Chapter 34: Public Rental Housing in the Song Dynasty

Compared to the Emperor, whose own lineage remained sparse, Lu Yijian, the reigning Chancellor, was blessed with many children. He currently had five sons. The eldest, Lu Gongchuo, and the second, Lu Gongbi, had already been granted official positions through the privilege of hereditary patronage. The third son, Lu Gongzhu, showed academic promise, but after becoming entangled in the Feng Shiyuan case, Lu Yijian sent him back to their ancestral home to focus on his studies. The remaining two, the fourth son Lu Gongru and the fifth Lu Gongshu, were still pursuing their education.

The eldest son, Lu Gongchuo, possessed a steady temperament and currently served as a Compiler in the Jixian Academy—a prestigious position close to the Emperor, which required him to reside outside the family estate. Thus, it was the second son, Lu Gongbi, who currently attended to his father within the residence.

Feng Shiyuan, a man of humble bureaucratic origins, had risen to become the head of the Bureau of Rental Properties Guild. Yet, even with his status, he dared not put on airs before Lu Gongbi, the son of the Chancellor. Upon entering the room, he performed a deep, formal bow, prostrating himself fully on the floor.

Lu Gongbi let out a disdainful chuckle but went through the motions of gesturing for Feng to rise. He did not, however, invite Feng to sit, leaving him standing as he asked, "Of those three thousand units under the Bureau of Rental Properties, how much of this month's rent have you collected?"

Feng replied immediately, "I have collected thirty percent."

Lu Gongbi frowned. "Only thirty percent?"

The Bureau of Rental Properties was a specialized department established by the Song court to manage the leasing of public housing within the capital, Bianjing. It functioned essentially as a government agency for public rental housing, falling under the jurisdiction of the Court of Imperial Treasury. The Song government was one of the few regimes so keen on accumulating wealth; beginning with Emperor Zhenzong, a vast array of government institutions had been established specifically to manage state-run enterprises. Most of these fell under the Court of Imperial Treasury. The Director of the Court of Imperial Treasury, known as the "Great Administrator of Grain," though unable to set fiscal policy like the Three Departments, held immense economic influence—akin to the State-owned Assets Supervision and Administration Commission of later eras—and was a coveted post for officials in the capital. Lu Gongbi currently held a position within this very court.

The Bureau managed the leasing of state land and public housing. A census in the third year of the Tiansheng era recorded 26,100 public units. These rentals provided the Court of Imperial Treasury with substantial monthly income. However, since the system's inception during the Zhenzong era, problems had emerged—the most significant being the failure to collect rents.

Although the Chinese people have a profound desire to own land and establish a home, a long-term lease is effectively no different from ownership. Those who held long-term leases from the Bureau were rarely ordinary folk; many were officials in the capital or scions of powerful families. Some properties had been leased out as far back as the Zhenzong era, and even after the original tenants had passed away, their descendants continued to occupy the premises. The number of those in arrears was substantial. Thus, even though the number of public units under the Bureau’s control had nearly doubled since the Zhenzong era, and land prices in Bianjing had risen by fifty percent, the Bureau’s revenue had actually declined. This inevitably drew the ire of the court, leading to frequent impeachment by the Censorate.

After Lu Gongbi took his post at the Court of Imperial Treasury, he suggested to his superior, Zhang Fangping, that the long-term delinquent properties be handed over to private management. The private managers would be responsible for paying the Bureau a set rent based on the lease agreement, thereby resolving the Bureau’s revenue shortfall while allowing for private profit. Though Zhang Fangping was not a member of Lu Yijian’s faction, he maintained good personal relations with the Chancellor and agreed to the proposal.

The Bureau designated three thousand long-delinquent units for this scheme, and the "sub-landlord" who contracted them was none other than Feng Shiyuan, head of the Rental Properties Guild. Hearing that only thirty percent had been collected, Lu Gongbi looked displeased, as he was obligated to pay the Bureau regardless of whether the rent was actually collected. Feng Shiyuan, in his capacity as guild head, essentially served as a "white glove" for powerful Bianjing figures like Lu Gongbi, with the majority of the profits funneled to them.

"Second Young Master," Feng corrected, "it is thirty percent of the *arrears*."

Hearing this, Lu Gongbi was so pleased he nearly stood up. "Bring him a seat!" he exclaimed, delighted.

As previously noted, many of these properties were long-term delinquencies, and the Bureau had transferred the debt notes to Feng along with the properties. Collecting thirty percent of such old debts was no small feat; one could only wonder what methods Feng had employed. But as long as the hands of the Chancellor's son remained clean, Lu Gongbi did not care to ask.

"Keep the money for now. Use it to buy more properties in Bianjing and rent them out."

Feng nodded in agreement. As the guild head, he operated a private firm for buying, selling, and leasing real estate. In truth, most of these properties were already owned by powerful families like the Lus; they simply used Feng as a front because it was inconvenient for them to act directly. Beyond this, Feng managed their property trades to maximize their profits.

Feng was known as "Feng the Half-City," yet in reality, he owned very few properties himself.

Business concluded, Lu Gongbi pulled a slip of paper from his sleeve. "The owner of this address is named Su Zhe. 'Buy' his house and make sure he gets out of Bianjing."

Feng understood the implicit command. Beyond acting as a financial front, he was often called upon for "darker" tasks, and he was well-versed in such matters. Dismissing Feng, Lu Gongbi signaled for his servants to see him out.

As Feng stepped out of the Chancellor's residence, he was met with the envious gazes of those queuing to offer gifts. Yet, he felt no joy. Years ago, caught in political strife, Feng had been exiled to Hainan, and Chancellor Lu had not lifted a finger to plead for him. It was only when the Emperor declared a nationwide amnesty following the birth of Empress Zhang’s daughter that Feng was permitted to return. Having lived through such trials, Feng had hoped to live a quiet life, only to be dragged back into the Chancellor's schemes. He did not want to tread these murky waters, but it was far easier to board the cart than to jump off.

Seated in his black carriage, Feng opened the note and told his driver, "Go to this address."

Usually, such tasks did not require Feng’s personal attention; a few thugs and ruffians would suffice to harass a homeowner into selling. That was, after all, how the scions of power like Lu Gongbi acquired their vast holdings in a city where rising prices and lucrative rents made voluntary sales unthinkable. But because this task came directly from Lu Gongbi, Feng decided to handle it himself.