Land reserve fund is a trinity cooperation, operation and management of government departments (land reserve institutions), banks and enterprises, and the funds are closed. For your convenience, let's take a look! Let's share with you the necessity of land reserve fund. Welcome to read!
What is the land reserve fund?
Land reserve fund is a trinity cooperation, operation and management of government departments (land reserve institutions), banks and enterprises, and the funds are closed. The basic idea is to set up a land reserve fund by withdrawing funds from the secondary land market, provide bank loan guarantee for projects with a first-class land development time of more than two years, or directly participate in projects with shortage of funds.
The Necessity of Establishing Land Reserve Fund
Capital and land are two basic elements of land reserve mechanism. The process of land reserve is not only the process of land circulation, but also the process of capital circulation. Although the urban land reserve center is a non-profit organization, its operating funds are huge. Judging from the situation of land reserves all over the country, raising funds is a difficult problem and an important link that restricts the progress. Perfecting the fund policy and establishing a reasonable fund raising and operating mechanism are the key links to implement the land reserve work.
The operation of land reserve mechanism objectively needs to set up land reserve fund. Land reserve fund refers to the special funds set up by the municipal government to concentrate the income related to land reserve. Its characteristics are collective investment, decentralized crisis and expert management. The competent department in charge of the use, operation and management of land reserve funds is the local financial department. The land reserve mechanism is based on the government's monopoly on the primary land market. Its basic operation mode is that the land that needs to be included in the reserve is concentrated by means of expropriation, recovery and acquisition, and the land reserve institution carries out preliminary work such as demolition and resettlement, site leveling and supporting development, and the land administrative department is responsible for external supply as planned. Objectively speaking, this mode of operation requires land reserve institutions to ensure that they have enough funds to pay for land acquisition fees, demolition and resettlement fees, support for early land development and other huge expenses when reserving each piece of land. From the point of view of progress, land reserve should take the road of large-scale reserve and planned supply, that is, land reserve institutions gradually form land reserve through rolling development of reserved land, and at the same time, land administrative departments will supply it to the outside world as planned after determining reasonable land reserve and reserve period, so as to realize the effective regulation and control of the land market by the government. This will require more funds, and it is difficult to meet the progress needs only by government grants and bank loans, so there is a big crisis, so it is particularly necessary to set up a land fund.
From the long-term strategy of running the city, the establishment of land reserve fund has laid a good foundation for the establishment of urban land fund. With the acceleration of urbanization, urban construction is bound to embark on the road of intensive and large-scale operation. Urban land is an important resource and an important asset of the city. The rational operation and management of urban land is bound to play a decisive role in urban construction. Large-scale urban construction needs huge funds to pay, and the idea of setting up urban land fund has become a reality in some foreign cities. The operation and management experience of land reserve fund has become a valuable asset for establishing urban land fund.
Feasibility of establishing land reserve fund
Strengthening the construction of land reserve fund plays an important role in activating the land market and promoting the virtuous circle of land development funds. The urgency is as follows: first, it can solve the problem of insufficient funds in the process of land reserve development. The amount of funds needed in the process of land reserve and development is huge, and it is difficult to meet the demand by any form of financing alone. As a special fund, land reserve fund not only solves the problem of land reserve cost, but also seeks new investment channels. Second, it can enliven the land transaction market and optimize the allocation of land funds. Third, relying on huge financial support, we can regulate the speed and scale of the real estate industry and maintain the healthy progress of the real estate industry. The establishment of land reserve fund is conducive to the progress of land reserve mechanism, strengthening the government's macro-control ability of land market, and allocating land resources through market means, which is conducive to accelerating the pace of urban construction and deepening the concept of urban management.
The perfection of land market is the foundation of establishing land reserve fund. China's land use system has been reformed for more than ten years, and various localities have successively established the system of paid and limited land use, the system of assignment and transfer of state-owned land use rights, and the system of evaluation, renewal and publicity of urban benchmark land prices. The land market has developed greatly and become more and more mature. Many cities have established land recovery (acquisition) reserve mechanism, forming a good situation in which the government monopolizes the primary land market. According to statistics, at present, more than 200 cities in China have established land reserve institutions. The land market in some large and medium-sized cities has begun to take shape, and the government has achieved relatively stable land income through land transfer, leasing and other paid supply means, laying a solid foundation for the establishment of land reserve funds.
The support of the government and the cooperation of relevant departments are important conditions for the establishment of land funds. With the establishment and promotion of land reserve mechanism in various places, the government has realized the important role of rational operation of land assets in urban construction. The establishment of land reserve fund needs the government to concentrate the income related to land reserve, with a large amount of funds as the backing, monopolize the primary land market through large-scale operation, and form a virtuous circle of land reserve funds from small investment to large recovery and then large investment.