Abstract
This study examined the relationship between financial support and neighborhood regeneration in Korea. A questionnaire about neighborhood regeneration projects was administered to 175 Korean respondents in the regeneration field. Results found that the housing revitalization project needed more public funds than private funds for successful outcomes. The private sector participation project required public-private cooperation. The local economy vitalization project needed public funds to build infrastructure. The local living improvement project needed public funds for infrastructure. The local living network project could be led by public funds including the facility fund. The local economy operation project required public and private funds for local programs and facility support. The results offer the optimization of financial support efficiency by providing customized support funds for neighborhood regeneration projects.
| Original language | English |
|---|---|
| Article number | 8582 |
| Journal | Sustainability (Switzerland) |
| Volume | 14 |
| Issue number | 14 |
| DOIs | |
| Publication status | Published - 2022 Jul |
Bibliographical note
Funding Information:Research on neighborhood regeneration has increased in recent years []. For example, Jang addressed that urban regeneration can be elaborated when neighborhoods are considered []. Lee and Ahn suggested intermediary support organizations’ essential role in neighborhood regeneration []. Past research also found social economy entities for financial support [] and the private sector’s [] participation in financial support. However, limited research has been done on sustainable neighborhood regeneration financial support [,,]. The present financial support is made for entire project funds rather than for specific funds. To increase efficiency, customized financial support for each project needs to be established [,]. Mehaffy, Salingaros, and Kryazheva state that the contemporary urban development system is deficient in producing economies of differentiation []. To balance scales and places, a specification on diversification and adaptation to changing conditions is needed. Tailored financial support for neighborhood regeneration is one of the specifications and differentiation.
Funding Information:
Using data from Korea, this study aimed to derive customized financial support for each neighborhood regeneration project. To accomplish the research goal, this study examined (1) neighborhood regeneration projects that need financial support and (2) financial support funds for neighborhood regeneration projects and items. This study adapted a pattern language of neighborhood regeneration to questions and answers. A pattern language refers to a coherent set of patterns in which a problem and a solution are provided in the urban development field []. The problem in this study is a lack of tailored financial support for different neighborhood regeneration projects. Finding funds for neighborhood regeneration can offer solutions for financial support efficiency.
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The questionnaire questions were created using the six projects, funds, and two experts’ consults. Based on the neighborhood regeneration projects (), the survey assessed the financial support for project items with the four types of financial support: (1) the real estate fund, (2) the facility fund, (3) the lease fund, and (4) the operating fund in a five-point scale from 1 = Does not need at all to 5 = Needs very much (). The in-depth interview asked the respondents about each project’s funding sources. Questions included financial support plans, funding sources in each stage of the project, and ideas of support for neighborhood regeneration ().
Funding Information:
displays the research design and data analysis processes. Quantitative analysis of the data was conducted using the SPSS (Statistical Package for the Social Sciences). Reliability tests, descriptive statistics, paired-sample t-tests, and positioning analysis were carried out. Paired-sample t-tests compared different perceptions about financial support by projects. Positioning analysis was conducted to analyze financial support for neighborhood regeneration (). Through the positioning analysis, this study derived differential financial support types for the neighborhood regeneration projects. For the interview responses, an interpretative analysis was used.
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RQ1 asked to identify projects that show financial support for neighborhood regeneration (). The average of financial support for neighborhood regeneration projects was 3.30. The highest financial support for neighborhood regeneration projects was the private sector participation project (M = 3.63), followed by the housing vitalization project (M = 3.46), the local living network project (M = 3.22), the local economy vitalization project (M = 3.20), the local economy operation project (M = 3.18), and the local living improvement project (M = 3.08). Additionally, the highest financial support by funds was the facility fund (M = 3.56), followed by the operating fund (M = 3.33), the real estate fund (M = 3.20), and the lease fund (M = 3.10).
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The financial support funding for the six projects demonstrated different ranks (). The financial support for the facility fund was high in the housing vitalization project, the private sector participation project, the local economy vitalization project, and the local living network project.
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RQ2 asked about financial support funds for neighborhood regeneration projects. Paired-sample t-tests and positioning analyses were carried out (). As a result of testing differences between financial support, significance was found between the real estate fund and the facility fund (t = −5.579, p < 0.05), the real estate fund and the lease fund (t = 2.951, p < 0.05), and the lease fund and the operating fund (t = −2.905, p < 0.05).
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Another positioning analysis of the financial support for neighborhood regeneration project items was carried out. The results of the positioning analysis for the real estate fund-facility fund, the facility fund-lease fund, and the lease fund-operating fund for the neighborhood regeneration projects are shown in , and . As the results show, the facility fund and the real estate fund can be used for the housing vitalization project and the local living improvement project. The positioning analysis drew differential financial support funds by associating financial support with project items ().
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Experts’ opinions were analyzed for financial support funds and projects. Respondents mentioned that the housing vitalization project needed the public rather than the private sector. The financial support for the private sector participation project needed public sector participation. In experts’ opinions on the local economy vitalization project, the cooperation and growth between the public and private sectors were most needed for this project. The local living improvement project was needed by the public sector.
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The local living network project needed the public sector mainly. The public sector needs finance as the funding source, as the project needs the reinforcement of social, economic, and cultural networks that connect the residents with diverse backgrounds. The local economy operation project needed the public sector in cooperation with the private sector. The project needs to prioritize financial support for infrastructure programs and facility support projects to reinforce the local economy and resident competence.
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This study analyzed neighborhood generation projects and proposed differential financial support for the projects. As past research points out [], funding support at the neighborhood level needs to be elaborated and customized. Following the pattern language methodology [], the results suggest that the financial support patterns fit different neighborhood regeneration projects. The analyses present the patterns of process in financial support. The patterns of financial support funds demonstrate the process the funds fit for the projects and items.
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The analyses showed significant differences among the funds, projects, and items (RQ2). The difference between the real estate fund and the facility fund implies that even though the neighborhood regeneration projects aim to develop facilities, they need efficient support for tangible financial support outcomes. From the results, the housing vitalization project and the private sector participation project need financial support for real estate and remodeling. The local living improvement project needs financial support from the facility fund. Analyzing financial support by projects suggested that project entities should be distinct. Public projects such as the housing vitalization project, the local living improvement project, and the local living network project need to be led by the public sector. The financial support for living quality improvement may develop into a mechanism for positive externality valuation such as better living quality in the neighborhood []. The private sector participation project, the local economy vitalization project, and the local economy operation project can either be led by the public sector or in partnership with the private sector.
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This study suggested that local governments, the NHUF, and private or community enterprises consider customized financial support for neighborhood regeneration. Based on the financial support, policy and local governance can be improved. For instance, the housing vitalization project needed the lease fund. The private sector participation project required the facility fund. The local living improvement project required financial support from the facility fund. The local economy operation project needed financial support from the lease fund.
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This study has multiple practical implications drawn from the projects’ differential financial support. Practical implications for each neighborhood regeneration project can be summarized as follows.
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The housing vitalization project needs financial support from the facility fund and the real estate fund. The housing vitalization project needs the public sector’s involvement. Therefore, the project entity in neighborhood regeneration needs to be a public entity rather than a private entity []. The project needs public funding sources from the NHUF and private capital. Real estate that needs finance and the private sector’s capital can be supported by the NHUF [].
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The local living improvement project needs to be supported by the facility fund. This project can be led by a public entity. The public sector needs to invest in the physical infrastructure of neighborhood regeneration projects.
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The facility and operating funds mainly support the local living network project. This project can also be led by a public entity. The public sector as a financial source is necessary because the project needs social, economic, and cultural networks for neighborhood regeneration projects []. Local governments with low financial independence should secure funding sources through multiple financial support channels.
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This study has some limitations. First, this study excluded housing readjustment projects that focus on small-scale housing readjustment []. As the housing vitalization project was the most crucial goal and direction of neighborhood regeneration, further research needs to develop financial support plans for small-scaled housing readjustment projects. Second, although this study suggested financial support plans are for the six projects primarily, financial support directions for specific project items can vary. Hence, an analysis of tailored financial support plans for project items may be needed. Future research can discover effective financial support plans, policies, and implications. Such attempts may contribute to vitalizing neighborhood regeneration projects in the future.
Funding Information:
This study suggested customized financial support for neighborhood regeneration. The current analysis shed new light on specifying neighborhood regeneration projects and financial support funds. The effectiveness of neighborhood regeneration can be optimal when financial support is suitable. The customized financial support plans may apply to other neighborhood regeneration projects. This study contributes to developing customized financial support for neighborhood regeneration. This neighborhood regeneration with tailored financial support funds may generate quality adaptive urbanism []. This study offers a new financial support pattern for neighborhood regeneration. The solutions provided in this study may help build a healthier and more sustainable form of neighborhood development.
Publisher Copyright:
© 2022 by the authors.
All Science Journal Classification (ASJC) codes
- Computer Science (miscellaneous)
- Geography, Planning and Development
- Renewable Energy, Sustainability and the Environment
- Building and Construction
- Environmental Science (miscellaneous)
- Energy Engineering and Power Technology
- Hardware and Architecture
- Computer Networks and Communications
- Management, Monitoring, Policy and Law
