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Central Government Convened a Meeting to Discuss Conversion Equation of Urban Building Capacity Transfer

Ministry of the Interior, R.O.C. convened a meeting hosted by Political Deputy Minister, Hua, to discuss “the revision of calculation equation for implementation of urban building capacity transfer and other measures” on today (August 29). Central government, local governments and civil bodies were invited. The equations of each urban building capacity transfer were assessed and calculated with market value rather than government-declared value of land. Department of Urban Development, Taipei City Government briefed the urban building capacity transfer system and advocated the necessity to revise equation in the meeting.
Department of Urban Development, Taipei City Government indicated that since Taipei City Government took up building urban capacity transfer for private own reserve land for public facilities, the land area generated from reserve land for public facilities can be converted up to an average 3.2 times of accepted shift-in base volume ratio. The issues on unclear flow of huge and sudden profit for private matchmaking and on whether the profits of landlords were guaranteed is unknown. These impact a lot in city development. Taipei City Government held a “pay cash over to city government for building bulk” civic forum on June 8, 2017 and submitted a formal letter which suggests deleting the multiplier of “accepted shift-in base volume ratio” in the conversion equation to Ministry of the Interior, R.O.C. on June 7, 2017. The suggestion can not only correct the error which multiplies unreasonably in the conversion equation of reserve land for public facilities, but also make the value of shift-in bulk volume close to the actual compensated price for reserve land for public facilities. The government-declared value of reserve land for public facilities is calculated with the average land value of neighborhood none reserve land for public facilities, which is in response to the price of neighborhood buildable land. The operability is easily perceived. Department of Urban Development, Taipei City Government also expressed if Ministry of the Interior, R.O.C. still insists adopting market value as a measuring base for volume ratio in the equation of Urban Building Capacity Transfer, an evaluation of reserve land for public facilities shall be implemented in accordance with the Rule 97 in Regulations on Real Estate Appraisal to disclose the actual price of road used. Additionally, the multiplier should be deleted to eliminate the problem of bulk amplification.
After today’s meeting, Construction and Planning Agency, Ministry of Interior, R.O.C. and Department of Land Administration, M.O.I. will discuss the issues on Urban Building Capacity Transfer and conversion equation. Ministry of the Interior, R.O.C. will collaborate with Taipei City Government closely to discuss the rationality of conversion equation in detail. Direct General, Lin Jou-min, Department of Urban Development indicated that Taipei City Government has submitted a formal letter to central government to address the unreasonable problem of urban building capacity transfer system and suggest mending the equation on August 28. Taipei City Government will do the follow-up in Urban Building Capacity Transfer system with central government.