Old House Reconstruction Law Revision 3: Floor area bonuses aim to boost marriage, childbirth, and social housing; real estate industry offers suggestions

Taiwan is set to significantly amend its regulations for the reconstruction and major renovation of old buildings, introducing enhanced floor area bonuses aimed at boosting the creation of housing for newlyweds and social housing units. The revisions to the "Regulations for Urban Renewal of Old and Dangerous Buildings" are designed to streamline the process and provide greater incentives for redevelopment.

Industry professionals acknowledge the appeal of these incentives, especially for redevelopment projects in Taipei and New Taipei City. However, they emphasize the critical need for a comprehensive management system for donated units. Many urban renewal projects currently opt for outright sales, while donated units for newlyweds and social housing are typically offered for rent. Establishing clear responsibilities for the management and operation of these units, along with local government guidelines for reviewing fragmented urban renewal projects, is seen as essential for successful implementation.

Concerns have been raised regarding the application of these bonuses to small building sites, which are common in old urban areas. Experts warn that extending floor area incentives to these smaller plots could lead to the construction of even thinner and taller buildings, potentially worsening existing urban aesthetics. Furthermore, the limited number of units donated from small-scale projects could result in a more scattered distribution of social housing, creating significant management challenges.

Industry representatives are urging the government to clearly differentiate the objectives of urban renewal and the reconstruction of old and dangerous buildings. They argue that social housing incentives should not be applied to small-scale old building reconstructions, as this may create more problems than it solves. The push for expedited review processes for self-initiated urban renewal projects is also highlighted as a practical step, provided these projects meet architectural design standards, to reduce administrative burdens and costs for participants.