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Circular of Beijing Municipal Commission of Housing and Urban-Rural Development on Strengthening and Regulating the In-process and Ex-post Supervision over the Approval of Construction Permits for Construction Projects in Beijing

Jing Jian Fa [2019] No. 435

To Commissions of Housing and Urban-Rural Development of all districts, Commissions of Housing and Urban Development of Dongcheng, Xicheng and Shijingshan Districts, and Construction and Development Bureau of Beijing Economic-Technological Development Area,

To deepen the reform of delegating powers, improving regulation and upgrading services, continue to improve and optimize the business environment, strengthen the innovation in the supervision system, and establish an in-process and ex-post supervision system that is compatible with the reform of the approval system for construction projects, the circular on strengthening and regulating the in-process and ex-post supervision over the approval of construction permits for construction projects in Beijing is given as follows in accordance with the Implementation Opinions ofthe General Office of the State Council ontheComprehensive Reform of the Review and Approval System for Construction Projects (Guo Ban Fa [2019] No. 11) and the Guidelines of the State Council on Strengthening and Regulating In-process and Ex-post Supervision (Guo Fa [2019] No. 18):

I. All relevant organizations shallpay more attention, strengthen organizational leadership, clarify the division of duties and responsibilities, keep abreast of the latest concepts and consolidate their responsibilities, in order to shift the focus of construction permit approval management from ex-ante approval to in-process and ex-post supervision, and explore and create innovative supervision models and systems.

II. The principle and standard of division of work for approval of construction permits shall be adopted to carry out in-process and ex-post supervision, that is, "who issues, who supervises". The Beijing Municipal Commission of Housing and Urban-Rural Developmentshall be responsible for the supervision of projects with construction permits issued by itself, and shall conduct inspection, guidance, training and formulation of relevant policy documents on the in-process and ex-post supervision of the approval of construction permits for construction projects in the city. District Commissions of Housing and Urban-Rural (Urban) Development shall be responsible for the supervision of projects with construction permit issued by themselves within their respective administrative areas and shall accept the work inspection, supervision and guidance of the Beijing Municipal Commission of Housing and Urban-Rural Development.

III. Construction projects applicable to in-process and ex-post supervision are the ones that have received construction permits issued by commissions of housing and urban-rural developmentbut have not conducted completion inspection. District commissions of housing and urban-rural construction shall establish the construction permit ledger management system which is used to record the basic information of construction permits and the progress of projects, and submit the construction permit ledger information of the previous month to the Beijing Municipal Commission of Housing and Urban-Rural Development before the 5th day of each month.

IV. The in-process and ex-post supervision includes supervising and inspecting the changes in conditions, the postponement of commencement, the suspension of constructionafter the construction permit is issued, and the implementation of the commitment made by the project owner when applying for the construction permit, and it also includes dealing with any violation of laws and regulations in a timely manner.

(I) If a new construction permit is not obtained due to any change in the project owner or the construction entity, an order may be made to suspend construction, rectify wrongdoings within a time limit and administrative penalty shall be imposed in accordance with Article 19 of the Measures of Beijing Municipality for Construction Permit (Decree No. 139 of the Beijing Municipal Government).

In case of any change in other application conditions contained in the construction permit, if one fails to follow proceduresof the change or fails to inform the issuing authority within the prescribed time limit, administrative penalty may be imposed according to Article 20 of the Measures of Beijing Municipality for Construction Permit (Decree No. 139 of the Beijing Municipal Government).

(II) Where the project owner fails to commence construction on schedule within three months from the date of obtaining the construction permit and fails to apply for an extension before the expiration of the period, or fails to commence construction after exceeding the legal extension times and time limit, the construction permit shall benull and viodautomatically, and the issuing authority shall deregistered the voidconstruction permit in accordance with Article 8 of the Measures for the Administration of Construction Permits for Construction Projects (Decree No. 18 of the Ministry of Housing and Urban-Rural Development of P.R.C.).

(III) If the project under construction is suspended for any reason and the project owner fails to report to the issuing authority within one month from the date of suspension, the project owner shall be ordered to make rectification within a time limit. If construction is suspended for more than one year, the issuing authority shall verify the construction permit procedures for the project before the resumption of construction.

(IV) If the project owner fails to organize project construction in accordance with the permit conditions such as the construction site, construction scale and construction content, it shall be ordered to stop the construction and make rectification within a time limit, and be investigated and punished in accordance with the law.

(V) If the project owner fails to fulfill the commitment it made when applying for the construction permit, it shall be ordered to stop construction and make rectification within a time limit. If the project owner refuses to make rectification or obtains the construction permit through dishonest means such as deception or false commitment, its construction permit shall be revoked and administrative penalty shall be imposed in accordance with Article 19 of the Circular of the General Office of the State Council on Launching the Pilot Program of the Reform of the Approval System for Construction Projects (Guo Ban Fa [2018] No. 33) and Article 13 of the Measures for the Administration of Construction Permits for Construction Projects (Decree No. 18 of the Ministry of Housing and Urban-Rural Development of P.R.C.).

V. Enhancing compliance oversight shall be based on the model of combining "randomly selected inspectors and inspection objects and the prompt release of results", and take "Internet + supervision" as the underpinning force and direction of reform. It can be carried out through various means, such as on-site inspection, enterprise interview, telephone follow-up, video monitoring, etc. Relevant organizations shall determine and increase the proportion and frequency of inspection, document the whole inspection process and conduct traceable management.

VI. The inspection objects shall be selected on a monthly basis and be subject to differentiated supervision based on the model of "randomly selected inspectors and inspection objects" and the approval time. In principle, projects approved within three months shall account for no less than 50% of the monthly inspected projects. Random selection of inspectors and inspection objectsshall be conducted physically instead of through telephone interview.

VII. The municipal and district housing and urban-rural development authorities shall establish a dishonesty information ledger about enterprises' breach of commitments. For projects found to have dishonest conducts, such as failure to fulfillcommitments, and other illegal and irregular behaviors duringin-process and ex-post supervision, enterprise information shall be recorded and included in the bad credit record after the enterprise is handled according to law. Serious cases will also be publicized on the "Credit China" website and other platforms to enhance credit punishment. Enterprises recorded in the dishonesty information ledger shall be strictly reviewed in the follow-up procedures.

VIII. The district commissions of housing and urban-rural development shall summarize, carefully analyze and conduct key case studies on thein-process and ex-post supervision of the approval of construction permits in a timely manner, and submit information to the Beijing Municipal Commission of Housing and Urban-Rural Development on a quarterly basis.

IX. The Beijing Municipal Commission of Housing and Urban-Rural Development shall strengthen the supervision and inspection of the in-process and ex-post supervision in all districts, focusing on supervision mode and means, inspection proportion and frequency, traceable management, documentation of supervision and inspection, and supporting archival materials. Irregularities found in the inspection shall be corrected.

X. The exploration of innovative, detailed and practical ways and means of effective supervision is encouraged. The Beijing Municipal Commission of Housing and Urban-Rural Development shall regularly organize exchanges of views, summarization, problem analysis and assessment of the city's in-process and ex-post supervision work, and commend and promote new and useful practices and experience in the supervision process.

XI. Discipline and workstyle shall be strictly enforced in in-process and ex-post supervision. Supervision personnel shall be clean, honest and self-disciplined when performing their duties, and shall accept the supervision of the inspected enterprises.

XII. This Circularshall come into force as of the date of promulgation.

Beijing Municipal Commission of Housing and Urban-Rural Development

December 9, 2019