Ministry of Housing and Urban-Rural Development: Implement 1,500 old neighborhood and factory renovation projects, support eligible projects in issuing REITs.

On October 23, the General Office of the Ministry of Housing and Urban-Rural Development and other departments issued guiding opinions on promoting the renovation and upgrading of old neighborhoods and factory areas. It was mentioned that the tasks for the renovation and upgrading of old neighborhoods and factory areas should be clarified. According to their dominant functions, old neighborhoods and factory areas can be divided into old factory areas, old commercial neighborhoods, old residential neighborhoods, old transportation hubs and surrounding neighborhoods, etc. Historical and cultural blocks and the town areas of famous historical and cultural towns can be included in the scope of old neighborhood and factory area renovation and upgrading. All localities should implement the target requirements of the "15th Five-Year Plan for Urban Renewal" and carry out in an orderly manner 1,500 major engineering projects for the renovation and upgrading of old neighborhoods and factory areas. Based on the results of urban physical examinations, neighborhoods and factory areas with aging buildings and municipal infrastructure, shortages of public services and public spaces, and functional industries and development vitality that need improvement should be taken as targets for renovation and upgrading. Taking into account factors such as functional relevance, spatial continuity, facility sharing, and implementation feasibility, the scope of renovation and upgrading and the implementation schedule should be determined in a coordinated manner and incorporated into the urban renewal implementation system. The original text is as follows: Guiding Opinions of the General Office of the Ministry of Housing and Urban-Rural Development and Other Departments on Promoting the Renovation and Upgrading of Old Neighborhoods and Factory Areas To the housing and urban-rural development departments (commissions, management committees), industry and information technology departments, finance departments (bureaus), transport departments (bureaus, commissions), commerce departments, and state-owned assets supervision departments of all provinces, autonomous regions, and municipalities directly under the Central Government; and to the housing and urban-rural development bureaus, industry and information technology bureaus, finance bureaus, transport bureaus, commerce bureaus, and state-owned assets supervision commissions of the Xinjiang Production and Construction Corps: In order to thoroughly implement the arrangements and requirements of the Party Central Committee and the State Council on continuously promoting urban renewal actions, vigorously promote functional transformation, business format upgrading, and vitality enhancement in old neighborhoods and factory areas, create a number of vibrant neighborhoods according to local conditions, and promote urban structural optimization, functional improvement, cultural continuity, and quality enhancement, the following opinions are hereby proposed: I. Clarify the tasks for the renovation and upgrading of old neighborhoods and factory areas. According to their dominant functions, old neighborhoods and factory areas can be divided into old factory areas, old commercial neighborhoods, old residential neighborhoods, old transportation hubs and surrounding neighborhoods, etc. Historical and cultural blocks and the town areas of famous historical and cultural towns can be included in the scope of old neighborhood and factory area renovation and upgrading. All localities should implement the target requirements of the "15th Five-Year Plan for Urban Renewal" and carry out in an orderly manner 1,500 major engineering projects for the renovation and upgrading of old neighborhoods and factory areas. Based on the results of urban physical examinations, neighborhoods and factory areas with aging buildings and municipal infrastructure, shortages of public services and public spaces, and functional industries and development vitality that need improvement should be taken as targets for renovation and upgrading. Taking into account factors such as functional relevance, spatial continuity, facility sharing, and implementation feasibility, the scope of renovation and upgrading and the implementation schedule should be determined in a coordinated manner and incorporated into the urban renewal implementation system. II. Promote the implementation of renovation and upgrading projects in old neighborhoods and factory areas. All localities should carry out in-depth special physical examinations, clearly understand the status of existing resources in old neighborhoods and factory areas, sort out the demands of all parties, evaluate renewal potential, and scientifically determine the objectives and tasks of renovation and upgrading. Formulate implementation plans for old neighborhood and factory area projects, clarify functional business formats, renewal methods and scale, determine operation and management models, calculate funding costs and returns, and ensure that projects can be implemented and operations are sustainable. Carry out urban design, guide and control the traffic organization, street texture, spatial scale, building height, form and appearance of old neighborhoods and factory areas, incorporate design requirements into project implementation plans, and guide high-quality renovation and upgrading. III. Promote functional transformation of old factory areas. On the basis of ensuring safety, all localities should carry out material replacement, partial additions, internal renovation, and spatial optimization of old factory buildings, simultaneously improve supporting facilities, optimize the landscape environment, and better meet the needs of industrial upgrading. Revitalize and utilize idle and inefficient factory areas, factory buildings, warehouses, and facilities, promote building function conversion and mixed use, and introduce new business formats and new scenarios such as scientific and technological research and development, commercial finance, cultural creativity, and sports and leisure, so as to stimulate the vitality of innovation and entrepreneurship. Activate and utilize industrial cultural resources with outstanding value, such as industrial heritage, and inherit and promote industrial culture. Encourage market-based renovation and upgrading of old factory areas and explore new models of long-term operation. IV. Promote business format upgrading in old commercial neighborhoods. All localities should implement the renovation and upgrading of old commercial districts, commercial streets, and commercial complexes, improve municipal infrastructure and public service facilities, add rest facilities, optimize public transport organization and slow-traffic systems, and improve the quality of consumption spaces. Optimize the architectural form of commercial neighborhoods, renovate and upgrade public spaces and landscape environments, and create diversified consumer experiences. Guide the opening of the ground floors and ancillary spaces of office buildings, improve supporting service functions such as dining, fitness, and leisure and entertainment, and enhance the comprehensive service capacity of office buildings. Promote the upgrading of commercial formats, actively develop the digital economy, the silver economy, and the nighttime economy, create neighborhood cultural brands, and meet residents' demand for experiential and immersive consumption. V. Promote quality improvement in old residential neighborhoods. All localities should consolidate the results of old residential community renovation and complete community construction, further tap the potential of existing space in the neighborhoods, supplement and improve public service facilities such as cultural activity centers, middle schools, sports venues, and domestic service outlets, add parking and charging facilities, build pocket parks, and optimize the layout of surrounding bus networks and stops according to local conditions, so as to provide residents with more complete public services. Connect slow-traffic systems such as sidewalks and non-motorized vehicle lanes between communities, coordinate the promotion of small and micro public space renovation and backstreet and alley improvement in the neighborhoods, carry out integrated child-friendly, elderly-friendly, and barrier-free facility renovation and construction, and improve the livability of old residential neighborhoods. Sort out the distinctive cultural resources of the neighborhoods, create places for cultural display, historical education, and resident interaction, and preserve the living memory of the neighborhoods. Actively revitalize idle houses, introduce diversified functions such as shared offices, innovation incubation, and consulting services, and expand "doorstep" employment space. VI. Promote the integrated development of old transportation hubs and surrounding neighborhoods. All localities should implement integrated renovation and upgrading of old railway stations, bus stations, and other transportation hub facilities and surrounding neighborhoods. By clearing traffic bottlenecks, improving passenger transport service facilities, improving functional layout, and revitalizing inefficient land, promote station-city integration and industrial upgrading. Strengthen the three-dimensional composite use of rail transit stations and surrounding areas, improve the transfer and distribution level of passenger transport hubs, accelerate the construction and renewal of housing, commerce, public facilities, etc. around stations, and promote the organic integration of rail transit and urban functions. For stations, lines, service areas, and other ancillary facilities that no longer undertake transportation functions, carry out renovation and utilization of existing buildings and site facilities according to actual conditions, introduce new functions, and help industrial upgrading and service quality improvement. VII. Strengthen the protection and utilization of historical and cultural blocks and town areas. All localities should, in accordance with the relevant requirements of protection plans for historical and cultural blocks and famous towns, carry out "micro-renewal" with a "fine embroidery" approach and continuously promote the protection and improvement of historical and cultural blocks and town areas. Protect and restore important historical axes, spatial nodes, and historical alleys in historical and cultural blocks and town areas, and continue the overall layout and historical appearance. Protect and repair historical buildings and traditional-style buildings, and promote complete-set renovation of residential historical buildings and traditional dwellings. Continue to do a good job in the renewal and renovation of municipal infrastructure in historical and cultural blocks and town areas, increase public activity venues, encourage diverse adaptive reuse of historical buildings and other existing buildings, supplement and improve public service facilities, and enhance the quality of the living environment. VIII. Improve the implementation mechanism for the renovation and upgrading of old neighborhoods and factory areas. All localities should better leverage the role of the government, carry out approval in accordance with laws and regulations, optimize approval processes, and support eligible projects in enjoying a transitional period policy of not changing the land use subject and planning conditions for a certain period, generally not exceeding 5 years in principle. If procedures for paid land use are handled upon expiration of the transitional period, leasing or negotiated transfer may be adopted. Determine the project implementation entities of neighborhood and factory area projects according to local conditions, coordinate responsibility for the formulation and implementation of project implementation plans, encourage operating entities to participate in project planning, design, and construction, and plan and promote renovation, upgrading, and operation management in an integrated manner. Build a multi-party consultation and co-governance platform, organize professional and technical forces such as responsible designers to provide technical services, guide merchants and residents to participate in design, renovation, governance, and supervision, and establish a long-term operation and maintenance management mechanism. Encourage the establishment, according to actual conditions, of implementation mechanisms for the protection of historical and cultural blocks and town areas with residents as the main body. Explore the use of platforms such as the City Information Modeling (CIM) platform to strengthen digital and intelligent management of the renovation and upgrading of old neighborhoods and factory areas, and strengthen integrated application with Building Information Modeling (BIM). IX. Establish sustainable investment and financing models. All localities should make coordinated and good use of various relevant funding resources, improve market-based investment and financing models, introduce social forces to revitalize funds, improve revitalization and utilization efficiency, support various enterprises in participating in the renovation and upgrading of old neighborhoods and factory areas, expand diversified investment and financing methods, and standardize market-based operation processes. Standardize the implementation of new mechanisms for government and social capital cooperation. Encourage all localities to explore innovative renovation and upgrading models and increase efforts to revitalize existing assets. Encourage financial institutions to provide financial support for the renovation and upgrading of old neighborhoods and factory areas in accordance with market-based and law-based principles. Support eligible projects in issuing infrastructure real estate investment trusts (REITs). In accordance with the principle that beneficiaries contribute, encourage property rights holders to carry out independent renewal. Housing and urban-rural development departments in all localities should fully understand the important role of old neighborhood and factory area renovation and upgrading in reshaping functional spaces, rebuilding industrial ecosystems, creating consumption scenarios, and expanding effective investment. They should fully leverage the role of the coordinated promotion mechanism for urban renewal, work with relevant departments to do a good job in the renovation and upgrading of old neighborhoods and factory areas, and strengthen project implementation management according to responsibilities. Industry and information technology departments should guide all localities to promote industrial upgrading in the renovation and upgrading of old factory areas and strengthen the protection and utilization of industrial heritage. Finance departments should make coordinated use of existing funding channels to support the renovation and upgrading of old neighborhoods and factory areas. Transport departments should guide all localities to optimize the layout of important hub nodes and improve transport operation services in the renovation and upgrading of old neighborhoods and factory areas. Commerce departments should guide all localities to optimize the consumption environment of various old neighborhoods and factory areas and enrich commercial formats. State-owned assets supervision departments should support state-owned enterprises in revitalizing existing assets and promote the renovation and upgrading of state-owned assets such as idle factory buildings. In their work, they should establish and practice a correct view of political performance, adhere to seeking truth from facts and adapting to local conditions, and avoid large-scale demolition and construction. The Ministry of Housing and Urban-Rural Development will, together with relevant departments, strengthen policy guidance, promptly sort out and summarize innovative measures, do a good job in publicity and promotion, and improve the level of renovation of old neighborhoods and factory areas nationwide. This article is edited from the official website of the "Ministry of Housing and Urban-Rural Development". GMTEight editor: Chen Siyu.