[Exclusive] HUG-backed Youth Safe Housing purchase delayed suddenly, leaving residents asking, "Where are we supposed to go?"

[Financial News] It has been confirmed that the move-in date for Edgar Gaebong, a Youth Safe Housing complex purchased in May by a public-supported private rental REIT, was pushed back by about three weeks just three days before residents were set to move in. The REIT's largest shareholder is Korea Housing & Urban Guarantee Corporation (HUG). Those who had already ended their lease agreements to match the scheduled move-in now have to find somewhere else to stay immediately.
■ Notice of delay arrived three days before move-in
According to Financial News' reporting on the 31st, the move-in support center for Edgar Gaebong sent a text message to prospective residents ahead of the move-in date, asking them when they hoped to move in. Only one person replied that they wanted to move in on August 28, the original start date.
The support center later sent another notice on August 25, saying the move-in date had been postponed to September 21. The one applicant who had requested an August 28 move-in was contacted separately by phone, given an explanation, and asked for consent.
The reason for the delay was "delays in defect repairs and quality inspections." HUG said its policy requires more than 95% of defects to be repaired before residents can move in, while the current repair completion rate is still below 95%.
HUG said, "There were many unresolved defects among those scheduled to be fixed before move-in, so we had no choice but to extend the move-in date in order to provide tenants with a better living environment." It added, "In fact, moving in while the defects remain improperly addressed could be an even bigger problem."
■ "I never received the text asking for my preferred date" ... no compensation plan either
The issue surfaced after some prospective residents said they never received the text asking for their preferred move-in date. One prospective resident, identified only as A, said they did not receive the survey text and only got the delay notice on August 25. A had already ended the lease on their previous home to prepare for an end-of-August move-in. They now have to find a new place to stay until September 21.
Compensation is another unresolved issue. HUG said, "We confirmed that only one prospective resident had a move-in date earlier than the revised start date in the preferred-date survey," adding, "We obtained that person's consent to the change in move-in date in advance, and therefore we do not plan to proceed with a separate compensation process." There is no separate compensation plan for applicants who did not respond or who never received the text.
One prospective resident, who asked not to be named, said, "This was a project meant to reduce housing instability for young people through public intervention, yet tenants are now suddenly being forced to find somewhere to stay." The resident added, "I do not understand why move-in is being delayed in a building where 50 public rental households are already living." Some observers also say they cannot rule out the possibility that the defect repair period could be delayed even further.
Meanwhile, Edgar Gaebong is a property that Hana Housing Gaebong Trust Management Real Estate Investment Company, with HUG as its largest shareholder, completed purchasing in May. The Youth Safe Housing complex is located in Guro District, Seoul, and has a total of 268 households. The private rental operator Edgar won the project in 2021, but later sold it to the public sector amid soaring construction costs and worsening profitability.
[email protected] Reporter Kwon Jun-ho Reporter