Published by ChinaMNC · Gongjue

Xuzhou’s New Rules for Compensating Collective-Land Housing: A Guide for Foreign Founders

Xuzhou has issued new measures governing compensation for housing on collective land in its urban districts. For foreign founders operating in China, these rules clarify procedures, compensation standards, and dispute resolution when land is acquired.

Xuzhou’s New Rules for Compensating Collective-Land Housing

Foreign founders with operations in China may encounter land acquisition involving collective-owned land, especially when expanding facilities or leasing property in peri-urban areas. Xuzhou’s newly issued measures for compensating housing on collective land in its urban districts provide a detailed framework. The rules, adopted by the municipal government and effective from February 3, 2026, apply to the urban districts of Xuzhou excluding Tongshan and Jiawang districts.

Scope and Definitions

The measures apply to compensation and resettlement for housing on collective land within the specified areas. The “acquired party” is defined as the owner of the house on collective land. Foreign founders should note that this definition focuses on ownership, which may affect leasehold arrangements.

Administrative Responsibilities

The municipal natural resources and planning department supervises collective land acquisition. The municipal housing and urban-rural development department oversees housing matters on acquired collective land. District governments are responsible for compensation and resettlement within their jurisdictions. They establish or designate acquisition departments to implement the work, with other district departments, sub-district offices, and village committees providing support.

Key Principles

Compensation must precede relocation, and compensation funds must be fully in place, stored in dedicated accounts, and used exclusively for that purpose. After a pre-acquisition announcement, new construction, renovation, expansion, or changes to land use are suspended.

Compensation and Resettlement Plan

District governments draft a compensation and resettlement plan based on land surveys and social stability risk assessments. For housing acquisition, the plan must include: the scope and timing of compensation; compensation and resettlement methods; standards for various compensations, subsidies, and rewards; signing deadlines, transition methods and periods, relocation deadlines, and early relocation reward periods; location and settlement standards for resettlement housing; and other necessary items.

The draft plan must be published for at least 30 days in the affected sub-district (town), community (village), and village group, as well as on the district government website. Comments from the rural collective economic organization, its members, village committees, and other interested parties must be solicited, with clear methods for submitting opinions.

If more than half of the affected rural collective economic organization members believe the plan violates laws or regulations, the district government must hold a hearing. If fewer than half object but the district government deems it necessary, a hearing may also be held. The plan may be revised based on laws, hearing results, and comments, and then republished.

Eligibility for Compensation

Individuals who move their household registration into the area due to birth, marriage, military service, retirement, enrollment in higher education, or release from prison, and who meet household registration rules, may receive compensation and resettlement on the same terms as members of the rural collective economic organization.

Determining Legal Building Area

Compensation is based on the legal building area, which is generally the area recorded in the property ownership certificate or real estate registration certificate. If the owner only has a homestead certificate or a village (resident) building land use permit without a property certificate, the legal area is determined as follows:

• If the actual building area is less than 1.4 times the area stated in the homestead certificate or land use permit, the actual area is recognized.
• If the actual building area is equal to or greater than 1.4 times the stated area, the area is recognized up to 1.4 times the stated area; any excess is not recognized.

If neither a homestead certificate nor a land use permit nor a property certificate exists, the district government must first confirm the homestead ownership and area with relevant departments, then apply the above rules.

Exclusions from Compensation

Illegal construction, temporary structures exceeding the approved period, and unauthorized new construction, renovation, or expansion of houses and attached structures after the pre-acquisition announcement are not eligible for compensation or resettlement.

Compensation Methods

Owners may choose monetary compensation or property exchange. For monetary compensation, an appraisal agency assesses the value of the acquired house and compensates accordingly. Following the state-owned land “home purchase card” policy, those choosing monetary compensation may use the card to purchase new commercial housing. For property exchange, the resettlement area is based on the legally recognized building area, and settlement follows the rules for state-owned land housing acquisition.

The value of the acquired house is determined by a qualified real estate appraisal agency. The agency is selected through negotiation among the acquired parties; if no agreement is reached within the specified period, the acquisition department organizes selection by on-site drawing of lots, notarized by a notary public.

Non-Residential and Mixed-Use Properties

If acquisition of non-residential housing causes suspension of business, compensation for lost business is required, with standards referencing those for non-residential housing on state-owned land. If residential housing is used for non-residential purposes, standards for “residential-to-non-residential” conversion on state-owned land apply. However, if residential housing is rented or lent to others for non-residential use, it is still considered residential, and tenants or borrowers are not eligible for resettlement or compensation.

Transition and Moving Subsidies

The compensation agreement must specify the transition period for immediate and future housing resettlement. If the acquired party arranges their own transition housing, a temporary resettlement subsidy is provided. A moving subsidy is also provided based on the legal building area of the acquired house.

Dispute Resolution and Enforcement

If no compensation and resettlement agreement can be reached within the acquisition period specified in the land acquisition announcement, the district government may make a compensation decision for individual owners. If the owner neither applies for administrative reconsideration nor files an administrative lawsuit within the statutory period and fails to relocate within the period specified in the compensation decision, the district government that made the decision may apply to the people’s court for enforcement.

Implications for Foreign Founders

Foreign founders should be aware that these rules govern compensation for collective-land housing, which may affect leased premises or employee housing. Understanding the procedures, eligibility criteria, and compensation standards can help in planning and risk management. When engaging with local authorities or landlords, it is advisable to clarify the legal status of buildings and ensure compliance with suspension notices after pre-acquisition announcements.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.