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BEIJING, May 22 -- Chinese government released a guideline on Friday promoting public-private partnerships (PPP) in affordable housing.

Aiming to attract more funding for China's affordable housing program, the guideline encourages private companies to cooperate with local governments in building homes for rental to disadvantaged households. The companies will mainly be responsible for funding and operating, and the governments will focus on supervising.

According to the guideline jointly released by the Ministry of Finance and five other government departments, local governments are required from this year to carry out PPP pilot programs in affordable rental housing.

Governments will select companies for the partnerships and sign contracts with them, guaranteeing policy support and earnings through rental fees.

"The PPP mode will help improve resource allocation in affordable housing, digest unsold commercial housing, promote steady and sound development of the property market, and improve people's livelihoods," according to the guideline.

China has set a goal of constructing 36 million affordable houses between the start of 2011 and the end of 2015.