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THE RULES OF OPERATION AND MANAGEMENT OF PUBLIC RENTAL HOUSES OF SEOUL METROPOLITAN CITY

Article 1 (Purpose) The purpose of this Rule is to provide for matters necessary for the selection of persons eligible for occupation of houses which have periods of obligatory rental under the Special Act on Public Housing as houses which are constructed with financial support from the State or Seoul Metropolitan City or from the Housing and Urban Fund or houses which are purchased by the finance of Seoul Metropolitan City and used for rental, and matters necessary for the efficient operation and management of such houses in order to contribute to the residential stability of low-income class and to the improvement of housing welfare of occupants. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>

Article 2 (Definitions) The terms used in this Rule shall be defined as follows:
1. The term "public rental house" means any of the following rental houses, among houses constructed with financial support from the State or the Seoul Metropolitan Government (hereinafter referred to as the "Seoul Government") or from the Housing and Urban Fund or houses purchased by the finance of the Seoul Government:
(a) Permanent rental house: A rental house constructed for the purpose of permanent rental under the Special Act on Public Housing and supplied under Article 14 of the Enforcement Rule of the same Act;
(b) National rental house: A rental house constructed under the Special Act on Public Housing and supplied under Article 15 of the Enforcement Rule of the same Act;
(c) Happy house: A rental house constructed under the Special Act on Public Housing and supplied under Article 17 of the Enforcement Rule of the same Act;
(d) Rental house supplied by purchasing existing houses: A rental house Seoul Housing and Communities Corporation supplies by purchasing existing houses, such as multi-family houses, pursuant to the Special Act on Public Housing;
(e) Re-development rental house or housing environment rental house: A rental house constructed or purchased under the Act on the Improvement of Urban Areas and Residential Environments or the Seoul Special Metropolitan Government Ordinance on the Maintenance and Improvement of Urban Areas and Dwelling Conditions for Residents, to be supplied to tenants, etc. who live in maintenance and improvement business zones;
2. The term "managing entity" means Seoul Housing and Communities Corporation, etc. which operate and manage (including entrusted operation and management) public rental houses;
3. The term "occupant" means the tenant who concludes a housing rental contract for a public rental house and any member of the relevant household;
4. The term "unoccupied house" means a house which is purchased or has obtained authorization for completion of construction (including approval for use) but for which no application for occupation is filed after a notice of invitation of occupants is made; or a house for which no supply plan is additionally formulated under the circumstances where no person eligible for occupation is selected after the occupant evacuates.
[This Article Wholly Amended by Rule No. 4189, Oct. 12, 2017]

Article 3 (Objects of Application) This Rule shall apply to the following cases: <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
1. Public rental houses owned and managed by the Seoul Government or Seoul Housing and Communities Corporation;
2. Matters delegated to the Seoul Government by fixing a scope, such as the duty to select occupants of public rental houses under the jurisdiction of Korea Land and Housing Corporation.

Article 4 (Selection of Occupants) (1) Article 14 (1) through (3) of the Enforcement Rule of the Special Act on Public Housing shall apply to persons eligible for permanent rental houses supplied, as well as to ranks of occupants selected. In such cases, where competition occurs in the same rank (including where occupants must be selected by drawing lots), occupants shall be selected in the order of points specified in attached Table 1, and where any applicants score the same, occupants shall be selected in the order of earlier date of moving into the Seoul Government. <Amended by Rule No. 4189, Oct. 12, 2017>
(2) through (4) Deleted. <by Rule No. 4189, Oct. 12, 2017>
(5) Where permanent rental houses become unoccupied, the managing entity shall efficiently operate such houses by inviting applicants for occupation to make such applicants move into such houses so that such houses can be smoothly supplied to persons in need of housing protection. In such cases, the managing entity may invite people including persons waiting for occupation in consideration of the state of occupation of the preceding year, etc. so as to supply in the order of selection at the time there occurs any unoccupied house.
(6) Where the managing entity invites applicants for occupation of public rental houses, among persons specified in subparagraph 1 (a) through (h) of attached Table 3 of the Enforcement Rule of the Special Act on Public Housing, the head of an autonomous Gu (hereinafter referred to as the "head of a Gu") shall actively cooperate in selecting occupants in terms of receipt of applications and submission of relevant documents. <Amended by Rule No. 4189, Oct. 12, 2017>

Article 5 (Housing Rental Contracts, etc.) (1) The managing entity shall conclude contracts, using the standard housing rental contract specified in Article 32 (1) of the Enforcement Rule of the Special Act on Public Housing. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
(2) The period of housing rental contracts for public rental houses shall be two years, and contracts shall be renewed pursuant to relevant Acts, public notices, directions, etc. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
(3) The managing entity shall conclude contracts after verifying whether persons eligible for occupation or occupants are homeowners pursuant to Article 25 (3) of the Enforcement Rule of the Special Act on Public Housing. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
(4) Where a tenant (excluding single-member householders) or a person who holds the right of representation among the remaining members of the household requests the renewal of a contract in cases where the tenant is not living in the relevant house due to a serious illness, such as dementia, the managing entity may conclude a contract in the name of the original tenant by receiving the following documents: Provided, That if a single-member householder desires to move into a public rental house after medical treatment, the managing entity may preferentially allocate a public rental house in the same housing complex: <Amended by Rule No. 3933, Oct. 17, 2013; Proviso Newly Inserted by Rule No. 3933, Oct. 17, 2013; Rule No. 4189, Oct. 12, 2017>
1. A letter of confirmation of the head of the medical institution to the effect that the tenant is currently under medical treatment or medical care and needs a medical treatment or medical care for a certain period of time in the future;
2. A letter of confirmation of the tenant to the effect that he/she will transfer his/her address to the relevant house and live in the relevant house after medical treatment or medical care (Provided, That if the tenant is unable to express his/her intention, it may be substituted by a letter of diagnosis, etc.)

Article 6 (Management, etc. of Occupants) (1) The managing entity shall formulate a plan for fact-finding surveys on occupants and regularly inspect the actual state of dwelling at least twice annually; and shall take measures, such as the cancellation of a housing rental contract, pursuant to the Special Act on Public Housing, relevant statutes, and housing rental contracts, if the managing entity discovers any violation of the Special Act on Public Housing or relevant statutes, such as underlease, loss of eligibility to live in rental houses, a breach of contract, or any violation, etc. of the Resident Registration Act and relevant statutes. <Amended by Rule No. 4189, Oct. 12, 2017>
(2) The managing entity shall verify the state of resident registrations regarding the move into and move out of the houses of occupants in consultation with the head of the competent Gu; and the head of the Gu in receipt of a request for verification shall cooperate in verifying relevant materials concerning the occupants.
(3) The managing entity shall publicize main matters necessary for the maintenance of housing rental contracts, such as standards for homelessness, income standards, and asset standards as well as matters necessary for maintaining order for community life within housing complexes to the occupants who conclude housing rental contracts. <Amended by Rule No. 4189, Oct. 12, 2017>

Article 7 (Migration of Occupants) (1) Where an occupant of a permanent rental house who falls under subparagraph 1 (a) through (h) of attached Table 3 of the Enforcement Rule of the Special Act on Public Housing (excluding persons who have lost the eligibility for occupation during dwelling) desires to move to another permanent rental house as any of the following causes arises, the managing entity may permit such movement in the order of application as far as it is possible to supply such house: <Amended by Rule No. 3933, Oct. 17, 2013; Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
1. Where an occupant desires to move to a larger house within the same housing complex as the number of family members increased more than that of the time he/she occupied the original house as a result of marriage and childbirth;
2. Where an occupant desires to move to a permanent rental house in another area for work, profession, treatment of an illness (limited to where the heads of medical institutions referred to in Article 3 of the Medical Service Act recognize that medical treatment is required for at least one year), etc.
(2) Where an occupant of a permanent rental house desires to move to another public rental house which is unoccupied, the managing entity may permit such movement in the order of application as far as it is possible to supply such house. <Amended by Rule No. 4189, Oct. 12, 2017>
(3) Where an occupant (excluding persons who have lost the eligibility for occupation during dwelling) desires to move by changing the housing type as any of the following causes arises, the managing entity may permit such movement in the order of application as far as it is possible to supply such house: <Amended by Rule No. 3933, Oct. 17, 2013; Rule No. 4189, Oct. 12, 2017>
1. Where an occupant moves to a housing type of a specific size the managing entity recognizes or below as he/she desires to move to a smaller house than the current house;
2. Where an elderly person of 65 years of age or above or a household which has reason to live in lower floors (first through third floors) due to a disability, illness, etc. desires to move to lower floors;
3. Where the managing entity recognizes that it is necessary to transfer to another house due to inevitable causes, such as a disability, illness, etc.

Article 8 (Housing Rental Deposits and Rent) (1) The managing entity shall determine housing rental deposits and rent according to the standard housing rental deposits and standard rent for rental housing publicly notified by the Minister of Land, Infrastructure and Transport. <Amended by Rule No. 4189, Oct. 12, 2017>
(2) With respect to beneficiaries under the National Basic Living Security Act and other low-income households, the managing entity may restrict the rate of raise of housing rental deposits and rent within five percent or defer the raise within the scope of two years or discount part of housing rental deposits and rent. <Amended by Rule No. 3933, Oct. 17, 2013; Rule No. 4189, Oct. 12, 2017>
(3) The managing entity may discount part of rent in consideration of the use of facilities in excess of repairing cycle, etc. <Newly Inserted by Rule No. 3933, Oct. 17, 2013>
(4) In order to induce the independence of occupants in housing and efficiently operate public rental houses, the managing entity may apply extra charges at a specific rate to housing rental deposits and rent every time contracts are renewed, for the following occupants: <Amended by Rule No. 4189, Oct. 12, 2017>
1. Where an occupant whose income is above a specific level the managing entity determines renews the contract five times or more;
2. Where an occupant agrees to the application of extra charges to rent.

Article 9 (Change of Names of Tenants) Where a person who inherits or succeeds to a right of renting requests the change of name of tenant in order to continue to live in the relevant house as the tenant of the permanent rental house is dead (including reports of disappearance) or evacuates due to marriage or divorce, the managing entity may permit such change to persons who fall under all of the following subparagraphs:
1. The spouse, lineal relatives, siblings; spouses of lineal relatives; and lineal relatives and siblings of spouse who lived together;
2. A person who falls under any of Article 31 (1) 1 through 8 of the Housing Supply Rules.

Article 10 (Cancellation, Rejection of Renewal, etc. of Housing Rental Contracts) (1) Where an occupant falls under any subparagraph of Article 47 (1) of the Enforcement Decree of the Special Act on Public Housing or any of the following cases, the managing entity may terminate or cancel a housing rental contract or may reject the renewal of a housing rental contract: <Amended by Rule No. 3933, Oct. 17, 2013; Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
1. Where an occupants falls into the grounds for the termination or cancellation of contract and rejection of renewal which are stipulated in the housing rental contract;
2. Where it is impossible to change the name of tenant to the name of any of the remaining members of household after the tenant is dead or declared missing;
3. Where the deadline for dwelling fixed under the conditions of the time of inviting applicants for occupation arrives.
(2) Any occupant for whom a housing rental contract is cancelled or the renewal thereof is rejected pursuant to paragraph (1) shall proceed with the evacuation procedures. In such cases, the managing entity may give any of the following grace periods: <Amended by Rule No. 3933, Oct. 17, 2013; Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
1. Where an occupant falls under any subparagraph (excluding subparagraphs 1, 5, and 7) of Article 47 (1) of the Enforcement Decree of the Special Act on Public Housing or paragraph (1) 1 or 3, three months from the date the relevant housing rental contract is cancelled or the renewal thereof is rejected;
2. Where an occupant of a permanent rental house falls under paragraph (1) 2, two years from the date the renewal of the relevant housing rental contract is rejected.

Article 11 (Activation of Councils of Representatives of Tenants) (1) The managing entity shall endeavor to activate the organization and operation of councils of representative of tenants and may provide support therefor.
(2) The managing entity may implement ethics education as well as education necessary for managing public rental houses and operating councils of representatives of tenants, for housing management business entities (referring to the representatives, in cases of corporations), executive officers and employees of management offices for public rental houses, and for members of the councils of representatives of tenants. <Amended by Rule No. 4189, Oct. 12, 2017>
(3) Article 17 of the Multi-Family Housing Management Act shall apply to the methods of implementing education under paragraph (2), and expenses incurred in implementing education may be subsidized. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
(4) The managing entity shall endeavor to activate the organization and operation of councils of representatives of apartment houses in purchased house and rental house-combined housing complexes, and actively participate in the decision-making process as a housing rental business operator.

Article 12 (Accumulation, etc. of Special Allowance for Repairs) (1) The managing entity shall accumulate a special allowance for repairs pursuant to Article 50-4 of the Special Act on Public Housing, and Article 57 of the Enforcement Decree of the Special Act on Public Housing shall apply to the rate of the special allowance for repairs, procedures for accumulating it, and other matters. <Amended by Rule No. 4189, Oct. 12, 2017>
(2) To appropriate for expenses incurred in replacing and repairing major facilities of public rental houses, the managing entity shall accumulate a specific amount of rent as a special allowance for repairs each month, starting from the month to which the date one year passes after the completion of construction of the public rental houses belongs, and shall deposit and manage such special allowance in a separate account opened in a financial institution. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
(3) Article 57 (2) of the Enforcement Decree of the Special Act on Public Housing and Article 29 of the Multi-Family Housing Management Act shall apply to the formulation, adjustment, etc. of long-term repair plans. <Newly Inserted by Rule No. 4189, Oct. 12, 2017>

Article 13 (Partial Subsidization of Management Expenses of Permanent Rental Housing Complexes) (1) The Mayor of the Seoul Metropolitan Government (hereinafter referred to as the "Mayor") and the managing entity (including the LH Corporation; hereafter the same shall apply in this Article) may subsidize some of the management expenses for occupants of permanent rental housing complexes under subparagraph 1 or 2 of Article 7 of the Seoul Metropolitan Government Ordinance on Support for Improving Quality of Lives of Tenants in Permanent Rental Housing. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
(2) The Mayor or the managing entity shall determine details of management expenses to be subsidized under paragraph (1), such as persons eligible for subsidization, rates of subsidization, and methods of subsidization, within budgetary limits, but the Mayor or the managing entity may set priorities in consideration of income levels, necessity of subsidization, etc. <Amended by Rule No. 4053, Oct. 22, 2015>
(3) Where the managing entity subsidizes some of the management expenses under paragraph (1), the Mayor may subsidize costs incurred therefrom within budgetary limits.

Article 14 (Support for Improvement of Housing Welfare and Independence in Housing of Occupants) (1) The Seoul Government and the managing entity may support occupants by developing policies to improve housing welfare of occupants or support occupants to enable them to become independent in housing or policies to activate communities within housing complexes. <Amended by Rule No. 4053, Oct. 22, 2015; Rule No. 4189, Oct. 12, 2017>
(2) When selecting persons eligible for support under paragraph (1), the managing entity may discriminately select such persons in consideration of the actual state of performance of obligation of tenants, a will to become independent in housing, etc. <Amended by Rule No. 4053, Oct. 22, 2015>
(3) The Seoul Government and the managing entity may place and operate specialized staff in housing complexes of which occupants have a high level of necessity of counselling on housing welfare and support for housing independence. <Amended by Rule No. 4053, Oct. 22, 2015>
(4) Where the managing entity conducts business for the improvement of housing welfare and support for housing independence of occupants under paragraphs (1) and (3), the Mayor may subsidize business costs incurred therefrom.

Article 15 (Use of Social Welfare Buildings) (1) The managing entity may have social welfare buildings among welfare facilities in public rental housing complexes used by the Mayor or the head of a Gu without compensation. <Amended by Rule No. 4189, Oct. 12, 2017>
(2) Any social welfare building used without compensation under paragraph (1) shall be operated to enhance housing welfare of occupants of the relevant housing complex; and where it is intended to entrust or re-entrust the operation of social welfare buildings, the opinions of the managing entity shall be considered at the time of selecting entrustment business entities.

Article 16 (Internal Detailed Enforcement Regulations of Person in Charge of Management) The managing entity may enact and operate its own detailed enforcement regulations for the operation and management of public rental houses within the scope of relevant Acts and this Rule and shall announce such regulations. <Amended by Rule No. 4189, Oct. 12, 2017>

- Table 1 ( Standards for Selecting Persons Eligible for Occupation of Permanent Rental Houses (related to Article 4 (1)))