The public housing directly constructed by the government means the housing of which the government is in charge from land acquisition, planning, design, construction, to distribution.

To build public housing which has the nature of a community, the government may make a budget to build necessary public facilities in coordination with the housing project, and based on actual requirement, the government may also build commercial and service facilities and other building.
The commercial and service facility and other buildings built by the government in the forgoing paragraph may be built individually or be established at certain floors of public housing, and together with land, which may be sold or leased through open tender by the competent authority of public housing. Proceeds from such sale and lease may be used as public housing funds or for the expenditure of public facilities of public housing community.
The public housing directly constructed by the government, its regulations for purchase, rental qualification, purchase priority, rental qualifications and proportion, processing procedures, rights and obligations, and for selling or leasing commercial, service facilities and other buildings through open tender and other matters shall be determined by The Ministry of the Interior.

In the industrial district developed by the government, public housing may be built based on the actual requirement in the industrial residential community for preferential sale or lease to the workers working in the industrial district.

Public land which is not used for public purpose and suitable for public housing shall be sold at a price to, preferentially, the competent authority of public housing. The price shall be negotiated by both parties. If an agreement can not be reached in negotiation, it may be submitted to The Executive Yuan for decision.
When a state-owned enterprise plans to sell land which is suitable for public housing, it shall be sold in accordance with the provisions of the forgoing paragraph.
If the land which the government will use for the construction of public housing must be exchanged, divided, consolidated with adjacent land as required in overall planning and use, it shall be reported to The Ministry of the Interior for approval unless it has been agreed by both parties.
The exchange, division and combination of land in the foregoing paragraph shall not be subject to the restrictions of Article 104 and Article 107 of the Land Act.

To build public housing, the government must choose a proper area as the site of public housing and implement zone condemnation. The extent of the site shall be defined by competent authority of public housing of special municipalities; counties (cities) and reported to The Executive Yuan for approval.
Upon approval of expropriation of, land for public housing in the foregoing paragraph, the local municipal or county (city) government shall publish the expropriation for 30 days and notify the landowners respectively. When necessary and with approval from the competent authority of higher level, announcement may be made to forbid the transfer of ownership, division, mortgage, new construction, additional construction, reconstruction, quarry, or change of terrain. The period of time for such forbidding shall be no more than one and half a year.
In zone expropriation, land and its improvements shall be expropriated together. Building improvements shall be compensated according to their replacement prices. As for the immature agriculture improvements, it shall be compensated according to the price of the output after maturity if the date of its maturity is within one year from the date of the expropriation is announced, but the compensation shall be assessed according to its planting expenses and its current value if it still has more than one year to be mature.
For zone expropriation, land prices shall be negotiated by both parties. In case no agreement can be reached in negotiation, the case may be reported by the competent authority of public housing to the competent authority of higher level for approval.

The public housing land expropriated in accordance with the provisions of the forgoing article shall be developed for use within one year after expropriation. The expropriated land, except for the use of public facilities, separately-built commercial and service facilities, and other buildings indicated in the first paragraph of Article 7, the rest of the land which can be available for building may be sold to the original landowners according to the proportion of the areas of expropriated land as compensation for land prices.
The total area of land bought back by the original landowner according to the previsions of the foregoing paragraph shall be no more than 50 percent of the total land area which can be available for building use after land development.
The balance between the value of land bought back by the original landowner and the compensation that he shall be given shall be paid in cash.
If the land bought back by the original landowner is smaller than the area of a minimum building unit, he may apply for incorporation within prescribed time limits so it will achieve the area of minimum building unit, or he may apply for preferential purchase of a public housing unit in accordance with the Regulations Governing Application for Purchase of Public Housing. In case of failure to apply within prescribed time limit, he shall be given compensation in cash.

When the original landowner buys back his land based on the provisions of the forgoing paragraph, the land price shall include compensation paid for its expropriation, development expenditure, public facility expenditure, and interest for computation. And he shall make a registration in advance during the period of announcement for expropriation.
The competent authority of public housing shall develop a plan and impose a time limit on the building use of the land bought back by the original landowner. In case of failure to use it for building within the time limit, the competent authority of public housing shall buy the land according to price.

Improvements on the land where the government will build public housing may be expropriated, and relevant provisions in the Land Act shall apply to the expropriation procedure.
For the expropriation of and compensation for the land improvements in the forgoing paragraph, provisions in Article 10 shall apply.

The tax on the land where the government builds public housing shall be levied in accordance with the tax rate of self-used housing land from the date the construction work starts or the ownership is acquired.

The government-built public housing shall be exempt from the deed tax on transfer of real estate when it is sold by the government, but house tax shall be levied in accordance with the tax rate of residential houses when it is rented by the government.

The price of the government-built public housing and its land shall be fixed under the cost by the competent authority of public housing in reference to the market price of nearby property with certain deduction, and loan may be given which shall be amortized in no less than 15 years, and the amount of the loan shall be no less than 70 percent of the price.

The government shall transfer the ownership of public housing and its land to the buyer immediately after the signature of a sale contract. In
case of the creditor’s rights derived from the loan, the creditor enjoys the first priority of the statutory mortgage of the house and its land from the date of contract signature.

(deleted)

Before the implement of the articles of this Act revised on Jan 4, 2005, the government in special municipalities, counties (cities) shall appropriate the existed management and maintenance funds of public housing for the public funds of the community after it established management committees, or elect statutory responsible manager based on the Management Act for Apartments and Buildings and reported. The above mentioned is not applicable to the regulation on Article 18, paragraph 1, subparagraph 1 of Management Act for Apartments and Buildings
The management and maintenance funds of public housing in the forgoing paragraph, its time limit of appropriation shall be determined by the Ministry of the Interior. The regulations of amount of appropriation, the measure of appropriation, the application condition and procedures of transfer and other matters shall be determined by the government in special municipalities, counties (cities).
Before the appropriation of the management and maintenance funds of public housing, the management and maintenance of public housing pursuant to the paragraph one shall apply to the regulations before the implement of the articles of this act revised on Jan 4, 2005.

The buyer of the government-built public housing may sell, pledge and mortgage, grant, or exchange his house and land after having occupied the house for one year. The person to whom the house is sold, mortgaged, granted, or exchanged, if qualified to buy public housing, he shall apply for public housing loan according to the amount of loan balance and left time limit of the original buyer.
The public housing which acquired license for more than fifteen years shall not apply to provisions of the foregoing paragraph when the house and its land is sold, mortgaged, granted or exchanged.

(deleted)

After the sale of government-built public housing, if one of the following situations occurs, the competent authority of public housing shall retrieve the house and its land and enforce this provision after ruling by the court:
1. Illegal use of the house.
2. Failure to pay his loan principle and interest for three months even after pressing him for payment.
3. Those that violate the provisions of sale, pledge and mortgage, grant, or exchange pursuant to Article 19, Paragraph 1.
4. Members of one family having public housing loan or the assistant loan on people buying house themselves of more than one unit of public housing.
5. Change to non-residential use or rent and failure to restore its original use or withdraw the rental for more than thirty days after the notification.
6. Failure to move in after buying the house for three months even after an urge to move in.
The price of the house retrieved in the foregoing paragraph shall be computed based on its original price minus its depreciation. In case of any damage to the house, repair expenditure shall be deducted. Any payment such as house tax, or the loan interest which have been due and the loan principle not yet due, shall be deducted from the house price. The price of the retrieved land based on its original price.
The depreciation of the house in the foregoing paragraph shall be computed according to the average of the depreciation rates table of fixed assets prescribed by the Executive Yuan.

Before the implementation of the articles of this act revised on Jan 4, 2005, the buyer of public housing built directly by government fails to pay the management fee shall be apply to provisions of article 21, the Management Act for Apartments and Buildings.

(deleted)

The basement, alley, playground, the green and the non-statutory vacant land and other facilities of public housing community, have been already included in the price of public housing and registered as the public-owned used by all the owners in the public housing community and shall be administered by the management committees or statutory responsible manager.
When public housing community in the foregoing paragraph is under reconstruction, the management committees or statutory responsible manager shall apply for the registration of change in name, changing the basement, alley, playground, the green and the non-statutory vacant land and other facilities in the forgoing paragraph into the communal condominium building and owned by the landowners, and the competent authority shall notify the land office to do the registration of name changing. And the extent of rights shall be computed based on the proportion between individual ownership value and entire ownership value of public housing community.
The ownership value in the foregoing paragraph shall be computed together with the announced current price of land and the current price of house tax of reconstruction of the year.
The condominium building and the registration of name changing of land pursuant to Paragraph 2 shall not receive the letter of rights.

For the public housing built by the government for rent, the competent authority of public housing shall terminate the rent contract after having rented it out, retrieve the house and enforce this after ruling by the court if there is one of the following cases:
1. Illegal use of the house.
2. Failure to pay rent for three months even after pressing him for payment.
3. Sublease to others.
4. Reconstruction, additional construction or change to non-residential use.
5. Violate the propositions of the rent contract.