Notice on Controlling the Scope of Housing Demolition and Relocation in Cities and Towns and Tightening Up Demolition and Relocation Management (CECC Full Translation)

The following is a translation prepared by the Congressional-Executive Commission on China of the "Notice on Controlling the Scope of Housing Demolition and Relocation in Cities and Towns and Tightening Up Demolition and Relocation Management" issued by the PRC State Council General Office on June 6, 2004. The Chinese text follows.

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Notice on Controlling the Scope of Housing Demolition and Relocation in Cities and Towns and Tightening Up Demolition and Relocation Management No. 46 (2004) To people’s governments in each province, autonomous region, and centrally administered city and all ministries, commissions, and organs under the State Council: Strengthening housing demolition and relocation (Note 1) management work in cities and towns has an impact on the effective implementation of the central government’s macroeconomic policies, the direct personal interests of residents in cities and towns, and social stability. Presently, China’s urban construction industry has developed rapidly, but in the area of housing demolition in cities and towns, there are a number of outstanding problems: some local governments have not taken a correct view of official achievement and have blindly enlarged the scope of demolition; some cities have failed to implement adequate measures for housing demolition compensation and resettlement and artificially reduced standards for compensation and resettlement; some have even abused official power and illegally engaged in forced demolitions. These phenomena not only seriously violate the legal rights of residents in cities and towns and trigger large numbers of petitions by the masses, influencing social stability, but they also cause over-investment in certain geographic areas and industries. In order to implement the policy decisions of Party Central and the State Council on strengthening and perfecting macroeconomic regulation and to promote social stability and the healthy development of construction in cities and towns, with the consent of the State Council, notice on relevant issues in progressively strengthening housing demolition work is given as follows: 1. Rectify the guiding philosophy of housing demolition in cities and towns and uphold the legal rights and interests of the masses. Comprehensively implement the important thinking of the “Three Represents” and apply a scientific notion of “development” and a proper view of official achievement to guide the work of urban construction and housing demolition. Strictly in accordance with overall city plans and construction plans, curb and correct “major demolition, major construction” acts of blindly following others to achieve quick success and instant benefits that exist in construction and housing demolition in cities and towns. Earnestly implement the Center’s policy measures on macroeconomic regulation and, according to economic development levels, ability to bear social burdens, and resident income levels, reasonably set the scope of demolition and construction; progressively improve laws and regulations and standardize demolition behavior; implement management responsibility, strengthen supervision and inspection, manage strictly in accordance with the law and expand the investigation and prosecution of cases involving violations of the law and regulations; resolutely correct all types of behavior involving infringements on the interests of the masses that take place in the course of housing demolition in cities and towns; and safeguard the legal rights and interest of residents and peasants in cities and towns and preserve social stability by correctly guiding the masses to support legal demolition work. 2. Strictly formulate demolition plans and reasonably control the scope of demolition. The program and plan for housing demolition in cities and towns must conform to overall city plans, controlling detailed plans and construction plans, and preservation plans for famous historical and cultural cities and districts. City and county people’s governments should take the actual economic and social development level of their locales as a starting point and put together mid and long-term housing demolition programs and annual plans. After provincial-level construction management departments, jointly with development reform and planning departments, have issued approvals, city and county governments should report them to the local people’s congress standing committee and the next-level people’s government for filing. Each locale must strictly control the scope of land requisition, protect the interests of peasants and residents in cities in towns in practice, and earnestly correct infringements on the interests of residents [that occur in] the course of housing demolition in cities and towns and infringements of peasant interests [that occur in] in the course of land requisitions. The Ministry of Construction, in cooperation with other relevant departments, shall adopt and implement measures to strictly control the total area subject to housing demolition and guarantee that the total area subject to housing demolition this year is clearly smaller than last year. In areas where demolition conflicts and related disputes are relatively concentrated, outside of projects involving energy, transportation, hydropower, major urban public infrastructure, and other major construction projects, major social development projects, the reconstruction of condemned houses, and projects involving affordable and low-cost housing, demolition shall be totally stopped and resources redirected to solve existing demolition problems. Local governments must not expand the scope of demolition without authorization by violating legal procedures or legal provisions, substituting government meeting records and documents for legally required demolition permits and important documents, or changing plans. 3. Strictly adhere to demotion procedures, ensure that demolition is open, fair, and impartial. Vigorously promote the standardization of demolition management. All demolition projects must be carried out in accordance with the powers and procedures provided in the “Urban Housing Demolition Management Regulations” (State Council Order No. 305) and the “Guidance Opinion on Urban Housing Demolition Appraisal” (Ministry of Construction (2003) No. 234), etc., and must strictly carry out procedures for housing demolition permit application, notification, appraisal, agreement, and other matters. When agreement can’t be reached, hearings, administrative adjudication, preservation of evidence, and other procedures must be strictly carried out in accordance with the provisions of the “Urban Housing Demolition Administrative Adjudication Work Rules” (Ministry of Construction (2003) No. 252). In particular, the system of notification of demolition appraisal results must be implemented, and the openness, fairness, and impartiality of demolition must be ensured. Engineering projects constructed with government funds must also be carried out strictly in accordance with procedures. 4. Strengthen management of demolition units and personnel and standardize demolition behavior. Strengthen the management of qualifications for demolition work and strictly tighten up market access. For all demolition engineering projects, the method of posting for bid or commission must be used to award [the project] to a construction unit with the appropriate qualifications to conduct demolition. Progressively standardize demolition commissions and prohibit the adoption of the “all-around contract” for demolition expenses to carry out demolition. Housing appraisal organizations must reasonably set market valuations and prices according to relevant regulations and the location, use, building area, etc. Those persons who engage in demolition and their corresponding work units should strictly implement laws and regulations, strictly prohibit uncivilized and illegal demolitions, strictly prohibit the application of methods such as cutting off electricity, gas, or heat, blocking traffic, and other tactics to force residents subject to demolition to move. Local people’s government at each level and corresponding departments must strengthen the education and cultivation of people who conduct demolition, continuously enhance observance of law and discipline, and improve professional quality. 5. Conduct administration strictly according to law, correctly carry out professional duties. Local people’s governments at each level shall progressively shift functions and achieve a separation of government affairs and government enterprise. Demolition companies subordinate to ordinary government departments must completely sever links with the departments. Government departments must extract themselves from prior housing demolitions they organized directly, carry out administration strictly in accordance with the law, implement a “separation of demolition and management,” achieve a fundamental shift in housing demolition management from stressing and relying on administrative methods to stressing and relying on legal methods, and strictly prohibit the transfer of examination and approval authority for demolitions. Tighten up the issuance of demolition permits. Projects that violate city plans and controlling detailed plans or that do not have demolition plans, construction project approval documents, construction land use plan permits, land use approval documents for state-owned land, or demolition compensation funds, or that have not implemented resettlement programs, must not be issued demolition permits. Strictly prohibit recovering land use rights and directly supplying land and issuing construction land use approval documents to projects that have not yet [paid] resettlement subsidies. Government administrative organs must neither interfere with nor forcibly set demolition compensation standards, and may not directly participate or interfere in the activities that are undertaken by the person who conducts the demolition. The power of forced demolition must be exercised correctly and in accordance with the law. 6. Strengthen oversight of demolition compensation funds and implement demolition resettlement plans. Reasonable demolition compensation is the foundation for upholding the legal rights and interests of those subject to demolition and conducting demolition work. Demolition units must properly respect the wishes of property owners in their choices regarding property exchange, monetary compensation, rental housing, and other matters and must not accommodate the small number of property owners with unreasonable demands. For all demolition projects, regardless of whether they are projects for the public interest or projects operated for investment purposes, demolition compensation funds must be delivered promptly, special bank accounts must be established, funds must be specially earmarked, and the compensation quotas must be paid to the people subject to demolition. A project’s future profit, institutional capital commitments, or other funds that have not yet been realized may not be used as the source of demolition funds. All locales must provide, within the scope of reasonable demolitions that have already been set, demolition resettlement and transfer plans with quality standards, reasonable prices, and suitable housing. Bring those households with difficult circumstances that are affected by demolition into overall arrangements for housing guarantees in cities and towns and ensure their basic housing needs. 7. Conduct demolition letters and visits work well in practice and safeguard social stability. Conducting “letters and visits” work well is an important way to accept the supervision of the masses and protect the legal rights and interests of those subject to demolition. All locales must establish a system of job responsibilities for demolition “letters and visits” work, and in particular must establish and perfect a system of job responsibility for preliminary letters and visits work as well as a mechanism for organizing, investigating, and mediating demolition disputes and contradictions. Promptly resolve problems and reasonable demands made known by the masses and actively diffuse demolition disputes and contradictions. In areas with a relatively large number of demolition petitions, comprehensively sift through demolition petition issues and understand the real situation regarding important and universal issues complained about. Important leaders in local people’s governments must personally organize study and promptly adopt focusing measures, formulate concrete plans for resolution, identify responsible units and individuals, and resolve problems within a set time. At the same time, with respect to the unreasonable demands of some people subject to demolition, do not make promises contrary to regulations or recklessly set precedents, and guard against the harmful effects of “the squeaky wheel getting greased.” The work of creating channels for collective petitions should be done well, and preparations should be made to guard against and handle mass incidents. For the minority that demands an exorbitant price and willfully stirs up trouble, we must uphold principles and not compromise. The minority of individuals subject to demolition that openly assemble and create disturbances or take to the streets to block traffic or attack government organs must be promptly and severely punished in accordance with the law. 8. Strengthen inspection and supervision, strictly handle illegal acts. Organs at all levels that supervise construction, etc. must strengthen coordination and cooperation and enhance investigation and punishment in cases involving violations of law and regulations during housing demolition in cities and towns. Resolutely investigate and punish the phenomena of people’s governments at each level and relevant administrative departments under their control violating city plans and examination and approval procedures, blindly enlarging the scope of demolition, and abusing authority by engaging in forced demolitions. With regards to departments and locales where serious harm to the interest of the masses has continuously occurred in the course of demolition, leading to terrible incidents, leaders and individuals directly responsible must be called to account. Demolitions that are not carried out in accordance with provisions and procedures must be promptly corrected and the units and leaders called to account. Administrative discipline must be administered in accordance with the law for the indiscriminate use of coercive measures that causes serious consequences. Where such [acts] constitute crimes, criminal responsibility must be pursued in accordance with the law. Demolition units and appraisal organizations that violate laws and regulations must be severely punished. With respect to intentionally being in arrears on, confiscating, or misusing demolition compensation funds and other acts that violate laws and regulations, the parties and direct leaders must be strictly called to account. Uncivilized demolition and serious violations of the interests of residents must be curbed and, where the circumstances are serious, relevant qualifications must be canceled and the behavior dealt with severely in accordance with the law. 9. Perfect laws and regulations, strengthen policy measures. Put demolition work in cities and towns on the path of legalization and standardization and continue to perfect relevant laws and policies. Regarding the problems that exist in implementing the “Urban Housing Demolition and Relocation Management Regulations,” each locale must progressively formulate and perfect relevant housing demolition policies. The departments concerned shall cooperate with the Supreme People’s Court to release relevant judicial interpretations on housing demolition and standardize housing demolition administrative adjudication, coercive enforcement procedures, and related issues. All locales will, according to national laws and regulations related to demolition work, formulate and perfect local regulations, rules, and documents. Local regulations and rules that are inconsistent with the Urban Housing Demolition and Relocation Management Regulations must be promptly revised. For policies that are unclear, but are genuinely reasonable, relevant policy measures must be quickly formulated and settled within a set period of time. 10. Persist in correct guidance of public opinion and give full play to media supervision. Television, broadcast, periodical, Internet, and other media should start from the general situation of social stability. Expand efforts to disseminate information on reasonable advances in urban construction and the implementation of housing demolition policy as well as the standardization of demolition management and good experience and methods for upholding the legal rights and interests of the masses. Enable the masses to fully understand demolition policy, improve the social environment for demolition in accordance with the law, and strengthen the consciousness of the masses with respect to upholding rights in accordance with the law. At the same time, continue to expose typical cases involving serious harm to the interests of the masses. Persist in the correct guidance of public opinion, support urban demolition work carried out in accordance with the law, pay attention to the form of information dissemination, and guard against inducing and intensifying contradictions. 11. Strengthen organizational leadership, implement work responsibility. Every locale and department should make controlling the scope of housing demolition and tightening up demolition management one of the important elements of implementing the Center’s important policy measures on macroeconomic regulation and guaranteeing social stability, include these items as important duties in this year’s government work and make them explicit parts of the duties of comrades in charge, strengthen leadership, adopt effective measures, and do the corresponding work well. Relevant organs must strengthen coordination and cooperation, establish and perfect coordinating mechanisms for demolition work units, guide work across the country, establish and perfect supervision and information-sharing systems for key areas, projects, and cases, and summarize and disseminate good experience and methods. Each provincial-level people’s government must strengthen management and supervision of demolition work within its administrative area, strengthen regulation and control of the scope of demolition in practice, guard against and correct “major demolition and major construction,” and, in accordance with the PRC Administrative Licensing Law, standardize city and county demolition management departments and duties. Each city and county people’s government must carry the burden of construction and demolition work in cities and towns strictly in accordance with the law, act according to its capability, and conduct demolition work in cities and towns by persisting in implementation of macroeconomic policy measures and upholding the interests of the masses to a high degree. The people’s governments of each province, autonomous region, and centrally administered municipality will implement and report the situation to the State Council before late October 2004 and at the same time sending a copy to the Ministry of Construction. State Council General Office June 6, 2004 Translation Note 1: Demolition and relocation is hereinafter referred to simply as demolition.