Shanghai passes first law to regulate urban renovation

The city's first law on urban renovation was passed by the standing committee of the Shanghai People's Congress, the city's legislature, on Wednesday.

The law regulates the city's activities in improving its infrastructure and other public facilities, optimizing regional planning, providing better housing options for residents and protecting its historical and cultural heritage.

It stipulates that urban renovation in the city should prioritize preservation, uphold the green and low-carbon principle, keep the public well informed and ensure equal market entry to projects.

The major goals of urban renovation include increasing ecological capacity of the city, enhancing the city's flood and quake-proof system, integrating the space above and under the ground, providing a better quality of life for residents and making public transportation options more accessible to people.

According to the law, the city will establish an urban renovation center at the city level, an experts' committee on urban renovation and an institution of community planners, who will provide technical consultation and coordinate opinions in urban renovation projects.

The city and district governments are required to arrange funds for urban renovation projects and encouraged to raise funds through various ways, including issuing bonds.

Such projects are entitled to certain cuts in administrative fees and taxes, according to the law.

Consent rules specified

In case publicly-owned old residential buildings need to be demolished or entirely refitted, based on official assessments, consent has to be sought from at least 95 percent of the tenants of the properties, the law stipulates.

In case some tenants refuse to make way for projects, and the district's mediation efforts fail, the district government can rule on the case based on a request from the developer.

In this case, tenants who don't give their consent to the ruling can file a request for a review of the administrative decision or sue the government within legally determined terms.

If the terms are over with no legal action taken and no compliance with the decision of the government, the government can apply for an enforcement of its decision to the court, the law states.

The law will take effect from September 1.