Local housing authorities Wednesday quashed a rumor that had accused renters of Xuhui district public housing units of illegally subletting their new homes.
An online user stirred the controversy earlier this week, posting a photograph of the government-subsidized apartments on Sina Weibo, which showed public rentals on Huafa Road marked for subleasing - catching the attention of hundred of local residents, who were angry over people breaking the rules, which prohibit residents of public housing to sublet their homes.
Local housing authorities investigated the incident, saying Wednesday that it was impossible for anyone to be subletting the units on Huafa Road, as none of them had been distributed yet.
The application process for the homes remains ongoing, authorities added.
However, apart from the 2,900 public rentals in the compound, some 1,572 units are reserved for local residents, who have been relocated for development projects.
A little more than half of those units have already been sold and most of those residents have moved in - they are marked as personal properties and owners are permitted to sublet the property.
