COMPANIES that have been running at a loss for the past two years can apply to reduce or delay compulsory contributions to employee housing allowances, according to the housing provident fund management center.
The companies must provide evidence of their financial situation to the management center, including audit reports by legal intermediaries and resolution papers by the company s trade unions to approve the application, Shenzhen Special Zone Daily reported Thursday.
The company must have been in financial difficulties for at least two years.
People who don t own property in Shenzhen can use the housing fund to pay their rent through a simple procedure, according to a regulation drafted by the local government.
People can cancel their building society accounts when they leave to work in other cities, withdrawing all the money.
People who terminate building society accounts can receive an additional interest subsidy on condition that they have never used it for a loan application, the paper said.
People who own property in Shenzhen can withdraw a maximum of 300 yuan (US$46) a month from their building society accounts to pay property maintenance fees, said Hu Jianwen, deputy head of the city s housing and construction bureau.
Hu specified nine conditions under which people could withdraw money from the housing fund for purchases other than housing, such as disability.
The compulsory housing fund is a long-term savings program for the purchase, construction, rent or renovation of homes, with monthly contributions from individuals and employers.
Shenzhen started promoting the compulsory housing fund at the end of last year. It is open to all residents regardless of whether they have Shenzhen hukou (permanent residence permit).
According to a national regulation, deposits paid by employees and employers are owned by the staff. (Li Hao)
