The Municipality revised policies on housing provident fund withdrawal due to housing rent and property service charges payment of late in wake of review and approval of 43rd Plenary Congress of Housing Provident Fund Management Committee of Shanghai Municipality. The revised versions of Measures of Shanghai Municipality on Implementation of Housing Provident Fund Withdrawal due to Housing Rent Payment and Measures of Shanghai Municipality on Implementation of Housing Provident Fund Withdrawal of Low-Income and Impoverished Families due to Property Service Charges Payment shall become effective as of October 1.
The Municipality spearheaded development and implementation of housing provident fund systems across the country commencing in 1991. Over the last twenty odd years, housing provident fund systems have made a positive contribution to improving housing conditions of the citizens as well as boosting housing system reform and property market development under correct leadership of the municipal government.
The guiding philosophy for altering policies on withdrawal due to housing rent and property service charges payment is to proactively implement the resolutions of the Third Plenary Session of the Eighteenth Committee of the CPC on streamlining housing provident fund withdrawal, use and supervision mechanism and further improving functionality of housing provident fund systems by appropriately relaxing eligibility criteria for housing provident fund withdrawal, increasing withdrawal quota and facilitating withdrawal process in a bid to alleviate burden on housing expenses of employee households and expand housing provident fund system coverage for livelihood improvement.
The changes in the policies mainly comprise the following:
1. Adjusted withdrawal scope and criteria
(1) Withdrawal due to rent payment: The prevailing three-tier rent-related withdrawal policies in regard of low-income rental housing, public rental housing and commercial housing shall be adjusted for integration of low-income rental housing across the country into public rental housing as of 2014 in accordance with relevant state regulations. Therefore, the scope and criteria for withdrawal shall be updated as follows: 1) The same amount of housing provident fund as the household’s monthly housing rent can be withdrawn by a lessee of security housing (such as low-income rental housing and public rental housing) acknowledged by the government; 2) A lessee of any other housing (such as commercial housing and self-owned subsidized public housing) within this Municipality may withdraw a sum of housing provident fund up to 2000 yuan instead of 1000 yuan per month.
(2) Withdrawal due to property service charges payment: As per current policies on withdrawal due to property service charges payment, two types of households are eligible: one is households residing in joint-ownership housing; the other is the impoverished households residing in self-owned housing with a monthly income lower than the minimum salary standard of the year (1820 yuan per month for 2014). The scope after adjustment shall cover households residing in joint-ownership housing, and also households residing in self-owned housing with the applicant’s monthly salary being not higher than the per capita disposable income threshold for families (with a size of 3 or more people) eligible for joint-ownership security housing of the year in the Municipality. With the new criteria, withdrawal shall be limited to no more than 300 yuan per month instead of the previous 50% of the household’s monthly property service charges at maximum.
2. Streamlined withdrawal review process
(1) Simplified employee salary ratification method. SPF Center shall review and ratify eligibility for withdrawal according to salary calculation based on provident fund payment base without requiring supporting documents such as a salary slip any more to further streamline withdrawal review procedures.
(2) Simplified housing tenantry authentication method. Current method for withdrawal related tenantry authentication is complex, which requires submission of documents such as the lease contract. The newly revised policies require the lessor’s tax payment certificate or supporting documents for legitimate housing tenantry to be checked and authenticated by SPF Center via the access to the information system of the tax authority of the Municipality.
3. Improved withdrawal payment method
(1) Tenantry withdrawal shall phase in a rent repayment linked with hpf savings account approach by entrusting SPF Center to process rent repayment oriented hpf savings withdrawal on a monthly basis (similar to the loan repayment oriented hpf withdrawal processing) after review and approval. The application has been developed for trial implementation for low-income rental housing and public rental housing of the Municipality, and shall be improved and adapted to other rental housing related withdrawal practices.
(2) Property service charges payment related withdrawal shall be processed by account transfer mainly through the consolidated property service charges payment platform of the municipal housing security bureau by entrusting SPF Center to process transferring the amount of hpf withdrawal to the property service charges payment platform after review and approval, whereas the latter shall verify information about the property service company and transfer it to the account of the company. Those applicants having paid the property service charges in cash in advance may proceed to handle hpf withdrawal thereof afterwards by submitting the tax control invoice.
SPF Center is currently deliberating and instituting relevant operational instructions for Measures of Shanghai Municipality on Implementation of Housing Provident Fund Withdrawal due to Housing Rent Payment and Measures of Shanghai Municipality on Implementation of Housing Provident Fund Withdrawal of Low-Income and Impoverished Families due to Property Service Charges Payment, and shall release them to the public prior to policy implementation as scheduled.
Appendix 1
Old versus New: Measures for Withdrawal due to Housing Rent Payment
Items | New Measures | Old Measures |
Scope | 1) lessees of security housing ratified by the government (incl.:low-income rental housing and public rental housing); 2) lessees of other types of housing (incl.: commercial housing, self-owned subsidized public housing) with monthly rent exceeding 20% of the monthly income of the family | 1) lessees of low-income rental housing; 2) lessees of security rental housing ratified by the government (incl.:public rental housing and affordable rental housing), with monthly rent exceeding 20% of the monthly income of the family; 3) lessees of commercial housing, with monthly rent exceeding 20% of the monthly income of the family |
Limit | 1) lessees of security housing, as per actual monthly rent payment; 2) lessees of other types of housing, as per the monthly rent deducting 20% of the monthly income of the family, not exceeding 2000 yuan per month | 1) For lessees of low-income rental housing, not exceeding the differential between the monthly rent and the subsidy for the lessee of low-income rental housing; 2) For lessees of security rental housing ratified by the government, not exceeding the differential between the monthly rent deducting 20% of the monthly family income and the rent subsidy from the corresponding unit; 3) For lessees of commercial housing, not exceeding the monthly rent deducting 20% of the monthly family income, 1000 yuan per month at maximum |
Means of Payment | Transfer in general. Those eligible may adopt entrusted deduction. Withdrawal procedures to be handled at CCB’s provident fund service outlets after approval by the management division. | Generally in cash or transfer. |
Appendix 2
Old versus New: Measures for Withdrawal due to Property Service Charges Payment
Items | New Measures | Old Measures |
Scope | 1) Purchasers of joint-ownership security housign (affordable housing ratified by the government); 2) Families residing in self-owned housing with the applicant’s monthly salary being not higher than the per capita disposable income threshold for families (with a size of 3 or more people) eligible for joint-ownership security housing of the year in the Municipality | 1) Purchasers of joint-ownership security housing (affordable housing); 2) Residents of self-owned housing classified as impoverished families whose monthly income is lower than the minimum monthly salary standard of the year |
Limit | 1) For purchasers of joint-ownership security housing (affordable housing), as per the actual monthly property service charges; 2) Families residing in self-owned housing with the applicant’s monthly salary being not higher than the per capita disposable income threshold for families (with a size of 3 or more people) eligible for joint-ownership security housing of the year in the Municipality, as per actual property service charges payment of the month, 300 yuan per month at maximum | Not exceeding 50% of the actual monthly property service charges |
Means of Payment | By account transfer mainly through the consolidated property service charges payment platform of the municipal housing security bureau by entrusting SPF Center | By means of transfer in principle |
