On July 10, the General Office of the State Council issued the “Guidelines on comprehensively promoting the renovation of old urban residential areas”. These guidelines aim to incorporate local participation to adjust residents’ needs and call for a diversity in measures to adjust them to local needs. In addition, historical heritage sites will be preserved through the measures stipulated in the Guidelines.
The guidelines aim at older structures, which in the most newly built-up areas of Chinese cities refer to buildings constructed before the year 2000. Those communities have often suffered under a lack of maintenance and frequently do not receive the services and infrastructure incorporated into areas constructed after the turn of the millennium.
According to the guidelines target projects can be classified into three categories:
- Basic level: In order to meet the security and living demands of residents, municipal infrastructure should be upgraded Repairs in roofing, exterior walls, and staircases of buildings are also needed.
- Mid-level: This level mainly involves the renovation and construction of environmental facilities, focusing on energy-saving measures. In addition, the green environment and the lighting environment should be improved.
- Advanced level: To improve the living standards for the residents, more community services should be provided. Among others kindergartens, nursing homes, and convenience stores are included in this category..
Renovation’ costs should be partly allocated to the beneficiaries, meaning both private and public owners of the buildings. While the national government will support the measures with financial subsidies, local governments will be allowed to issue special bonds to finance the measures. To prevent the hidden debt issue, financing through the market is preferred where possible.