Urban Renewal Act
Chapter I General Provisions
Article 1︰This Act is enacted to promote a well-planned urban land redevelopment, revitalize urban functions, improve urban living environments, and to increase public interest.
Those bodies, which do not come under this Act, shall be governed by regulations instituted in other laws.
Article 2︰The authority as referred to in this Act shall be the Ministry of Interior of the Central Government; the Municipal Governments, and the County (City) Government.
Article 3︰The definitions of the terminologies used in this Act are as follows:
1.Urban Renewal: Refers to the implementation of reconstruction, renovation, or maintenance within the urban plan area in accordance with the procedures instituted in this Act.
2.Urban Renewal Business: Refers to the implementation of reconstruction, renovation, or maintenance within the renewal area.
3.Renewal Unit: Refers to any division within the renewal area implemented as an individual urban renewal business.
4.Implementers: Refers to the institution, organization or group implementing urban renewal business in accordance with the regulations instituted in this Act.
5.Rights Transformation: Refers to the land owners, legal building owners, ownership's of other legal rights as implementers of reconstruction area within the renewal unit, that provide lands, buildings, ownership's of other legal rights or funds, participating or implementing the urban renewal businesses, and who, after the implementation of the urban renewal business plans is completed, The distribution of the renewal buildings and the land partition owned or its royalty according to the right value before the renewal and the proportion of the funds provided.
Article 4︰ The processing of the urban renewals are divided into the following three methods:
1.Reconstruction: Refers to the demolishing of the former buildings within the renewal area, and their resettlement of the tenants, improvement of public facilities within the area, and change the usage characteristics of the land or its usage density.
2.Renovation: Refers to remodeling, renovating the buildings or to improving equipment within the renewal area, and improvement of the public facilities within the area.
3.Maintenance: Refers to the strengthening of management within the renewal area, improvement of the public facilities within the area, and the maintenance there of in good condition.
Chapter II Designation of the Renewal Area
Article 5︰The municipal and county (city) authority should conduct an overall investigation and evaluation for the urban development situation, residents' willingness, existing society, economic relations and human characteristics. When designate the renewal area, the following items should be specified in accordance with the actual requirements, in the urban renewal plans individually to be used as guidance for drafting the urban renewal business plans:
1.Renewal Areas.
2.Objectives and Strategies.
3.Physical redevelopment.
4.The designation of renewal unit or the criteria of designation.
5.Other items required to be specified.
Article 6︰Under any of the following circumstances, the County (City) authority can designate an area as renewal area in advance:
1.Buildings that are deteriorated and not having a fireproof structure or the space between neighboring buildings is insufficient, and the building is hazardous to the public safety.
2.Buildings those are in a dilapidated, dangerous condition that have been badly built or roads that are curved and narrow or in any way hazardous to public safety.
3.Buildings that do not meet the urban function.
4.Buildings those are not coordinated with important development projects.
5.Buildings that have historical, cultural, artistic, or other memorable value that urgently require preserving and maintaining.
6.Buildings which have a bad living environment as to constitute a hazard to public health or peace and order in society.
Article 7︰Under any of the following circumstances, the municipal, county (city) authority should designate the renewal area based on the existing situation to draw or revise the urban renewal plan:
1.Destruction or damage due to war, earthquake, fire, flood, storm or other major incidents.
2.To prevent a major disaster occurred.
3.To coordinate with central or local major construction projects.
THe higher-level authority can determine a time limit for the municipal, county (city) authority under its jurisdiction to designate the renewal area mentioned in the above paragraph or to outline a draft, to change urban renewal plans, and if necessary, may directly involve itself.
Article 8 ︰Designation of the renewal area and drafting or revising urban renewal plans that have to be drafted or revised of original urban plans, shall be sent to the urban planning committee of supervising government for review, then publicly announced for implementation after approval. If it involves the drafting or revising of the master plan or the detail plan of urban plans, then it should be managed according to the procedures regulated in the Urban Planning Act, while the master plan or the detailed plans can be combined for the purposes of drafting or revision.
Chapter III Implementation of Urban Renewal Business
Article 9︰An area that has been designated for renewal implementation, unless regulated in other article(s) of this Act, the municipal, county (city) authority can implement by itself or entrust it to an urban renewal business institution after going through a public evaluation and selection procedure. After accepting other organizations (institutions) as implementer to undertake the business of urban renewal, the municipal, county (city) authority can also combine several renewal units, not necessarily neighboring, for implementation based on the designated urban renewal area mentioned in Paragraph 1 of Article 7.
An area directly designated by a higher-level renewal authority should have its renewal implemented as per regulations stated in Paragraph 2 of Article 7. The higher-level authority can implement urban renewal by applying the regulations mentioned in the preceding paragraph.
Article 10︰The owners of the lands and legal buildings of an area that has been designated for renewal implementation may designate the renewal units by themselves as per renewal units defined by the authority, or based on the criteria for designating a renewal unit, conduct a public hearing. They may then present a business summary together with the public hearing records to the municipal, county (city) authority to apply for approval. Finally, they can organize a renewing group to implement the urban renewal business of that area or entrust it to an urban renewal business institution for implementation.
The application mentioned in the above paragraph should be agreed by more than 10% of the owners of the lands and legal buildings within the renewed area, and the total land areas and the total floor areas of the legal buildings owned should also exceed 10%.
Article 11︰ In order to promote the redevelopment of their lands or to improve the living environment in the area that has not been designated to implement their renewals, the owners of the lands and legal buildings can designate the renewal units by themselves in accordance with the criteria for designating renewal units as determined by the authority. They may apply for implementation of the urban renewal business of that area in accordance with the regulations stipulated in the above Article.
Article 12︰ The computation of the proportion between the number of persons and buildings owners applying to implement the urban renewal business do not include the following items:
1.Historical relics that should be preserved in accordance with the law.
2.Ancestral shrines, temples, churches that have been approved and registered by the County (City) authority.
3.Buildings being managed by the government.
4.Persons undergoing court procedures for sequestration, provisional seizure, and provisional punishment or registering for bankruptcy.
5.Worship group's land. However, if more than one third of the successors are against participation in urban renewal, it should be computed regardless.
Article 13︰A trust method can be set up to implement urban renewal business.
Article 14︰ The urban renewal business institution should be a corporation established in accordance with the Company Act. However, if an urban renewal business uses the renovation or maintenance method to process, it will not be restricted by this regulation.
Article 15︰Owners of the lands and legal buildings exceeding seven persons may implement the urban renewal business by themselves in accordance with the regulations in Articles 10 and 11. They should organize a renewal group and institute byelaws indicating the following items and apply with the municipal, county (city) authority for approval:
1.Title of the group and office location.
2.Implementing area.
3.Members' qualifications, number of legal officers, terms, job responsibility and methods of selection.
4.Relevant operational affairs.
5.Relevant sharing of expenses, public announcements and methods of notifying.
6.Other necessary items.
The renewal group mentioned in the preceding paragraph should be corporate person and the regulations regarding establishment should be enacted by the central authority.
Article 16︰In order to review the urban renewal business plans, rights transformation plans and resolve relevant dispute, the municipal and county (city) government should establish an urban renewal reviewing committee to manage publicly. If necessary, it can engage a professional group or institution for technical consultative assistance.
The regulations for organizing an urban renewal reviewing committee are enacted by the central authority.
Article 17︰ Each level of authority should have professionals who can manage the urban renewal affairs.
The county (city) authority can set up an exclusive institution to implement urban renewal.
Article 18︰The county (city) authority can set up urban renewal funds to deploy the urban renewal business. The municipal, county (city) authority should enact the regulations about income/expense, securing and usage of urban renewal funds.
When using the methods of renovation or maintenance to implement urban renewal business, the planning, designing and implementation expenses can be subsidized by the funds mentioned in the preceding paragraph.
Article 19︰ An urban renewal business plan must be drafted by the implementers and sent to the municipal, county (city) government urban renewal reviewing committee for approval. The municipal, county (city) authority shall announce it after approval, the same for revising the plan.
A public hearing should be conducted during the period of drafting or revising the urban renewal business plan to obtain people's comments.
After drafting or revising the urban renewal business plan and before sending it to municipal, county (city) urban renewal reviewing committee for review, it should be publicly exhibited for 30 days at each municipal, county (city) government or township (village, city) hall. The date and place of exhibition should be published on the newspaper for the public and a public hearing also should be conducted. Within the exhibition period, any citizen or group can send written comments or suggestions with their name or title and address to the municipal, county (city) government and the comments or suggestions should be reviewed by municipal, county (city) renewal reviewing committee. After revision by the county (city) renewal reviewing committee, there will be no need to conduct another public exhibition.
In accordance with Article 7, when the implementers has obtained agreement from all the owners of the lands and legal buildings within the renewal area during the drafting or revising of the urban renewal business plans, there is not necessary to conduct a public exhibition and public hearing, and are not restricted by the regulation stated in the above two paragraphs.
Article 20︰Based on the law, if the drafting or the revising of urban renewal plan involves the revision of the master urban plans, it should revise only the part involving the master plan in accordance with the regulations stipulated in the above article by not defying its original objectives. If it involves only drafting and revising certain details of the plans, the urban renewal business plan can be announced first for implementation according to the procedures set out in the above article. With regard to the deployment of renewal works, the relevant urban planning will later be coordinated in line with drafting or revising it.
Article 21︰The urban renewal business plan should consider the existing situation and specify the following items:
1.Planning area for renewal.
2.The implementers.
3.Analysis of the current status.
4.Planning objectives.
5.Detailed plans and maps specifications.
6.Management methods and the block division.
7.Construction and improvement plans of the public facilities within the area, including the layout and design drawings.
8.Renovating or maintaining the reconstruction, repair, and maintenance of the buildings within the areas, or the standards of design specifications for improving the facilities.
9.Land uses plan of the reconstruction block, including the building layout and design specifications.
10.Urban design or landscape plans.
11.Methods of implementation and the relevant sharing expense.
12.Removing and settlement plans.
13.Financial plans.
14.Implementation schedule.
15.Efficiency and effect assessment.
16.Items of the relevant authorities to be coordinated.
17.Other items that should be specified.
Article 22︰When the implementers is drafting or revising the urban renewal business plans to submit for approval, it should be agreed by more than 50% of lands and legal buildings owners within a renewal unit in accordance with the regulations in Article 10. The urban renewal area designated in accordance with Article 7 is an exception. Furthermore, the total of land area and total floor area of the legal buildings should be more than 50%; it should also be agreed by more than 60% of the owners of the lands and legal buildings within a renewal unit. The total land area and the total floor area of the legal building they own should be more than two thirds. Those which are approved for city renewal business in accordance with the regulations in Article 11, should be agreed to by more than two thirds of the owners of the lands and legal buildings within a renewal unit, and the total land area and the total floor area of the legal buildings they own should be more than 75%.
The computation of the proportion between the number of persons and the ownership's of the lands and buildings mentioned in the preceding paragraph can be done to the regulations in Article 12.
Article 22 -1︰When implementing the urban renewal business in an area designated in accordance with Article 7, and if several individual or cluster buildings on the same site have been demolished and are being processed for reconstruction, renovation, or maintenance, they can be computed separately, under the circumstances of not changing the differentiated ownership's of the differentiated owners of the other individual or cluster buildings and the ownership's of the portion of the base lot they own, the proportion between the number of differentiated owners, the differentiated ownership's and the ownership's of the portion of the base lot they own.
Article 23︰In order to draft the urban renewal business plan, the implementers can appoint persons to enter into public lands or buildings within the renewal area for investigation or survey. The persons should notify the owner(s), manager(s) or the user(s) before entering the land or buildings.
It should be approved by municipal, county (city) authority while conducting the investigation or survey as mentioned in the preceding paragraph. But, it is not restricted by this regulation if municipal, county (city) authority is conducting it.
When conducting the investigation or survey as stated in the first paragraph, and if there is a need to remove obstacles on that land, the owner, manager or the user should be informed, otherwise if the owner, manager or the user suffers losses, they should be compensated; the compensation amount is negotiated by both parties, but if negotiations fail, it shall be determined by the municipal, county (city) authority.
Article 24 ︰After the renewal area is designated, the municipal, county (city) authority can consider the existing needs in order to make a public announcement that reconstruction, extensions, new constructions, taking gravel/soil or changing the terrain within the renewal area is prohibited. However, implementation that does not affect urban renewal is not restricted by this regulation.
The duration of the prohibition mentioned in the preceding paragraph cannot exceed two years.
Anyone violating the regulation stated in the first paragraph will be ordered to demolish, reconstruct, stop using or restore to its original state by the municipal, county (city) authority.
Article 25︰The rights transformation method can be used to reconstruct the area within urban renewal business plan area, however, the authorities or relevant authorities can conduct land compulsory collecting, sectional expropriation or urban land re-plotting methods to implement it. Those are governed by the regulations in other laws or as agreed by all the owners of the lands and legal buildings can use the method of joint construction agreement or other methods to implement it.
When using zone expropriation to implement urban renewal business, the authority shall prescribe the proportion between the total area of the offset price land and the total area of the sectional expropriation land after considering the actual situation.
Article 25-1︰Using the method of joint construction agreement to apply for implementation of the urban renewal business, If it could not obtain all the owners of lands and legal buildings agreements, according to the Act Article 25 first paragraph, on the condition that over 80% of the owners of the lands and legal buildings within the renewal area has agreed, it could adopt joint-construction agreement method. For the rest of the lands and buildings owners that do not want to participate in the joint-construction agreement method are allowed to use the right transformation method to implement the renewal project or be sold to the implementer under a purchasing agreement. If the agreement cannot be yielded, the implementer could submit the terms of the joint-construction agreement and the purchasing agreement, report of negotiating process and other related documents, pre-paying the compensation amount of the compulsory purchase, and apply for a compulsory purchase implemented by the municipal (city) authority. Thereafter, the implementer could purchase the lands and buildings.
Article 26︰After the urban renewal business plan has been approved and announced by municipal, county (city) authority, the owners or the managers of the buildings within the designated renewal area should proceed according to the implementation schedule. If overdue and not processed, the implementers can process it and they shall compute the required expenses. The implementers will then notify the building owner or the manager to make over the payment within a given time limit after approval by municipal, county (city) authority; overdue payments will be sent to the court for execution.
If the implementers is processing the plan as mentioned in the preceding paragraph, a building license must be applied under the implementers name and the land ownership certification documents is not required to send.
Article 27︰All public land and constructions within the urban renewal business plan area shall participate in the urban renewal in accordance with the urban renewal business plan. This shall not be restricted by Article 25 of the Land Act, Articles 7, 28, and 66 of the Nation-owned Property Act, Articles 25, 26, and 86 of the Budget Act, and the relevant regulations enacted in all government property management regulations.
As public owned property, when public land and constructions need to be changed into non-public owned property, they should be directly changed and processed all together by the non-public owned property managing offices in each level of the government, in accordance with the local urban renewal plan. This is not applicable to the Article 33 to Article 35 of the Nation-owned Property Act and the relevant regulations stipulated in all government property management regulations.
The public owned property mentioned in the above two paragraphs must be processed according to the following methods：
1.Personally manage, entrust to other agency or to trust to a trust institution to implement the renewal.
2.The trust institution as an implementer to engage the way of trust to implement urban renewal, that trust institution shall be entrusted.
3.When the municipal, county (city) government or other offices use the methods of compulsory, block compulsory to implement urban renewal business, they shall be appropriated for use.
4.Using the method of rights exchange to implement the urban renewal, except choosing to join allocation or to take reimbursement based on the owned rights value, they can be sold to be implemented.
5.Using the method of joint agreement to implement the urban renewal, it shall be sold by tendering or specific sold to the implementer under approved by the public land managing offices; When Using tendering method, aside from those who have the statutory priority right, it can be sold to the implementer on the same condition.
6.Methods regulated by other laws.
The old illegal building owners on public land, on the condition that if they were reached an agreement incorporate the old illegal building into urban renewal business plan, and prepay the compensation during the period of illegal use and relative lawsuit fee, the managing offices of public land can be settle out of court with the old illegal building owners.
Article 28︰Each level of authority or township (village, city) office implement or participate in urban renewal business, the disposition or revenue of obtained lands, buildings and rights are not restricted by Article 25 of the Land Act, Article 28 of the Nation-owned Property Act or the relevant regulations stipulated in all level of government property management regulations.
Chapter IV Rights Transformation
Article 29︰When using the rights transformation method to implement urban renewal, the implementers should draft a rights transformation Plan after the urban renewal business plan has been approved and announced. The implementers should also engage the reviewing process, public exhibition, approvals and announcement of implementation in accordance with the regulations in Article 19. If necessary, the drafting of the rights transformation plan for approval can be processed together with the urban renewal business plan.
In order to draft the rights transformation plan, the implementers must enter into public or private lands or buildings within the rights transformation area for investigation or survey can apply the regulations in Article 23 for processing.
The Central Authority enacts the specified items in the rights transformation plan and the regulations for implementing the rights transformation.
Article 30︰As rights transformations are implemented, public roads, gullies, children's playground, neighborhood parks, plazas, green fields, parking lots within the rights transformation area can be compensated by the existing lands of public facilities, public roads, gullies, rivers and unregistered land. The insufficient lot and construction expenses, rights transformation expenses, loan interest, taxes and management expenses are commonly shared by the land owners within the rights transformation area according to the proportion of their rights values after approved by the municipal, county (city) authority. The authority should use the discounted price of the allocating land and building for payment after the rights transformation. If the discounted price of the allocating land and buildings used for the payment had caused it not to reach the minimum allocation area unit, cash may be used to make the payment; unpaid overdue payments will be sent to the court for specific performance.
The municipal, county (city) authority should consider the actual situations to determine the proportion of common shared areas required for landowners within the rights transformation area mentioned in the preceding paragraph.
Regarding the public facility within the rights transformation area that was not enlisted for common sharing mentioned in the first paragraph, in addition to the original landowners applied for allocation, original public land should have the first priority to allocate. If this turns out to be insufficient, the discounted price of the land and buildings commonly shared used to offset the payment can be used for allocation. However, the publicly owned lands and buildings management institution (organization) or the implementer can request such public utilities management institution (organization) to share the required expenses.
The municipal, county (city) authority should determine the basic standard of the minimum area unit mentioned in the first paragraph.
Article 31︰After deducting the common sharing of the discounted price substitute payment of the land and buildings after the rights transformation, the remaining lands and buildings shall be allocated to the original landowners according to the rights value proportion before each piece of land rights was transformed.
For those who are not willing to participate allocation or the land and buildings being allocated have not reached the minimum area unit, cash can be used to compensate them.
Based on the result of the required allocation mentioned in the preceding paragraph, if the allocated area of the lands and buildings is more than the required area allocation, the difference of the amount should be paid. On the contrary, if the allocated area of the lands and buildings is smaller than the required area allocation, the difference in the amount should be released.
Based on the cash compensation mentioned in the first paragraph and the released difference in the amount mentioned in the preceding paragraph, the compensated persons should be periodically notified to claim the compensation after approval by the municipal, county (city) authority. The compensation is not claimed before the time limit, it will be deposited in accordance with the law.
The difference in the amount payable mentioned in the second paragraph must be paid after the given time limit is approved by the municipal, county (city) authority; if the difference in the amount is not paid after the time limit, it can be sent to the court for execution.
Those who have not paid the required difference in the amount payables cannot transfer the land and buildings that they have obtained from the allocation or set up an obligation. For any person violating this regulation, the transferring or the setup obligation will be invalid. If the transfer is processed because it was an inheritance, it does not come under this regulation.
Article 32︰Landowners that have objected to the rights value within the two months after the rights transformation plan is approved and announced should apply to the municipal, county (city) government urban renewal reviewing committee for mediation. If the settlement is not successful, then the municipal, county (city) authority has to manage the settlement.
While the mediation, settlement, or petition mentioned in the preceding paragraph in accordance with the law, or during the administrative lawsuit, the implementers must continue the urban renewal business without approval from the authority.
If the results of mediation, settlement, petition, or administrative lawsuit are different with the apprised price, both parties must settle the different price in cash.
Article 33︰When implementing the rights transformation area, the municipal, county (city) authority can publicly announce the prohibition of the following matters after the right transformation plan has been approved. If it does not affect the implementation of the rights transformation, it is not restricted by this regulation:
1.Transferring, dividing or setup obligations of land and building.
2.Remodeling, additional construction or new construction of buildings, taking gravel/soil or changing the terrain.
The duration of the prohibition mentioned in the proceeding paragraph should not exceed a maximum of two years.
In the case of violation of the regulation stipulated in the first paragraph, the municipal, county (city) authority can order demolition, reconstruction, forbid use or restoration to its original state within a given time limit.
Article 34︰Base on the rights transformation plan, the implementer's name (title) can be used to apply for a building license without submitting the land, building and other rights certifications.
Article 35︰After the rights transformation, the former owners of the allocating land and buildings are considered the original owners starting from the day the allocation result is confirmed.
Article 36︰The implementer must publicly announce the land improvements within the rights transformation area that required to be removed. The implementer also has to notify the owners, managers or user to demolish or remove within 30 days. Land improvements that are not removed before the given time limit, the implementer can request the municipal, county (city) authority to do it on their behalves. The municipal, county (city) authority has the obligation to do the removing on behalf of the owners. However, where those land improvements being managed by the government or being specifically enforced by the court are required to be removed, the implementer should notify the managing authority or the executing court that they must be dealt with before remove.
Land improvements, buildings removed due to the rights transformation mentioned in the preceding paragraph should be compensated value or the remaining price value of the building, the compensation amount is determined by the implementers, and the removing expenses should be deducted from the compensation amount. The municipal, county (city) authority should review and approve the compensation amount for the objection.
Article 37︰ For leased lands and buildings within the rights transformation area that cannot be used for its leasing purpose due to the rights transformation, the lessee can request compensation from the landlord based on the following regulations after the leasing deeds expire. But, if there have other agreements in the deeds, those agreements apply:
1.If the leased land is used for building houses, the lessee can request a compensation equivalent to one year rentals from the tenant, if the remaining leasing period is less than one year, he/she can request a compensation equivalent to the rentals of the remaining leasing period.
2.For leased land or buildings besides those mentioned in the preceding subparagraph, the lessee can request compensation equivalent to two months rentals.
Lessees of lands within the rights changing area that have cultivated land 375 Leasing Deeds should process it in accordance with the regulations in Articles 39 and 17 of the 375 Leasing Deduction Act, and is not applicable to the regulation stated in the preceding paragraph.
Article 38︰Lands within the rights transformation area that have been set up with easements, the easements shall be revoked.
If the easement mentioned in the preceding paragraph was set up to have compensation, the easement person can request certain compensation from the landowner. If a dispute arises over the compensation amount, the regulations in Article 32 can be applied.
Article 39︰ Legal Buildings and lands that have been set up with superficies rights, tenant farmer rights or cultivate land 375 leasing deeds within the rights transformation area should let the landowners and legal building owners, superficies rights owner, tenant farmer rights owner or the lessee of the cultivate land 375 Leasing Deeds reach an agreement among themselves before drafting the rights transformation plan by the implementer.
If the agreement mentioned in the preceding paragraph is not reached, or the landowners are not willing or cannot participate in allocation, the implementer can estimate the rights price value of the ownership of the legal building and the price value of the superficies rights, tenant farmer rights, or the cultivated lands 375 leasing deeds. He then allocate them to the owners of land, superficies rights, tenant farmer rights or the cultivated land 375 leasing deed within the rights area of the land and buildings, then include them into the rights transformation plans. The formerly owned legal building ownership, superficies rights, tenant farmer rights or cultivate land 375 leasing deeds will be revoked or terminated.
If owners of land, legal building, superficies rights, tenant farming rights or the lessee of the cultivated land 375 leasing deeds have objections over the price value of the legal building ownership estimated by the implementer and the price value of the superficies rights, tenant farmer rights or the cultivated land 375 leasing deeds, the regulation stipulated in Article 32 can be applied.
The allocations mentioned in the second paragraph are considered as transferred without compensation after the landowners obtain the distributed lands. The land value increment tax can be reduced by applying the regulations in Subparagraph 3 of Article 46 and can also allow to be recorded. The land value increment tax shall be paid together by the legal building owner, superficies rights owner, tenant farming rights owner or the lessee of the cultivate 375 leasing deeds when re-transferred after the rights changed.
Article 40︰If the land and buildings within the rights area have been set for collateral rights or lien rights, unless being revoked of the agreement among themselves, the implementer will list it as deleted and send it to the managing authority. The land and building will then be allocated to the former owners of the land and buildings according to the recorded sequence. During the allocation of land and building after the rights transformation; if it is a combined allocation, the recording of collateral rights and lien rights should use the right value of each piece of land or each individual or cluster building before the rights transformation to compute its rights value.
Those not given allocated land or buildings when the rights transformations are being implemented, or do not want to participate in the allocation, the rights value of the former setup collateral rights or the lien rights will be paid or paid back by the implementer with the amount not exceeding compensation for the former land or building owners.
Article 41︰The implementer should present a proposal to manage squatters occupying the land owned by others within the area of the rights transformation. The proposal should be accompanied with the rights transformation plan for approval. If there has any objection, the regulations in Article 32 can be applied.
Article 42︰After the allocation of rights transformation, the implementer should separately send the written notice to the land and building benefactors within the area of the rights transformation, and should process the turnover within a given time limit. If there is no turnover within the given time limit, it will be considered as having already turned over from the following day the time limit is due.
Article 43︰ The implementer should, based on the rights transformation results, list a volume of the land and building after the rights are transformed and apply with the records managing authority to record the rights transformation or to transfer them in exchange for a rights certificate. For those who do not have an exchange/claim, their original rights certification will not be valid.
Chapter V Incentives
Article 44︰ Buildings site within the urban renewal business plan can consider the actual needs of urban renewal businesses and assign them additional building bulk according to the following principles:
1.The building bulk of legal building before the implementation of the building bulk control is more than the building bulk prescribed by the law, the original building bulk is allowed.
2.Due to the implementation of urban renewal, most building's floor area being allocated being less than the average of local residential floor area standard, additional building bulk can be allowed.
3.For public facilities provided to the community after renewal, the floor area of the public facilities shall not take into account.
4.Renewed areas that have priority or have been directly designated by the authority in accordance with the regulations stipulated in Articles 6 or 7 applying to implement the renewals at a certain time will be given additional building bulk.
Other processes to promote the urban renewal business that local authority send to central authority and were approved by the central authority.
5.The central authority should institute the regulations on additional building bulk mentioned in the preceding section.
Article 45︰The reserved land for public facilities within the renewal area should be preserved in accordance with the law, and the land or the street block where the building is approved for reservation or others that can promote a more effective usage land. Part of the original building bulk or whole of it can be transferred to another building site for construction in the same renewal area.
The whole building bulk mentioned in the above paragraph that has been transferred to another building site for construction should register the original land as being publicly owned.
Article 46︰The taxes of the lands and buildings within the renewal area are reduced/exempted in accordance with the following regulations:
1.Lands that cannot be used during the renewal are exempted from land value tax; and for those lands that can be continually in use; the land value tax is reduced to half. However for those that did not finish their renewals according to the planned schedule due to the owners' responsibilities, the land value tax will be collected in accordance with the law.
2.After the renewals, the land value tax and the house tax will be reduced to 50% for two years.
3.The land value increment tax and the deed tax of the lands and buildings obtained from the rights transformation are reduced by 40% during the first transfer after the renewals.
4.The land value increment tax of those not willing to participate in the rights transformation and claim for cash compensation is reduced by 40%.
5.The allocated land received through the implementation of the rights transformation that did not reach the minimum unit of area distribution and had changed in order to claim for cash is exempted from land value increment tax.
6.If the lands and buildings are used to offset the payment sharing of rights transformation during the implementation of the rights transformation, the land value increment tax and the deed tax are exempted.
Article 47︰If the land within the renewal area is used as a trust property and has instituted deeds of trust to specify the trust person as the beneficiary, the gift tax will not be collected.
Transferal of ownership, because of the trust relationship, between the trust person and the beneficiary of the trust land mentioned in the preceding paragraph will not be collected for land value increment tax.
Article 48︰For those who use the land within the renewal area as a trust property and when the trust relationship continues to exist, the trustee will be the tax payer of the land value tax or the agricultural land tax.
The land value taxes of the land mentioned in the preceding paragraph and the land owned by the trust person in the same municipal or county (city) jurisdiction should be combined in computing its total amount. A land value tax will be collected in accordance with the tax rate stated in the regulation stipulated in Article 16 of the Land Tax Act. The land value tax payable base on the proportion of such land value tax over the total land value tax amount will be separately computed. However, if the beneficiary of the trust benefits is not the trust person and is in line with the regulations stipulated in the following subparagraphs, the land mentioned in the preceding paragraph should combine with all lands owned by the beneficiary in the same municipal, or county (city) jurisdiction in computing its total amount:
The beneficiary is confirmed and entitled to all the trust benefits.
The trust person did not reserve the rights to change the beneficiary.
Article 49︰An urban renewal business institution organized by a corporation invests in the urban renewal business of the implemented urban renewal area designated by the competent authority; the annual business profit tax payable of the completed urban renewal business plan can be set-off within the 20% of its invested total amount. If it is not enough for set-off for that fiscal year, it can be set-off four years after.
The off-set reduction total of the investment off-set reduction mentioned in the preceding paragraph allowable each year is limited to no more than 50%of the business profit tax of such a company for that fiscal year. However, the last fiscal year's set-off reduction total is not restricted by this regulation.
The applicable coverage of the investment set-off reduction mentioned in the first paragraph should be instituted by the Ministry of Finance after conferring with the Ministry of Interior.
Article 50︰The securities & exchange managing authority should consider the financial sources required for a renewal business plan to approve the establishing of an urban renewal investment trust company for publishing the urban renewal investment trust benefits certification to raise the urban renewal investment trust fund.
The Ministry of Finance prescribes the establishment, supervision and management of an urban renewal investment trust company mentioned in the preceding paragraph.
The publication, raising and buying/selling of the benefits certification mentioned in the first paragraph should be processed in accordance with the regulations stipulated in the Securities & Exchange Act.
The urban renewal investment trust fund raised by an urban renewal investment trust company should be deposited in an exclusive account of a trust institution. The properties acquired through the use of the said fund should also be trusted to a trust institution, and should be separated from the urban renewal investment company and the trust institution owned properties. The creditors of the liabilities derived from the urban renewal investment trust company and the trust institution owned properties are not allowed to request the fund's assets to be impounded or to enforce other rights.
Article 51︰ The securities and exchange management institution institute the raising, usage and management of the urban renewal investment trust fund.
The regulations stipulated in Articles 36, 39, 64 and 66 of the Securities & Exchange Act are applicable to an urban renewal investment trust company when applying for raising urban renewal investment trust funds.
The regulations stipulated in Articles 53, - 56 of the Securities & Exchange Act are applicable to the personnel of the company mentioned in the preceding paragraph.
Article 52︰If the implementer is a newly established company and has been operating an urban renewal business, it may publicly recruit corporate shares. The founders should include a development professional company of real estate investment development and owners of the real estate with the urban renewal business plan and owner of the superficies right. Their total share holdings cannot be lower than 30% of the total shares of the newly established company and they should report to the central authority for approval.
The owners of the fixed properties within the urban renewal business plan and the owner of the superficies right should have priority when participating as the company founders in establishing a company mentioned in the preceding paragraph.
If the implementer is a fixed property investment development listed company, it can publish a specific usage company's bond to raise funds for the urban renewal business plan, and Article 247 of the Company Act does not restrict it. However, the Securities & Exchange managing authority should approve the total issued amount.
Article 53︰ Important public facilities that need construction due to the implementation of the urban renewal business, except being stipulated in other regulation(s) of this Act, the implementer can request the management of such public facility to shoulder the whole or part of the expenses required for the construction.
The expenses sharing should be specified in the urban renewal business plan.
The authorities should coordinate with the renewal schedule and prioritize the construction and set out the management for the relative public facility required outside the renewal area.
Chapter VI Supervision and Management
Article 54︰When implementing the urban renewal business plan in accordance with the regulations stipulated in Article 10 or Article 11, the implementer should draft an urban renewal business plan and send it for approval within one year from the day it was approved. If exceeding the given time limit, the municipal, county (city) authority can revoke the approved renewals. However, if the reason for the delay was not the implementer's responsibility, it should be deducted.
If the urban renewal business plan cannot be sent for approval within the given time limit mentioned in the preceding paragraph, an extension can be applied by clearly specifying the reason. Each extension period cannot be more than 6 months; and is limited to two extensions only.
Article 55︰After the approval of the urban renewal business plan, the municipal, county (city) authority can inspect the implementing situation of urban renewal business plans at any time or regularly based on the actual need.
Article 56︰ If any of the following circumstances is discovered during the inspection mentioned in the preceding paragraph, the municipal, county (city) authority should order the relevant party to remedy the situation within a given time limit or order it to stop the operation and fix the problem within a given time limit. If necessary, it can assign a person to supervise, take over or take any other necessary measures by municipal, county (city) authority:
1.Violation or alteration of the byelaws, business plans or rights transformation plans.
2.Business neglected.
3.Serious deficiencies in business and finance.
Implementers that do not obey the orders mentioned in the preceding paragraph, the municipal, county (city) authority can revoke its approved renewals, and can take it over compulsorily; the regulations for taking it over are instituted by the central authority.
Article 57︰The implementer should draft construction drawings and a renewal accomplishment report within six months after the urban renewal business plan is completed, and submits it to the municipal, county (city) authority for review.
Chapter VII Penal Provisions
Article 58︰ Those who have not demolished, remodeled, stopped using or restored to its original state buildings or land according to the regulations stipulated in Paragraph 3 of Article 24 or Paragraph 3 of Article 33 will be fined between 60 Thousand NT Dollars and 300 Thousand NT Dollars any necessary measures. Such as cutting off water, or electricity, closing down the building demolishing it by force or returning it to its original state, with all associated expenses shouldered by the land or building owners or the management.
Article 59︰Any implementer, who refuses, obstructs or attempts to avoid the inspection of Article 55 without proper reason will be fined between 60 Thousand NT Dollars and 300 Thousand NT Dollars, and can also be fined according to the changes.
Article 60︰The fines mentioned in the above two paragraphs are enforced by municipal, county (city) authority, and should be paid after being notified within a given time limit. If still not paid upon expiration of the given time limit, the case will be sent to the court for strict enforcement.
Chapter VIII Supplementary Provisions
Article 61︰The central authority shall prescribe the enforcement regulations for this Act.
Article 62︰This Act shall take effect from the date of promulgation.
