Notice of the Huangpu District People's Government and the Guangzhou Development District Administrative Committee on the Issuance of the Measures of Huangpu District and Guangzhou Development District on the Administration of Reserved Land for the Development of the Collective Economy

HP0120210002

Notice of the Huangpu District People's Government and the Guangzhou Development District Administrative Committee on the Issuance of the Measures of Huangpu District and Guangzhou Development District on the Administration of Reserved Land for the Development of the Collective Economy

Sui Pu Fu Gui [2021] No 2

To all subdistricts and towns, all departments of the district government, and all agencies directly subordinate to the administrative committee:

The Measures of Huangpu District and Guangzhou Development District on the Administration of Reserved Land for the Development of the Collective Economy are hereby issued for your due implementation. Problems encountered during the course of implementation should be timely reported to the district planning and natural resources bureaus.

Guangzhou Huangpu district people's government

Guangzhou Development District Administrative Committee

March 4, 2021

Measures of Huangpu District and Guangzhou Development District on the Administration of Reserved Land for the Development of the Collective Economy

Chapter I General Provisions

Article 1 In order to safeguard the lawful rights and interests of land-requisitioned rural collective economic organizations and regulate the administration of reserved land for the development of the collective economy in Huangpu district and Guangzhou Development District, these measures are formulated pursuant to the relevant provisions of the Opinions of the General Office of the Guangdong Provincial People's Government on Strengthening Resettlement Management of Reserved Land in the Acquisition of Rural Collective Land (Yue Fu Ban [2016] No 30), the Implementing Opinions of the General Office of the Guangzhou Municipal People's Government on Strengthening Land Administration (Sui Fu Ban Gui [2018] No 7), the Opinions of the General Office of the Guangzhou Municipal People's Government on Further Strengthening the Management of Reserved Land in the Acquisition of Rural Collective Land (Sui Fu Ban Gui [2018] No 17), and the Notice of the Guangzhou Municipal Planning and Natural Resources Bureau on Advancing the Fulfillment of Reserved Land Allotments (Sui Gui Hua Zi Yuan Gui Zi [2019] No 3), and in conjunction with the actualities of the districts.

Article 2 These measures are applicable to the administration of reserved land within the boundaries of Huangpu district, Guangzhou Development District, and the industrial parks under their management and authority.

Chapter II Ascertainment of Reserved Land Allotments

Article 3 Determination of reserved land allotments shall be carried out with reference to relevant provincial and municipal provisions.

With respect to contiguous (pre-) acquired land for land reserves, the reserved land allotment shall be ascertained based on 10 percent of the area of land allowed for construction within the (pre-) acquired land, upon confirmation by the land acquirer and land-requisitioned rural collective economic organization. After the ascertainment of the reserved land allotment, if new land allowed for construction is added due to planning adjustments, the ascertained reserved land allotment may be increased by 10 percent of the newly added land allowed for construction.

Land allowed for construction within the boundaries of (pre-) acquired land refers to construction land indicated as such in overall land utilization planning and defined as land allowed for construction in Guangzhou's overall urban planning and regulatory plans. Reserved land allotments in Knowledge City and areas under its authority shall be ascertained based on the relevant provisions of Knowledge City.

Article 4 When a construction project begins (pre-) land acquisition, district planning and natural resources authorities shall pre-ascertain reserved land allotments for land-requisitioned rural collective economic organizations, issue a reserved land allotment ascertainment statement, and concurrently handle the formalities for acquiring approvals from higher authorities. The ascertained allotment shall automatically be invalidated if the site for the (pre-) land acquisition project is subsequently not approved, and the land is no longer requisitioned (except where land to be used has been delivered).

Chapter III Fulfillment of Reserved Land Allotments

Article 5 Fulfillment of reserved land allotments arising from land acquisition for key state, provincial, or municipal projects:

(1) Fulfillment of reserved land allotments due to new projects

1. Land acquirers shall submit relevant land acquisition documents to district planning and natural resources authorities, which shall pre-ascertain the reserved land allotment. The pre-ascertained allotment shall be automatically invalidated if the site for the (pre-) land acquisition project is subsequently not approved, and the land is no longer requisitioned (except where land to be used has been delivered).

2. When acquiring land, the means of fulfillment of reserved land allotments shall be concurrently negotiated and agreed upon with land-requisitioned rural collective economic organizations.

(1) Commutation to monetary compensation. Land acquirers shall negotiate with land-requisitioned rural collective economic organizations. Where monetary compensation is agreed upon, compensation shall be based on prevailing compensation standards in the district. The monetary compensation shall be disbursed by the land user.

(2) Physical retention of land. The reserved land allotment is required to be incorporated within the site boundaries submitted for approval. Fulfillment and submissions for approval shall be carried out simultaneously. If the selected plot falls short of the coverage scale required by existing plans, the resolution of the land allotment shall be carried out by the land user in coordination with the province and the municipality.

3. Prior to the fulfillment of reserved land allotments, the land user shall deposit the funds for monetary compensation for reserved land with the owners of the acquisition project based on district standards for monetary compensation for reserved land, which shall be refunded after fulfillment of the reserved land allotments has been completed.

4. The land acquirer shall issue reserved land subsidies if reserved land allotments are not fulfilled within two years after the signing of an agreement on compensation for reserved land between the land acquirer and the land-requisitioned rural collective economic organization.

(2) Fulfillment of reserved land allotments with respect to past projects

1. Land acquirers shall enjoin land users to provide relevant land acquisition documents and documentary proof of project approval to be submitted together to the district planning and natural resources authorities. District planning and natural resources authorities shall verify the reserved land allotment.

2. Commutation to monetary compensation. Land acquirers shall negotiate with land-requisitioned rural collective economic organizations. Where monetary compensation is agreed upon, compensation shall be based on prevailing compensation standards in the district. The monetary compensation shall be disbursed by the land user.

3. Physical retention of land. Land acquirers and land users shall facilitate the preparation and submission of documents for regulatory approvals. If the selected plot falls short of the coverage scale required by existing plans, resolution of the land allotment shall be carried out by the land user in coordination with the province and the municipality.

4. Prior to the fulfillment of reserved land allotments, the land user shall deposit the funds for monetary compensation for reserved land with the owners of the acquisition project based on district standards for monetary compensation for reserved land, which shall be refunded after the reserved land allotments are fulfilled.

5. The land acquirer shall issue reserved land subsidies if reserved land allotments are not fulfilled within two years after the signing of an agreement of compensation for reserved land between the land acquirer and the land-requisitioned rural collective economic organization.

Article 6 Resolution of past issues with reserved land. With respect to land acquisition projects approved in accordance with the law where physical retention of land has been promised by the government or agreed upon in the land acquisition agreement, but has yet to be implemented, district planning and natural resources authorities shall adequately utilize the window period provided by the formulation of the new state land spatial plans to make and implement sound plans. It is encouraged to preferentially use remaining construction land within the scope of the land-requisitioned rural collective economic organization that meet the requirements of state land spatial planning to implement the physical retention of land promised or agreed upon after all legal violations have been addressed in accordance with regulations and all relevant formalities for the site have been completed in accordance with planning requirements.

Article 7 The fulfillment of reserved land quotas shall be carried out with reference to relevant provincial and municipal rules.

(1) Commutation to monetary compensation

1. Preconditioned upon respect for the wishes of the land-requisitioned rural collective economic organizations, it is encouraged that physical retention of land which has been difficult to implement be commuted into monetary compensation or substituted with other property. Alternatively, land-requisitioned rural collective economic organizations may participate in the construction of various new urban districts or industrial parks through the purchase of equity at discounted rates. In such cases, land-requisitioned rural collective economic organizations shall sign agreements with collaborating developers of new urban districts or industrial parks and share the proceeds based on their share of capital contributions and equity and relevant terms of the agreement. Monetary compensation for reserved land allotments may not be lower than the benchmark land price for industrial sites in the location of the acquired land during the time of commutation.

2. With respect to situations where reserved land allotments have been ascertained but plot selection has not been possible, compensation standards may be set at 80 percent of the benchmark land price for commercial sites in the locality of the land-requisitioned rural collective economic organizations when applying for monetary encashment with the floor area ratio set at 2.5.

3. For reserved land where plots have been selected but cannot be developed due to existing land-use planning, compensation standards may be set at 80 percent of the benchmark land price for the original planned purpose in the same location when applying for encashment with the floor area ratio set at 2.5.

4. In the case of adjustments to the benchmark land price, the standards for commutation of reserved land allotments into monetary compensation shall be promptly adjusted. The compensation amount shall be assessed by a qualified third-party appraisal agency jointly appointed by the land acquirer and the land-requisitioned rural collective economic organization. A monetary compensation plan shall be drafted based on the appraisal outcomes, which shall be submitted to higher authorities for approval in accordance with procedures after review by district planning and natural resources authorities.

5. After confirmation of the monetary compensation plan for reserved land allotments, an agreement on monetary compensation for reserved land shall be signed between the land acquirer and the land-requisitioned rural collective economic organization. If district fiscal funds are used in the fulfillment of reserved land allotments, the monies for the commutation of reserved land allotments into monetary compensation shall be included in and disbursed by the land acquisition and demolition project.

6. For reserved land where the reserved land allotment has been ascertained but not fulfilled, the land acquirer and the subdistrict office (town government) shall, based on the village community, declare planned funding needs to district development and reform authorities each year. Based on the fiscal situation, funds for reserved land monetary compensation shall be allocated in the district government's annual investment plan for capital construction.

7. Monetary encashment for reserved land within Knowledge City and areas under its authority shall be carried out with reference to the relevant rules of Knowledge City.

(2) Encouragement of the fulfillment of reserved land allotments through substitution with other property

1. In the case of the fulfillment of reserved land allotments through substitution with other property, the land acquirer and the land-requisitioned rural collective economic organization shall negotiate and sign a reserved land property substitution agreement covering the area, location, use, delivery schedule, delivery standards, and leaseback of the substitute property. The substitute property will be built by the land user and land acquirer within the boundaries of the acquired land, or otherwise provided by acquiring commercial property on other land. The costs of construction, acquisition and real estate registration fees shall be included in land acquisition costs and borne by the land user (substitution with residential property shall be carried out with reference to the following paragraph). Where land-requisitioned rural collective economic organizations have lawfully voted to publicly transfer use rights to State-owned reserved land after handing such rights to the government, an application should be made to the government to revoke the construction land planning approval documents and return decision. Substitution with other property may be included in the transfer contract as a condition for land transfer. After land transfer, implementation as agreed upon in the contract may be ensured through means such as leasebacks. Where property has yet to be delivered after the agreed date of delivery, the government is required to commute property rental up to the actual date of delivery and pay the corresponding monies.

2. In the case where land-requisitioned rural collective economic organizations opt for substitution with property of an industrial nature, each mu of reserved land shall be substituted with 800 square meters of such property. If substitution with property of a commercial nature is chosen, each mu of reserved land shall be substituted with 400 sq m of such property. If substitution with property of a residential nature is chosen, each mu of reserved land shall be substituted with 400 sq m of such property. However, the land-requisitioned rural collective economic organization is required to bear the construction costs of such substituted property (the aforementioned areas are the registered areas in the property title, and required construction costs shall be determined with reference to the prevailing regulations on calculation of costs for the comprehensive rebuilding of old villages in the municipality issued by the municipal housing and urban-rural development authorities). Fulfillment through property should in principle be fulfilled within the territory of the village or the area. With respect to key national, provincial or municipal infrastructure and public utilities such as energy, transportation and water projects organized and implemented by the government, the specific property substitution standards shall be implemented with reference to the rules for the administration of reserved land in Guangzhou.

3. Land-requisitioned rural collective economic organizations may apply to district planning and natural resources authorities for choosing substitution with commercial property or residential property within the same area within the scope of the land acquired. For those who opt for substitution with industrial property, district planning and natural resources authorities will provide schemes within the boundaries of industrial blocks for the selection of land-requisitioned rural collective economic organizations. District industry and information technology authorities will cooperate with these efforts.

4. Proposals for the substitution of reserved land allotments with other property are required to be voted upon by land-requisitioned rural collective economic organizations in accordance with the Organic Law of the Villagers Committees of the People's Republic of China, the Regulations of Guangdong Province on the Management of Rural Collective Economic Organizations, and the Regulations of Guangdong Province on the Management of Rural Collective Assets. Upon a successful vote, land-requisitioned rural collective economic organizations shall submit an application to the land acquirer for fulfillment of the reserved land allotment by means of property substitution. The land acquirer and the land-requisitioned rural collective economic organization shall negotiate and determine a plan for property substitution, which shall be submitted by the land acquirer to district planning and natural resources authorities for their review. Upon the deliberation and approval of the district zoning leading group, the land acquirer and the land-requisitioned rural collective economic organizations shall sign a reserved land property substitution agreement, which shall specify matters such as the property type, location, area, transfer, and title registration schedule.

(3) Physical retention of land. Compensation will be provided for the demolition of buildings and structures on the selected plots. Land clearing work shall be carried out, but not the leveling of land. Where the selected plot is within the boundaries of the village, there will be no land acquisition compensation monies or payment of social insurance monies. Where the selected plot is outside the boundaries of the village, procedures shall follow those for new land acquisition. Land-requisitioned rural collective economic organizations are to select the means of fulfilling reserved land allotments based on the industry planning situation and the introduction of new projects.

1. After due communication and negotiation between the land acquirer and the land-requisitioned rural collective economic organization where the latter opts for fulfillment of the reserved land allotment through property substitution, the land acquirer shall submit documents of the origin of reserved land such as the land acquisition agreement and surveyed boundaries to district planning and natural resources authorities, which shall issue the reserved land allotment ascertainment statement.

2. The introduction of industrial projects shall be subject to a vote within the land-requisitioned rural collective economic organization in accordance with the Organic Law of the Villagers Committees of the People's Republic of China, the Regulations of Guangdong Province on the Management of Rural Collective Economic Organizations, and the Regulations of Guangdong Province on the Management of Rural Collective Assets. Upon a successful vote, based on the procedures for newly introduced industrial projects, district planning and natural resources authorities shall seek review opinions from district investment promotion, commerce, and industry and information technology authorities.

3. District planning and natural resources authorities shall provide land-requisitioned rural collective economic organizations with reserved land plot selection plans based on the industrial project review opinions. The reserved land plot selection plans should duly consider the opinions of the land-requisitioned rural collective economic organizations and the local subdistrict office (town government) as well as locational conditions. The reserved land plot selection plan has to be submitted for the deliberation by a meeting of the district zoning leading group prior to approval.

4. After ascertainment of the scope of the selected plot for reserved land, the land acquirer shall assist in submissions for approval. Alternatively, the land-requisitioned rural collective economic organizations may apply for the completion of construction land formalities in accordance with regulations.

5. Prior to the issuance of the Opinions of the General Office of the Guangzhou Municipal People's Government on Further Strengthening the Management of Reserved Land in the Acquisition of Rural Collective Land (Sui Fu Ban Gui [2018] No 17), land occupied by public supporting facilities in excess of 20 percent of a reserved land allotment shall be subject to the following measures. Reserved land that has obtained relevant planning indicator documents such as planning permits shall follow the terms specified. Reserved land that has obtained a notification of approval for usage but not specific planning opinions shall, provided that urban-rural planning requirements are met, have their construction volume of the net site area reduced due to planning adjustments calculated based on a floor area ratio of 2.5. This construction volume shall be fulfilled in the original plot or transferred to other reserved land of the land-requisitioned rural collective economic organization.

Chapter IV Completion and Administration of Planning and Land Use Formalities for Reserved Land

Article 8 Streamlining of procedures for reserved land planning permit formalities. Plot selection for reserved land should be carried out within the city, town or village planning zones, with district planning and natural resources authorities issuing planning permits based on village plans or regulatory plans. Where the reserved land is set within the boundaries of the main land acquisition project site, if the reserved land's site nature, planning indicators and boundary coordinates have been specified by the planning permits and planning conditions for the main project, separate planning permit formalities will not be required for the reserved land. If relevant content has not been specified in the planning permits and planning conditions for the main project after the submission of an application by the land user or land reserves agency, district planning and natural resources authorities shall issue a planning opinion, issue construction site planning permits, and handle subsequent formalities for the site.

Article 9 After the signing of a land acquisition agreement between the land acquirer and the land-requisitioned rural collective economic organization, and if fulfillment of the reserved land allotment is to be fulfilled through physical retention of land, the location of the reserved land should be determined before completing formalities for a change in land use. Formalities for a change in land use should be submitted concurrently for the reserved land and the main project (excluding sites for national and provincial key construction projects, and sites and reserved land for continuing construction projects that involve public welfare such as affordable housing projects, environmental protection projects, and disaster relief projects).

For reserved land where plots have been selected but not yet developed and utilized, district planning and natural resources authorities may coordinate conversion to property substitution for land-requisitioned rural collective economic organizations if required by planning adjustments or infrastructure development needs, with the development intensity of the reserved land thereafter not being lower than the former reserved land. After conversion to property substitution, the former reserved land shall be returned to the government. The land-requisitioned rural collective economic organizations shall comply with planning arrangements.

Article 10 Standardization of land supply formalities for reserved land. Upon approval of State-owned reserved land supply schemes by the district government or administrative committee, district planning and natural resources authorities shall issue a State-owned land allocation decision statement (specifying the ex-gratia return of reserved land owned by the State and planned usage). Formalities for the paid use of land and payment of land transfer monies are not required. Real estate registration in accordance with regulations is required. Such land will be deemed equivalent to State-owned construction land obtained by means of land transfer. Land-requisitioned rural collective economic organizations shall apply for real estate registration for collective reserved land based on the construction land planning approval documents issued by district planning and natural resources authorities.

Article 11 In principle, management of floor area ratios for reserved land shall be implemented with reference to relevant provincial and municipal stipulations. Increases in floor area ratios shall be deducted from the reserved land allotment based on a proportion of 80 percent.

Where the reserved land allotment has been fully fulfilled and the reserved land allotment cannot be provided in advance under prevailing land acquisition conditions, provided that urban-rural planning requirements are met, land-requisitioned rural collective economic organizations that need to increase the development intensity of reserved land due to their own development needs may do so by the following means:

(1) Increases in floor area ratio will require supplementary payment of land transfer fees based on appraised market values for property of the same type at the time of application;

(2) Thirty percent of the increase of the floor area ratio for reserved land zoned for business and commercial purposes will be transferred to the government for their management in the form of separate floor levels or buildings. The transferred property should be centrally allocated and specified by the land-requisitioned rural collective economic organization during the construction application phase. Upon completion, the land-requisitioned rural collective economic organization should work with the receiving entity designated by the government to complete formalities for the transfer of property rights.

(3) The Guiding Opinions of the Guangzhou Development District Planning and Natural Resources Bureau (Guangzhou Municipal Planning and Natural Resources Bureau Huangpu Sub-Bureau) on the Functional Matching between New Industrial Land and Industrial Parks (Sui Kai Gui Hua Zi Yuan Zi [2019] No 1) shall apply to reserved land zoned as Category I industrial sites or other commercial sites with an area not less than 50 mu as a single lot or contiguous lots, and are used to develop industries that meet criteria for designation as new industries or are recognized by the district government. No less than 30 percent of the part in excess of the floor area ratio will be handed over to the administration of the district government. The transferred property must be a property with an independent site, and confirmed as such by the land-requisitioned rural economic collective organization during the construction application phase. The specific formula is as follows: Independent site area of the transferred property = net land area of reserved land × (development floor area ratio – benchmark floor area ratio) × 30 percent/benchmark floor area ratio.

Article 12 Reserved land may not be developed and used before obtaining relevant land-use approval documents from the district planning and natural resources authorities. With respect to reserved land approved for use, the land-requisitioned rural collective economic organization is responsible for sound land management within the boundaries of the reserved land. After the transfer, the reserved land should be promptly fenced off and affixed with proper signage in accordance with the requirements of relevant authorities, so as to avoid improper construction or crop planting to gain additional compensation, or circumstances that damage the land such as the dumping of construction waste.

Article 13 With respect to reserved land allotments fulfilled through the retention of actual land, the land-requisitioned rural collective economic organization shall be responsible for the leveling of land in the zoned reserved land as well as the costs thereof. Where there has been a contract prior to the issuance of these measures, the terms of the contract shall apply.

Chapter V Development and Utilization of Reserved Land

Article 14 In principle, reserved land shall be developed and utilized as a whole by the land-requisitioned rural collective economic organization, and may not be directly distributed to individuals for their use. All land-requisitioned rural collective economic organizations shall ascertain shareholding proportions based on relevant rules corresponding to the area of the reserved land and participate in the development and utilization of the reserved land.

Under the guidance of the subdistrict office (town government) in the locality of the land-requisitioned rural collective economic organizations, a certain proportion of proceeds from the reserved land may be centrally administered by the land-requisitioned rural collective economic organizations upon absence of any objections after a vote and public announcement in accordance with relevant procedures. Specific plans and collection and spending of the proceeds should be publicly disclosed in accordance with relevant rules on the transparency of village affairs, and subject to the oversight of the villagers. Proper oversight shall be carried out by the local subdistrict office (town government).

Article 15 The market circulation of State-owned and collective reserved land is encouraged. Rural collective economic organizations may, through a wholly owned company, establish a project company with relevant partners to develop the reserved land by means such as acquiring equity through investment-in-kind, contribution of capital with other parties, and joint operations. Matters such as the development of reserved land, property substitution, rental, acquiring equity through investment-in-kind, application for repurchase from the government, conveyance, and transfer should be subject to a democratic vote within the land-requisitioned rural collective economic organizations in accordance with the methods for the collective resolution of major matters. Formal documentation thereof should be submitted to the local subdistrict office (town government) for their records. Where the use rights for reserved land is used for commercial projects and industrial sites through means such as transfer, conveyance, rental or acquisition of equity through investment-in-kind, contribution of capital for cooperation with other parties, and joint operations with respect to the use rights for reserved land. Implementation shall be through land transactions market tendering, auction, listing and public bidding on the public resources trading platform or district collective assets trading services platform with reference to the procedures and measures for the public trading of use rights for state-owned land. However, this excludes usage of reserved land by companies or enterprises established wholly (solely) with investment by the land-requisitioned rural collective economic organization.

Article 16 Flexible adjustments to the use of reserved land allotments is allowed. Provided that the reserved land allotment for the land-requisitioned rural collective economic organizations has been fulfilled, plans for the adjustments of reserved land allotments may be formulated based on the needs to absorb remaining construction land and rebuild old towns, old factories and old rural residences, and apply to district planning and natural resources authorities for adjusted use of the reserved land allotments of other rural collective economic organizations that have yet to be fulfilled. The reserved land allotment adjustment plan should specify the opinions of both parties, allotment ascertainment documentation and adjustment prices, the receiving party's allotment fulfillment and the proposed additional allotment. After adjustment, the transferring land-requisitioned rural collective economic organizations shall issue a public notice for no less than 15 days. After the submission by district planning and natural resources authorities to the district government for their agreement, this article shall be implemented after verification by the municipal planning and natural resources authorities. The price of the reserved land allotment adjustment may not be lower than the standards for monetary compensation for reserved land in the locality of the transferring party.

Article 17 Stronger development and utilization managed by the government. In principle, reserved land shall be used for the development of industries encouraged by the state, province and municipality. Cooperation with market entities such as State-owned enterprises under the district is encouraged. Land-requisitioned rural collective economic organizations may seek the opinions of the local subdistrict office (town government) and authorities for development and reform, commerce, investment promotion, science and technology, and planning and natural resources with respect to the development and utilization of reserved land, industry types, and planning and construction standards. Development and utilization of reserved land shall be guided based on the recommendations of these authorities on the development of industries.

Article 18 Development in collaboration with market entities is encouraged. Rural collective economic organizations may transfer piecemeal, scattered reserved land to their economic association for centralized contiguous development and unified commercial management. Upon a vote by the land-requisitioned rural collective economic organizations in accordance with the law to approve an intent to attract market entities for the collaborative development of reserved land, they may consult with advanced agencies for preliminary services through public tendering to study and propose conditions for the collaborative development of reserved land based on the planning conditions issued by district planning and natural resources authorities. Thereafter, they may publicly select development partners through the public resources trading platform or district collective assets trading services platform to engage in collaborative development and construction through shareholdings or joint operations. If the transfer of use rights to reserved land is involved, development partners shall be specified in documentation confirming the transaction, and formalities shall be completed based on the provisions of these measures. In the event that the rebuilding of old villages is involved, they shall at the same time publicly select development partners through the public resources trading platform or district collective assets trading services platform based on the conditions indicated by district urban renewal authorities for the rebuilding of old villages.

Article 19 Reconstruction on reserved land in accordance with regulations is encouraged. Where the rural collective economic organization has an issued reserved land allotment and has completed land supply formalities, but has yet to actually begin development and construction or sign a development partnership agreement, the reserved land may be incorporated into the scope of reconstruction of old villages. For reserved land where the reserved land allotment has been issued but land supply formalities have not been completed, prior to the submission of the project implementation plan to a meeting of the district urban renewal work leading group, the reserved land may be incorporated into the scope of reconstruction of old villages with the agreement of the rural collective economic organization. However, after a deliberation of the project implementation plan by a meeting of the district urban renewal work leading group, the reserved land shall not be incorporated into the scope of the reconstruction of old villages. It is encouraged that rural collective economic organizations incorporate reserved land (including pre-allotted reserved land) into projects for the comprehensive rebuilding of old villages for development and utilization. Submission for site approvals shall be carried out by district planning and natural resources authorities with reference to relevant regulations on marginal land, sandwiched land, and wedged land. The reserved land agreement may be transferred or granted to entities undertaking the reconstruction of old villages for comprehensive reconstruction without being subject to the restrictions in these measures regarding public transactions.

Article 20 The unified development of reserved land with different ownerships is encouraged.

Conditioned upon clear specifications on the division of proceeds, the contiguous development, unified design, and overall planning and submission for approvals of contiguous but neighboring reserved land with different ownerships is encouraged.

Different land-requisitioned rural collective economic organizations may negotiate property substitution for reserved land on their own initiative. Substitution plans shall be jointly submitted to district planning and natural resources authorities. Formalities for the signing of supplementary agreements shall be completed after approval from the district zoning leading group.

Article 21 Applications by land-requisitioned rural collective economic organizations to the government for the repurchase of reserved yet to be transferred, leased, or mortgaged land, and that have clear and undisputed titles, are encouraged.  The use of self-owned reserved land by land-requisitioned rural collective economic organizations for accommodating investment attraction projects is encouraged.

Prices for the repurchase of reserved land shall be negotiated between the district land reserves authorities and the titleholder of the reserved land based on land appraisal outcomes. After submission to district planning and natural resources authorities for their review, these shall be submitted to a meeting of the district zoning leading group for their approval.

Article 22 Land-requisitioned rural collective economic organizations may apply to the government for storage and transfer of their reserved land. This means that reserved land of the nature of State-owned construction land shall be handed to the government for their storage and public transfer based on planned purposes. The land-requisitioned rural collective economic organizations and the transferee shall collaboratively develop the reserved land and share the market proceeds thereof. In the case where reserved land has yet to be collected but reserved land allotments have been ascertained or fulfilled, relevant applications for storage and development of reserved land will not be accepted before such issues are resolved.

Reserved land eligible for the storage and transfer model must be lawfully converted to construction land of a State-owned nature as well as have been issued with the Notice of Consent to Land Use, Construction Land Approval, and State-owned Construction Land Allocation Decision, or have received documentation proving the title to the reserved land. Such reserved land must also not have been transferred, leased, or mortgaged, and have clear and undisputed titles. Reserved land of a collective nature must first apply for the completion of acquisition formalities before this model may apply.

Land-requisitioned rural collective economic organizations applying for storage and transfer of reserved land must undertake a commitment that they possess no less than 30 percent of the ascertained reserved land allotment. Use rights may not be transferred by means of transfer, acquisition of equity by investment in kind, or shareholding transactions.

Procedures for the reserves and transfer of reserved land are as follows:

(1) Land-requisitioned rural collective economic organizations shall carry out public announcements, votes, public disclosures, and notarization with respect to the reserves and transfer of reserved land in accordance with relevant rules for the management of transactions of collective assets.

(2) Land-requisitioned rural collective economic organizations shall submit applications for the reserves and transfer of reserved land to district planning and natural resources authorities, and concurrently put forth preliminary plans for the collaborative development of reserved land.

(3) After review and procedure-based approval by district planning and natural resources authorities of the application submitted by the land-requisitioned rural collective economic organization, district land reserves agencies shall appoint a qualified intermediary agency to appraise the market value of the reserved land

(4) District planning and natural resources authorities shall determine the government's municipal investment costs and the starting price for public auction of reserved land based on the outcomes of the land appraisal. The government's municipal investment costs shall be 40 percent of the appraised value of the reserved land.

(5) District planning and natural resources authorities shall formulate plans for the transfer of reserved land, which shall be submitted to a meeting of the district zoning leading group for their approval. After approval, district land reserves authorities and the land-requisitioned rural collective economic organization shall sign the Agreement for the Storage and Transfer of Reserved Land, and organize public listing and transfer work. Collaborative development agreements shall be publicly disclosed at the same time.

(6) The market value of the reserved land entitled to the land-requisitioned rural collective economic organization shall be the public transfer price of the reserved land less the government municipal investment costs and paid after the completion of the public transfer of reserved land and the collection of land transfer fees.

(7) After confirmation of a transaction, the land-requisitioned rural collective economic organization shall sign a development partnership agreement with the transferee within 30 working days. The collaborative development agreement shall specify matters such as the project commencement and completion schedules and construction requirements. Within three working days after the signing of the collaborative development agreement, the land-requisitioned rural collective economic organization shall submit the development partnership agreement to the local subdistrict office (town government) and district land reserves authorities for their records.

Chapter VI Development Proceeds and Oversight of Reserved Land

Article 23 Proceeds from reserved land shall be primarily used for the following:

(1) Payment of old-age insurance and medical insurance fees;

(2) Public welfare programs;

(3) Infrastructure development for the land-requisitioned rural collective economic organization;

(4) Development of the collective economy;

(5) Growth of the incomes of the land-requisitioned rural collective economic organization and its members;

(6) Other expenses that conform to relevant stipulations on the management of the finances of land-requisitioned rural collective economic organizations.

Proceeds from reserved land must be managed under special accounts and their use must be periodically disclosed to the members of the land-requisitioned rural collective economic organization. The management of relevant assets, proceeds, and allocations from reserved land shall be based on relevant rules for the management of collective finances.

The local subdistrict office (town government) is responsible for oversight of the use of funds. Land-requisitioned rural collective economic organizations receiving funds must cooperate with the oversight of the local subdistrict office (town government).

Chapter VII Oversight of Reserved Land

Article 24 Active prevention and management of unutilized reserved land. Rural collective economic organizations shall carry out development and construction on reserved land in accordance with the schedules stipulated in construction land planning approval documents and allocation decisions. Those without independent development capabilities who are unable to attract market entities for collaborative development shall timely organize the market circulation of reserved land based on relevant procedures, or transfer such land to the government for storage and public transfer and thereafter refund property or monetary compensation as per relevant agreements. With respect to reserved land where construction has not begun on schedule, district planning and natural resources authorities shall reasonably stipulate commencement dates and duly undertake their duties to ensure the commencement and completion of construction, so as to prevent the emergence of new unutilized reserved land. Reserved land that has become unutilized should be disposed of in accordance with relevant laws and regulations. Fees for unutilized reserved land must be paid if use rights to reserved land have been revoked in accordance with regulations and compensation thereof has been commuted to monetary compensation or property substitution.

Article 25 Stronger contract and social credit management. Contracts for the transfer, conveyance, and lease of reserved land shall clearly specify terms with respect to planning conditions, development commencement and construction completion schedules, measures to be taken if the land is not utilized, collection and payment of fees for unutilized reserved land, land use rights revocation and industry access, dates of commission, investment amounts, produced benefits, energy and environmental conservation, operations and oversight, and liabilities for breach of contract as well as implement full lifecycle management of the land in accordance with the terms of the agreement. Rural collective economic organizations and reserved land development partners that fail to carry out development and construction in accordance with relevant laws and regulations and the terms of the contract on transfer, conveyance and lease shall bear liabilities for legal and regulatory violations and breach of contract, and have their actions included in social credit management lists by relevant authorities for the implementation of joint penalties.

Article 26 District planning and natural resources authorities shall establish ledgers of reserved land allotments with economic associations as the unit, and conduct dynamic follow-up and management of the ascertainment, use, adjustment and revocation of reserved land allotments.

Land acquirers shall establish land acquisition ledgers with land-requisitioned rural collective economic organizations as the unit and cooperate with district planning and natural resources authorities in the dynamic follow-up and management of the fulfillment of reserved land allotments arising from land acquisition.

All subdistrict offices (town governments) shall proactively coordinate with and forward land use information within their territories to district investment attraction authorities, and utilize reserved land to accommodate quality industry projects that meet relevant criteria. District planning and natural resources, ecology and environment, and housing and urban-rural development authorities shall proactively cooperate in improving relevant formalities to facilitate the timely and efficient development and utilization of reserved land.

All local subdistrict offices (town governments), market regulation, agriculture and rural affairs, and planning and natural resources authorities shall carry out oversight of the development and utilization of reserved land based on their powers of office. Economic associations shall periodically report information on the construction of collective property on reserved land, titling, and the use of reserved land allotments by economic cooperatives to the local subdistrict office (town government). The development and utilization of reserved land may not infringe the lawful rights and interests of rural economic collective organizations.

Chapter VIII Supplementary Provisions

Article 27 Reserved land incorporated into urban renewal and reconstruction shall be handled with reference to relevant provisions of municipal and district urban renewal policies.

Article 28 Where displaced workers require resettlement on reserved land due to the return of State-owned farms (including overseas Chinese farms) and forestry land, the implementation thereof shall be with reference to these measures.

Article 29 Where land acquisition agreements or reserved land agreements that specify matters regarding the fulfillment of reserved land allotments (reserved land ascertainment proportions; reserved land handover standards) have been signed prior to the implementation of these measures, these agreements shall continue to apply. Where matters concerning reserved land have not been specified prior to the implementation of these measures, the implementation thereof shall be with reference to these measures.

Article 30 These measures shall come into force from the date of issuance for a period of three years. In the event of updates to relevant provincial or municipal policies, the latest provincial or municipal policies shall apply. The Measures of Huangpu District and Guangzhou Development District on the Administration of Reserved Land for the Development of the Collective Economy (for Trial Implementation) (Sui Pu Fu Gui [2018] No 2) are concurrently repealed as of the date of issuance of these measures.

Disclosure: Active disclosure

CC: Huangpu district CPC committee, all work departments of the Guangzhou Development District CPC work committee, general office of the district people's congress, general office of the district people's political consultative conference, district people's armed forces department; district courts; district procuratorates; all people's organizations; all directly subordinate State-owned enterprises

Secretariat of the general office of the Guangzhou Huangpu district people's government

Issued on March 4, 2021

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