Fujian Real Estate Development Enterprise Credit Evaluation Management Measures Further Improved

According to the website of the Housing and Urban-Rural Construction Department of Fujian Province, in order to promote the construction of the credit system of real estate development enterprises in Fujian Province, the Housing and Urban-Rural Construction Department of Fujian Province issued the Measures for Credit Evaluation and Management of Real Estate Development Enterprises in Fujian Province (Trial Implementation) in 2015, and achieved certain results. With the change of the real estate market environment, it needs to be revised and improved to meet the needs of the high-quality development of the real estate industry. In 2022, based on the credit classification and the experience of implementing credit classification control, Fuzhou has initially formed a market competition mechanism of "incentive for keeping faith and punishment for breaking faith". The Department of Housing and Urban-Rural Development of Fujian Province summarized the relevant work and operation, referred to the practices of Zhejiang, Shanghai, Anhui, Jiangxi and other places, studied and revised the evaluation model, scoring criteria and the application of results, and revised and improved them after soliciting opinions for many times, and formed the "Fujian Real Estate Development Enterprise Credit Evaluation Management Measures" (hereinafter referred to as "Evaluation Management Measures") and recently issued. There are 6 chapters and 28 articles in

the Evaluation Management Measures, which mainly involve the collection process of credit information, grading, reward and punishment measures, scoring rules and so on. The Measures for the Administration of Evaluation have been implemented since September 1, 2023, and the original measures have been abolished at the same time. The main revised contents of the

Evaluation Management Measures are as follows:

First, the scope of application is clarified. Real estate development enterprises (including regional companies without development projects) engaged in real estate development and operation in Fujian Province can participate in credit evaluation.

The second is to compress the credit evaluation procedure , which has four links: enterprise credit information declaration, evaluation implementation department audit, system automatic calculation, and online publicity. Among them, the evaluation implementation department is the municipal and county real estate authorities; the credit evaluation system is developed by the provincial department; the enterprise's bad behavior is entered into the deduction information by the department or evaluation department that declares or makes the behavior identification.

The third is to clarify the validity period of credit evaluation, the validity period of good credit information is 2 years, the validity period of general bad credit information is 1 year, and the validity period of serious bad credit information is 3 years.

The fourth is the implementation of credit association . Regional group companies can use the credit information of their subsidiaries to participate in the evaluation. Newly established real estate project companies can apply for credit evaluation independently, and can also directly use the credit evaluation scores of the real estate development enterprises of their holding parent companies.

Fifth, adjust the credit scoring standards , according to the enterprise credit score, divided into AAA level, AA level, a level, B level, C level five grades. It is estimated that new real estate enterprises without bad records can obtain A-level assessment. Encourage enterprises to actively participate in the transfer of land for the sale of existing houses, and stipulate that housing enterprises should develop a project for the sale of existing houses, with a credit score of 5 points. For serious bad acts such as misappropriation of pre-sale supervision funds, the credit evaluation grade of real estate development enterprises (including project companies) is directly recognized as C grade.

Sixthly, we should optimize the evaluation results and use them , implement credit incentive mechanism for enterprises with AAA and AA credit rating, reduce the threshold of pre-sale and the amount of funds for key pre-sale supervision, incorporate them into the "white list" management of the industry, dock with the financial regulatory authorities, and strengthen financing support. Municipalities are encouraged to explore other incentives in terms of the time limit for paying land transfer fees, the conditions for handling construction permits, and the acceptance of building zoning. Enterprises of grade B and C shall be given corresponding credit punishment.