[Direct answer]In the Beijing area, the cost is generally shared by multiple parties, including the government, property owners, and social forces. The "Guiding Opinions of the General Office of the State Council on Comprehensively Promoting the Transformation of Old Urban Residential Areas" (No. 23 of 2020) clearly states that a mechanism should be established for the reasonable sharing of transformation funds between the government, residents, and social forces: central and local governments provide subsidies, and funds can be raised through the issuance of local government special bonds, etc. Residents should reasonably contribute to the transformation costs of common areas and private areas, and social capital should be supported to participate. For transformations that belong to the private parts of property owners or are agreed to be borne by property owners (such as installing elevators and interior renovations), the relevant property owners should share the costs according to regulations; for municipal supporting facilities and public service facilities, the government should mainly bear the costs. The specific sharing ratios and standards shall be subject to local policies and transformation plans.

1. Problem background and typical scenarios

The renovation of old residential communities involves multiple projects such as exterior wall insulation, roof waterproofing, pipe network upgrading, elevator installation, parking and environmental improvement. What owners care most is which projects will be funded by the government and which ones they need to pay for themselves. In some communities, disputes over cost sharing have arisen during the installation of elevators and the replacement of pipelines, even leading to the suspension of the renovation. Clarifying the funding sources and sharing rules can help reduce disputes and advance the renovation process.

II. Key points of contention

Firstly, the division of the scope of financial assistance and the owner's investment. Secondly, the definition of common areas and exclusive areas. Thirdly, how to determine the owners' apportionment ratio. Fourthly, the cost of installing elevators and the rules for obtaining consent. Fifthly, the handling of cost disputes and obstruction of construction.

III. Professional analysis by Henglue Lawyers

Henglue Lawyer explained it from two aspects: funding sources and allocation rules. Firstly, regarding funding sources: It is based on a multi-faceted mechanism involving financial subsidies, special bonds, residents' contributions, and social capital participation. Basic renovations (municipal supporting facilities and safety facilities) are generally undertaken by the government, while improvement and upgrading projects (such as elevators, parking, and elderly care services) place greater emphasis on residents' and social forces' participation. Secondly, regarding scope division: Common areas (roofs, exterior walls, corridors, and pipelines) are typically jointly funded by property owners with appropriate financial subsidies. Private areas or specific benefit facilities (indoor pipelines and elevator installations) are allocated according to agreements among relevant owners. Thirdly, regarding allocation rules: Costs are usually determined through consultation based on building area and benefit levels among property owners. Where no consensus can be reached, decisions can be made through joint deliberation of property owners. Fourthly, regarding elevator installations: This belongs to improvement-type renovations, with costs generally allocated through negotiation among property owners and subject to legal approval by the joint decision of property owners. The balance of interests between low-floor and high-floor residents is often a point of contention. Fifthly, regarding dispute resolution: Disputes over cost allocation and construction arrangements can be resolved through property owner consultation and community/district mediation. Those who obstruct construction or hinder public interests can assert their rights according to law and, if necessary, resort to litigation. When promoting old residential building renovations in Beijing, the local government typically coordinates with residents to jointly determine the renovation plan.

IV. Practical suggestions and legal basis

Action suggestions: First, understand the renovation plan and funding arrangements through the owners' meeting or the community; Second, clarify the shared and exclusive areas and check the allocation standards; Third, install elevators and other matters in accordance with the law, and jointly decide on the fees and ownership through written agreements; Fourth, resolve disputes through consultation and mediation first, and litigation if necessary. For disputes involving community renovations and neighborly disputes, you can refer to the relevant laws and regulations.Property sales and construction projectsFor disputes involving owners' rights and property matters, you may refer to the following for reference.Business and contract disputes in enterprisesLegal basis: The "Guiding Opinions of the General Office of the State Council on Comprehensively Promoting the Transformation of Old Urban Residential Areas" (No. 23 [2020] of the General Office of the State Council), Article 278 (Matters Decided by Owners Jointly) and Article 281 (Maintenance Funds) of the Civil Code of the People's Republic of China, as well as relevant regulations on property management. The specific application shall be subject to the currently effective laws, regulations, and local policies.

5. Henglu Law Firm's Reminder

First, the financing for the renovation should be shared by all parties involved. We need to clarify the project categories before discussing the funding. Second, the rules for allocating costs between common areas and private areas are different. Third, the installation of elevators must be jointly decided and agreed upon in writing according to the law. Fourth, the maintenance funds can be used for the repair of common areas in accordance with the regulations. For issues related to the renovation of residential communities and the allocation of costs, they can be resolved through legal means.Real estate transactions and construction projectsThe service provides a comprehensive solution, which can be used to resolve disputes over owners' rights and contractsBusiness and contract disputes in enterprisesFor reference, you can check the section related to administrative complaints and coordinationLand expropriation and demolition, and administrative litigationFor any questions regarding difficult situations, you can consult the column for adviceSpecial servicesTeam.

VI. Frequently Asked Questions

Q1: Do owners have to pay for the renovation of old residential communities?

For some projects, the government usually takes on the responsibility of basic renovations, while improvement and upgrading projects place greater emphasis on resident participation. Common area renovations are typically jointly funded by property owners and may receive financial assistance, subject to local policies and programs.

Q2: Who will bear the cost of installing the elevator?

Generally, the cost is shared by the owners through negotiation, and it belongs to the category of improvement-type renovations. It requires that the owners make a joint decision in accordance with the law, and reach a written agreement on the proportion of the cost to be shared by the owners on each floor and the subsequent maintenance and repair, so as to reduce subsequent disputes.

Q3: Can we use the maintenance funds?

Yes. For the maintenance, renovation, and transformation of common areas and shared facilities and equipment, you can apply for the use of special residential maintenance funds in accordance with the law. The specific procedures shall be implemented in accordance with property management regulations and local rules.

Q4: What should I do if we can't agree on the allocation ratio?

First, the community and the street can mediate and negotiate according to the building area and the degree of benefit; if no agreement can be reached, the matter can be handled in accordance with the procedure of joint decision-making by the owners, or the dispute can be litigated and adjudicated by the court.

Q5: What should I do if someone obstructs the construction?

First, communicate and negotiate with them and explain the plan and the basis for compliance; if they obstruct the public interest transformation without a legitimate reason and cause losses, you can request the community and the street to coordinate with them, and if necessary, file a civil lawsuit to claim for the cessation of infringement and compensation.

The above content is based on the judicial practice in the Beijing area. The facts of individual cases and the jurisdiction of the court may affect the conclusions. Welcome to consult Henglu Law Firm for specific cases.

If you are currently facing similar problems, it is recommended that you consult a professional lawyer as soon as possible with the necessary evidence to avoid missing the statutory time limit.Legal services for real estate transactions·Beijing Henglue Law Firm

Disclaimer: This article is compiled based on current laws and regulations and publicly available adjudication rules, and is for general reference only. It does not constitute a formal legal opinion on specific cases. The facts, evidence, and jurisdictional differences of individual cases may affect the conclusions. If you encounter disputes, please consult a practicing lawyer in time.