Decoding Building Use Classifications: F-1 vs. H-2 and Your Renovation Permits

Mr. Chen recently purchased a four-story townhouse in the suburbs. From the outside, it looked like any other residence. He thought, “Great, this building is under five stories and classified as H-2 residential. I plan to convert the second floor into three studio apartments for rent, which should qualify for a ‘simplified renovation permit’!” Excited, he hired a crew to start the work, feeling everything was under control.

However, when he requested documents from the building administration office, he received shocking news. An official stated, “Mr. Chen, the ‘Building Use Permit’ for your property is registered under classification ‘F-1,’ originally intended as a small hospital and nursing home, not ‘H-2’ residential.” This meant he not only didn’t qualify for a ‘simplified renovation,’ but even a ‘standard renovation’ would be difficult. His project would require a more extensive ‘change of use permit’ procedure, with renovation standards comparable to a hospital, demanding higher fire safety regulations and accessibility features.

Mr. Chen’s case starkly illustrates a crucial fact: the fate of your renovation isn’t determined by the building’s ‘exterior’ or ‘current condition,’ but by the ‘Building Use Classification‘ code on that official document. What you perceive as ‘H-2’ (residential) might legally be ‘F-1’ (hospital), ‘G-2’ (office), or even ‘B-3’ (restaurant). Misunderstanding this code can turn your renovation plans from a dream into a nightmare. This article will guide you on how to quickly decipher and understand this critical code.

The Challenge of ‘Building Use Classifications’: Why ‘Intuitive Judgment’ Fails to Define ‘H-2’

‘Building Use Classification’ is a management category established by the Building Act based on a building’s ‘intensity of use,’ ‘degree of hazard,’ and ‘fire safety requirements.’ However, property owners often rely solely on ‘what they see,’ leading to significant misjudgments during purchase or renovation.

The Overlooked Value: ‘Purpose’ Matters More Than ‘Current State’

This is the biggest blind spot. Your property might currently be configured as a residence by the previous owner, but its ‘legal purpose’ could be entirely different. The law only recognizes the original use registered on the ‘Building Use Permit.’ For instance, many buyers opt for properties classified as ‘general offices’ (G-2) or ‘industrial factories’ (C) and then renovate them for ‘residential’ (H-2) use. This is commonly known as an ‘industrial condo’ or ‘using an office as a residence.’ Such actions are not ‘interior renovations’ but rather ‘illegal changes of use,’ which are more serious violations. If discovered, hefty fines are imposed, and the property must be restored to its original condition, rendering all your renovation investments worthless.

The Paradox of Old Habits: Believing ‘Classifications’ Are Static

Many owners, like Mr. Chen in the opening example, assume they can freely convert a purchased property to their desired use. They underestimate the extreme difficulty of ‘changing use.’ Regulations impose strict limitations on ‘conversions’ between different classifications, especially when moving from lower to higher risk categories, or from non-residential to residential. For example, if you wish to convert a floor from ‘G-2’ (office) to ‘H-2’ (residential), you must re-evaluate the entire building’s structure, parking capacity, stairwell width, sewage systems, and more. The difficulty is comparable to rebuilding. Therefore, confirming the ‘original classification’ matches your intended use before renovating is a crucial first step.

How ‘Building Use Classifications’ Rewrite the Rules: The Roles of ‘H-2’ (Residential) and ‘High-Risk Categories’ (F/B)

Different ‘use classifications’ directly determine the ‘interior renovation permit’ level applicable to you. H-2 residential has its own set of rules, while other high-risk categories (like F or B) operate in a completely different realm. You must clearly understand which ‘lane’ you are in.

New Core Element: Defining and Limiting ‘H-2’ (Residential)

‘H-2 Classification: Residential, apartment buildings.’ This applies to 99% of property owners. Once you confirm you are in the H-2 category, you then need to determine the next condition:

• Five stories or fewer: Congratulations, you qualify for the ‘simplified renovation’ fast track (provided you aren’t adding bathrooms or dividing spaces excessively).
• Six stories or more: You are considered ‘open to the public’ and must apply for a ‘standard renovation,’ subject to strict review by the building administration office (or review agency).

New Core Element: Reviewing ‘F Classification’ (Educational/Medical)

‘F Classification’ denotes high-density, high-risk premises. Examples include:

• F-1: Hospitals, clinics, long-term care facilities, nursing homes (as in Mr. Chen’s case).
• F-3: Schools, cram schools, kindergartens, daycare centers.

If your property falls under the F classification, regardless of its floor level, it is automatically considered ‘open to the public’ and must undergo review under the strictest ‘standard renovation’ criteria. Its fire safety, smoke control, escape routes, and accessibility requirements are significantly higher than for H-2 residential buildings.

New Core Element: The Pitfalls of ‘B Classification’ (Commercial) and ‘G Classification’ (Office)

These two categories are common traps in mixed-use buildings. For example:

• B-3: Restaurants, cafes.
• G-2: Offices, professional firms.

Attempting to ‘sneak’ H-2 residential use into a G-2 office is illegal. If you want to convert a B-3 restaurant into a G-2 office, this also constitutes a ‘change of use’ and requires an application. Never assume you can freely change uses within the same building.

Beyond ‘Intuition’: Two New Indicators for Checking ‘Building Use Classifications’

Since ‘use classification’ is so critical, how should owners check? You no longer need to ‘guess’ or rely on the partial information from real estate agents or previous owners. You have two accurate official channels for inquiry.

Core Indicator: Reviewing the ‘Building Use Permit’

This is the most fundamental and accurate method. It’s your property’s ‘birth certificate.’ There are three ways to obtain it:

1. Request from the seller or agent: Before signing the purchase agreement, insist on receiving a copy of the ‘Building Use Permit.’
2. Apply at the local building administration office: Bring your property deed or title report to the local building administration office to request a review.
3. Online inquiry system: Some municipalities offer online retrieval services; take advantage of them.

Once you have the Use Permit, immediately locate the ‘Use Classification and Purpose’ field and check if the registered code (e.g., H-2, F-1, G-2) aligns with your renovation objectives.

Auxiliary Indicator: Online Query of National Building Permit Records

Before you obtain the physical permit, you can use the Ministry of the Interior’s Construction and Planning Agency’s “National Construction Management Information System.”

• Access the system and click on “Permit Record Query.”
• Enter your property’s “Lot Number” or “Building Permit Number” (obtainable from the title report).
• The system will display the “Approved Purpose” for that building permit, allowing you to preliminarily determine its registered classification.

Key Classification Query Dashboard: Common Codes and Renovation Traps

To help you quickly decode, we’ve compiled the most common classifications and their relevance to ‘interior renovation permits’:

• Classification Code: H-2
  Legal Name (Example): Residential, apartment buildings
  Key Renovation Permit Trap: This is the only legal ‘residence.’ The trap lies in: Is it five stories or fewer (simplified renovation) or six stories or more (standard renovation)?
• Classification Code: F-1
  Legal Name (Example): Hospitals, clinics, long-term care facilities
  Key Renovation Permit Trap: High risk. Always considered ‘open to the public’ with stringent review. Changing to residential requires a ‘change of use.’
• Classification Code: F-3
  Legal Name (Example): Schools, cram schools, kindergartens
  Key Renovation Permit Trap: High risk. Always considered ‘open to the public’ with high fire safety and accessibility standards.
• Classification Code: G-2
  Legal Name (Example): General offices, professional firms
  Key Renovation Permit Trap: The ‘industrial condo’ trap. Strictly prohibited to change to H-2 residential use; violators face severe penalties.
• Classification Code: B-3
  Legal Name (Example): Restaurants, eateries
  Key Renovation Permit Trap: Strict regulations for fire safety, smoke control, and grease traps. Changing to another use (e.g., office) requires a change of use permit.

The Future of ‘Building Use Classification Queries’: A Choice Between ‘Legality’ and ‘Risk’

‘Building Use Classification’ is the ‘foundation’ of your renovation. If the foundation is unsound, no matter how beautiful the structure, it becomes an illegal building. It is not an option that can be compromised or ignored.

You can choose to spend 10 minutes checking the ‘Building Use Permit’ before signing the contract, ensuring your renovation plans are built on a ‘legal’ foundation. Alternatively, you can choose to ignore this code, gambling on an uncertain future with ‘intuition’ and ‘luck,’ and bearing the risk of all your renovation investments going down the drain.

Your choice determines whether your renovation becomes an ‘asset appreciation’ or a ‘potential liability waiting to explode.’