Beijing Hutong Conservation Plan - Tibet Heritage Fund

6. Applying the project on a wider scale
6.1 Financing the program
THF offers to provide some financial input for the pilot rehabilitation project as outlined above. The work should be carried out by local craftsmen, using
locally produced materials. This will not only revive central Beijing’s historic splendour, but will also create many new jobs and encourage the renaissance
of ancient craft skills. The success of the scheme depends on high quality workmanship and competitive pricing. One of the aims of the project is also to
preserve the individuality of each building. Although they share a basic design, each Si-He-Yuan has its own character. A broad brush housing-estate
approach, where houses are repaired to a standard design, would be highly inappropriate for this project.
The participation of residents in funding and supervising the work is seen as a key measure to keep down costs, ensure good workmanship and increase
residents’ sense of ownership. Recently, such an approach proved very successful. At No. 8 Banchang Hutong, the private owner paid 700rmb/m 2 for a
new building in traditional style. All the construction materials and workers were arranged by house owner with the permission from the district
government.
The pilot project includes the establishment of clear agreements for the maintenance of renovated buildings. The establishment of security of tenure and fair
cost-sharing agreements is sure to attract further project funding.
THF proposes to create a revolving loan system where residents can borrow additional funds for the rehabilitation at low or no interest. In such a way, the
governments’contributions could be limited to cover only upgrading of infrastructure and technical monitoring.
The option to offer residents to buy their homes would still need to be discussed. This would release local government from maintenance responsibility.
Since few residents will be able to come up with so much money at once, a system of payment by installments could be devised, requiring in turn measures
to prevent re-selling for profit while taking advantage of the assistance offered by the project.
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