Funding guaranteed for affordable housing

The Ministry of Finance on Monday released a series of measures in an effort to guarantee funding for affordable housing projects in 2012.

To broaden the source of funding, income of bonds issued by local government, as well as pilot property taxes, was urged to be focused towards affordable housing projects, the ministry said.

Local governments are encouraged to make appropriate arrangements in their fiscal budget to support renovation of shantytowns, and allocate funds to improve the supporting facilities around affordable housing communities.

Such projects will also receive discount on loans from commercial banks, with a degree of 2 percentage points, and a maximum period of 15 years, the ministry said.

There will be 7 million units of affordable housing starting construction in 2012, and another 4 million to see completion. The 2012 target is much lower than the 2011 goal of 10 million units.