Henan 18 New Deal Stabilizes the Property Market: Guiding Financial Institutions to Maintain Reasonable Growth of Housing Enterprise Credit

On February 2 1, seven departments, including the Housing and Construction Department of Henan Province, the Provincial Development and Reform Commission, the Provincial Department of Finance, and the Provincial Department of Natural Resources, jointly issued "Several Opinions on Dealing with the Impact of COVID-19 Epidemic and Preventing and Resolving the Risks in the Real Estate Market" (hereinafter referred to as "Opinions"), proposing to support the sales department and construction site in areas with slight epidemic to resume work in an all-round way.

It is mentioned in the Opinions that it is necessary to implement precise epidemic prevention measures on a county basis, fully restore the office space, sales department and project construction site of real estate enterprises in areas with mild epidemic situation under the condition of ensuring epidemic prevention and control, and guide the areas with serious epidemic situation to resume work in an orderly manner. After lifting the first-level response measures, guide enterprises to resume production and work as soon as possible.

Fully implement the "no meeting" approval, improve the efficiency of construction project approval, and implement online information filing for all filing projects through the online approval and supervision platform of investment projects in Henan Province.

Support all localities to speed up the formalities of real estate projects through "notification and commitment system" and strengthening supervision after the event. Planning permission, commercial housing pre-sale permit and other administrative examination and approval items need on-site investigation, which should be fully restored immediately. The construction of the real estate project that has obtained the construction permit is affected by the epidemic situation. When applying for pre-sale, the original image progress requirement is adjusted to be calculated according to the investment amount, and the pre-sale permit can be applied if the investment amount of the pre-sale part reaches more than 25%. On the premise of risk control, explore the form of letter of guarantee to replace the supervision of pre-sale funds of commercial housing, or flexibly adjust the allocation node of supervision funds.

In addition, the opinion also proposes to guide the banking financial institutions in the province to fully grasp the information of real estate enterprises in a timely manner and optimize the credit process. On the premise of preventing risks, real estate development loans will be appropriately issued to real estate enterprises with good qualifications and operating in good faith but seriously affected by the epidemic and difficult to repay when due, according to the actual progress of the project and cash recovery. Loans due before June 30, 2020 with a loan term of less than 1 year may be extended, and credit records shall be submitted according to the adjusted repayment arrangement.

In addition to providing support to real estate enterprises in terms of credit, the Opinions also reduced the burden on real estate enterprises in terms of land acquisition.

During the epidemic prevention and control period, the bid bond can be determined according to 20% of the initial price of the newly transferred land, and 50% of the land transfer price can be paid within one month after the signing of the transfer contract, and the balance can be applied for deferred payment, with the longest not exceeding 1 year. If it is impossible to sign the Confirmation of Transaction or the Transfer Contract on schedule due to the epidemic situation, the bidder may apply for an extension of signing. Affected by the epidemic, the delivery of the sold land has been postponed, resulting in the failure to start and complete the real estate project on schedule, and the opening and completion time has been postponed accordingly.

The "Opinions" suggest that on the basis of extending the tax declaration period in February, real estate development enterprises that are still difficult to apply for tax declaration due to the epidemic situation may apply for further extension according to law; If serious difficulties occur in the production and operation affected by the epidemic, you may apply for an extension of tax payment according to law, and the longest period shall not exceed 3 months.

For real estate enterprises that have serious difficulties affected by the epidemic, if they meet the conditions for reduction or exemption, they may apply for reduction or exemption of property tax and urban land use tax according to regulations. For real estate development projects, if it is indeed difficult to pay the land value-added tax in 2020 according to the prescribed collection rate, it may be appropriately reduced or exempted with the consent of the competent tax authorities.

The following is the full text of the Opinions:

Support enterprises to speed up the resumption of work and production.

1. Implement precise epidemic prevention measures in counties, support the office, sales department and project construction site of real estate enterprises in areas with slight epidemic situation to fully resume work under the condition of ensuring epidemic prevention and control, and guide the areas with serious epidemic situation to resume work in an orderly manner. After lifting the first-level response measures, guide enterprises to resume work and production as soon as possible.

2. During the first-level response period of epidemic prevention and control, all localities can organize online housing fairs, simplify procedures, provide services first, realize "no meeting" government services, and help real estate development enterprises to facilitate transactions. Support real estate intermediaries to speed up the resumption of business. On the premise of implementing epidemic prevention measures and meeting epidemic prevention requirements, the online signing and filing of housing transaction contracts and online booking of real estate mortgage registration will be unblocked.

3. Fully implement the "no meeting" approval, improve the efficiency of construction project approval, and implement online information filing for all filing projects through the online approval and supervision platform for investment projects in Henan Province. Support all localities to speed up the formalities of real estate projects through "notification and commitment system" and strengthening supervision after the event. Planning permission, commercial housing pre-sale permit and other administrative examination and approval items need on-site investigation, which should be fully restored immediately. The construction of the real estate project that has obtained the construction permit is affected by the epidemic situation. When applying for pre-sale, the original image progress requirement is adjusted to be calculated according to the investment amount, and the pre-sale permit can be applied if the investment amount of the pre-sale part reaches more than 25%. On the premise of risk control, explore the form of letter of guarantee to replace the supervision of pre-sale funds of commercial housing, or flexibly adjust the allocation node of supervision funds.

Second, effectively reduce the burden on enterprises.

4. On the basis of extending the tax declaration period in February, real estate development enterprises that are still difficult to apply for tax declaration due to the epidemic situation may apply for further extension according to law; If serious difficulties occur in the production and operation affected by the epidemic, you may apply for an extension of tax payment according to law, and the longest period shall not exceed 3 months.

5. For real estate enterprises that have serious difficulties affected by the epidemic, if they meet the conditions for reduction or exemption, they may apply for reduction or exemption of property tax and urban land use tax according to regulations. For real estate development projects, if it is indeed difficult to pay the land value-added tax in 2020 according to the prescribed collection rate, it may be appropriately reduced or exempted with the consent of the competent tax authorities.

6. During the epidemic prevention and control period, the bid bond can be determined according to 20% of the initial price of the newly transferred land, and 50% of the land transfer price can be paid within one month after the signing of the transfer contract, and the balance can be applied for deferred payment, with the longest not exceeding 1 year. If it is impossible to sign the Confirmation of Transaction or the Transfer Contract on schedule due to the epidemic situation, the bidder may apply for an extension of signing. Enterprises can apply for construction land planning permit and construction project planning permit in advance with online listing confirmation, state-owned construction land use right transfer contract and other supporting documents and bills paid not less than 50% of the land transfer price. For real estate projects affected by the epidemic, enterprises may apply to the local government for deferring the supporting fees for urban infrastructure for a maximum of 6 months, and settle them before the completion and acceptance.

7. For the realty service enterprises that actively participate in epidemic prevention and control, the municipal and county finance can introduce corresponding financial subsidy policies according to local actual conditions. City and county governments can also introduce corresponding policies to help housing leasing enterprises that have suffered heavy losses due to the epidemic. Property service enterprises and housing leasing enterprises can enjoy relevant support policies in accordance with the life service industry. Encourage financial institutions to reduce or exempt loans overdue interest on real estate development loans and personal housing mortgages during the epidemic prevention and control period for real estate enterprises and personnel seriously affected by the epidemic.

Increase credit support in three stages

8. Take effective measures to help real estate enterprises cope with the impact of the epidemic, and guide Henan commercial banks and non-bank financial institutions to maintain reasonable and moderate growth of real estate enterprise credit. On the premise of risk prevention, real estate enterprises with good qualifications and good faith management, but seriously affected by the epidemic situation and having temporary operational difficulties, shall not arbitrarily draw loans, cut off loans or press loans during the epidemic prevention and control period.

9. Guide the province's banking financial institutions to fully grasp the information of real estate enterprises in a timely manner, optimize the credit process, and appropriately issue real estate development loans to real estate enterprises with good qualifications, honest management but seriously affected by the epidemic and difficult to repay due to the actual progress of the project and cash recovery. Loans due before June 30, 2020 with a loan term of less than 1 year may be extended, and credit records shall be submitted according to the adjusted repayment arrangement.

10. Financial institutions in Henan should grant loans to all buyers who meet the mortgage loan conditions. Support qualified institutions to take online application, online audit and video verification during the epidemic control period under the premise of effectively preventing risks, so as to ensure the orderly issuance of personal housing mortgage loans during the first-level response period of epidemic control.

1 1. The commercial loans for personal housing mortgage that have completed the examination and approval procedures and have not been issued shall be issued as soon as possible.

Fourth, improve the efficiency of housing provident fund services.

12. Actively guide the paid employees to handle the personal housing provident fund loan business through online channels such as government affairs platform, online business hall and mobile APP to ensure that the loans should be exhausted. For those that cannot be handled online, staff can be encouraged to go to the scene after the epidemic is over. If it is really necessary to go to the site, make an appointment and handle the wrong peak, rationally divert personnel and reduce the gathering of personnel.

13. Units and individuals who fail to pay the housing provident fund in full and on time due to the epidemic can make up for it within a certain period of time. After replenishment, it will be regarded as continuous normal deposit, which will not affect employees' application for loans.

14. If the housing provident fund loan cannot be repaid in time due to the epidemic situation, the repayment period can be reasonably delayed, and no penalty interest will be charged, and it will not be submitted to the credit reporting department as an overdue record.

Fifth, strengthen epidemic prevention and protection.

15. During the first-level response of epidemic prevention and control, relevant departments should uniformly allocate masks, thermometers, alcohol and other disinfection and epidemic prevention materials needed by real estate enterprises and property service enterprises within their jurisdiction, and do a good job in ensuring the epidemic prevention and control materials needed for returning to production.

16. further improve the procedures or work manuals for enterprises to start work and resume work, supervise and guide real estate enterprises to implement the main responsibility of epidemic prevention and control, scientifically formulate epidemic prevention and control plans, cooperate with construction units to do a good job in on-site management, strengthen health monitoring and employee education and training, and ensure safe and orderly project construction and employee life.

6. Prevent legal disputes

17. If the delivery of the leased land is delayed due to the epidemic, and the real estate project cannot be started and completed on schedule, the start and completion time will be postponed accordingly. For real estate development projects that cannot be completed and delivered on schedule or registered for the first time due to the epidemic, the relevant period shall be extended in accordance with state regulations, and the liability for breach of contract shall not be calculated during the extended period. The construction unit shall not ask the construction unit to speed up the progress of the project on the grounds of catching up with the construction period, not delivering according to the time agreed in the original contract or defaulting on the deduction.

18. Other support policies involving enterprise operating costs, financial support, financial subsidies, stable employment, etc. shall be implemented in accordance with the relevant provisions of the state, provincial party committees, provincial governments and local governments.