Ordinance No. 6597, Jul. 13, 2017]

Article 12 (Application Mutatis Mutandis of Relevant Statutes) Except as otherwise provided for in this Ordinance, the Civil Act and other relevant statutes shall apply mutatis mutandis to the agreement and establishment of a special-purpose corporation under Article 11 (4).

CHAPTER IV UTILIZATION OF PUBLIC RENTAL HOUSING, ETC. AS SOCIAL HOUSING Article 13 (Utilization of Public Rental Housing, etc. as Social Housing) (1) The Mayor or other relevant authority may entrust the management of housing units owned by the relevant local government or any of its affiliate agencies, to social economic entities for housing which meet the qualifications under Article 7 of the Special Act on Private Rental Housing. <Amended by Ordinance No. 6597, Jul. 13, 2017>
(2) The management under paragraph (1) shall be entrusted under an agreement with the Mayor or other relevant authority and a social economic entity for housing, and the Housing Act and other relevant statutes shall apply to relevant matters, except as otherwise provided for in this Ordinance.
(3) A social economic entity for housing and eligible for an agreement under paragraph (2) shall be selected from among the proposers.
(4) A proposer referred to in paragraph (3) shall make a project plan referred to in Article 11 (1) and submit the plan to the Mayor or other relevant authority, and Article 11 (2) through (4) shall apply mutatis mutandis to the hearing of opinions on the project plan submitted and the decision-making on whether to implement the project.

Article 14 (Subsidization for Expenses of Management of Public Rental Housing Utilized as Social Housing) If unexpected expenses are incurred in maintaining and repairing public rental housing managed by a social economic entity for housing, the Mayor or other relevant authority may subsidize the social economic entity for part of such expenses, within the budget.

Article 15 (Utilization of Private Houses, etc. as Social Housing Units) If a social economic entity for housing intends to lease or purchase a third party's house to utilize it as a social housing unit, the Mayor or other relevant authority may grant a loan or subsidy to the social economic entity in any of the following manners, within the budget: <Amended by Ordinance No. 6597, Jul. 13, 2017; Ordinance No. 6899, Jul. 19, 2018>
1. Lending a loan for expenses incurred in leasing or purchasing the house from the third party, from the social investment fund established under the Seoul Metropolitan Government Ordinance on Establishment and Management of the Social Investment Fund, or from the urban regeneration fund established under the Seoul Metropolitan Government Ordinance on Establishment and Management of the Urban Regeneration Fund;
2. Lending a loan or granting a subsidy for the security deposit and rents payable by the occupant of the house, from the social welfare fund raised under the Seoul Metropolitan Government Ordinance on Social Welfare Fund;
3. Lending a loan or granting a subsidy for expenses, etc. incurred in remodelling the house, from the social investment fund established under the Seoul Metropolitan Government Ordinance on Establishment and Management of the Social Investment Fund, or from the urban regeneration fund established under the Seoul Metropolitan Government Ordinance on Establishment and Management of the Urban Regeneration Fund;
4. Lending a loan or granting a subsidy for expenses, etc. incurred in managing the house within an area for a management-oriented residential environment improvement project, from the fund for improvement of urban dwelling conditions under the Seoul Metropolitan Government Ordinance on the Special Account for Housing Projects.

CHAPTER V SOCIAL HOUSING COMMITTEE OF SEOUL METROPOLITAN GOVERNMENT Article 16 (Establishment and Functions of Committee) (1) "The Social Housing Committee of the Seoul Metropolitan Government" (hereinafter referred to as the "Committee") may be established in order to deliberate on policies and projects for the improvement of dwelling conditions of socially and economically disadvantaged people and assistance to social economic entities for housing.
(2) The Committee shall deliberate on the following matters:
1. Formulation of master plans and implementation plans;
2. Formulation of annual business plans of the integrated support center for social housing;
3. Entrustment (including renewal of a contract) and operation of the integrated support center for social housing;
4. Other matters that the Mayor deems necessary for supporting social economic entities for housing and socially and economically disadvantaged people for dwelling.

Article 17 (Composition of Committee) (1) The Committee shall be composed of not more than 20 members, including one chairperson and one vice chairperson.
(2) The Vice Mayor II for Administrative Affairs shall serve as chairperson, and the vice chairperson shall be elected by and from among committee members.
(3) Committee members shall comprise ex officio members and commissioned members.
(4) Ex officio members shall comprise Directors-General of the offices and bureaus in charge of innovation, urban affairs, housing, economy, and welfare, public officials at the rank of Director-General and in charge of the management of public enterprises and the examination of investments, standing directors of Seoul Housing and Communities Corporation, the head of the support center for village communities, the head of the support center for social economy, and the head of the Youth Hub. <Amended by Ordinance No. 6303, Jul. 14, 2016>
(5) Commissioned members shall be commissioned by the Mayor, from among the following persons:
1. Two members of the Seoul Metropolitan Council;
2. Persons who have experience as an executive officer or employee of a nonprofit non-governmental organization for housing;
3. Persons who have experience as an associate or higher-ranking professor or with an equivalent position in a university or a public research institute in a field related to housing;
4. Persons who have experience and knowledge about nonprofit projects for housing.
(6) The Committee shall have an executive secretary who shall carry out administrative affairs of the Committee, and the Director of the Housing Policy Division shall serve as executive secretary.

Article 18 (Term of Office of Committee Members) (1) The term of office of each ex officio member shall correspond to the period during which he/she holds the relevant position.
(2) The term of office of each commissioned member shall be three years but may be renewed only once: Provided, That the term of office of a new member commissioned to fill a vacancy shall correspond to the remaining term of office of his/her predecessor. <Amended by Ordinance No. 6386, Jan. 5, 2017>

Article 19 (Duties, etc. of Chairperson) (1) The chairperson shall represent the Committee and administer all business affairs of the Committee.
(2) The vice chairperson shall assist the chairperson and shall act on behalf of the chairperson, if the chairperson is unable to perform his/her duties due to an unavoidable cause or event.

Article 20 (Meetings, etc.) (1) Meetings of the Committee shall be divided into regular meetings and special meetings, and regular meetings shall be held twice a year, and special meetings shall be convened in any of the following cases:
1. When the Mayor calls for a meeting;
2. When at least one-third of current committee members call for a meeting;
3. When the chairperson deems it necessary to call for a meeting on any ground.
(2) A meeting shall be duly formed with the attendance of the majority of current committee members, and a resolution shall be adopted by affirmative votes of the majority of the members present at the meeting.

Article 21 (Hearing of Opinions, etc.) When the Committee deems it necessary for an item on the agenda for deliberation, it may summon relevant public officials, experts, and residents to hear their opinions or may request them to make an explanation or to submit documents.

Article 22 (Minutes of Meeting) The executive secretary of the Committee shall take and keep minutes of each meeting.

Article 23 (Allowances) Allowances and travel expenses may be paid to committee members, experts, and other persons who attend a committee meeting, except public officials who attend the meeting as a committee member, within the budget.

CHAPTER VI INTEGRATED SUPPORT CENTER OF SEOUL METROPOLITAN GOVERNMENT FOR SOCIAL HOUSING, ETC. Article 24 (Establishment of Integrated Support Center) The Mayor may establish an integrated support center of the Seoul Metropolitan Government for social housing (hereinafter referred to as the "Integrated Support Center") in order to systematically execute the improvement of dwelling conditions of socially and economically disadvantaged people and assistance to social economic entities engaging in housing and to promote social housing.

Article 25 (Functions of Integrated Support Center) The Integrated Support Center shall perform the following functions:
1. Formulation and execution of business plans for the Integrated Support Center;
2. Surveys of actual dwelling conditions of socially and economically disadvantaged people;
3. Surveys and management of resources for improving dwelling conditions of socially and economically disadvantaged people, such as available houses and building sites;
4. Surveys of current status of social economic entities for housing and search for, and fostering of, such social economic entities;
5. Assistance to social economic entities for housing in formulating, executing, and evaluating plans for support projects;
6. Networking of social economic entities for housing and socially and economically disadvantaged people;
7. Other functions that the Mayor deems necessary.

Article 26 (Management and Operation of Integrated Support Center) (1) To efficiently operate the Integrated Support Center, the Mayor may entrust the operation of the center to a housing-related corporation, organization, etc. which meet the criteria determined by the Seoul Housing and Communities Corporation or the Mayor, in accordance with the Seoul Metropolitan Government Ordinance on Entrustment of Administrative Affairs to the Private Sector. <Amended by Ordinance No. 6597, Jul. 13, 2017>
(2) Where deemed necessary for efficient operation of the Integrated Support Center, the Mayor may dispatch public officials under his/her jurisdiction to the center in accordance with Article 30-4 of the Local Public Officials Act. <Amended by Ordinance No. 6386, Jan. 5, 2017; Ordinance No. 6597, Jul. 13, 2017>

Article 27 (Guidance and Supervision over Operation of Integrated Support Center) (1) The Mayor may require the entrusted institution to report necessary matters related to performance of entrusted administrative functions or may inspect documents, facilities, etc., as necessary for guidance and supervision over entrusted administrative functions.
(2) If the Mayor finds as a result of the inspection under paragraph (1) that entrusted functions have been performed unlawfully or unreasonably, he/she may take necessary measures.
(3) When the Mayor intends to take a measure under paragraph (2), he/she shall notify the entrusted institution of his/her intention, in writing, and shall give the entrusted institution an opportunity to make statements thereon in advance.

Article 28 (Cancellation, etc. of Entrustment Contract) (1) In either of the following cases, the Mayor may cancel the entrustment contract made with an entrusted institution:
1. If the entrusted institution violates any statute or municipal ordinance;
2. If the entrusted institution breaches the entrustment contract.
(2) When the Mayor intends to cancel an entrustment contract under paragraph (1), he/she shall give the entrusted institution an opportunity to make statements thereon in advance.
(3) When an entrustment contract is cancelled under paragraph (1), the entrusted institution shall return entrusted facilities, accumulated intellectual property, etc. without delay.

Article 29 (Enforcement Rule) Matters necessary for the enforcement of this Ordinance shall be prescribed by rule.

ADDENDUM
This Ordinance shall enter into force on the date of its promulgation.
ADDENDUM <Ordinance No. 6244, May 19, 2016>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDA <Ordinance No. 6303, Jul. 14, 2016>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Articles 2 and 3 Omitted.
ADDENDUM <Ordinance No. 6386, Jan. 5, 2017>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDUM <Ordinance No. 6597, Jul. 13, 2017>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDUM <Ordinance No. 6779, Jan. 4, 2018>
This Ordinance shall enter into force on the date of its promulgation.
ADDENDA <Ordinance No. 6899, Jul. 19, 2018>
Article 1 (Enforcement Date)
This Ordinance shall enter into force on the date of its promulgation.
Articles 2 through 35 Omitted.