In cities and municipalities, an appropriate number of reserve houses shall be built by the Government and leased to citizens for residence. The rental of the houses referred to in the preceding paragraph shall not exceed an amount equivalent to an annual interest of 8 percent on the total value of the land and the buildings thereon.

In order to relieve housing shortage, the Special Municipal or County (City) Government may, with the approval of the Executive Yuan, reduce or remit both the land tax and the improvements tax on those lands whereon new houses are built and fix a time limit for such reduction or remission.

In cities and municipalities, necessary restrictions on the number of rooms to be occupied by each citizen for his own dwelling may, with due regard to local conditions, be prescribed by the Special Municipal or County (City) Government; but such restrictions shall be subject to the approval of the local assembly.

In cities and municipalities, house rentals shall not exceed an amount equivalent to an annual interest of 10 per cent on the total declared value of the land and the buildings thereon.
If any house rental already agreed upon exceeds the amount prescribed in the preceding paragraph, the competent Special Municipal or County (City) Government may compulsorily reduce it to the limit prescribed in the preceding paragraph.

Where cash deposit is paid as security for the lease of a house, the interest on such cash deposit shall be deemed as part of the house rental.
The rate of interest referred to in the preceding paragraph shall be the same as that by which the house rental is computed.

The cash deposit referred to in the preceding Article shall not exceed the total amount of two months’ house rental.
If the cash deposit already paid exceeds the limit prescribed in the preceding paragraph, the lessee may use the excess deposit to counterbalance the house rental.

The lessor shall not take back his house unless one of the following conditions obtains:
(1)The lessor takes the house for his own residence or for reconstruction.
(2)The lessee subleases the house in violation of Paragraph one, Article 443 of the Civil Code .
(3)The cumulative amount of house rental which the lessee has failed to pay exceeds the equivalent of two months’ rental, after the entire cash deposit has been used to counterbalance the amount in arrears.
(4)The lessee puts the house to illegal use in violation of Acts or ordinances.
(5)The lessee violates the terms of the lease contract.
(6)The lessee causes damage to the house or the fixtures and fails to pay due compensation.

Any dispute arising out of the lease of a house may be submitted to the competent Special Municipal or County (City) Land Administration Agency for conciliation. Any party to the dispute who refuses to abide by the terms of conciliation may bring the case before the judicial authorities for adjudication.

Where a building site is leased for house construction, the lessor and the lessee shall, within two months after the contract is concluded, apply to the competent Special Municipal or County (City) Government for the registration of the right of superficies over the said site.

The lessor shall not take back the site leased for house construction unless one of the following conditions obtains:
(1)The period of the contract has expired.
(2)The lessee puts the site to illegal use in violation of Acts or ordinances.
(3)The lessee subleases the site to another person.
(4)The cumulative amount of the rental which the lessee has failed to pay exceeds the equivalent of two years’ rental, after the entire cash deposit has been used to counterbalance the amount in arrears.
(5)The lessee violates the terms of the lease contract.

When the building site is offered for sale, the lessee shall have preferential right to purchase it on the same terms as are offered to any other person, and when the house on the leased site is offered for sale, the owner of the site shall have preferential right to purchase it on the same terms as are offered to any other person.
The preferential right referred to in the preceding paragraph shall be deemed to have been waived, if the said lessee or owner does not express his intention to make the purchase within ten days upon receipt of the sales notification.

The provisions of Articles 97, 99 and 101 shall, mutatis mutandis, apply to the lease of building sites for house construction.