The Council for Economic Planning and Development, delivering on an ROC government commitment to promote housing equality, approved an NT$45 billion (US$1.55 billion) four-year program Sept. 5 aimed at assisting low-income families in Taiwan.
Under the Ministry of Interior plan, rent and mortgage interest subsidies will be available to 63,000 and 35,000 households respectively. The measure will begin next year and is capped at NT$36 billion for the duration of the program.
In addition, around 3,900 and 5,000 affordable homes will be constructed in New Taipei City’s Linkou and Banqiao districts, while 1,600 social housing dwellings are to be created in five locations across greater Taipei.
Other measures include establishing a real estate transaction reporting and publishing mechanism; formulating minimum living standards; inspecting and promoting the renovation of older residential buildings; and creating special accommodation for senior citizens.
A suggestion made to the CEPD by city officials from Kaohsiung, New Taipei, Taichung, Tainan and Taipei would see the central government offer tax credits to owners renting their apartments to households receiving subsidies.
The officials said many landlords refuse to rent their properties to low-income families because they do not want to disclose the income on their tax returns. The CEPD said it will raise the matter with the MOI and see what can be done to free up more rental properties for disadvantaged households.
In response to the MOI plan, scholars said subsidies are not the answer to skyrocketing real estate prices.
Chang Chin-oh, professor of land economics at Taipei-based National Chengchi University, said the MOI program will not reduce the number of empty houses in Taiwan.
Echoing Chang’s position, Chuang Men-han, an associate professor in industrial economics at New Taipei City-based Tamkang University, said the only way forward is levying higher taxes as a way of driving up investor holding costs. (JSM)
Write to Meg Chang at meg.chang@mail.gio.gov.tw