Study on the Response of Local Legislation to Coordinate the Interests of Multiple Subjects in Urban Renewal from the Perspective of Property Rights

Abstract

This article analyses the challenges of coordinating the interests of multiple parties in urban renewal and the institutional response through the development of local legislation on urban renewal in Beijing, using the policy mechanisms and practices of urban renewal projects in Beijing as an example. The article is divided into three main chapters: (1)defining the connotation of property rights in urban renewal and identifying the key points of legislation, (2)constructing a framework for analysing the interests of multiple parties in urban renewal, (3)and analysing the response of local legislation.

The article begins by defining the connotation of property rights in urban renewal. It highlights that the definition and interpretation of property rights are the core legislative points of urban renewal. Reducing the institutional costs related to property rights transactions is the key to urban renewal legislation, which helps to optimize the allocation of urban resources through urban renewal.

Then, a framework is constructed for analysing the interests of multiple parties in urban renewal. This framework analyses the current situation, problems, and policy responses to reconcile the interests of multiple parties through three stages: subject identification, interest expression, and interest coordination. The 'subject identification' stage analyses the assets and their associated property rights relationship from the perspective of four dimensions: owners (i.e. property rights holders), implementation subjects, state-owned assets, and neighbouring rights. Due to the complexity and diversity of renewal objects, such as shantytowns, residential communities, commercial buildings, industrial facilities, roads, waterfront areas, etc., and the varying property right holders and relationships, it is essential to analyse each renewal object and its corresponding property right holders based on the attributes of the assets and the holders.The 'Expression of Interests' stage analyses the negotiation process and identifies potential problems that may arise when dealing with multiple parties. In the 'Coordination of Interests' stage, the current policy mechanism for resolving conflicts in Beijing is examined, along with the practical challenges that may be encountered. Balancing the interests of multiple actors in urban renewal is a core dilemma influenced by three main factors: unclear property rights boundaries, complex property rights relationships of stock assets, unequal rights and responsibilities of property rights actors, and the difficulty of reconstructing property rights. By analysing the intrinsic causes, the core concerns of urban renewal legislation in terms of interest adjustment are illustrated, including clear property rights boundaries, emphasis on equal rights and responsibilities, optimised property rights circulation, flexible restructuring of rights and interests, and a dispute resolution mechanism that prioritises the public interest.

Finally, this paper analyses the main aspects of urban renewal, including the implementation process, negotiation of interests, and dispute resolution procedures outlined in the Beijing Urban Renewal Regulations, which is implemented in 2023. The aim is to demonstrate how local legislation responds to the needs of disputing and coordinating interests in reality. The Regulations address the solutions in several areas. Firstly, the concept of property rights holders and their rights and obligations is defined clearly. Secondly, the process of determining the implementation subjects and their duties is clarified. Thirdly, specifying the rights and obligations of neighbouring rights. Lastly, providing procedures for disposing of objections. The current regulations are based on a principled framework but may not be sufficient to guide the process of coordinating conflicts of specific interests and addressing current problems. This article proposes to discuss proposals for optimizing future laws and policies.