THE 2023 LAW ON HOUSING AND ITS RELATED DECREES, DECISIONS, AND CIRCULARS PROVIDE DETAILED REGULATIONS FOR THE 2023 LAW ON HOUSING, EFFECTIVE FROM AUGUST 1, 2024
MINISTRY OF CONSTRUCTION
THE 2023 LAW ON HOUSING’S SYSTEM
THE 2023 LAW ON HOUSING | ||||
Decree No. 95/2024/ND-CP dated July 24th 2024 of the Government | Decree No. 98/2024/ND-CP dated July 25th 2024 of the Government | Decree No. 100/2024/ND-CP dated July 26th 2024 of the Government | Decision No. 11/2024/QD-TTg July 24th 2024 of the Prime Minister | Circular No. 05/2024/TT-BXD dated July 31st 2024 of the Ministry of Construction |
Detailed regulations on certain articles of the Law on Housing | Detailed regulations on certain articles of the Law on Housing regarding the renovation and reconstruction of apartment buildings | Detailed regulations on certain articles of the Law on Housing regarding the development and management of social housing | Decision on the area standards and norms for interior furnishings of official duty housing | Detailed regulations on certain articles of the Law on Housing * Attached is the Regulation on the management and use of apartment buildings. |
REPLACING AND ABOLISHING THE LEGAL REGULATIONS ON HOUSING
THE 2023 LAW ON HOUSING | Replacing | THE 2014 LAW ON HOUSING Hết hiệu lực từ 01/8/2024, trừ một số trường hợp chuyển tiếp theo quy định của The 2023 Law on Housing |
Decree No. 95/2024/ND-CP dated July 24th 2024 of the Government | 1. Decree No. 99/2015/ND-CP dated October 20th 2015 of the Government 2. Decree No. 30/2019/ND-CP dated March 28th 2019 of the Government 3. Decree No. 30/2021/ND-CP date March 26th 2021 of the Government | |
Decree No. 98/2024/ND-CP dated July 25th 2024 of the Government | 4. Decree No. 69/2021/ND-CP dated July 15th 2021 of the Government | |
Decree No. 100/2024/ND-CP dated July 26th 2024 of the Government | 5. Decree No. 100/2015/ND-CP dated October 20th 2015 of the Government 6. Decree No. 49/2021/ND-CP dated April 1st 2021 of the Government 7. Decree No. 35/2023/ND-CP dated June 20th 2021 of the Government (Article 5, Article 6, Article 7, clause 3, clause 4 Article 16) 8. Decree No. 104/2022/ND-CP dated December 21st 2022 of the Government (Article 7, Article 9) regarding household registration | |
Decision No. 11/2024/QD-TTg July 24th 2024 of the Prime Minister | Decision No. 03/2022/QD-TTg dated February 18th 2022 |
MAIN CONTENTS OF THE LAW ON HOUSING
- GENERAL PROVISIONS
- HOUSING OWNERSHIP
- NATIONAL HOUSING DEVELOPMENT STRATEGY, PROVINCIAL HOUSING DEVELOPMENT PROGRAMS AND PLANS
- HOUSING DEVELOPMENT
- RENOVATION AND RECONSTRUCTION OF APARTMENT BUILDINGS
- SOCIAL HOUSING POLICIES
- FINANCING FOR HOUSING DEVELOPMENT
- MANAGEMENT AND USE OF HOUSING
- MANAGEMENT AND USE OF APARTMENT BUILDINGS
- HOUSING TRANSACTIONS
- STATE MANAGEMENT OF HOUSING, DISPUTE RESOLUTION, AND VIOLATION HANDLING
- TRANSITIONAL PROVISIONS
- SOME CONTENTS OF CIRCULAR NO. 05/2024/TT-BXD OF THE MINISTER OF CONSTRUCTION
- GENERAL PROVISIONS
Chapter I: consists of five Articles (Articles 1-5), which provide regulations on the scope of application, interpretation of terms, prohibited acts, policies on housing development and management, and general requirements for housing development and management.
- The scope of application:inherits from the Law on Housing 2014, except for transactions involving the sale, lease-purchase, or lease of commercial housing by enterprises, cooperatives, and cooperative unions engaged in real estate business, as well as the transfer of contracts for the sale of housing, which are governed by the law on real estate business (Clause 2, Article 1). Additionally, issues related to land (such as land for commercial housing construction, social housing, etc.) are included.
- The interpretation of terms:builds on the Law on Housing 2014, with additional definitions for housing with mixed-use purposes, worker accommodation in industrial zones, housing for armed forces, and investors in housing construction projects (Clauses 1, 8, 14, Article 2).
- The prohibited acts:inherits from the Law on Housing 2014, with added prohibitions on the management and use of apartment buildings (Clause 8, Article 3) and on the use of individual houses.
- The policies on housing development and management: maintained from the Law on Housing 2014 (Article 4):
– The State is responsible for allocating land funds for housing development.
– It enacts mechanisms and policies to encourage housing development.
– Furthermore, the State promotes the development of various types of housing to meet the needs of the population.
– The provincial-level People’s Committees are responsible for planning and allocating land for housing construction.
- General requirements for housing development and management (Article 5)
- Align with the needs and socio-economic conditions of the country in each period, as well as the specific conditions of each locality.
- They should be consistent with the Housing Development Strategy, land use plans, construction plans, urban planning, and housing development programs and plans. This ensures the synchronization of technical and social infrastructure and the economical use of resources.
- Compliance with housing laws is mandatory. It is also essential to meet standards, technical regulations, construction quality, fire prevention and fighting requirements, landscape architecture, environmental hygiene, safety during construction, disaster response, climate change adaptation, and the economical use of energy and land resources.
- For urban areas, housing development should primarily be project-based, with structures and areas suitable to market demands. In other regions, the provincial People’s Committees specify exact locations and positions for project-based housing development. In first-class urban areas, wards, districts, and cities classified as special urban areas, the primary focus is on apartment building development.
- In wards, districts, and cities classified as special, first-class, second-class, and third-class urban areas, investors are required to construct housing for sale, lease-purchase, or lease. For other regions, the provincial People’s Committees determine areas where investors must build housing and areas where investors can subdivide and sell land.In cases where land use rights are auctioned for housing development projects according to the Land Law, housing must be constructed for sale, lease, or lease-purchase.
- Based on local needs and conditions, planning approval authorities must allocate land funds for the development of social housing.
- For rural, mountainous, border, and island areas, housing development must align with new rural construction programs, customs, practices, and natural conditions. The development of project-based and multi-story housing is encouraged.
- Housing must be used for its intended purpose and function, meeting fire prevention, environmental hygiene, and security requirements. Compliance with housing records management regulations, maintenance, renovation, and demolition is also mandatory.
- There are additional requirements for the development of various types of housing.
- HOUSING OWNERSHIP
Chapter II: consists of 17 Articles (from Articles 6 to 22) and covers regulations on housing ownership, including rights, obligations, protection, recognition, the timing of ownership establishment, eligible subjects, and conditions for housing ownership. It also covers public property housing and housing ownership in Vietnam by foreign organizations and individuals, including areas eligible for ownership, forms of ownership, conditions, obligations, and cases where certificates of ownership are not issued.
- Housing ownership:the provisions inherit from the2014 Law on Housing and Decree No. 99/2015/ND-CP, with revisions to conditions on eligible subjects and forms of housing ownership to ensure consistency with the Land Law (Article 8).
(1) The protection of housing ownership rights (Article 7)
– The State’s recognition and protection of the legitimate housing ownership rights of owners as stipulated by this Law.
– Legally owned housing by organizations and individuals is not subject to nationalization. In necessary cases involving national defense, security, or national interest, emergency situations, disaster prevention, and control, the State may decide to purchase housing at market prices or clear housing and provide compensation, support, and implement resettlement policies. In cases of requisition or acquisition, the procedures will follow the provisions of the law on requisition and acquisition.
(2) Housing ownership eligibility and conditions (Article 8)
HOUSING OWNERSHIP ELIGIBILITY
– Domestic organizations and individuals;
– Vietnamese citizens residing abroad according to nationality laws (both those retaining and those who have lost Vietnamese nationality);
– Foreign organizations and individuals.
HOUSING OWNERSHIP CONDITIONS
– Ownership encompass various forms such as investment in construction, purchase, lease-purchase, receipt as a gift, inheritance, capital contribution, housing exchange, and receipt of housing for resettlement, among other forms prescribed by law.
– Vietnamese citizens residing abroad who are permitted to enter Vietnam may own housing associated with land use rights, as stipulated by land laws.
– Foreign organizations and individuals can own housing through several forms specified in Clause 2, Article 17:
(1) Implementing housing construction investment projects;
(2) Purchasing, lease-purchasing commercial housing from investors, receiving housing as gifts, or inheriting commercial housing within housing development projects that are not in areas requiring security and defense assurance.
(3) Purchasing, lease-purchasing housing from foreign organizations and individuals who already own housing in accordance with this Law.
Decree No. 95/2024/ND-CP provides detailed regulations on the documents required to prove eligibility and conditions for housing ownership in Vietnam (Article 3). Specifically, it includes:
+ Documents proving eligibility:
Organizations | Individuals | |||
Domestic Organizations | Foreign Organizations | Vietnamese Individuals | Vietnamese-origin Individuals | Foreign Individuals |
| * The documents must be valid at the time of the transaction signing |
| * Documents are required to confirm Vietnamese origin | * The documents must demonstrate that the individual is not entitled to diplomatic immunity |
+ Documents proving conditions:
– Documents proving legitimate housing ownership.
– Documents proving eligibility according to the regulations.
- Public property housing:inherits the provisions of the Law on Housing 2014 regarding types of housing owned by the state, ownership representation, and revisesthe concept of “state-owned housing” to “public property housing” to align with the Civil Code and the Law on Management and Use of Public Property (Article 13).
- Nhà ở thuộc tài sản công:Kế thừa các quy định của The 2014 Law on Housing về các loại nhà ở thuộc sở hữu nhà nước, đại diện chủ sở hữu, chỉnh lýkhái niệm “nhà ở thuộc sở hữu nhà nước” thành “nhà ở thuộc tài sản công” cho phù hợp Bộ luật dân sự, Luật quản lý sử dụng tài sản công (Điều 13).
Types of Public Property Housing (Article 13) include:
- Official residence housing at the central and local levels.
- Housing for resettlement purposes, constructed or purchased by the state for resettlement allocation.
- Social housing and housing for the armed forces, constructed by the state.
- Housing constructed with state budget funds or originating from state budget funds, or housing established as public ownership under various periods of law, currently rented to households and individuals according to housing laws.
- Housing of other owners converted into public ownership.
ĐẠI DIỆN CHỦ SỞ HỮU NHÀ Ở THUỘC TÀI SẢN CÔNG (Điều 14)
The Ministry of Construction | The Ministry of Defense and the Ministry of Public Security | Ministries, ministerial-level agencies, and government agencies | Provincial People’s Committee |
– Central budget-funded official residence housing. – Central budget-funded social housing. – Student housing managed by educational institutions under the Ministry of Construction | – Official residence housing purchased or constructed by the Ministry of Defense or the Ministry of Public Security. – Housing for the armed forces purchased or constructed by these ministries. – Student housing managed by educational institutions under these ministries. – Public-funded or public-originated housing currently leased out by the Ministry of Defense. | – Central budget-funded official residence housing. – Student housing managed by educational institutions under their jurisdiction. | – Housing developed with state budget funds managed by local authorities. – Housing assigned for management within their localities.
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- Ownership of housing in Vietnam by foreign organizations and individuals:outlined in the Law on Housing 2014, includes additional provisions where the government regulates areas needing national defense and security assurance (Article 16).
Decree No. 95/2024/ND-CP specifies areas requiring security and defense assurance, criteria for converting population equivalents to a ward, and the number of houses foreign organizations and individuals are allowed to own. Specifically:
3.1. Areas Requiring Security and Defense Assurance
According to Decree 99/2015/ND-CP, the Ministry of Defense and the Ministry of Public Security are assigned this responsibility.
Decree No. 95/2024/ND-CP details three main aspects:
+ Provisions for transitioning in cases where housing is within an area that subsequently changes to an area requiring security and defense assurance (Clause 1, Article 95).
+ Detailed regulations on six specific areas requiring security and defense assurance (Clause 1, Article 4).
+ Specific responsibilities, timelines for determination, and notifications of these areas by the Ministry of Defense, the Ministry of Public Security, and the provincial People’s Committees to identify and publicize lists of housing development projects where foreign organizations and individuals are permitted to own housing (Clause 2, Article 4).
3.2. The criteria for converting population equivalent to a ward and the number of houses that foreign workers (foreigners) are allowed to own: followed the previous regulations. Specifically, an area with a population equivalent to one ward is defined as 10,000 people. Foreigners are allowed to own no more than 30% of the apartment buildings and no more than 250 individual houses in such an area. There are additional provisions for announcing areas with populations equivalent to one ward upon planning approval (Article 5).
The decree also revises regulations on information verification, the notification period for selling houses to foreigners by investors, and the time frame for provincial housing management agencies to publish information (Article 7).
3.3. Cases where foreign organizations and individuals are not granted certificates of ownership for housing (Article 22)
CASE 1
Foreign organizations or individuals who receive housing as a gift or inheritance do not fall under the categories specified in point b, clause 2, Article 17 of this Law (foreign-invested economic organizations constructing housing projects in Vietnam or foreign individuals permitted to enter Vietnam). Additionally, those who exceed the number of houses allowed under Article 19 of the Law on Housing or reside in areas requiring national defense and security assurance as per Article 16 of the Law on Housing are included.
These individuals or organizations can directly or authorize another entity to sell or gift the housing.
CASE 2
Foreign organizations not operating in Vietnam, and foreign individuals not permitted to enter Vietnam but receiving housing as a gift or inheritance in Vietnam.
These entities can authorize another organization or individual currently residing or operating in Vietnam to sell or gift the housing.
HANDLING INHERITED PROPERTY
Handling inherited property involves one of the following:
– Allowing organizations or individuals eligible for housing ownership in Vietnam to inherit the housing. Organizations or individuals not eligible for housing ownership in Vietnam will receive the equivalent value of the housing corresponding to their inherited portion.
– Gifting or selling the housing to organizations or individuals eligible for housing ownership in Vietnam to receive its value.
- Term-limited housing sales (Article 9, Article 166)
For term-limited housing sales, the purchaser is issued a certificate of ownership for the agreed term of ownership. Upon the expiration of the ownership term, the ownership rights revert to the original seller as per the agreement in the contract. If the seller does not reclaim the housing upon the expiration of the term, the matter is resolved in accordance with Article 166 of this Law and other relevant legal provisions.
The Purchaser of term-limited housing sales | The Seller | Case 1 | The request is made to the competent authority to issue a certificate |
Case 2 | Follow the regulations of the law on bankruptcy, dissolution, or termination of activities if the initial owner is an organization that has declared bankruptcy, dissolved, or ceased operations | ||
Case 3 | Ownership is established in accordance with the Civil Code if the initial owner is an individual who has died without heirs or if the heirs do not accept the inheritance |
- The point in time when housing ownership is established (Article 12)
The point in time when housing ownership is established (Article 12) varies depending on the method of acquisition:
– Direct Investment: Ownership is established upon the completion of housing construction according to construction law regulations.
– Purchase or Lease-Purchase:
+ Between the investor and the buyer: Ownership is established according to the real estate business law.
+ For other purchase or lease-purchase transactions: Ownership is established at the time of full payment and handover of the property unless otherwise agreed.
– Capital Contribution, Gifting, or Housing Exchange: Ownership is established at the time of housing handover, unless otherwise agreed.
– Inheritance: Ownership is established according to civil law provisions.
- NATIONAL HOUSING DEVELOPMENT STRATEGY, PROVINCIAL HOUSING DEVELOPMENT PROGRAMS AND PLANS
Chapter III comprises seven Articles (from Article 23 to Article 29) and covers the National Housing Development Strategy and Provincial Housing Development Programs and Plans. It includes the basis, content, strategy period, and approval authority of the National Housing Development Strategy, as well as the basis for construction, program period, content, construction, approval, and adjustment of provincial housing development programs and plans.
- The National Housing Development Strategy:inherits the provisions of the Law on Housing 2014 (Articles 23-25).
- Provincial housing development programs and plans:have been revised and supplemented with new content.
BASIS FOR DEVELOPING PROVINCIAL HOUSING DEVELOPMENT PROGRAMS AND PLANS (ARTICLE 26)
Basis | Housing Development Programs | Housing Development Plans |
1. | The National Housing Development Strategy | The provincial housing development program |
2. | Land use planning, construction planning, and urban planning | The local socio-economic development plan |
3. | Local socio-economic development conditions; results from the previous provincial housing development program; current housing conditions; and housing needs during the period of the provincial housing development program’s construction | Results from the previous provincial housing development plan; current housing conditions; and housing needs during the period of the provincial housing development plan’s construction |
THE PERIOD FOR THE PROVINCIAL HOUSING DEVELOPMENT PROGRAM:
– Inherits from Decree No. 99/2015/ND-CP, specifying a 10-year term, in line with the National Housing Development Strategy. The provincial housing development plan has a 5-year term (one program period includes two plan periods).
– The annual housing development plan is eliminated as per Article 26.
ADJUSTMENT OF PROVINCIAL HOUSING DEVELOPMENT PROGRAMS AND PLANS
Adjustment of Provincial Housing Development Programs and Plans includes adding bases for adjusting the programs and plans (Article 28). Specifically:
Reasons | Housing Development Programs | Housing Development Plans |
1. | Due to adjustments in provincial planning | Due to adjustments in the housing development program |
2. | Due to the approval of new provincial planning | Due to housing-related content in the provincial socio-economic development plan |
3. | Due to the establishment, dissolution, merger, division, or adjustment of the administrative boundaries of the province. | Due to adjustments in the plan for renovating and reconstructing apartment buildings. |
4. | Due to transitional adjustments. |
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CONTENT OF PROVINCIAL HOUSING DEVELOPMENT PROGRAMS AND PLANS (ARTICLE 27)
Certain elements from the plans are integrated into the housing development programs, such as the land area for housing development and the areas proposed for housing development divided by district-level administrative units. The assessment of indicators related to the land fund for commercial housing development is omitted (Article 27). Additionally, the content is expanded to include an evaluation of housing needs for industrial park workers (point b, Clause 2, Article 95) and the housing needs for the armed forces in the housing development plans (Article 102, point b, Clause 1, Article 198).
Decree No. 95/2024/ND-CP provides detailed regulations on the contents of housing development programs and plans, as follows:
(1) Housing Development Programs: Detailed regulations under Clause 1, Article 27 of the Law on Housing are inherited, with certain modifications and additions:
– The inherited indicators from Decree No. 99/2015/ND-CP include average housing area, floor area, minimum area, housing quality, capital needs, and land funds. Additional content is included, such as the projected land area for housing development for armed forces personnel and land for renovation and reconstruction projects for apartment buildings (point đ, Clause 1, Article 9).
– Specific regulations on areas proposed for housing development: These areas are based on district-level administrative units, oriented towards residential areas or residential units in urban master plans, and areas designated for organizing residential space in the approved commune construction master plans (point i, Clause 1, Article 9).
– Issuance of the Housing Development Program Outline for unified approval by the People’s Committee (Form No. 01, Appendix II).
– Specific regulations on the responsibilities of the provincial People’s Committees in proposing state budget capital needs for housing development according to the housing development program for inclusion in the medium-term public investment plan (point h, Clause 1, Article 9).
(2) Housing Development Plans:
Decree No. 95/2024/ND-CP provides detailed regulations under Clause 2, Article 27 of the Law on Housing, with several modifications and additions:
– The position and area proposed for housing development are omitted, as these have already been specified in the Housing Development Program. The plan now includes only indicators related to the building floor area, the number of houses of various types completed during the plan period (point c, Clause 2, Article 9), the average housing floor area per person (point đ, Clause 2, Article 9), and housing quality indicators in urban and rural areas (specified in Clause 2, Article 28 of the Law on Housing).
– The anticipated timeline for investment policy approval and project implementation progress is added. This is based on an assessment of current housing conditions, the balance of supply and demand, the pace of urbanization, and the capacity of infrastructure at the project site during the plan’s construction period (point d, Clause 2, Article 9).
– The Housing Development Plan Outline is issued for unified approval by the provincial People’s Committees (Form No. 02, Appendix II).
(3) Renovation and Reconstruction Plan for Apartment Buildings:
According to Decree No. 98/2024/ND-CP, a separate plan must be created for each project (Article 7). The contents related to the project must be announced and consulted with the apartment owners, users, and relevant organizations and individuals before approving the plan to ensure feasibility. Specifically:
– Assess the current status and usage of the apartment buildings.
– Determine the scope and scale of the project.
– Plan the timeline for demolition, relocation, compensation, resettlement support, and temporary housing arrangements.
– Estimate the sources of funding, implementation timeframe, and project completion date.
2.4. Construction and Approval of Provincial Housing Development Programs and Plans: Regulations on the construction, approval, and public disclosure of provincial housing development programs and plans have been established. Additionally, the requirement to seek opinions from the Ministry of Construction for the housing development programs of the five centrally governed cities has been removed.
Decree No. 95/2024/ND-CP provides detailed regulations on the process and procedures for constructing, approving, and adjusting housing development programs and plans. It also specifies the deadlines for completing these procedures and the timing for constructing and approving programs and plans to align with the public investment plan approval timelines. Programs must be constructed and approved by June 30 and plans must be approved by December 31. Specifically:
| Provincial People’s Councils | 5. Submit to People’s Councils (as to Housing Development Program) |
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Decision to approve programs (15 days) ↑ ↓ Decision to approve plans (15 days) | ←Provincial People’s Commitees | → 2. Approving drafts, finance estimate… (45 days) |
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| 4. The assigned agency completes, edits and reports to the Provincial People’s Committee (45 days) |
| ↑ 1. Proposal |
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| ↑ |
| Provincial Housing Management Agencies | Case 1: Bidding → 3. Organizing and Commecing | Advisory Units Making drafts | → Getting Opinions | District-level People’s Committee, other related agencies and organizations |
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| Case 2: Self-draft and send for opinions | → | ↑ Response within 15 days |
- HOUSING DEVELOPMENT
Chapter IV consists of 28 Articles (from Article 30 to Article 57) and regulates various aspects of housing development, including forms, requirements, project stages, and the development of different types of housing (commercial housing, official residence housing, resettlement housing, and individual housing).
- General Provisions: Inherits the 2014 Law on Housing regarding housing area standards, land funds for housing development, and requirements for housing construction investment projects. It clarifies six forms of project-based housing development (Article 30):
FORMS OF PROJECT-BASED HOUSING DEVELOPMENT (ARTICLE 30):
- Investment projects for constructing a single housing work or a cluster of housing works.
- Investment projects for constructing a single housing work with mixed-use purposes or a cluster of housing works with mixed-use purposes.
- Investment projects for constructing housing areas that synchronize housing construction with technical infrastructure, social infrastructure, and other facilities serving residential needs.
- Investment projects for constructing the infrastructure of housing areas to transfer land use rights for individuals to build their own houses.
- Investment projects for constructing urban areas with housing.
- Multi-purpose land use projects that allocate land within the project for housing construction.
Land Fund for Housing Development (Article 32):
- The land area for housing development must be determined in urban planning, industrial zone construction planning, university construction planning, and other construction planning.
- It should be consistent with land use planning, land use plans, and the land area needs for housing development as specified in housing development programs and plans.
- Land areas for commercial housing, official residence housing, and resettlement housing should be allocated in planning and must align with land use plans and housing development programs and plans.
- Land areas for social housing, worker accommodation in industrial zones, and housing for the armed forces should be allocated according to laws on the management and development of social housing.
Requirements for Housing Construction Investment Projects (Article 33):
- Compliance with the housing development program and plan, adherence to investment policy content, and implementation according to detailed planning.
- Division of the project components must be specified in the investment policy, feasibility study report, investment decision, etc.
- The project name and areas within the project must be named in Vietnamese first, followed by the foreign language name, and these names must be used throughout the construction, management, and usage process after the project is completed.
- Full implementation of the approved project content. If adjustments are necessary, the investment policy must be adjusted before modifying the project content.
- Acceptance and handover must be conducted following the provisions of this Law, construction law, and related laws, ensuring quality, safety in construction, operation, exploitation, usage, and fire prevention and control.
- Projects applying energy-saving technologies, green buildings, and smart urban areas must meet corresponding requirements, standards, and technical regulations. For apartment buildings, telecommunication and information infrastructure must be installed according to legal regulations.
Stages of Housing Construction Investment Projects (Article 34):
According to Article 34 of the Law on Housing, there are three stages: the project preparation stage, the project implementation stage, and the project completion stage. This is a new provision in the 2023 Law on Housing. The National Assembly has tasked the Government with detailing these three stages for housing construction investment projects.
In Chapter IV (from Articles 13 to 25) of Decree No. 95/2024/ND-CP, the Government has specified the details of these three stages:
– Project Preparation Stage: This stage includes specific steps such as proposing the project when seeking approval for investment policy, planning, selecting project investors (in cases of auction, bidding, investor approval), land allocation, land lease, project approval, and more (Articles 13-19). It also includes specific provisions for assessing the alignment of the project content with the housing development program and plan when seeking project appraisal opinions (Article 16).
Investment Policies | Suitability Assessment | Housing Development Programs and Plans |
Project location | Areas planned for housing development (point i, clause 1, Article 9) | |
Construction floor area of the project compared to projects in the same area and phase | Estimated completed construction floor area (point g, clause 1, point c, clause 2, Article 9) | |
Land area (excluding commercial housing) | Land area (point d, clause 1, Article 9) |
– Project Implementation Stage: Refers to the procedures carried out according to construction law (Articles 20-23). This stage includes specific regulations regarding the deadline for completing housing construction by residents in projects with subdivided land plots for sale (Clause 4, Article 22).
Provincial People’s Committees | Propose | Investors | Determine the time the transferee must complete the investment in building the house in the contract |
Requirements on time to complete construction investment | Based on | Monitor, supervise |
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– Project Completion Stage: Refers to the procedures according to construction law (Articles 24 and 25). Additionally, it includes regulations on the handover of housing and apartments, requiring the following documents (Clause 3, Article 25): Housing handover documents and Apartment handover documents.
1 | 2 | 3 | 4 |
Acceptance record of the completed apartment building, economic, and social infrastructure works according to the project schedule | Document approving the fire prevention and control acceptance results | Notice of acceptance results for the apartment building project | Site plan drawings of the apartment parking area, clearly distinguishing common ownership and private ownership |
- Commercial Housing Construction Projects:This section inherits the provisions of the Law on Housing 2014 regarding project implementation, and the rights and obligations of investors (Articles 37 and 38). It also revises the conditions for investors in commercial housing projects to align with the Land Law and investment law (Article 36).
Conditions for Investors in Commercial Housing Projects (Article 36):
- Must be an enterprise, cooperative, or union of cooperatives engaged in real estate business.
- Must have been allocated or leased land, or approved as an investor when conducting land use rights auctions or project bidding.
- Must have received approval for the investment policy and investor approval to act as the project investor when they have land use rights through receiving land use rights or currently holding land use rights as per the Law on Land.
Implementation of Commercial Housing Projects (Article 37):
- Compliance with this Law, construction laws, and other relevant laws.
- Housing and technical and social infrastructure systems must be built according to the approved planning, project content, and schedule. If the project is implemented in phases, construction must follow the approved phased investment plan.
- Handing over technical and social infrastructure systems according to the investment policy content and the approved project schedule.
- Handover of housing after the completion and acceptance of housing construction and technical infrastructure works in the housing area according to the project schedule. If handing over unfinished housing, the exterior must be fully completed. For apartments, all required handover documents must be provided as per regulations.
- The acceptance of housing and technical and social infrastructure systems must be carried out according to construction law regulations.
- Resettlement Housing:This section inherits the principles and requirements for the development of resettlement housing from the Law on Housing 2014 (from Articles 49 to 57). It also revises regulations on the allocation of housing for resettlement purposes and adds provisions for resettlement arrangements in apartment building renovation projects (Article 48).
Forms of Resettlement Housing Arrangements (Article 48):
1 | Constructing housing according to a project to sell, lease-purchase, or rent to resettled individuals. |
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2 | Ordering or purchasing commercial housing built according to a project to sell, lease-purchase, or rent to resettled individuals. | Decree No. 98/2024/ND-CP provides specific regulations on compensation for resettlement in apartment renovation projects. It covers compensation for different types of housing within apartment buildings, non-apartment areas, and support for ground-floor apartments with commercial spaces (Article 28). |
3 | Arranging for resettled individuals to buy, lease-purchase, or rent social housing built according to a project. |
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4 | Providing resettled individuals with financial compensation to self-purchase, lease-purchase, or rent housing. |
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5 | Arranging resettlement according to land law regulations. |
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6 | Arranging housing for resettled individuals within investment projects for the renovation and reconstruction of apartment buildings, in accordance with regulations on renovating and reconstructing apartment buildings. | Decree No. 95/2024/ND-CP adds procedures for purchasing commercial housing to be used for resettlement (Article 36), as well as regulations on the handover and management of resettlement housing (Article 40). |
Principles for Resettlement Housing Arrangements (Article 49):
- Resettlement to a new residence must be completed before the housing is reclaimed or demolished (unless residents voluntarily hand over their housing before resettlement). The new housing conditions must be equal to or better than the reclaimed or demolished housing.
- For housing demolitions to implement non-housing projects in Class I urban areas, wards, districts, or centrally governed cities, if residents want resettlement in the same area, they can be allocated commercial housing through ordering or purchasing commercial housing, social housing, or be provided financial compensation to arrange their own housing. If resettlement in another area is desired, it will be arranged according to one of the forms specified in Article 48 of the Law on Housing.
- For housing demolitions to implement non-housing projects outside the areas specified in clause 2, resettlement arrangements will be based on local conditions and the needs of the resettled individuals, following one of the forms specified in Article 48 of the Law on Housing.
- For demolitions to implement commercial housing projects, resettlement will be arranged on-site within the commercial housing project or within the social housing built in that commercial housing project.
- For demolitions of apartment buildings to implement renovation and reconstruction projects, resettlement will be carried out according to laws on renovating and reconstructing apartment buildings.
- If resettlement housing is constructed as a project, it must be approved as a separate project, not mixed with commercial housing, official residence housing, or social housing, except for renovation and reconstruction projects for apartment buildings. In rural areas, resettlement projects must include land allocation for production for the resettled individuals.
- If individuals are entitled to compensation with land use rights, this will be carried out according to land law regulations.
Land Fund for Implementing Resettlement Housing Investment Projects (Article 50):
1 | 2 | 3 |
Adhering to the land fund requirements for housing development as stipulated in Article 32 and land law regulations. | The land fund must be determined in the subdivision planning or detailed construction planning at a 1/500 scale, following the principles outlined in Article 49. | Determining the financial obligations related to land for implementing resettlement housing investment projects must comply with land law regulations. |
Investors for Resettlement Housing Construction Projects (Article 51):
- Investors for resettlement projects include:Specialized project management boards under the provincial People’s Committee, provincial land fund development organizations, provincial housing management agencies, district People’s Committees, or real estate enterprises.
- For resettlement projects using public investment capital:the provincial housing management agency proposes the investor and reports to the provincial People’s Committee for a decision.
- For resettlement projects not using public investment capital:
– Case 1: The Prime Minister decides for national important projects.
– Case 2: The provincial People’s Committee decides for the remaining cases (except for Case 1 and Case 3).
– Case 3: If the law requires bidding to select the investor as the project owner, the regulations must be followed.
- For cases of demolishing apartment buildingsto reconstruct new apartment buildings, the selection of the investor for the housing construction investment project is conducted according to the provisions of Article 68.
ORDERING AND PURCHASING COMMERCIAL HOUSING FOR RESETTLEMENT (Article 50):
PURCHASING COMMERCIAL HOUSING FOR RESETTLEMENT Decree No. 95/2024/ND-CP (Article 37) Outlines the sequence and procedures for purchasing, including the purchase price by the investor, the selling price to the resettled individuals, and the handover of resettlement housing,… | ||||
Resettled Individuals | Sign a contract→ | Unit Assigned for Resettlement Arrangements | Signs a purchase contract→ | Investor |
ORDERING COMMERCIAL HOUSING FOR RESETTLEMENT Decree No. 95/2024/ND-CP (Article 36) Specifies the procedures and steps for ordering, the content of the ordering contract, the responsibilities of all parties involved, the purchase price by the investor, and the selling price to resettled individuals,… | ||||
Resettled Individuals | Sign a contract→ | Investor | ←Signs a purchase contract | Unit Assigned for Resettlement Arrangements |
ARRANGING SOCIAL HOUSING FOR RESETTLEMENT (Article 50):
For social housing intended for resettlement, the unit responsible for arranging resettlement introduces the social housing fund in the area for resettled individuals to sign contracts for renting, lease-purchasing, or purchasing social housing.
Decree No. 95/2024/ND-CP (Article 39) provides detailed regulations on the procedures for registration, approval of the list, and introduction of resettled individuals to purchase, rent, or lease-purchase social housing.
- Official Residence Housing:This section inherits the provisions of the Law on Housing 2014 regarding the land for constructing official residence housing, forms of developing official residence housing, investors, purchasing and renting commercial housing for use as official residences, and rental prices for official residences (Articles 40-47). Some regulations have been amended and supplemented, including:
4.1. Eligibility for Official Residence Housing (Article 45)
THE 2014 LAW ON HOUSING | Central Agencies | Local Agencies | Additional Eligibility |
Deputy Minister and above | Department Director and above | ||
THE 2023 LAW ON HOUSING | Deputy Head of Government agency and equivalent or higher | Deputy Director of Department and equivalent or higher | – Non-commissioned officers, police officers, workers, civil servants, national defense officials, cryptography officers, etc. – Cases decided by the Prime Minister upon the proposal of the Ministry of Construction. |
4.2. Deciding Investment Policy and Project Owner for Official Residence Housing Projects (Article 42, 43):
Decisions regarding the investment policy and the investor for official residence housing construction projects and the purchase of commercial housing for use as official residences are made according to the provisions of the Law on Housing.
→ Decree No. 95/2024/ND-CP provides detailed regulations on the documents and procedures for deciding the investment policy and investment decision for official residence housing projects and purchasing commercial housing for official residence use (Articles 26, 27, 28, and 29).
4.3. Standards for Area and Housing Quotas for Official Residence Housing (Article 44):
The Prime Minister specifies the standards for the area and housing quotas for official residences and adjusts them periodically as proposed by the Ministry of Construction.
→ Decision No. 11/2024/QD-TTg supplements the standards for official residences for individuals who have been newly granted the right to rent official residences and adds standards for official residences managed by the Ministry of Defense and the Ministry of Public Security.
4.4. Standards for Area and Furniture Equipment for Official Residence Housing
Decision No. 11/2024/QD-TTg dated July 24, 2024, issued by the Prime Minister, sets forth provisions regarding:
– Applicable subjects;
– Principles for renting and furnishing official residences;
– Design, construction, warranty, maintenance, and operation management principles;
– Standards for area and furniture equipment quotas for official residences of central agencies, the Ministry of Defense, and the Ministry of Public Security;
– Implementation of this Decision.
- General Provisions:Supplementary Content:
– Party Official Residences: These will follow the specific regulations set by the Party.
– Officials with Multiple Titles: The area standards and interior furnishings will be based on the highest title held.
– Special Cases (Point g, Clause 1, Article 45 of the Law on Housing): For those specified by the Prime Minister based on the Ministry of Construction’s proposal, renting arrangements, area standards, and furnishing quotas will follow specific regulations with proposals made for each case.
– Nationally Significant Scientists and Talents: Those who lead particularly important national projects or have made significant contributions to the country will have housing area standards and furnishing quotas equivalent to that of a Deputy Minister, as proposed by the provincial People’s Committee.
– Existing Interior Furnishings: Furnishings that are still usable but have not fully depreciated, or have fully depreciated but remain usable, will continue to be used. Additionally, plans for purchasing replacement furnishings will be made as needed.
- Standards for Area and Interior Furnishing Quotas for Official Residence Housing
- For Central Government Officials (excluding the Ministry of Defense and the Ministry of Public Security):
New area standards and interior furnishing quotas have been added for several new titles:
– Permanent Member of the Secretariat, Member of the Secretariat: These roles now have area standards similar to Politburo Members (following the key leadership roles of the Party and State).
– Chief Justice of the Supreme People’s Court, Chief Procurator of the Supreme People’s Procuracy, Chairman of the Central Committee of the Vietnam Fatherland Front: These positions have area standards equivalent to Deputy Prime Ministers, Vice Presidents, and Vice Chairmen of the National Assembly.
– Deputy Heads of Government Agencies: Standards are retained as per Decision 03.
- For Titles Managed by the Ministry of Defense and the Ministry of Public Security:
– Regulations from Decree No. 76/2016/ND-CP and Decree No. 18/2013/ND-CP are incorporated into Decision 11 of the Prime Minister, maintaining the area standards and equipment from these decrees.
– Standards are outlined from the Minister level to the lowest ranks of police officers and defense workers, with approximately 7 area standards applied for 7 different levels. The basic area standards remain unchanged.
- For Local Government Officials:
Additional area standards and interior furnishing quotas are provided for the position of Deputy Director of Department and equivalent (previously applicable only to Directors of Departments). Other titles retain the standards from Decision 03.
Transitional Regulations:
For cases where official residences have been rented under old standards (Decision No. 03/2022/QD-TTg and regulations applied by the Ministry of Defense and Ministry of Public Security), the existing rental contracts will continue until their expiration, after which new contracts will be signed in accordance with Decision 11.
- Individual Housing: This section inherits the provisions of the 2014 Law on Housing and revises the regulations on building multi-story, multi-apartment housing for sale, lease-purchase, and rent. It also sets forth the conditions for housing construction investment to ensure the safety of life and property for the public(Article 57). Here are the specific requirements:
Requirements for Individual Housing Development (Article 54):
- Housing must adhere to construction planning and comply with legal regulations on construction.
- Housing must ensure connection with technical infrastructure, sanitation, environmental standards, architecture, landscape, and must not infringe upon the rights and legal interests of adjacent property owners. It should preserve traditional architecture, customs, and detailed construction planning.
- Housing can only be built on residential land that the individual owns.
- Provincial People’s Committees may consider supporting part or all of the costs from the state budget as per legal regulations on the state budget, to help individuals preserve, maintain, and renovate housing in areas with artistic, cultural, and historical value.
Methods of Developing Individual Housing (Article 55):
For Organizations:
- Organizations can either build housing themselves, hire construction services, or receive construction support.
- Hiring units or individuals with construction expertise is required when stipulated by construction laws.
- Collaborating to assist in housing construction.
For Individuals:
- Partnering for urban renovation or apartment building renovation and construction as per regulations.
- Individuals can cooperate to build housing by contributing land use rights, capital, labor, materials, and effort.
Development of Multi-Story, Multi-Apartment Housing by Individuals (Article 57)
(1) Houses with 2 or more floors, each floor is designed with apartments for sale, lease-purchase, or rent (regardless of the size and number of apartments) | Must meet the conditions to act as a project investor and obtain ownership certificates for each apartment. | Management and operation must comply with the Apartment Management and Usage Regulations. |
(2) Housing with 2 or More Floors with 20 or More Apartments | ||
(3) Housing with 2 or More Floors with Fewer than 20 Apartments | Must meet fire prevention and control requirements and traffic access requirements as stipulated by the provincial People’s Committee. |
Decree No. 95/2024/ND-CP introduces additional regulations concerning the construction of multi-story, multi-apartment housing (Article 41), and the sale, lease, lease-purchase, and handover of such housing (Article 42).
Furthermore, Circular No. 05/2024/TT-BXD supplements the requirements for obtaining construction permits for housing with two or more floors and fewer than twenty apartments (Article 4). The circular stipulates that the total number of apartments, as well as their number and area on each floor, must be specified in the construction permit application.
In cases where a construction permit is not required, a written notification must be submitted to the commune-level People’s Committee, detailing information similar to that required in a construction permit application.
- RENOVATION AND RECONSTRUCTION OF APARTMENT BUILDINGS
Chapter V, which comprises 18 articles (Articles 58-75), outlines the regulations for the renovation and reconstruction of apartment buildings. These provisions cover various aspects, including the duration of use for apartment buildings, the conditions under which they must be demolished, and the assessment of their quality.
The chapter also details the methods for renovating and reconstructing apartment buildings, including planning and scheduling, and the selection process for project investors. It specifies the documentation and procedural steps required for approving the investment policy for renovation and reconstruction projects.
Additionally, the regulations provide mechanisms for incentives, compensation, and resettlement. They address the processes for relocating, enforcing relocations, demolishing apartment buildings, and arranging temporary housing for affected residents.
- The plan for the renovation and reconstruction of apartment buildings:includes provisions for separate plans specific to apartment building projects (Article 65).
Such plans can either be incorporated into the provincial housing development plan or created as standalone plans to serve as a basis for implementing renovation and reconstruction projects for apartment buildings.
Decree No. 98/2024/ND-CP:
– In the case of integrating the renovation and reconstruction plan into the provincial housing development plan, the plan must include content as prescribed by housing laws (Article 66 of the Law on Housing and point e, clause 2, Article 9 of Decree No. 95/2024/ND-CP);
– When developing a standalone plan for the renovation and reconstruction of apartment buildings, each project must have a specific plan. The details related to each project must be disclosed and feedback must be gathered from the apartment owners, residents, and other relevant organizations and individuals before the plan is approved to ensure feasibility (Articles 7 and 8 of Decree No. 98/2024/ND-CP).
- The approval of investment policies for the renovation and reconstruction of apartment buildings
The regulations have been supplemented to ensure that the approval of investment policies for the renovation and reconstruction of apartment buildings follows the Law on Housing, rather than the Law on Investment, except in cases where the approval of investment policies falls under the authority of the Prime Minister as specified in the Law on Investment. In such cases, the documentation follows housing laws, while the procedures follow investment law (Clause 3, Article 11 of Decree No. 98/2024/ND-CP).
Decree No. 98/2024/ND-CP, from Articles 9 to 14, specifies the documentation and procedural steps for approving and adjusting investment policies for projects under the authority of provincial People’s Committees.
1. For projects funded by public investment capital (apartment buildings classified as public assets or those damaged by natural disasters or warfare) | |
The decision and adjustment of the investment policy for the project must follow the regulations of public investment law (Article 9). | The investors for the renovation and reconstruction of apartment buildings (Article 15) include: – Specialized construction project management boards or regional construction project management boards acting as the project investors. – The Ministry of Defense and the Ministry of Public Security decide on the investors for apartment building projects intended for rental to the armed forces. |
2.1. Approval of investment policy for the renovation and reconstruction of apartment buildings projects not using public investment capital under the authority of the Provincial People’s Committee
2. For projects not implemented with public investment capital | ||
Approve the investment policy and approve the investor as the project investor. | → | Approve investment policy before organizing bidding |
↓ Proposal Dossier Clause 1 Article 10 of Decree No. 98/2024/ND-CP |
| ↓ Proposal Dossier Clause 2 Article 10 of Decree No. 98/2024/ND-CP |
Implementation procedures (35 days) – Clause 1, Article 11 of Decree No. 98/2024/ND-CP; – The provincial housing management agency is the focal point for receiving dossiers; – Obtain appraisal opinions from 09 relevant agencies or more as required by the provincial People’s Committee. |
| Implementation procedures (32 days) – Clause 2 Article 11 Decree No. 98/2024/ND-CP; – The provincial housing management agency is the focal point for preparing the proposal dossier; – Obtain appraisal opinions from 09 relevant agencies or more as required by the provincial People’s Committee. |
2.2. Thẩm định hồ sơ đề nghị chấp thuận chủ trương đầu tư dự án cải tạo, xây dựng lại nhà chung cư
Approve the investment policy and approve the investor as the project investor. | → | Approve investment policy before organizing bidding |
↓ |
| ↓ |
Appraisal content: Clause 1 Article 13 of Decree No. 98/2024/ND-CP |
| Nội dung thẩm định: Clause 2, Article 13 of Decree No. 98/2024/ND-CP, which does not assess the contents related to investors, compensation plans or land use rights transfer. |
– The content of the investment policy approval document must follow the template provided in the annex of Decree No. 98/2024/ND-CP.
– Additionally, the approval document for the investment policy must be publicly posted.
2.3. Adjustments to the approval of investment policies for renovation and reconstruction projects of apartment buildings, which fall under the authority of provincial-level People’s Committees
The specific cases requiring adjustments to the investment policies (Clause 3, Article 14 of Decree No. 98/2024/ND-CP) | |||
There is a need to adjust part of the project’s objectives | Changes in the total investment capital are considered significant if they amount to 20% or more. Likewise, alterations that impact 20% or more of the total number of housing units or the total area designated for non-residential purposes | Extending the project’s implementation timeline by more than 18 months | Adjustments to the phasing or subdivision plan for the project |
In cases where a project is not subject to adjustments in investment policy approval, the project adjustments are to be carried out according to construction law regulations.
2.4. Adjustments to the approval of investment policies for renovation and reconstruction projects of apartment buildings under the authority of provincial-level People’s Committees
Decree No. 98/2024/ND-CP | |
The documentation required for requesting adjustments to the investment policy approval is specified in Clause 4, Article 14. | The sequence and procedures for adjusting the investment policy approval for the project are detailed in Clause 5, Article 14, and are to be carried out similarly to the original approval of the investment policy. |
– The project implementation timeline adjustment within the investment policy should not exceed 24 months, except in certain cases. These exceptions include: (1) Adjustments made to address the consequences of force majeure events as defined by civil laws and land laws; (2) Adjustments due to delays in the State handing over land, leasing land, or permitting changes in land use purposes, provided these delays are not the fault of the investor; (3) Adjustments required by state management agencies or delays in administrative procedures by state agencies that are not the fault of the investor; (4) Adjustments resulting from changes in the planning by state agencies at the project’s location; (5) Adjustments due to delays in completing compensation, support, and resettlement processes, where the delays are not caused by the investor. |
- The selection of investors for renovation and reconstruction projects of apartment buildings (Article 68)
- For apartment buildings classified as public assets and those utilizing local budget funds or managed by central authorities (Clause 2 and Clause 3, Article 62), the decision on the project investor must comply with the regulations on public investment and construction laws.
- For apartment buildings not falling under the aforementioned category, the selection of the project investor must follow Clause 2, Article 67 of this Law. This involves organizing an apartment building conference, submitting the necessary documentation, and obtaining approval for both the investment policy and the investor.
- If an investor cannot be selected through these means, following the approval of the investment policy, the provincial housing management agency will organize a bidding process to choose the investor.
Decree No. 98/2024/ND-CP further outlines the methods for selecting project investors for the renovation and reconstruction of apartment buildings (Articles 15, 16, 17, and 18).
Investors of projects involving the renovation and reconstruction of apartment buildings funded by public investment capital | Investors must agree on the transfer of land use rights in accordance with Clause 11, Article 60 of the Law on Housing. This regulation does not apply to cases where the apartment building area is classified as public property, except for common areas such as hallways and staircases | →The agreement must be reached through an apartment building conference | →A bidding process is organized to select the investor | If there is only one interested investor, the investor is approved directly |
If two or more investors show interest, a bidding process is organized to select the investor |
- The relocation and forced relocation of apartment owners and users, as well as for the arrangement of temporary housing(Article 72)
Clause 6: The government has set regulations for the relocation and forced relocation of apartment owners and users, as well as for the arrangement of temporary housing.
According to Decree No. 98/2024/ND-CP, Article 23 outlines various scenarios in which apartment owners and users may need to be relocated.
The urgent relocation of people in apartment buildings | Relocation based on compensation and resettlement plans |
(1) The apartment building is damaged by fire or explosion and no longer meets safety standards for continued use; (2) The apartment building is damaged due to natural disasters or warfare and no longer meets safety standards for continued use. | (1) An apartment building’s primary load-bearing structures exhibit overall dangerous conditions (Grade D); (2) An apartment building sustains heavy damage resulting in localized dangerous conditions to its primary load-bearing structures, combined with deficiencies in fire prevention and control, water supply and drainage, wastewater treatment, electricity supply, or internal traffic, thus failing to meet current technical standards and posing safety risks during operation and use (Grade C); (3) Apartment buildings with Grade A or B damage but located in areas earmarked for demolition as per approved urban plans. |
4.1. The procedures for the relocation and forced relocation
The procedures for emergency relocation of apartment buildings (Clause 1 Article 24 Decree No. 98/2024/ND-CP) | The procedures for relocations based on compensation and resettlement plans (Clause 2 Article 24 Decree No. 98/2024/ND-CP) |
– The provincial People’s Committee issues the relocation decision; – The district-level People’s Committee takes charge of organizing and implementing the relocation process. |
Note: For apartments classified as public property and subject to relocation, the competent state agency must carry out the procedure for reclaiming public property housing in accordance with housing laws. The reclamation decision is issued concurrently with the relocation decision, as stipulated in Article 78 of Decree No. 95/2024/ND-CP.
4.2. Temporary housing arrangements (Clause 3 and Clause 4, Article 72)
Clause 3 stipulates that temporary housing is only applicable to apartment owners who need resettlement housing. This ensures that those requiring alternative housing during renovation or reconstruction projects are adequately accommodated.
Clause 4 requires that the infrastructure for temporary housing meets the living standards of the apartment owners. In cases where apartments classified as public property or those damaged by natural disasters or warfare are to be relocated, the provincial People’s Committee is responsible for arranging temporary housing or compensating tenants so they can find their own accommodation during the project’s implementation period.
If the apartment building is deemed overall dangerous and at risk of collapse, the provincial People’s Committee will arrange temporary housing until a new investor is selected. For other cases where demolition is necessary, the project investor is responsible for arranging temporary housing during the project’s execution.
Decree No. 98/2024/ND-CP | |
THE FORMS OF HOUSING ARRANGEMENT (Article 26) | THE RESPONSIBILITIES FOR ARRANGING TEMPORARY HOUSING (Article 27) |
1. Utilizing existing resettlement housing stock or investing in the construction of new resettlement housing; 2. Public property housing; 3. Purchasing commercial housing; 4. Providing financial compensation so that individuals can arrange their own housing. In cases where temporary housing is arranged under options one or three, and the owner expresses a desire to do so, they are allowed to purchase this housing instead of being resettled. | 1. Urgent relocation due to natural disasters: The provincial People’s Committee is responsible for providing temporary housing using regular budgetary allocations; 2. Urgent relocations due to fire or explosions, or for buildings classified as overall dangerous (Grade D): The provincial People’s Committee will utilize regular budgetary allocations to provide temporary housing until a new project investor is selected; 3. Relocations based on compensation and resettlement plans: the project investor is responsible for providing temporary housing. The costs for arranging this temporary housing are included in the project’s total investment budget. |
- Compensation, support, and resettlement(Articles 70 and 71)
- Aresettlement compensation plan must be developedafter the detailed planning has been completed;
- The responsibility for developing the resettlement compensation plan falls on the provincial People’s Committee and the project investor, depending on the specific case. The content and approval authority of the resettlement compensation plan must be clearly defined.
Decree No. 98/2024/ND-CP | |
Compensation and resettlement for housing and construction projects that are not public property (Articles 28-32) | Compensation and resettlement for housing and construction projects classified as public property (Articles 33-35) |
– Compensation and resettlement for apartments can be provided in various forms such as on-site resettlement, resettlement at different locations, cash compensation, or through the purchase or lease-purchase of social housing; – Compensation is also provided for areas within apartment buildings that are used for business services; – Compensation covers housing and construction projects that are not apartments but fall within the scope of the renovation and reconstruction project; – Support is provided to property owners, users, and project investors. | – Compensation is provided for apartment units; – Compensation is also provided for other house and land areas classified as public property that are not apartment units; – The arrangement for the use of apartment units classified as public property after reconstruction is addressed. |
- Ensuring transparency, fairness, and adherence to resettlement compensation plans is essential. The area of resettlement apartments must not be smaller than the standard area. The costs associated with organizing compensation, supporting resettlement, and arranging temporary housing are included in the total investment amount;
- Resettlement housing arrangements are carried out through contracts, and the form of compensation is clearly specified in the compensation plan;
- For areas that are not apartments but fall within the residential complex that needs renovation or reconstruction, compensation, support, resettlement, and temporary housing arrangements are conducted according to government regulations.
- FOR NON-PUBLIC PROPERTY APARTMENTS (Article 28, Decree No. 98/2024/ND-CP)
– For ground floor apartments: the compensation rate is 1 to 2 times the apartment area.
If the owner of a ground floor apartment uses part of their apartment for business, and the project includes areas designated for commercial and service purposes according to the approved plan, the owner can purchase or lease commercial and service floor space designed for business purposes.
The price for this space is calculated based on the construction investment cost allocated per square meter of commercial floor space, including the cost of infrastructure construction in the commercial area, as stipulated by construction law, plus a 10% profit margin based on the total investment cost for the commercial area at the time the project is approved and the basic design is assessed by the competent authority. The rental price for this commercial and service area is agreed upon by both parties.
– For apartments on the second floor and above: the compensation rate is between 1 and 1.5 times the apartment area.
Note: If there is a difference between the area of the compensated apartment and the resettlement apartment, the parties are responsible for paying the difference.
- FOR PRIVATE HOUSING AND OTHER AREAS NOT CLASSIFIED AS PUBLIC PROPERTY BUT INCLUDED IN THE RENOVATION AND RECONSTRUCTION PROJECT (Article 30 of Decree No. 98/2024/ND-CP)
For single-family homes:
– The land area: is compensated using the coefficient k = 1 x the specific land price according to land law at the time the compensation and resettlement plan is prepared.
– The housing area: is compensated based on the current usable area of the house (in square meters) multiplied by the price of newly constructed housing as issued by the provincial People’s Committee effective at the time the compensation and resettlement plan is prepared, and adjusted for the remaining quality percentage of the existing house.
For offices, workplaces, and other constructions:
– If the plan continues to include these constructions, the land area is compensated using the coefficient k = 1 for the remaining lease period, and the housing area is compensated similarly to single-family homes.
– If the plan does not include the reconstruction of these buildings, or the owner does not wish to resettle on-site, compensation is provided in cash.
- SUPPORT MEASURES (Article 31 of Decree No. 98/2024/ND-CP)
Support from local regular budget allocations includes:
(1) Assistance in purchasing or lease-purchasing additional area for individuals who contributed to the revolution, as recognized by laws on preferential treatment for revolution contributors; disabled individuals; and poor or near-poor households as defined by the Government.;
(2) Assistance to project investors for part or all of the costs associated with relocation or forced relocation, as stipulated by the Law on Housing;
(3) Assistance to project investors for part or all of the costs required to construct technical and social infrastructure, as stipulated by the Law on Housing.
Additionally, project investors may provide extra support to apartment owners and users to expedite the process of clearing the site.
- FOR APARTMENTS CLASSIFIED AS PUBLIC PROPERTY (Article 33 of Decree No. 98/2024/ND-CP)
For projects with a mix of public property apartments and privately owned apartments:
– The compensation coefficient k is the same as that for privately owned apartments;
– If there is a discrepancy in the area, the parties involved are responsible for settling the difference;
– If the State does not accept the resettlement apartment, it receives cash compensation based on the sale price of the resettlement apartment as proposed by the project investor.
For projects entirely consisting of public property apartments:
– The compensation coefficient k for the design area of the resettlement apartments is determined based on the project’s planning and the budget source;
– If the apartment building is not reconstructed but another type of building is constructed according to the plan, the apartment users are provided with rental housing at a different location.
- FOR OTHER AREAS OF HOUSE AND LAND CLASSIFIED AS PUBLIC PROPERTY (Article 34 of Decree No. 98/2024/ND-CP)
For shared house and land areas within apartment buildings:
– For the house area: compensation is provided in cash to the State, calculated as the usable house area (m²) multiplied by the price of newly constructed housing and adjusted for the remaining quality percentage of the existing house (The remaining quality percentage is determined when selling old public property housing);
– For the land area managed by the State: no land compensation is required.
For shared land areas within the project scope but not within apartment buildings:
– Land areas within the premises of apartment buildings or residential complexes (including land used for technical infrastructure, roads, social infrastructure, and other constructions) that are not managed by State agencies or organizations as per Land Law (Clause 1, Article 217) are handed over to the project investor for implementation;
– Land areas managed by State agencies or organizations as per Land Law (Clause 1, Article 217) are handled according to land law (either as independent projects or not).
- For the utilization of rebuilt public property apartments (Article 35 of Decree No. 98/2024/ND-CP)
Renting Rebuilt Apartments:
– Rental Arrangements: These apartments can be rented at their original location or elsewhere, unless there is no demand. In such cases, the local authority may use these apartments for resettling other eligible individuals. If the local authority does not require the resettlement apartments, the project investor compensates in cash.
– Rental Price: The rental price is based on the rate for social housing classified as public property. If the apartment is sold to the current tenant, the price follows the rate for old public property housing. If the apartment is not sold to the current tenant, it is sold or rented according to local compensation and resettlement policies.
Local Budget Support:
– Eligible Recipients: This includes individuals who contributed to the revolution as recognized by preferential laws, disabled individuals, and poor or near-poor households as defined by the Government;
– Purpose of Support: Assistance is provided either for paying rent or for purchasing housing.
- CONSOLIDATING APARTMENT BUILDINGS FOR RENOVATION AND RECONSTRUCTION (Clause 3, Article 64)
Based on the list and locations of apartment buildings that must be demolished and rebuilt, the provincial People’s Committee makes decisions on planning solutions to rebuild entire apartment complexes or consolidate and rebuild several apartment buildings within the same commune, district, or neighboring district. This aims to ensure socio-economic and environmental efficiency, along with urban renovation and beautification..
→Decree No. 98/2024/ND-CP (Articles 36-38) provides further details on the consolidation process.
This consolidation is only implemented when independent apartment buildings within the same area are subject to demolition but, according to the approved plan, some cannot be rebuilt, or if rebuilding them does not ensure the socio-economic efficiency of the project. Additionally, there must be only one or two locations where new apartment buildings can be rebuilt to provide enough resettlement apartments for apartment owners and users.
SCENARIOS IN WHICH THE CONSOLIDATION OF APARTMENT BUILDINGS FOR RENOVATION AND RECONSTRUCTION CAN OCCUR
1 | 2 | 3 | 4 |
Within the same ward | In neighboring wards within the same district | In neighboring districts | Relocation, compensation, and resettlement for land recovery for auction purposes |
- INCENTIVES FOR PROJECT INVESTORS (Article 63)
Exemptions from land use fees and land rent for the following land areas at point a, Clause 1, Article 63 within the project scope, based on the approved plan or investment policy approval | |||
Existing apartment building construction land | Existing single-family housing construction land (if applicable) | Land used for constructing commercial service, business, and public buildings | Land with technical infrastructure, traffic infrastructure, social infrastructure, and other constructions, including land with public property |
Note: If the planning or program is adjusted after the investor selection, increasing the land use coefficient, additional financial obligations must be fulfilled. |
The investor is not required to perform procedures for determining land prices, calculating land use fees, and land rents that are exempted, nor to complete procedures for requesting exemptions for land use fees and rents.
- Business incentives for apartments and commercial service areas (Article 40 of Decree No. 98/2024/ND-CP):
Excess Apartments After Resettlement Arrangements:
– Apartments built for commercial purposes according to the approved ownership plan can be sold at market prices without the need to pay land use fees;
– Apartments that were supposed to be allocated for resettlement but whose owners opted for cash compensation as per the approved compensation and resettlement plan can also be sold at market prices;
– Apartments meant for resettlement where owners did not purchase the additional area or chose resettlement at a different location can be sold at market prices without paying land use fees.
Commercial Service, Business Areas, and Other Constructions (if applicable):
– These areas can be used for commercial services and business according to the approved planning or investment policy approval.
– In cases of transfer or capital contribution associated with land use rights, financial obligations must be fulfilled in accordance with land law regulations.
- Incentives for Consolidation Projects for Apartment Building Reconstruction (Article 39 of Decree No. 98/2024/ND-CP):
– Consolidation projects are entitled to a standard profit margin ranging from 10% to 15% of the total project investment;
– If the project does not ensure a profit margin of 10% to 15% of the total project investment, the provincial People’s Committee may allocate additional land in the location of the consolidated apartment buildings to the project investor to ensure this profit margin;
– Land use fees and land rent within the consolidation project scope are exempted;
– After project settlement, if the profit exceeds the standard margin, the project investor must return the excess profit to the state budget. If the excess profit arises due to adjustments in the investment policy, the investor is only required to pay taxes on the excess profit according to regulations.
- CONTRIBUTIONS FOR RECONSTRUCTION OFAPARTMENT BUILDINGS (Clause 6, Article 72)
Contributions for rebuilding apartment buildings are regulated by the Government to ensure that the investment process is fair and efficient.
Decree No. 98/2024/ND-CP (Article 42-44) | |
CONTRIBUTION OF FUNDS | NO CONTRIBUTION OF FUNDS |
– Principle of Contribution: Contributions are made based on the ratio of the area of the new apartment to the total area, multiplied by the price of new housing construction as agreed upon at the time of preparing the compensation and resettlement plan.; – Timing of Contribution: Contributions can be made according to the project progress (following the regulations for selling future-formed houses) or as a one-time payment upon the handover of the apartment. | – Compensation is made based on the proportion of land use rights, calculated as the ratio of the apartment area or other area to the total floor area of all apartments or other areas, multiplied by the specific land price at the time of preparing the compensation and resettlement plan. For apartment buildings that are not yet subject to demolition but are located in areas designated for demolition (according to Clause 2, Article 59 of the Law on Housing), compensation is provided for land use rights along with housing compensation. |
- SOCIAL HOUSING POLICIES
Social Housing Policies are detailed in Chapter VI (Articles 76-111), covering a wide range of topics:
– Eligibility and Conditions: Defining the target groups and conditions for benefiting from social housing policies.
– Implementation Principles: Outlining the principles and forms of implementing social housing policies.
– Types of Social Housing Projects: Specifying the types of projects and setting aside land for social housing development.
– Investor Incentives: Detailing the incentives provided to investors in social housing projects.
– Management and Operation: Covering the management, operation, sale, lease, and lease-purchase of social housing.
– Worker and Armed Forces Housing: Policies for developing worker housing in industrial zones and housing for the armed forces.
– Support Policies: Providing support for families and individuals to build, renovate, or repair their homes.
Decree No. 100/2024/ND-CP elaborates on several aspects of the Law on Housing related to the development and management of social housing:
- The stages of social housing investment projects and housing projects for the armed forces.
- Social Housing: Including land allocation for social housing, selecting investors, investor incentives, housing types, and area standards, eligibility conditions, social housing prices, and the procedures for selling, leasing, and lease-purchasing social housing.
- Worker accommodation within industrial zones.
- Housing the people’s armed forces.
- FINANCING FOR HOUSING DEVELOPMENT
Chapter VII, from Articles 112 to 117, outlines the various sources of funding, principles for mobilizing and utilizing funds, concessional loans through the Social Policy Bank for social housing development, and the forms and conditions for mobilizing funds for each method.
- Sources of Funds for Housing Development
Inherited from the 2014 Law on Housing, the provisions include sources for developing different types of housing (commercial, social, resettlement, service housing) and add union financial sources (Article 112):
- Fundsfrom organizations and individuals.
- State Funding for Housing Development(Article 113):
2.1. Public investment funds as per public investment laws.
2.2. Funds mobilized by the State (government bonds, bonds, ODA, state development investment credit funds, land development funds, other off-budget state financial funds).
- Funds Mobilized from Organizations and Individuals(Seven forms of mobilization as specified in Article 114).
- Foreign Investment Funds.
- Union Financial Sources: As per union laws.
- Other Legitimate Sourcesof funds.
- PRINCIPLES OF MOBILIZING AND USING FUNDS FOR HOUSING DEVELOPMENT (Article 116)
2.1. Principles of Mobilizing Funds
- Funds must be mobilized in the appropriate form;
- Mobilization must meet legal conditions for housing;
- Must align with the specified housing type regulations;
- Must comply with anti-money laundering laws;
- Must adhere to bidding laws and other relevant regulations;
- Profits can only be distributed in cash or shares based on the capital contribution ratio, distinct from mobilizing funds to share housing products, deposits, purchase rights, or land use rights within the project.
2.2. Principles of Using Mobilized Funds
- Ensure transparency, protecting the legal rights and interests of all parties with mobilized funds;
- Funds must be used solely for housing development and project implementation, not for other projects or purposes;
- Fund allocation and usage must conform to the approved provincial housing development program and plan.
- CONCESSIONAL LOANS THROUGH THE SOCIAL POLICY BANK (Article 117)
Builds upon the provisions of the 2014 Law on Housing and is detailed further in Decree No. 100/2024/ND-CP.
- FORMS OF MOBILIZING FUNDS FOR HOUSING DEVELOPMENT (Article 114)
Article 114 specify various methods and the conditions for each form, as detailed in Decree No. 95/2024/ND-CP (Articles 43-48):
- Investment Cooperation, Business Cooperation, Joint Ventures and Associations:
Not applicable for residential infrastructure projects sold as plots.
(1) Decision to allocate or lease land, or to change land use purpose.
(2) Notification of meeting capital mobilization conditions from the Construction Department where the project is located.
(3) If mortgaged, the mortgage must be released.
- Issuing Bonds, Shares, Fund Certificates:
(1) Compliance with laws on investment, securities, and enterprises.
(2) Selection of project investor completed.
(3) Mortgage, if any, must be released.
(4) Total mobilized capital must not exceed the total project investment.
(5) Report on capital mobilization submitted to the Construction Department where the project is located.
- Funding from State Sources:
– Public Investment Projects: Follow public investment laws.
– Budget or Non-Budget State Funds: Require investment policy and decision (project approval needed).
- Loans from Credit Institutions, Financial Institutions:
– Credit Loans: Must have decision to allocate or lease land, land use rights, or investment program/contract approval.
– Financial Institution Loans: Must have approved feasibility study or economic-technical report and comply with lender’s loan conditions.
- Direct Foreign Investment:Compliance with investment laws, and for new legal entities in Vietnam, completion of project investor selection and approval of feasibility study or economic-technical report.
- Mobilizing from Other Legal Sources:Not applicable for commercial housing projects. Must meet relevant legal conditions and fit within the legal framework for mobilizing other legitimate sources.
- MANAGEMENT AND USE OF HOUSING
Chapter VIII: Management and Use of Housing consists of 24 Articles (Articles 118-141) covers various aspects related to the proper management and use of housing. This comprehensive section includes the following key areas: Management and Use of Housing; Documentation, Record and Transfer Management; Management and Use of Public Property Housing; Insurance, Warranty, and Maintenance; Demolition of Housing; Conversion of Housing Use; …
- HOUSING DOCUMENTATION (Articles 119 and 120)
1. Housing Established Before July 1, 2006 | 2. Housing Established After July 1, 2006 | 3. Project-Based Housing | |
2.1. In Urban Areas | 2.2. In Rural Areas | ||
Legal proof of housing establishment or a declaration of housing information | – Legal proof of housing establishment. – Identification of consulting units and construction units. – Design drawings, housing, and land diagrams. – Completion documentation (if available). | – Legal proof of housing establishment. – Design drawings, housing, and land diagrams (if available). | Investment project files and completion documentation as per construction law |
The storage, transfer, and management of housing documentation involves several key procedures:
- Housing Documentation Storage:
– Owners (or users if the owner is not yet identified) are responsible for storing the housing documents. For apartment buildings, this is done according to the apartment management regulations.
– District-level housing management agencies store housing documents for households and individuals within their jurisdiction.
– Provincial-level housing management agencies store housing documents for organizations and housing construction projects.
- Certificate Issuing Agencies: These agencies are responsible for providing housing information to the corresponding housing management agency to create housing documentation. The provincial People’s Committee regulates the coordination of information provision to ensure consistency and accuracy.
- MANAGEMENT AND USE OF PRIVATE HOUSING WITHIN PROJECTS (Article 121)
- Post-Construction Management:
– After completing construction investment, the project investor manages the exterior architecture of private houses, maintains technical and social infrastructure systems within the project as per the approved project content.
– If the project investor does not perform these management duties, the provincial People’s Committee or the district People’s Committee will take over management responsibilities.
– For projects involving plot subdivision and land sales, construction must follow the approved planning and architectural management regulations.
- Designation and Naming:
– The project investor can divide and name distinct areas within the project for private houses.
– Naming the project and its areas must comply with Article 33 regulations, using Vietnamese or Vietnamese first followed by a foreign language.
- Establishment of Housing Self-Management Committees:
– After handover and use, a Housing Self-Management Committee is established to manage and make decisions on relevant matters (number of members, composition, funding contributions, etc.).
– The project investor can provide financial support to the Self-Management Committee for tasks like maintaining greenery, gardens, utility works, and technical infrastructure serving the housing area.
- Election of the Housing Self-Management Committee:
– The initial election is organized by the project investor.
– Subsequent elections are managed by the Self-Management Committee or delegated to the project investor.
– If consensus cannot be reached in electing the committee, the project investor manages the housing area.
- MANAGEMENT AND USE OF HOUSING WITH ARTISTIC, ARCHITECTURAL, CULTURAL, AND HISTORICAL VALUE (Article 122)
Provincial People’s Commitee | Approve→ | The list of housing with artistic, architectural, cultural, and historical value | 1. Management and use must comply with the Law on Housing, laws on architecture, cultural heritage, and other relevant regulations. 2. The costs of management, conservation, maintenance, and renovation are covered by the state budget. 3. If reducing population density is necessary to preserve the artistic, architectural, cultural, or historical values, the provincial People’s Committee will allocate land, develop relocation projects, provide new housing arrangements, and offer financial support… | |
↓Establish | ↑Submit the List |
| ||
Council | Draft→ |
- CONVERSION OF HOUSING FUNCTIONS (Article 124)
4.1. Cases where functions can be converted
|
| Old Public Property Housing | |
|
| ↓ | ↓ |
Resettlement Housing | → ← | Social Housing | Official Residence Housing |
< | ← | 8 |
The Prime Minister makes decisions in specific cases as outlined in Article 57 of Decree No. 95/2024/ND-CP:
- Conversion of public property social housing to official residenceor vice versa;
- Conversion of public property resettlement housing to official residence;
- Conversion of student or worker housing to social housing;
- If student housing or resettlement housing does not meet the criteria for conversion to social housing, the project investor can present this to the Prime Minister for approval to auction these properties.
4.2. Principles for Function Conversion
- The conversion must be in line with the housing development programs and plans, ensuring that public assets are not lost;
- After conversion, the housing must be used efficiently, for the correct purpose, and in accordance with the technical standards and norms of the converted housing;
- The conversion must be approved by the Ministry of Construction or the Provincial People’s Committee.
Decree No. 95/2024/ND-CP: Requirements for Function Conversion (Article 49) specifies several key conditions:
– The converted housing must meet the principles outlined in Clause 2, Article 124 of the Law on Housing;
– Function conversion applies to housing that has been completed and accepted for use. If the housing is still under construction, the investment policy must be adjusted according to investment laws;
– The housing converted must be financed from the same investment sources as the housing after conversion;
– The conversion must not alter the area’s social or technical infrastructure and must comply with financial and tax obligations.
4.3. Procedures for converting housing functions
Decree No. 95/2024/ND-CP: authority, procedures for conversion (Articles 50, 51)
AUTHORITY TO APPROVE CONVERSION OF HOUSING FUNCTION | ||
| Housing built according to investment construction project | Housing not built according to investment construction project |
The Ministry of Construction | 1. From central budget 2. Investment policies approved by the Prime Minister | 1. Official residence housing for central agencies 2. Housing belonging to public property managed by central agencies |
Provincial People’s Commitee | 3. Remaining housing in the project | 1. Public housing managed by local authorities 2. Old housing belonging to public property managed by local authorities |
PROCEDURES FOR CONVERTING HOUSING FUNCTIONS
Investors | Case 1: The authority belongs to the Ministry of Construction | → Submit the dossier | Provincial People’s Commitee | → Propose | The Ministry of Construction | Send to relevant agencies for opinions (if necessary) | Approve |
Case 2: The authority belongs to the People’s Commitee | Provincial housing management agency | → Report | Provincial People’s Commitee | Review (30 days) |
- MANAGEMENT AND USE OF PUBLIC PROPERTY HOUSING (Articles 125-127)
Continue from the 2014 Law on Housing, covering various aspects including: Management and Use; Eligibility and Conditions for Renting or Lease-Purchasing Housing; Enforcement and Repossession.
5.1. Management and Use of Public Property Housing (Article 125)
- Purposeful and Efficient Use:Housing must be used for its intended purpose, efficiently, and without waste or loss. The revenue from selling or lease-purchasing public property housing must be allocated within the budget for investing in social housing as public property.
- Restrictions on Use:
– Official residences are only to be rented out.
– Social housing and housing for the armed forces can be constructed for renting, lease-purchasing, or selling. If built with public investment funds, they are only for renting or lease-purchasing.
– If there’s a need to invest in social housing or housing for the armed forces, the representative of the public property housing owner can propose selling these properties, submit for appraisal by the Ministry of Construction, and report to the Prime Minister for a decision.
- Rental and Sale Conditions:
– Renting or selling public property housing specified in point d Clause 1 Article 13 (invested with or originating from state budget funds) can only proceed if there are no disputes over housing rights and it falls under cases allowed by housing laws.
– If the State no longer needs the housing, it must be sold according to public property management laws.
- Return of Official Residences:
Tenants must return official residences to the State if they no longer meet the rental conditions, move elsewhere, or violate housing management and usage regulations that require repossession.
- Management and Operation:
– The representative of the property owner assigns a qualified unit to manage and operate the housing.
– For apartment buildings, the management unit must meet competency requirements; if no qualified management unit is available, a bidding process selects one.
5.2. Eligibility, Conditions for Renting, Lease-Purchasing, and Buying Public Property Housing (Article 126)
These provisions build upon the 2014 Law on Housing, giving the Government detailed control over determining when and how public property housing, as specified in point d Clause 1 Article 13, can be used, rented, or bought. This includes:
– Eligibility and Conditions: Defining who can rent, lease-purchase, or buy public property housing, ensuring it is allocated to the right individuals under fair terms.
– Price Determination: Setting the guidelines for rental and sale prices of public property housing.
– Financial Management: Managing the revenue from renting, lease-purchasing, and selling public property housing.
– Exemptions and Reductions: Providing policies for rental fee exemptions or reductions for social housing and housing for the armed forces, in line with public asset management laws.
Decree No. 95/2024/ND-CP (Articles 73 and 74) follows Decree No. 99/2015/ND-CP with some amendments:
- K Coefficient:The rule for the kcoefficient in selling high-profit private housing along main roads is removed because provincial land price tables already account for location factors.
- Management of Old Public Property Housing: Regulations for dealing with housing built on vacant land or adjacent to old public property housing are now handled under land laws, except for transitional cases.
- Exemption and Reduction Policies:
– Additional provisions for exempting and reducing the purchase price of old housing for individuals who contributed to the revolution, applicable for housing arranged between July 5, 1994, and January 19, 2007.
– Removal of exemptions and reductions for land prices for disabled individuals, the elderly, and those in extreme difficulty in urban areas, aligning with the 2024 Law on Land.
5.3. Cases of Repossession and Forced Repossession of Public Property Housing (Article 127)
- Renting, lease-purchasing, or selling housing without proper authority, to the wrong individuals, or to those who do not meet legal conditions;
- The lease term ends, and the tenant no longer wishes to continue renting, or both parties agree to terminate the lease;
- The tenant or lease-purchaser returns the rented or lease-purchased housing;
- The tenant no longer meets the conditions for renting the housing as per the Law on Housing;
- The tenant dies or is declared missing by the court, with no one else living in the housing; this also applies to official residence tenants;
- The tenant or lease-purchaser fails to pay rent for three or more months without a valid reason;
- The housing is subject to demolition for renovation or reconstruction as per a competent authority’s decision, or the housing is deemed unsafe according to construction laws;
- The tenant or lease-purchaser uses the housing for purposes other than those agreed upon in the lease or lease-purchase contract, or unauthorizedly converts, sells, sublets, loans, alters, expands, or demolishes the rented or lease-purchased housing;
- The tenant of official residence is transferred or seconded to another locality;
- The housing is unlawfully occupied.
Decree No. 95/2024/ND-CP (Article 78) outlines the procedures for repossessing public property housing.
Unit assigned to manage and operate | Report → | The agency assigned by the owner’s representative to manage | Check and submit (15 days) → | The Owner’s Representative | Check (15 days) → | Issue the Decision to repossess |
9 | →Implementation of the Decision to repossess (15 days) |
- INSURANCE, WARRANTY, MAINTENANCE, AND RENOVATION OF HOUSING
Build on the provisions of the 2014 Law on Housing (Articles 128-135).
6.1. Housing Insurance (Article 128)
- The State encourages homeowners to purchase housing insurance as per legal regulations. For housing on the list of premises with fire and explosion hazards, owners must purchase mandatory fire and explosion insurance.
- The form, premium, and duration of housing insurance are governed by insurance and fire protection laws.
- If insured housing is damaged by fire or explosion, the owner receives compensation according to the signed insurance agreement.
6.2. Housing Warranty (Article 129)
- Entities constructing housing must provide warranties according to construction laws. Suppliers of housing equipment must warranty their products according to manufacturer-set periods.
- The warranty period begins after construction completion and acceptance for use(apartments: minimum 60 months; private houses: minimum 24 months).
- Warranty coverageincludes repairing and addressing damages to structural elements (frames, columns, beams, floors, walls, ceilings, roofs, terraces, stairs), finishes (cladding, flooring, plastering), utility systems (fuel supply, electricity, water supply, sewage), and any other issues as per the sales or lease-purchase agreement. Equipment attached to the housing is warrantied by the seller or lessor according to manufacturer-set periods.
- Demolition of Housing (Articles 136-141)
Continues from the 2014 Law on Housing and includes additional provisions for the demolition of apartment buildings, requiring a demolition plan before proceeding.
7.1. Cases Requiring Demolition (Article 136):
- Housing that is heavily damaged, at risk of collapse, or unsafe for occupants, as determined by provincial housing management authorities or in emergency situations (e.g., disaster prevention).
- Apartment buildings designated for demolition under specific regulations.
- Housing that must be cleared to recover land based on a decision by a competent state authority.
- Housing built in prohibited areas or on non-residential land according to the approved plan.
- Other housing must be demolished as required by construction laws.
7.2. Demolition Responsibilities (Article 137)
- Owners or current managers/users of the housing are responsible for its demolition. If housing needs to be cleared to build new housing or other structures, the project investor is responsible for demolition.
- Owners can demolish their housing by themselves if qualified under construction laws or hire competent individuals or organizations.
- Apartments that must be demolished as per regulations for renovating and reconstructing apartment buildings.
- The commune-level People’s Committee is responsible for monitoring and urging the demolition of housing in their area.
7.3. Forced Demolition of Housing (Article 139)
THE AUTHORITY TO ISSUE DEMOLITION DECISIONS | ||
President of the District People’s Commitee | President of the Provincial People’s Commitee | |
Housing subject to clearance for land recovery based on a competent state authority’s decision | Private houses that are heavily damaged, at risk of collapse, built in prohibited areas, or on non-residential land according to the approved plan. This also includes other cases as stipulated by construction laws | Apartment buildings that fall under the demolition criteria specified in points a, b, d, and đ of Clause 1, Article 136 |
Demolition Costs:
– The housing owner, manager, or project investor must cover the costs of forced demolition and related expenses.;
– If the housing owner, manager, or project investor does not pay for the forced demolition and related costs, the competent state authority will issue a coercive decision to apply measures against the property to ensure the funding for demolition
- MANAGEMENT AND USE OF APARTMENT BUILDINGS
Chapter IX: Management and Use of Apartment Buildings (Articles 142-158) covers various aspects of managing and using apartment buildings: Private and Common Ownership in Apartment Buildings; Parking Spaces; Apartment Building Conferences; Apartment Management Board; Operation and Management Unit; Service Charges; Maintenance Fund Management; Technical Infrastructure Handover.
- PRIVATE AND COMMON OWNERSHIP IN APARTMENT BUILDINGS (Articles 142-144)
The continuation of the 2014 Law on Housing includes clear definitions and guidelines for private and common ownership within apartment buildings: Private and Common Ownership; Usage Areas; Parking Spaces; The area of loggias and the common ownership of equipment and structural components connected to balconies and loggias; Legalizes the requirement to provide and transfer the floor plan of the parking area to ensure transparency and clarity.
1.1. Private and Common Ownership (Article 142)
Private Ownership | Common Ownership |
1. The area within an apartment, including the balcony and loggia attached to the apartment; 2. Other areas within the apartment building recognized as private property of the apartment owner; 3. Equipment systems used exclusively and attached to the apartment or to other privately owned areas, excluding equipment systems that are common property. | 1. All areas not designated as private ownership; 2. Shared spaces and load-bearing structures, as well as communal equipment within the apartment building; 3. Technical infrastructure outside the apartment building but connected to it; 4. Public facilities within the apartment complex that are not for business purposes or must be handed over to the State. |
Note: Both private and common ownership areas and equipment must be clearly specified in the contract. |
1.2. Parking Spaces in Apartment Buildings (Article 144)
- Bicycle parking, two-wheeled and three-wheeled motor vehicle parking, and disabled vehicle parking for apartment owners and users are classified as common property;
- Apartment owners can decide whether to buy or lease car parking spaces. If they choose not to, these spaces remain under the management of the project investor and are not included in the apartment’s sale or lease-purchase price. The allocation of car parking spaces must prioritize apartment owners first before allocating spaces for public parking;
- The project investor must provide apartment owners with the floor plan of the parking area based on the project’s approved documents and designs. This plan should clearly delineate parking areas for apartment owners and users, including common property parking spaces, car parking spaces, and public parking areas.
1.3. Apartment Building Classification: the Government is tasked with creating Apartment Building Classification (Article 143)
Decree No. 95/2024/ND-CP (Articles 82 and 83) provides detailed regulations for apartment building classification:
(1) Classification Implementation: Classification is done for each apartment building based on the request of the investor or apartment owner; The recognition of apartment building classification is transferred from the Department of Construction to professional and social organizations with expertise in construction, housing, and real estate business.
(2) Classification Criteria: The categories A, B, and C from Circular 31/2016/TT-BXD are adjusted to grades 1, 2, and 3; Essential classification criteria must include location, amenities, parking spaces, lobbies, corridors, elevators, electricity supply, apartments, etc; Additional criteria set by professional social organizations include management and operation services, environmental standards, security, safety, fire prevention, green building standards, digitization, and smart housing features.
- APARTMENT BUILDING CONFERENCES AND MANAGEMENT BOARDS
Building on the 2014 Law on Housing, new regulations include: Apartment Building Conferences; new provisions address cases where the management board members exploit their authority or exceed their responsibilities; formalizes the responsibility of the commune-level People’s Committee to participate in managing the apartment building when the previous management board ceases operations, and a new board is not yet in place.
2.1. Apartment Building Conferences (Article 145)
- The conference is a meeting of apartment owners or users (if owners are absent) and is held when the necessary conditions are met.
→Circular No. 05/2024/TT-BXD provides detailed regulations for organizing the conference (initial, extraordinary, and annual).
- Decisions made at the Conference:
- a) Nominate, elect, dismiss, or remove management board members; approve, amend, and supplement the building’s management and usage regulations;
- b) Approve, amend, and supplement the management board’s operation and financial regulations; decide on the remuneration of management board members and other expenses related to the management board’s activities;
- c) Approve the management service fee, the use of the maintenance fund, and the allocation of maintenance funds for mixed-use buildings with separate functional areas;
- d) Decide on the selection of the management and operation unit;
đ) Approve the maintenance plan for the common ownership parts of the building;
- e) Approve reports on the management, operation, and maintenance activities of the common ownership parts of the building;
- g) Address other issues related to the management and use of the apartment building.
2.2. Aparment Management Board (Article 146 – 148)
An apartment building has one owner or an apartment building has many owners but has less than 20 apartments | Decide → | →Not establish Management Board | ||
→Establish Management Board | One owner | Management Board: Owner’s Representative, Users | ||
Multiple owners | Management Board: Owner’s Representative, Users, Investors | |||
Apartment buildings with multiple owners and 20 or more apartments | Must establish→ | = |
- For apartment buildings with a single owner, the management board operates on a self-management model. In the case of state-owned properties, the representative owner or the housing management agency is responsible for establishing the management board or assigning a management and operation unit.
- For buildings with multiple owners, the management board has a seal and an account to carry out its operations. The board exercises the rights and responsibilities as outlined in Articles 147 and 148 of the Law on Housing. Meetings, quorum, voting methods, and other related activities are conducted according to the management board’s regulations, which are approved by the apartment building conference.
Circular No. 05/2024/TT-BXD provides detailed regulations on various aspects of apartment management. These include the operations of the management board, financial regulations for revenue and expenditures, and the selection and contracting of management service providers. It also covers the maintenance of apartment buildings, including maintenance planning, contracting, and the supervision of maintenance activities, etc.
- MANAGEMENT AND OPERATION UNITS FOR APARTMENT BUILDINGS (Articles 149-151)
Management and Operation Units for Apartment Buildings (Articles 149-151) build upon the provisions of the 2014 Law on Housing and Decree No. 99/2015/ND-CP, focusing on the entities responsible for managing and operating apartment buildings as well as the service fees.
The regulations continue the established guidelines for management and operation units, ensuring that these units provide professional and efficient services. Additionally, they introduce the responsibility of the provincial People’s Committee to issue a framework for management service fees, which applies within their jurisdiction (Article 151).
3.1. Conditions for Management and Operation Units (Article 150)
- The unit must be a public service organization, enterprise, cooperative, or cooperative alliance with the function of managing and operating apartment buildings;
- The unit must have various departments, such as technical, customer service, security, fire prevention, sanitation, environmental protection, and other relevant sections;
- Managers and staff directly involved in management and operation must have professional qualifications in fields such as construction, electrical engineering, water supply, fire prevention, and equipment operation associated with apartment buildings. They must also hold certificates of completion for training courses in apartment building management and operation;
- The unit must have official documents certifying its eligibility to manage and operate apartment buildings.
→Decree No. 95/2024/ND-CP (Articles 84-86) specifies the detailed conditions and documentation required for units to be certified as eligible to manage and operate apartment buildings. It also includes provisions for publishing these eligible units on the Ministry of Construction and the Department of Construction’s electronic information portals.
3.2. Service Fees for Apartment Building Management and Operation (Article 151)
- The service fees do not include costs for fire and explosion insurance, maintenance costs, parking fees, fuel, energy, water, television services, communication services, management board remuneration, or other services for the private use of apartment owners or users. These fees are calculated per square meter of usable apartment area or other areas within the apartment building.;
- If an apartment building conference has not been held, the service fees are based on the agreement in the contract.If a conference has been held, the service fees are decided through an agreement between the management unit and the apartment building conference;
- The provincial People’s Committee is responsible for issuing a framework for service fees to (1) collect management and operation costs for public property apartment buildings and (2) serve as a reference in case of disputes.
- MANAGEMENT AND USE OF MAINTENANCE FUNDS (Articles 152-155)
Building on the 2014 Law on Housing, which required a 2% maintenance fee on the value of an apartment or retained area (this 2% is not included in the sale or lease-purchase price), some rules have been revised and added:
4.1. Management of Maintenance Funds for Common Areas in Apartment Buildings (Article 153)
The regulation introduces provisions for using income from service exploitation to maintain the apartment building. Adjustments are made to the maintenance fund accounts held by the investor, and specific regulations are added regarding the transfer of maintenance funds from the investor’s payment account to the management fund account set up by the apartment management board. Specifically:
> | 4. Agree on data settlement (30 days) | ← | : |
|
| |
Investor | → 1. Open an account | Payment account | ? | Management Board | → 3. Open an account | Management Funds |
↓ 2. Send notice of the account (5 days) |
| ↑ Pay maintenance fee | 9 | 5. The investor requests the credit institution to transfer maintenance funds to the Management Board’s management funds account. | = | |
Provincial Housing Management Agencies |
| Buyers, Investors |
|
|
|
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* Nguồn thu từ việc khai thác dịch vụ đối với phần sở hữu chung (Khoản 4 Điều 153):
Revenue from service exploitation for common ownership | The 2014 Law on Housing | As agreed by the parties, it can be deducted from management and operating costs. |
The 2023 Law on Housing | Transfer to the maintenance fund for the common property of the apartment building |
4.2. Forced Transfer of Maintenance Funds: Additional regulations have been introduced regarding the forced transfer of maintenance funds, specifying the time frame and the responsibilities of the district-level People’s Committee where the apartment building is located.
→Decree No. 95/2024/ND-CP (Articles 87-91) outlines the cases where coercive measures are taken to recover maintenance funds. These measures can be applied to: the maintenance fund accounts set up by the investor; the business accounts of the investor; the investor’s assets.
Management Board |
|
|
|
|
↓ Propose |
|
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|
|
District People’s Commitee | → Demand the funds | Investors | ; | Management Board |
↓ Quyết định cưỡng chế trong trường hợp hết hạn nhưng chủ đầu tư không chuyển |
|
| In case the investor’s joint account does not have enough money | ↓ Propose |
Credit Institutions | → Case 1 | Joint account of the investors (as per previous regulations) | = | District People’s Commitee |
↓ Case 2 |
| ↓ Enforcement of maintenance costs |
| ↓ Document requesting credit institutions to transfer maintenance funds |
Payment account opened by the investors | → Full enforcement | Maintenance funds account opened by the Management Board | ← Enforcement of maintenance costs | Investor’s business account |
* When coercive measures from the accounts are insufficient: seizing and auctioning the investor’s assets to recover the maintenance funds can be implemented.
- TECHNICAL INFRASTRUCTURE WORKS IN THE AREA OF APARTMENT BUILDINGS (Articles 156-158)
This section introduces new regulations on the handover, acceptance, management, and exploitation of technical infrastructure works in areas with apartment buildings to ensure their normal operation and functioning.
5.1. Technical infrastructure works in the area of apartment buildings that must be handed over and the timing of the handover (Article 156)
- Identified in the investment policy or project content that has been approved.
- Timing of handover: After acceptance according to construction law and based on the project’s approved progress or phases.
5.2. Procedures for handing over technical infrastructure works in areas with apartment buildings (Article 157)
Investors * The investor maintains, manages, operates and exploits according to the approved project content during the time before handover. | → Submit request with documentation | Competent Agencies | → Receiving (establish documentation)
| Technical infrastructure works in the area with apartment buildings * Management and exploitation (Article 158) |
5.3. Management and Operation After Handover (Article 158)
- In cases where handover is required: Management, operation, and utilization must adhere to the intended objectives and functionality of the construction. Maintenance must be carried out in accordance with construction laws to ensure that the building operates normally. The State allocates the necessary budget for management, operation, maintenance, and exploitation in such cases.
- In cases where handover is not required: The investor manages, operates, and maintains the construction according to its intended objectives and functionality as prescribed by law and agreed upon with the owners and users of the apartment building. This ensures that the building operates normally.
- HOUSINGTRANSACTIONS
Chapter X: Consists of 30 Articles (Articles 159-188), stipulating the conditions of housing participating in transactions, the procedures, contracts, notarization, certification of contracts, the sale of housing (including the sale of housing with a fixed term, deferred payment, installment payment, and the sale of housing currently leased), rental, lease-purchase of housing, housing donations, housing mortgages, and housing management authorization.
- GENERAL PROVISIONS (Articles 159-164)
Inheriting provisions from The 2014 Law on Housing, the law formalizes several regulations of Decree No. 99/2015/ND-CP concerning the conditions of housing participating in transactions, the conditions of parties involved in transactions, the procedures for implementing transactions, housing contracts, notarization, and certification of housing contracts (Articles 159-164). For apartment sale and lease-purchase contracts, the content on service charges for apartment building management before the first apartment building conference, the responsibility for payment, and the maintenance fund contribution levels are added (Clause 2, Article 163).
- HOUSING SALE (Articles 165 – 168)
Inheriting provisions from the 2014 Law on Housing regarding housing sale transactions, including deferred payment, installment purchase, and advance purchase of housing (Articles 165, 167-169). The provision on housing sale prices and the transfer of commercial housing sale contracts is removed, now governed by real estate business law. Additional regulations are included for handling cases of fixed-term housing sales (Article 166).
- HOUSING RENTAL (Articles 170-173)
Inheriting provisions from the 2014 Law on Housing, some regulations on renting common ownership housing are removed to avoid duplication with the Civil Code.
- HOUSING LEASE-PURCHASE (Articles 174-176)
Inheriting provisions from the 2014 Law on Housing regarding the lease-purchase of housing, the rights and obligations of the lessee-purchaser, and cases of contract termination and repossession of lease-purchase housing.
- HOUSING DONATIONS, EXCHANGES, CAPITAL CONTRIBUTIONS, LOANS, AND TEMPORARY USE (Articles 177-180)
Inheriting provisions from the 2014 Law on Housing; the provisions on housing inheritance are removed to align with civil law.
- HOUSING MANAGEMENT AUTHORIZATION (Articles 186-188)
Inheriting provisions from the 2014 Law on Housing, the regulations on housing management authorization for common ownership are revised, with references to the termination of housing management authorization contracts according to civil law to ensure legal system consistency.
6.1. Authorization for Management of Jointly Owned Housing
- Authorization for housing management is the act whereby the owner delegates the rights and obligations of managing the housing to another organization or individual within the period of authorization. Authorization is only applicable to existing housing.
- The content and duration of housing management authorization are agreed upon by the parties and documented in the housing management authorization contract in accordance with civil law provisions.
- The authorizing party must pay the management costs unless otherwise agreed.
6.2. Termination of Housing Management Authorization Contracts
Termination of housing management authorization contracts is carried out according to civil law provisions or at the request of competent authorities when resolving disputes or handling violations of housing laws.
- MORTGAGING HOUSING (Articles 181-185)
Inherits from the 2014 Law on Housing regarding the mortgaging of housing, housing development projects, and mortgage conditions. It revises some regulations on the mortgaging of housing development projects and future housing, with the consent of three parties only applicable to social housing (Clause 2, Article 183).
7.1. Mortgaging Housing Development Projects and Future Housing (Article 183)
- If part or all of a project or housing has been mortgaged, partial or full discharge of the mortgage must be carried out before signing capital contribution contracts, purchase contracts, or lease-purchase contracts with customers, except as stipulated in Point b, Clause 3, and Point a, Clause 4, Article 88 of the Law on Housing(social housing).
- The determination that housing has been discharged from the mortgage before contract signing must be clearly stated in the notification document from the provincial housing management authority where the housing is located..
- The investor must provide a mortgage discharge document from the credit institution when signing capital contribution contracts (for capital mobilization cases).
7.2. Conditions for Mortgaging Housing Development Projects and Future Housing (Article 184)
- For mortgaging a project or part of a project: The project dossier, approved technical design, and land use certificate or land allocation/lease decision from the competent state authority must be available.
- For mortgaging future housing within a project: The conditions in point 1 must be met, and the foundation must be completed without it being part of the project already mortgaged by the investor.
- For mortgaging future housing on one’s legal land: Proof of land use rights according to land law and a construction permit (if required) must be available.
- For mortgaging future housing purchased from the investor: A purchase contract, contract transfer document (if the contract is transferred), proof of payment according to the contract schedule, and that the property is not involved in any disputes or complaints must be available.
- STATE MANAGEMENT OF HOUSING, DISPUTE RESOLUTION, AND VIOLATION HANDLING
Chapter XI: consists of 3 Articles (Articles 189-193), which stipulate the following: the contents of state management of housing, state housing management agencies, the responsibilities of the Ministry of Construction, housing inspection, and professional training and retraining on housing development and management.
(1) Contents of state management of housing: This inherits provisions from The 2014 Law on Housing, excluding the recognition of training institutions and professional retraining for apartment building management operations.
→Decree No. 95/2024/ND-CP stipulates the responsibilities of the Provincial People’s Committee in identifying project cases where investors are not allowed to subdivide or sell land plots (Point e, Clause 1, Article 93), and determining the timeframe in which individuals purchasing land plots must complete housing construction (Point m, Clause 1, Article 93).
(2) Responsibilities of the Ministry of Construction: These fundamentally inherit from The 2014 Law on Housing;
(3) Housing inspection: This partly inherits from the 2014 Law on Housing, with adjustments according to the legal provisions on inspection to ensure consistency in the legal system on inspection.;
(4) Professional training and retraining on housing development and management: These inherit from the 2014 Law on Housing.
- Resolution of disputes and handling of violations related to housing laws: Consists of 2 Articles (Articles 194, 195), which inherit the provisions of the 2014 Law on Housing regarding the resolution of housing disputes and handling of housing law violations.
Decree No. 95/2024/ND-CP: Contains specific regulations on resolving disputes related to the use rights of housing classified as public assets (Article 81).
RESPONSIBILITIES OF THE PROVINCIAL PEOPLE’S COMMITTEE
- Implement state management of housing in the locality (Clause 4, Article 190);
- Research, develop, issue, or submit to the People’s Council for issuance documents regulating certain contents assigned by the Law on Housing: Clause 4, Article 5; Point c, Clause 3, Article 57; Clause 1, Article 77; Clause 3, Article 83; Point g, Clause 2, Article 85; Clauses 3 and 5, Article 87; Article 99; Clause 2, Article 120; Point b, Clause 7, Article 151.
Decree No. 95/2024/ND-CP (Article 93):
- Perform the function of state management of housing in the area;
- Allocate funds from the regular budget for the development, adjustment, and implementation of housing development programs and plans;
- Publicly announce on the Portal the contents as stipulated;
- Issue regulations on the management and use of villas and apartment buildings; receive and manage self-managed housing; guide the sale, rental, and lease-purchase of housing classified as public assets, resettlement housing under management; and recover housing classified as public assets, …
- Set criteria and determine the list of housing with artistic, architectural, cultural, and historical value; decide on the establishment of councils,…
- Identify caseswhereininvestors of the projects must build housing for sale, rental, or lease-purchase, or are allowed to subdivide and sell land plots as authorized;
- Implement the conversion of housing functions as regulated;
- Issue, amend, and supplement legal documents to conform to the Law on Housingand this Decree; organize training, dissemination, and propaganda; submit to the People’s Council for the issuance of preferential policies for investors in the renovation and reconstruction of apartment buildings;
- Arrange the organization, assign sufficient staff and civil servants, and assign functions and tasks to local agencies to implement; inspect, check, handle violations, or propose competent authorities for handling as regulated;
- Preside over or coordinate with relevant ministries and sectors in performing assigned tasks;
- Report annually or as requested;
- Determine the time for individuals to complete housing construction when transferring land use rights in the form of subdivision and sale of land plots;
- Perform other tasks as stipulated or as directed by the Government and the Prime Minister.
RESPONSIBILITIES OF THE PROVINCIAL PEOPLE’S COMMITTEE REGARDING THE RENOVATION AND RECONSTRUCTION OF APARTMENT BUILDINGS
Decree No. 98/2024/ND-CP (Article 46):
- Organize the implementation, supervision, and direction of the renovation and reconstruction of apartment buildings in the area;
- Formulate and issue plans for the renovation and reconstruction of apartment buildings;
- Allocate regular budget funds to: inspect and assess the quality of apartment buildings; develop, approve, and announce the plans; implement projects for apartment buildings funded by public investment; organize relocation, enforce relocations, and arrange temporary housing;
- Issue specific mechanisms and policies within its authority to implement the renovation and reconstruction projects for apartment buildings;
- Promote and educate the public about the laws concerning the renovation and reconstruction of apartment buildings;
- Conduct inspections, supervise, and handle violations or propose handling by competent authorities;
- Carry out other tasks as stipulated or as directed by the Government and the Prime Minister.
- EFFECTIVENESS OF IMPLEMENTATION AND TRANSITIONAL PROVISIONS
- Regarding the provincial housing development programs and plans
1.1. The 2023 Law on Housing: Housing development programs and plans approved before August 1, 2024, shall continue to be implemented according to the approved programs and plans, including newly approved programs by the People’s Council that have not been approved by the People’s Committee. New regulations require adjustments to the program in cases where housing targets for the People’s Armed Forces need to be supplemented (Clause 1, Article 198).
1.2. Decree No. 95/2024/ND-CP: In cases where funding for the construction or adjustment of housing development programs and plans has been approved, implementation shall continue. Provisions for handling cases where the program does not align with the Strategy’s period (Clause 2, Article 95) shall be adjusted accordingly.
- Regarding housing development
2.1. The 2023 Law on Housing: Transitional provisions for procedures related to the selection of investors, investment policy, and investment decisions that are being implemented, as well as for areas and locations that have been approved for subdivision and sale of land plots according to previous regulations (Clause 2, Article 198). It also includes provisions for the selection of investors, requests for investor approval, compensation, and resettlement support in renovation and reconstruction projects of apartment buildings (Clause 3, Article 198).
2.2. Decree No. 95/2024/ND-CP: For single-story housing with multiple units built previously, solutions must be implemented to ensure fire safety within eight months to qualify for leasing (Clause 3, Article 95). Areas approved for subdivision and sale of land plots by the Provincial People’s Committee or included in the investment policy before August 1, 2024, will continue to be implemented. Cases where applications have been received will be processed according to the new regulations (Clause 5, Article 95).
2.3. Decree No. 98/2024/ND-CP: For apartment buildings that have been inspected, renovation plans developed, investment policies approved or adjusted, or investors selected before August 1, 2024, these do not need to be redone. In cases where compensation and resettlement plans have been developed but some land area has not been included, a supplementary compensation plan must be developed. If investors have requested exemptions from land use fees and land rent, these exemptions apply to the land area allocated within the project scope, and there is no need to request new procedures or determine land prices for the exempted land use fees (Article 48).
- Regarding capital mobilization for housing development
Decree No. 95/2024/ND-CP: In cases where a notification confirming eligibility for capital mobilization has been issued or an application has been submitted but no notification has been received, the previous decisions shall continue to be implemented. The decree also inherits transitional provisions for cases where contracts include agreements to allocate 20% of housing products as stipulated in Decree No. 71/2010/ND-CP, and addresses applications requesting confirmation of eligibility for capital mobilization that are currently being processed (Clause 4, Article 198).
- Regarding housing as public assets
Decree No. 95/2024/ND-CP: Transitional provisions for contracts for the sale and pricing of old public asset housing, and the conversion of the functions of housing classified as public assets, among others (Clause 6, Article 95).
- Regarding the management and usage of apartment buildings
5.1. The 2023 Law on Housing: Transitional provisions for the handover of technical infrastructure systems in apartment buildings where there is no requirement for handover and where there is a requirement for handover in the investment policy or equivalent legal documents (Clause 4, Article 198).
5.2. Decree No. 95/2024/ND-CP: For apartment buildings that were previously classified, after the classification expires, actions will follow the regulations in Decree No. 98 (Clause 7, Article 95). Entities qualified to manage and operate apartment buildings must submit documents for publication within 12 months (Clause 8, Article 95). In cases where coercive recovery of maintenance funds has not been executed, the execution shall continue according to the issued coercive recovery decisions (Clause 9, Article 95).
- Regarding households in legal relations related to housing
The 2023 Law on Housing: Transitional provisions due to adjustments in the definition of households in The 2014 Law on Housing, replacing it with individual household members with the specific meaning of an individual as the homeowner (Clause 7, Article 198).
- SOME CONTENTS OF THE CIRCULAR NO. 05/2024/TT-BXD ISSUED BY THE MINISTER OF CONSTRUCTION
Circular No. 05/2024/TT-BXD issued by the Minister of Construction encompasses six chapters and 21 articles, detailing various aspects of the Law on Housing assigned to the Ministry of Construction. These include notifications about the leasing of houses by foreign individuals, requirements for constructing multi-story, multi-unit housing by individuals with a scale of fewer than 20 units, and the financial requirements for developing housing programs and plans. Furthermore, it outlines various housing contract templates and related documents, training programs for the management and operation of apartment buildings, and regulations for the management and usage of apartment buildings.
Circular No. 05 also repeals 13 previously issued circulars related to housing.
- The templates specified in Circular No. 05
(1) The documents that verify eligibility and conditions for benefiting from social housing support policies including: proof of eligibility documents, housing condition verification documents, income condition verification documents, and documents proving eligibility for preferential loans through the Social Policy Bank and state-designated credit institutions.
(2) The housing contract templates: include contracts for purchasing housing for resettlement purposes, contracts for renting resettlement housing and old public asset housing, and contracts for buying and renting social housing. They also include contracts for purchasing old public asset housing.
- The financial requirements for developing housing programs and plans:The circular providesa specific formula for calculating the necessary funds to build and adjust provincial-level housing development programs and plans..
- The training program framework for the management and operation of apartment buildings:the circular retains previous regulations on the training framework but removes the requirement for a minimum number of study periods. It also adds an outline for the application of information technology in the management and operation of apartment buildings.
- The regulations for the management and usage of apartment buildings: have been adjusted and supplemented according to Regulation No. 02.
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