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THE GOVERNMENT
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SOCIALIST REPUBLIC
OF VIETNAM
Independence - Freedom - Happiness
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No. 100/2015/ND-CP
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Hanoi, October
20, 2015
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DECREE
DEVELOPMENT
AND MANAGEMENT OF SOCIAL HOUSES
Pursuant to the Law on Government organization
dated December 25, 2001;
Pursuant to the Law on Housing dated November
25, 2014;
Pursuant to the Law on Construction dated June
18, 2014;
Pursuant to the Law on Land November 29, 2013;
At the request of the Minister of Construction,
The Government promulgates a Decree on
development and management of social houses.
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GENERAL PROVISIONS
Article 1. Scope
1. This Decree elaborates and provides guidelines
for some Articles and Clauses on development and management of social houses
specified in the Law on Housing No. 65/2014/QH13 (hereinafter referred to as
the Law on Housing).
2. Social houses invested and built in the manners
specified in Clause 1 Article 53 of the Law on Housing shall be managed and
used in accordance with the Decree providing guidelines for the Law on Housing.
3. The entities that have entered into commitment
contracts or received capital according to regulations of the government on
resolution for difficulties to manufacturing and business, market assistance,
bad debt settlement, and instructional documents promulgated by competent
authorities that are not regulated by this Decree.
Article 2. Regulated entities
This Decree applies to:
1. Vietnamese, foreign organizations and
individuals from various economic sectors, Vietnamese citizens residing abroad
who invest in development of commercial housing; invest in development of
social houses for lease, for lease purchase, or for sale according to the Law
on Housing.
2. Households and individuals that invest in
construction of social houses for lease, for lease purchase, or for sale
according to the Law on Housing.
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4. Regulatory bodies and other organizations
involved in development and management of social houses.
Article 3. Interpretation of
terms
In this Decree, the terms below are construed as
follows:
1. Households and individuals are those whose names
are written in the family register or temporary residence registered issued in
accordance with the Law on Residence.
2. Social houses serving demand of households and
individuals working in industrial parks, export-processing zones, hi-tech
zones, small and medium industrial complexes, industrial and handicraft
facilities (including harvesting and processing facilities) of various economic
sectors.
3. Social houses for lease are social houses that
are built to serve only the leasing purpose.
Chapter II
SOCIAL HOUSING
DEVELOPMENT
Article 4. Rules for
determination of land area for social housing development
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2. Land area, information about the areas for
social housing development must be publicly posted on the web portal or the
People’s Committee and housing authority of the province in accordance with
regulations of law on land and housing.
3. The use of land for social housing development
must comply with urban planning, land-use planning, planning for rural
residential area approved by competent authority, and the license for
construction issued by a competent authority (if any).
4. The repurposing of adjacent garden land, and
other agricultural land for social housing development by organizations shall
be decided by the People’s Committee of the province; for land of households
and individuals, the People’s Committees of districts shall decide.
Article 5. Land area for social
housing development with regard to commercial housing project, urban
development project
1. Investors in commercial housing projects, urban
development projects, regardless of land area (including construction projects under
BT contracts and BOT contracts) in class 3 urban areas or above must use at
least 20% of the land area of the detailed planning scheme or total area for
construction of infrastructure approved by a competent authority to build
social houses.
Investors in commercial housing project and urban
development project shall directly make investment in construction of social
houses of the 20% land area (unless this area is withdrawn by the State to
build social houses funded by state budget and the investors do not wish to
participate).
2. If a commercial housing project or urban
development project uses less than 10 hectares of land, the investor may decide
between using 20% of the land area for construction of social houses as set out
in Clause 1 of this Article, or convert a quantity of houses equivalent to 20%
of the land area (according to land price) into social houses, or pay an amount
of money equivalent to 20% of the land area (according to the land price).
3. If 20% of the land area is used for construction
of social houses against the local planning or the land area used for
construction of social houses is below 20% as set out in Clause 1 of this
Article, the People’s Committee of the province shall request the Prime
Minister to consider granting an approval.
4. With regard to a commercial housing project or
urban development project the investor in which is selected before this Decree
comes into force but 20% of land area for construction of social houses has not
been provided, if such project is withdrawn and transferred to another investor
after this Decree comes into force, such investor shall develop or adjust the
planning which uses 20% of the land area for construction of social houses in
accordance with Clause 1 and Clause 2 of this Article.
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When transferring 20% land area to the State for
construction of social houses, the investor shall be have the costs of
compensation for land clearance, construction of infrastructure, and other
legitimate costs related to the 20% land area reimbursed (or deducted from the
investor’s liability to state budget). The amount that remains after
reimbursement or deduction shall be included in the costs of social housing
construction invested by the State.
6. If the State directly invests in construction of
social houses with central government budget, land area shall be provided as
follows:
a) With regard to a social housing project that
receives capital from central government budget that makes up 50% of the total
investment in the project or over, the People’s Committee of the province where
the project is located shall cooperate with the Ministry of Construction in
selecting land for executing it.
b) With regard to a social housing project that
receives capital from central government budget that makes up less than 50% of
the total investment in the project, the People’s Committee of the province
where the project is located shall select land for executing it.
Article 6. Land area for social
housing development in industrial parks
1. During the process of development of an
industrial park, the local management board of the industrial park or the
enterprise running the industrial park’s infrastructure shall organize land
clearance and invest in infrastructure of social houses for workers in such
industrial park in accordance with the planning approved by a competent
authority, and transfer it to the selected investor specified in Article 8 of
this Decree to execute the social housing project. The cost of land clearance
and compensation and investment in construction of infrastructure of social
houses shall be partially or fully included in the prices for infrastructural
services of the industrial parks.
2. If an industrial park has been built but there
are not enough houses for workers, the People’s Committee of the province shall
make or adjust the planning to provide sufficient land area for social housing
development, organize land withdrawal, land clearance and compensation in order
for the selected investor specified in Article 8 of this Decree to execute the
social housing project. The cost of land clearance and compensation is covered
by the land levies and land rents retained by the local government.
If an industrial park has not used up the
industrial land area, the People’s Committee of the province shall adjust the
construction planning and land-use planning in order to repurpose such land, or
request the Prime Minister to permit the use of part of the industrial park’s
land area for construction of social houses for workers therein.
3. The land clearance and compensation serving
construction of social houses for workers in industrial parks shall comply with
regulations of law on land.
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1. Types of houses and standard areas of social
houses are specified below:
a) If social houses are apartment buildings, the
apartments must be designed and built in accordance with construction standards
and regulations; the area of each apartment is from 25 m2 to 70 m2
and conformable with the construction planning approved by a competent
authority. The investor may increase the construction density or land use
factor up to 1.5 times the applicable standard established by a competent
authority.
depending on local conditions, the People’s
Committee of the province may increase the maximum area of an apartment by up
to 10%; the quantity of apartments whose floor area is over 70 m2
must not exceeds 10% of the total quantity of apartments of the social housing
project.
a) If social houses are row houses, the area of
each apartment must not exceed 70 m2 and land use coefficient does
not exceed 2 times according to the construction planning approved by a
competent authority.
Social housing projects that are row houses are
subject to approval by President of the People’s Committee of the province.
With regard to social housing projects in special class, class 1, and class 2
urban areas, the People’s Committee of the province shall report and consult
with the People’s Council of the same province before issuing the decision on
investment policies.
c) The design of detached social houses invested by
households and individuals must ensure construction quality, conformity with
planning, and minimum requirements imposed by competent authorities. The
Ministry of Construction shall provide specific guidance on design standards
and minimum requirements for detached social houses.
2. Social housing projects invested by state budget
must apply the typical designs issued by competent authorities. Other designs
proposed by investors are subject to approval by the authority that issues the
decision on investment policies.
Article 8. Procedures for
selection of investors in social housing projects
1. The Ministry of Construction shall report to the
Prime Minister to select investors in social housing projects invested by the
capital sources or methods specified in Clause 1 Article 53 of the Law on
Housing which belong to central capital sources.
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2. Departments of Construction of provinces shall report
to the People’s Committee of the same provinces to select investors in social
housing projects invested by the capital sources or methods specified in Clause
1 Article 53 of the Law on Housing which belong to capital sources of local
governments or authorize the People’s Committees of districts therein to do so.
Within 30 days from the receipt of the report from
the Department of Construction, the People’s Committee of the province shall
issue a decision on investor selection or authorize the People’s Committee of
the district to do so. In case of authorization, within 30 days from the
receipt of the report from the letter of authorization from the People’s
Committee of the province, the People’s Committee of the district shall issue a
decision on investor selection.
3. Departments of Construction shall report to the
People’s Committees of provinces to select investors in social houses invested
by capital sources or methods other than those specified in Clause 1 Article 53
of the Law on Housing in accordance with Clause 2 Article 57 of the Law on
Housing and instructional documents issued by competent authority.
Within 30 days from the receipt of the report from
the Department of Construction, the People’s Committee of the province shall
issue a decision on investor selection or authorize the People’s Committee of
the district to do so. In case of authorization, within 30 days from the
receipt of the report from the letter of authorization from the People’s
Committee of the province, the People’s Committee of the district shall issue a
decision on investor selection.
4. The investor shall follow procedures for
issuance of a decision on investment policies; develop, review, and launch the
social housing project in accordance with regulations of law on housing and
relevant regulations of law.
5. The Ministry of National Defense and the
Ministry of Public Security are entitled to launch social housing projects in
accordance with this Decree to provide housing for the entities specified in
Clause 6 Article 49 of the Law on Housing, provided each entity only receives
one house.
Article 9. Incentives for
investors in social housing projects
1. Investors in social housing projects that are
not funded by state budget are entitled to exemption of land levies and land
rents in accordance with Point a Clause 1 Article 5 of the Law on Housing. To
be specific:
a) Exemption of land levies and land rents for the
land area allocated or leased out by the State, including land area for
construction of commercial works approved by a competent authority within the
social housing project;
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b) 20% of the total land area within the
social housing project (including projects that use 20% land area) may be used
for construction of commercial works (including commercial housing) in order to
defray the costs of investment, reduce selling prices and rents for social
houses, reduce the cost of social houses operation after investment;
c) If the detailed planning of the project approved
by a competent authority does not have a separate land area for commercial
works, the investor may use 20% of the total floor area of the project for
sale, lease, lease purchase at commercial prices. The commercial area must be
included in the project and ensure conformity with maximum profit principle as
set out in Article 21 of this Decree. Apart from the commercial are specified
in Point c of this Clause, the investor has the responsibility to use an area
to serve daily life of residents of the project (community area, parking area,
and other essential infrastructural works). This area is determined according
to applicable standards, regulations, and architectural planning approved by a
competent authority.
2. The investor is entitled to exemption and/or
reduction of value-added tax (VAT) and corporate income tax (CIT) in accordance
with Point b Clause 1 Article 8 of the Law on Housing and regulations of law on
taxation.
With regard to construction of social houses for
lease, the investor is entitled to 70% reduction of VAT and CIT in accordance
with effective regulations of law on taxation applied to social houses.
3. Investors may take concessional loans from Vietnam
Bank for Social Policies or credit institutions in accordance with Point c
Clause 1 Article 58 of the Law on Housing.
With regard to construction of social houses for
lease, concessional loans have a minimum term of 15 years and maximum term of
20 years. If an investor wishes to take a loan for a term shorter than 15
years, the investor may reach an agreement with the bank on a loan term shorter
than the minimum term.
4. The investor shall receive partial or full
funding for investment in infrastructure within the social housing project from
the People’s Committee of the province in accordance with Point d Clause 1
Article 58 of the Law on Housing.
Full funding shall be provided for investment in
construction of social houses for lease.
5. The investor is exempt from procedures for
fundamental design review if the project uses the typical design issued by a
competent authority, and is not required to hire a consultancy contractor or
construction contractor if capable of doing so themselves according to
regulations of law on construction.
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Article 10. Raising capital
for social housing development
1. Capital for social housing development invested
by the State are raised from:
a) Direct capital from central government budget;
Government bonds (if any); local housing development funds (if any), funds of
the Ministry of National Defense that are established and operated in
accordance with law (if any); annual funding from local government budget under
decisions of the People’s Councils of provinces; municipal bonds, housing bonds;
other legitimate sources defined bylaw;
b) ODA and other foreign loans (if any).
2. Capital sources other than state budget raised
by various economic sectors (including households and individuals) that invest
in construction of social houses, including:
a) Existing capital of the investors or households
and individuals;
b) Concessional loans granted by Vietnam Bank for
Social Policies or credit institutions appointed by the State as specified in
Chapter III of this Decree;
c) Issuance of bonds under guarantee by the
Government as defined by regulations of law on issuance of Government bonds,
municipal bonds, and bonds invested by enterprises;
d) Commercial loans granted by credit institutions
established and operated in accordance with law;
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e) Other legitimate sources of capital defined by
law.
Article 11. Social housing development
under BT contracts
1. According to the local social housing
development planning of the province, the Department of Construction shall
compile a list of social housing projects under BT contracts and establish
criteria for selection of BT investors, submit a report to the People’s
Committee of the province, and, if approved, publish the list, information
about social housing projects under BT contracts, and criteria for investor
selection on the web portals of the People’s Committee of the province and the
Department of Construction for at least 30 working days for interested
investors to register.
2. The selection of investors in social housing
projects shall comply with regulations of law on housing and relevant
regulations of law.
3. The Department of Construction shall request the
People’s Committee of the province to consider signing BT contracts or
authorizing the Department of Construction to sign BT contracts. BT investors
formulate a detailed planning (on a scale of 1:500) and submit it to a
competent authority for approval (if the project area has not had a 1:500
detailed planning) and formulate a social houses project in accordance with
regulations of law on housing and relevant regulations of law.
4. The social housing project under a BT contract
shall be launched in accordance with regulations of law on construction.
5. After the construction of social houses under a
BT contract is complete and accepted, the BT investor shall transfer the houses
to the Department of Construction for operate as prescribed.
6. The BT investor shall be paid in accordance with
applicable regulations of law.
Article 12. Purchase of
commercial housing as social housing
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2. Commercial housing shall be bought as social
housing as follows:
a) If capital is provided by central government
budget, the Ministry of Construction shall take charge and cooperate with the
Ministry of Finance in planning a project and submit it to the Prime Minister
for approval, or approve it if authorized by the Prime Minister;
b) If capital is provided by the Ministry of
National Defense or the Ministry of Public Security, the Ministry of National
Defense or the Ministry of Public Security shall appoint an affiliated agency
to plan the project and submit a report to the Ministry of National Defense or
the Ministry of Public Security for approval, or approve it if authorized by
the Ministry of National Defense or the Ministry of Public Security;
c) If capital is provided by local government
budget, the Department of Construction shall take charge and cooperate with the
Department of Finance in planning a project and submit it to the People’s
Committee of the province for approval;
d) If the commercial housing project must contain
specific location, characteristics, types, quantity of houses, usable areas of
each type, prices, relevant costs, capital sources, method of payment,
contracting agency, operating agency, and responsibilities of relevant agencies
for project execution.
3. Procedures for buying commercial housing as
social housing as follows:
a) According to the approved project, the agency
appointed as the investor in the project shall conclude a housing purchase
contract with the investor in the commercial housing project; the contract
shall be concluded in accordance with regulations on trading in commercial
housing;
b) According to the housing purchase contract
concluded, the investor in the commercial housing project shall transfer the
houses and provide legal documents relevant to the houses for the buyer;
c) After receiving the houses, the investor in the
social housing project shall manage them in accordance with the Law on Housing
and the Decree providing guidelines for the Law on Housing.
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Procedures for issuance of the Certificate shall
comply with regulations of law on land.
Chapter III
CONCESSIONAL LOANS FOR
IMPLEMENTATION OF SOCIAL HOUSING POLICIES
Article 3. Rules for granting
concessional loans
1. Concessional loans shall be grant to eligible
borrowers that satisfy all conditions prescribed.
2. If an entity is eligible for various types of
concessional loans, the most advantageous one shall apply.
3. If more than one member of a household is
eligible for various types of concessional loans, only one of them shall apply
to the whole household.
4. Vietnam Bank for Social Policies or credit
institutions appointed by the State shall grant concessional loans for social
housing in accordance with regulations of law on housing, credit, and relevant
regulations of law.
5. Borrowers that are households and individuals
that take concessional loans from Vietnam Bank for Social Policies must pay a
monthly deposit to Vietnam Bank for Social Policies for at least 12 months at
the rates imposed by the lender.
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1. The entities specified in Clause 1, Clause 2 and
Clause 3 of Article 49 of the Law on Housing may take concessional loans for
construction, renovation, or repair of housing according to specific
stipulations of each program decided by the Government or the Prime Minister.
2. Conditions, loan amount, term, interest rates,
policies on debt settlement and loan guarantee shall comply with the decision
to approve the housing program of a competent authority.
Article 15. Concessional loans
for construction of social housing
1. Eligible borrowers:
a) Enterprises, cooperatives being investors in
social housing projects that are not funded by the capital sources or methods
specified in Clause 1 Article 53 of the Law on Housing;
b) Enterprises, cooperative engaged in industrial
production and/or services that invest in construction of houses for their own
workers without collecting rents or collecting rents that do not exceed the
maximum rent for social housing imposed by the People’s Committee of the
province;
c) Households and individuals that invest in
construction of social houses for lease, for lease purchase, and/or for sale.
2. In order to take concessional loans, the
entities specified in Point a and Point b Clause 1 of this Article must:
a) be established and operating in accordance with
law; has a list of social housing projects conformable with the social housing
investment program approved by a competent authority;
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c) have obtained a decision on land provision or
land use right in accordance with regulations of law on land, and land
clearance and compensation has been complete;
d) have obtained the license for construction in
accordance with regulations of law on construction;
dd) have a minimum capital required by the loaning
program of the lending credit institution;
e) obtain a loan guarantee or take a mortgage as
prescribed by law.
3. The entities specified in Point c Clause 1 of
this Article must have an investment plan approved by a competent authority and
satisfy the requirements specified in Point c through e Clause 2 of this
Article.
4. Maximum loans:
a) Regarding construction of social houses for
lease: the maximum loan is 80% of the total investment in the project or
loaning program, and must not exceed 80% of the collateral value;
b) Regarding construction of social houses for sale
or lease purchase: the maximum loan is 70% of the total investment in the
project or loaning program, and must not exceed 70% of the collateral value.
5. Loan term:
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b) Regarding construction of social houses for sale
or lease purchase, the minimum loan term is 10 years and the maximum loan term
is 15 years from the date of the first disbursement;
c) Regarding projects of social houses for sale,
the minimum loan term is 05 years and the maximum loan term is 10 years from
the date of the first disbursement
d) Any borrower that wishes to have a shorter loan
term than those specified in Point a, b, and c of this Clause may reach an
agreement with the lending bank.
6. The principal and interest shall be paid in
accordance with regulations of the lending credit institution.
7. Loan interest:
a) The concessional rates of Vietnam Bank for
Social Policies are decided by the Prime Minister at the request of the Board
of Directors at that time;
b) The concessional rates of credit institutions
are decided and announced by the State bank of Vietnam; such rates shall not
exceed 50% of the average interest rate of banks at the same time.
8. Disbursement: capital is disbursed according to
the progress of the project and at the investor’s request. The amount disbursed
depends on the completion of the works according to technical checkpoints.
Article 16. Concessional loans
for purchase, lease, lease purchase of social housing; construction,
renovation, repair of housing
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2. In order to take a loan for purchase, lease,
lease purchase of social housing, a household or individual must:
a) have enough capital to participate in the
loaning program of Vietnam Bank for Social Policies or a credit institution
appointed by the State;
b) have adequate documentary evidence specified in
Article 22 of this Decree;
c) have sources of income and be able to pay debt
as agreed with Vietnam Bank for Social Policies or a credit institution
appointed by the State;
d) have a request for grant of loan for purchase,
lease, lease purchase of social housing which contains a commitment that the
applicant and other members in the household has not taken concessional loans
from other banks for purchase, lease, lease purchase of social housing;
dd) has a contract for purchase, lease, lease
purchase of social housing with the investor as set out in this Decree and
regulations of law on housing;
e) take a mortgage as prescribed by law. The
lending bank, the investor, and the borrower must specify the method for
management and settlement of collateral in the tripartite contract.
3. In order to take a loan for construction,
renovation, or repair their own house, a household or individual must:
a) has enough capital to participate in the loaning
program of the Vietnam Bank for Social Policies or a credit institution
appointed by the State;
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c) have sources of income and be able to pay debt
as agreed with the lending credit institution;
d) have a request for grant of loan for
construction, renovation, repair of the house which contains a commitment that
the applicant and other members in the household have not taken concessional
loans from other banks;
dd) have a Certificate issued by a competent
authority in accordance with regulations of law on land;
e) have a design, estimate, or pricing plan as
prescribed by regulations of law on construction;
g) put up the land use right, property on land, or
other property as collateral as prescribed by law.
4. Maximum loans:
a) In case of purchase, lease, or lease purchase of
social housing, the maximum loan is 80% of the value of the purchase, lease, or
lease purchase contract;
b) In case of construction, renovation, or repair
of a house, the maximum loan is 70% of the estimate or loaning plan and must
not exceed 70% of the collateral value.
5. Loan interest:
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a) The concessional rates of credit institutions
are decided by the Prime Minister at the request of the State bank of Vietnam
at that time.
6. The minimum loan term is 15 years from the date
of the first disbursement. Any borrower that wishes to have a shorter loan term
than may reach an agreement with the lending bank.
7. The principal and interest shall be paid in
accordance with regulations of the lending credit institution.
8. The loan shall be disbursed in accordance with
the loan contract between the household/individual and the lending credit
institution.
Article 17. Sources of
concessional loans for implementation of social housing policies
1. Sources of concessional loans via Vietnam Bank
for Social Policies:
a) According to the annual plan approved by a competent
authority, state budget shall provide 100% funding for Vietnam Bank for Social
Policies to grant concessional loans to the borrowers specified in Clause 1
Article 14 and Clause 1 Article 15 of this Decree;
b) According to the annual plan approved by a
competent authority, state budget shall provide 50% funding for Vietnam Bank
for Social Policies to grant concessional loans to the borrowers specified in
Clause 1 Article â of this Decree; Vietnam Bank for Social Policies shall use
saving deposits of borrowers and raised capital to cover the rest; the State
bank shall provide subsidy on interest rate difference and administration costs
for Vietnam Bank for Social Policies as prescribed;
c) Capital from local housing development trusts
(if any), annual funding provided by local government budget, capital from
issuance of bonds, and other legitimate sources of capital for implementation
of social housing plans are subject to approval by the People’s Committee of
the province under the decision of the People’s Council of the province.
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According to the social housing development plan
approved by a competent authority, state budget shall provide subsidy on
interest rate difference for the credit institutions appointed by the State in
order for investors in construction of social housing and beneficiaries of
social housing policies to take concessional loans at an interest rate not
exceeding 50% the average interest rate of banks at the same time.
Article 18. Management and use
of sources of concessional loans
1. The management of sources and use of
concessional loans for social housing are executed by Vietnam Bank for Social
Policies or credit institutions appointed by the State.
2. Bad debts shall be settled in accordance with
regulations of the Prime Minister.
3. Vietnam Bank for Social Policies and credit
institutions shall provide specific instructions on raising saving deposits and
other contents related to concessional loans within the scope of their
functions, tasks, and entitlements.
Chapter IV
MANAGEMENT AND USE OF
SOCIAL HOUSING
Article 19. Purchase, lease,
or lease purchase of social housing
1. Eligible buyers, tenants and conditions for
purchase, lease, or lease purchase of social housing are specified in Article
49 and Article 51 of the Law on Housing; each household and individual shall
receive social housing assistance once as prescribed in Article 52 of the Law
on Housing.
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3. The tenant of a social house must not sublease
or transfer the house in any shape or form during the lease term under then
contract with the landlord.
4. The buyer or tenant/buyer of a social house must
not put it up as collateral (except pledging it to the bank to as security for
a mortgage loan on the same house) and must not transfer it in any shape or
form for at least 05 years since the payment for purchase or lease purchase of
the house is completely made under the contract with the seller of
seller/landlord. The house may only be sold, mortgage, or leased out after the
Certificate is granted.
Since the buyer or tenant/buyer of the social house
is permitted to sell it, apart from the amounts payable when selling houses as
prescribed by law, the seller of an apartment shall pay 50% of the land levy on
such apartment to the State; the seller of a row house shall pay 100% of land
levy according to the land prices imposed by the People’s Committee of the
province at that time.
5. Before the end of the 5-year period, if the
buyer or tenant/buyer wishes to sell the social house, it may only be sold to
the State (in case of lease purchase of a social house invested by the State)
or to the investor in the social housing project (in case of purchase or lease
purchase of a social house invested by sources of capital other than state
budget) or to an entity eligible to buy or lease purchase social housing specified
in Article 49 of the Law on Housing. The selling price shall not exceed that of
the same type of social housing at the same time, the same location. Personal
income tax is exempt.
6. Regarding a project of social housing for lease,
the investor may only sell the houses after at least 10 years from the project
completion and only to the entities specified in Article 49 of the Law on
Housing. The selling price shall not exceed that of the same type of social
housing at the same location.
7. In case of purchase or lease purchase of
detached social houses invested by households and individuals, the transfer of
LUR must comply with regulations of law on land.
8. According to provisions of this Decree and
instructional documents issued by competent authority, the People’s Committees
of provinces shall promulgate specific regulations on consideration and order
or priority of entities that wish to buy, lease, and lease purchase local
social housing in a way that is appropriate for socio-economic conditions of their
provinces.
9. The Ministry of National Defense and the
Ministry of Public Security shall promulgate specific regulations on entities
eligible to buy, lease, and lease purchase social houses of social housing
projects executed by the Ministry of National Defense and the Ministry of
Public Security after reaching a written agreement with the Ministry of
Construction.
Article 20. Procedures for
purchase, lease, or lease purchase of social housing
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a) After the construction is commenced, the
investor in the social housing project shall publicly post information about
the project (project’s name, investor, location, mailing address, schedule,
scale, quantity of apartments including apartments for sale, for lease, and for
lease purchase; areas of apartments, selling prices, rents (temporary) for each
type of apartments; beginning and ending time for receiving applications, and
relevant information) on the web portal of the Department of Construction of
the province where the project is located; post such information on at least
one issue of an official local newspaper, and publish it at the investor’s real
estate exchange in order for interested people to submit applications and
monitor the project.
b) Before starting to put up the houses for sale,
lease, or lease purchase, the investor in the social housing project shall
submit a written report to the Department of Construction on the total quantity
of apartments to be sold, leased, or lease-purchased, and starting time.
Such information must be posted on the web portal of the Department of
Construction of the province where the project is located for at least 30 days
from the first day on which applications for purchase, lease, or lease purchase
houses of the project may be received.
c) According to the information mentioned in Point
a of this Clause, households and individuals who wish to buy, lease, or lease
purchase social houses shall submit their applications to the investor in
accordance with Article 22 of this Decree and instructions of the Ministry of
Construction;
d) After collecting adequate applications, the
investor shall consider each of them, compare them with the conditions and eligible
entities specified in Article 49 and Article 51 of the Law on Housing, this
Decree, and guidance of the Ministry of Construction in order to compile a list
of entities eligible to buy, lease, lease purchase social houses of the
investor’s project.
If the applicant has submitted a satisfactory
application as set out in Article 22 of this Decree to the investor, but the
investor does not have enough houses, then the investor has to provide
explanation and return the application (including documents proving the
eligibility for purchase, lease, or lease purchase of social housing submitted
by the applicant).
When receiving an application, the recipient must
issue a note of receipt. If the application is not satisfactory according to
Article 22 of this Decree, the recipient must write the explanation and return
it to the applicant for completion;
dd) The investor in the social housing project
shall send the list of entities eligible for purchase, lease, or lease purchase
of social housing in order of priority (according to the rules in Article 23 of
this Decree) to the Department of Construction of the province where the
project is located in order to ensure that no one receives social housing
assistance more than once.
Where an entity on the aforementioned list has
received assistance from the State in the form of housing or residential land,
or has bought, leased, or lease-purchased a social house of another project,
the Department of Construction shall send a written notification to the
investor in order to remove that entity from the list. If the Department of
Construction does not respond after 15 working days from the receipt of the
list, the investor shall request the eligible applicants to meet, discuss, and
conclude the contracts.
If a satisfactory applicant on the list no longer
wishes to buy, lease, or lease-purchase the social house, the investor shall
return the application (including documents proving the eligibility for
purchase, lease, or lease purchase of social housing) to the applicant;
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The buyer, tenant, or tenant/buyer of the social
house shall pay the investor directly or via a bank agreed upon by the investor
and the buyer, tenant, or tenant/buyer.
g) After signing contracts for purchase, lease, or
lease purchase of social houses, the investor shall compile a list of entities
(including household members) that have bought, leased, lease-purchased social
houses, and send it to the Department of Construction of the province where the
project is located in order to be published within 30 working days from the day
on which the list is received and retained to serve later management and
inspection). The investor shall concurrently put up the list at the investor’s
headquarters and real estate exchange or social housing website (if any).
2. With regard to social houses invested by a
household or individual
a) the household or individual who invests in
social housing shall submit a written report on the project’s location,
schedule, scale, quantity of apartments including quantity of apartments
including apartments for sale, for lease, and for lease purchase; beginning
time for receiving applications to the People’s Committee of the commune where
the houses are built in order to be published at the People’s Committee’s
office building to serve the peoples’ supervision;
c) According to the information published, people
who wish to buy, lease, or lease purchase social houses shall submit their
applications to the investor in accordance with Article 22 of this Decree;
c) After collecting adequate applications, the
investor shall send a list of entities eligible to buy, lease, lease purchase
social houses to the People’s Committee of the commune for consideration and
certification before the investor and the buyers, tenants, tenants/buyers
conclude contracts for purchase, lease, or lease purchase of social housing;
d) The People’s Committee of the commune shall send
copies of the applications and the list of entities eligible to buy, lease,
lease purchase social houses to the Department of Construction for inspection
and ensuring that an entities does not receive social housing assistance more
than once.
Article 21. Selling prices,
rents, and lease purchase prices of social housing
1. Selling prices of social housing are determined
by the investor on the basis of recoupment of investment in construction of the
houses, payment of loan interest (if any), and generation of a profit not
exceeding 10% of total investment, exclusive of incentives provided by the
State specified in Article 58 of the Law on Housing.
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The buyer/tenant shall pay 20% of the house value
and the rest periodically as agreed between the seller/landlord and the buyer/tenant
from the day on which the house is transferred; the minimum lease purchase
period is 05 years from the day on which the seller/landlord transfers the
house to the buyer/tenant.
3. The social housing rents are determined by the
investor on the basis of recoupment of maintenance cost and investment in
construction of the houses, payment of loan interest (if any), and generation
of a profit not exceeding 15% of total investment, exclusive of incentives
provided by the State specified in Article 58 of the Law on Housing.
4. The People’s Committee of the province shall
appoint a competent authority to verify the selling prices, lease purchase
prices, and rents for social housing invested by sources of capital other than
state budget in the province.
5. With regard to social housing invested by
households and individuals for lease, for lease purchase, or for sale, the
investors shall determine the prices and rents which must not exceed the
bracket imposed by the People’s Committee of the province.
6. Tenants of social housing shall pay a deposit to
the landlord as agreed which must not exceed 12 months’ rent and must not fall
below 03 months’ rent as a guarantee of the tenant’s obligation.
The tenant and landlord may agree upon a higher
deposit specified in this Clause. Nevertheless, the deposit must not exceed 50%
of the value of the house for lease. If the tenant pays a deposit as set
out in this Clause, he/she will receive a rent discount or exempt from rents
for a certain period of time agreed by both parties.
Poor households, near-poverty households, and the
entities specified in Clause 1, 3, 9, and 10 Article 49 of the Law on Housing,
it is not required to pay a deposit when leasing social houses.
7. Social housing buyers, tenants, tenants/buyers
may take concessional loans from Vietnam Bank for Social Policies or credit
institutions appointed by the State to pay the prices or rents in as specified
in Chapter III of this Decree.
8. The Ministry of Construction shall provide
guidance on determination of selling prices, rents, and lease purchase prices
for social housing.
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1. Any entity that is specified in Article 49 of
the Law on Housing but has not received social housing assistance shall submit
an application for social housing assistance and documents proving their
eligibility as follows:
a) The entities specified in Clause 1 Article 49 of
the Law on Housing must submit documents proving they are war-time
contributors, their housing situation, and that they have not received
assistance from the State issued by the People’s Committee of the commune where
their permanent residences are registered;
b) The entities specified in Clause 4 through 7 of Article
49 of the Law on Housing must submit certifications of their eligibility and
housing conditions issued by their employers;
c) The entities specified in Clause 8 Article 49 of
the Law on Housing must submit certifications that they have returned the
official residences issued by official residence authorities;
d) The entities specified in Clause 9 Article 49 of
the Law on Housing must submit certifications issued by the training
institutions where they are receiving training.
dd) The entities specified in Clause 10 Article 49
of the Law on Housing must submit certified true copies of documents proving
that they are on the list of entities whose residential land, houses, and other
property on land are withdrawn compiled by competent authorities together with
certifications issued by the People’s Committee of the district where the
withdrawn land or house is located that they have not received compensation in
the form of housing or residential land for relocation.
2. Documents proving the applicant’s residence:
a) If the applicant for purchase, lease, or lease
purchase of social housing has registered permanent residence in the same
province as the social house, it is required to have certified true copies of
the residence register;
b) If the applicant for purchase, lease, or lease
purchase of social housing does not have a permanent residence as specified in
Point a of this Clause, it is required to have a certified true copy of the
temporary residence application; a certified true copy of the employment contract
that is valid for one year or longer from the date of submission of the
application or without a definite term, and documents proving payment of social
insurance issued by the social insurance authority of the province where the
social house is located. If the applicant works for a branch or representative
office at the same province with the social house and pays social insurance in
another province where the headquarters is located, it is required to have a
certification of insurance payment issued by the authority of the latter
province.
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a) Any entity specified in Clause 5 through 7 of
Article 49 of the Law on Housing must submit a certification issued by his/her
employer that his/her income is not subject to personal income tax according to
regulations of law on personal income tax;
b) The entities specified in Clause 4 Article 49 of
the Law on Housing shall declare their incomes and take responsibility for such
declaration. The Department of Construction shall contact the Department of
Taxation of the same province to verify their income tax where necessary.
4. The entities specified in Article 49 of the Law
on Housing must satisfy conditions for housing incentives specified in Article 51
of the Law on Housing. If they own a house, the average housing area has to be
smaller than 10 m2 per person.
5. The Ministry of Construction shall provide forms
of the documents specified in this Article.
Article 23. Criteria for
determination of entities eligible for purchase, lease, or lease purchase of
social housing
1. Criteria for determination of entities eligible
for purchase, lease, or lease purchase of social houses of projects:
a) If the total quantity of valid applications for
purchase, lease, or lease purchase of social housing does not exceed the total
quantity of apartments announced by the investor, the selection of apartments
shall be carried out as agreed between the investors and customers;
b) If the total quantity of valid applications for
purchase, lease, or lease purchase of social housing exceeds the total quantity
of apartments announced by the investor, the eligible entities shall be
selected by grading as specified in Clause 2 of this Article.
After a number of valid applications equal to the
total quantity of apartments announced by the investor is selected, each
apartment shall be selected prior to contract conclusion as agreed between the
investors and customers. If there are applications with equal scores and exceed
the total quantity of apartments, the investor shall draw lots publicly.
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2. Grading scale:
No.
Criteria
Score
1
Housing difficulty:
- No house.
40
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30
2
Eligibility:
- Entities specified in Clause 5 through 7 Article
49 of the Law on Housing (1).
30
- Entities specified in Clause 4 and Clause 9
Article 49 of the Law on Housing (2).
20
- Entities specified in Clause 1, Clause 8, and
Clause 10 Article 49 of the Law on Housing.
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3
Other criteria:
- Households having 02 or more members in (1).
10
- Households having 01 member in (1) and at least
01 member in (2).
7
- Households having 02 or more members in (2).
4
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4
Priority criteria specified by the People’s
Committee of the province
(vary from province to province, if any)
10
3. According to the criteria in Clause 1 and Clause
2 of this Article, the People’s Committee of the province shall specify the
order of priority to select entities eligible for purchase, lease, or lease
purchase of social housing in the province without exceeding the limit
specified in Clause 2.4 of this Article in order to provide instruction for
investors, households and individuals.
4. Investors, including households and individuals,
in construction of social housing shall sell, lease, lease/sell their social
houses in accordance with Clause 1 and Clause 2 of this Article and regulations
of the People’s Committee of the province.
5. The entities specified in Clause 6 Article 49 of
the Law on Housing may apply for purchase, lease, or lease purchase of social
housing of projects invested by economic sectors or projects executed by the
Ministry of National Defense or the Ministry of Public Security, provided each
entity only receive assistance once.
The Ministry of National Defense and the Ministry
of Public Security shall specify criteria for selecting eligible entities,
conditions for purchase, lease, or lease purchase of social housing of projects
they execute, submit reports to the Ministry of Construction for agreement in
writing. The Ministry of Construction shall respond within 15 working days.
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Article 24. Contracts for
purchase, lease, or lease purchase of social housing
1. The purchase, lease, or lease purchase of social
housing under the Law on Housing and this Decree are agreed upon by the parties
on the basis of the model contract provided by the Ministry of Construction.
2. A contract for lease of social housing shall be
signed between the investor or an enterprise authorized by the investor to
operate the houses and the tenant.
3. When the contract expires, if the tenant is
still eligible for leasing social housing, the parties shall renew the lease
contract. 03 months before the expiration of the contract, if the tenant wishes
to keep leasing the house and does not commit violations that lead to
termination of the lease contract as agreed in the lease contract, the tenant
may renew the lease contract or sign a new one.
Article 25. Social housing
quality management
1. The construction quality management of social
housing projects shall comply with regulations of law on construction quality
management.
2. Social houses invested by households and
individuals must comply with regulations of law on construction planning, urban
planning and rural residential areas, and must be granted licenses for
construction as prescribed by regulations of law on construction.
Article 26. Operation and use
of social housing
1. Social housing invested by state budget shall be
operated and used in accordance with regulations of law on management and use
of state-owned houses.
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3. Management and uses of social housing being
apartment buildings shall comply with regulations of law on housing and
relevant regulations of law.
Social housing management serves are eligible for
the same benefits as those of public services.
4. The operating unit of social housing is entitled
to provide other lawful services within the social housing area to cover the
operation and maintenance cost.
5. With regard to social houses invested by
households and individuals:
a) The landlords are responsible for management of
the houses or may hire another housing operation unit to operate the houses.
b) During the contractual lease term, the landlord
may sell the house to the tenant if the tenant wishes to buy it and the buyer
is not required to pay land levy when selling such house;
c) The landlords have the entitlements and
obligations to their houses according to civil law and housing law;
d) The Ministry of Construction shall promulgate
specific regulations on quality management, operation of social housing
invested by households and individuals for sale, for lease, and for lease
purchase.
Article 27. Rights and
obligations of sellers, landlords, landlords/sellers, buyers, tenants, and
tenants/buyers of social housing
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a) The seller, landlord, landlord/seller of social
housing shall:
- Strictly adhere to terms and conditions of the
concluded contract for purchase, lease, or lease purchase of social housing;
- Have the right to terminate the contract under
agreements therein;
- Establish a social housing management board and
issue social housing management regulations according to instructions of the
Ministry of Construction if the social housing is an apartment building;
- The landlord of a social house must notify the
tenant one month before terminating the lease contract and return the deposit
and advanced rents (if any) to the tenant as agreed in the lease contract;
- Collect service charges related to the management
and use of social housing in accordance with the concluded contract the social
housing management regulations;
- Not increase the selling price, rents, or lease
purchase prices without permission of a competent authority as prescribed by
this Decree;
- Comply with decisions of competent authority on
actions against violations and settlement of complaints and disputes over the
purchase, lease, or lease purchase of social housing;
- Perform other rights and obligations as
prescribed by law.
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- Have the right to terminate the contract for
purchase, lease, or lease purchase of social housing as agreed therein;
- Adhere to terms and conditions of the concluded
contract for purchase, lease, or lease purchase of social housing and social
housing management regulations promulgated by a competent authority;
- Comply with decisions of competent authority on
actions against violations and settlement of complaints and disputes over the
purchase, lease, or lease purchase of social housing, and perform other rights
and obligations prescribed by law;
- With regard to a social house for lease, the
tenant shall return the house to the landlord as agreed in the concluded lease
contract. If the landlord unilaterally terminates the contract ahead of
schedule, the landlord must notify the tenant at least one month in advance.
The tenant shall receive the advanced rent for remaining period and the deposit
(if any). The tenant may buy the house being leased if the landlord sells it in
accordance with this Decree and relevant regulations of law on housing. The
tenant must not maintain, change the house, use the house for other purposes,
sublease the house, lend the house, transfer the lease contract or swap the
house with another person without the landlord’s consent.
2. Pursuant to this Decree and instructional
documents issued by competent authority, the parties shall specify their rights
and obligations in the contract.
Chapter V
IMPLEMENTATION
Article 28. Responsibility of
the Ministry of Construction
1. Perform the duties specified in the Law on
Housing and this Decree.
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3. The Ministry of Construction shall assign
affiliated state-owned enterprises to cooperate with the People’s Committees of
provinces in social housing development in accordance with this Decree.
4. Take charge and cooperate with other Ministries,
agencies, the People’s Committees of provinces in providing guidance and
carrying out inspections of development and management of social housing;
review the implementation of this Decree; propose amendments according to the
actual situation to the Government.
5. Participate in the Council for management of
capital sources and concessional loans for social housing development and
provision of assistances for households and individuals to buy, lease, lease
purchase social housing.
6. Perform other rights and obligations as
prescribed by law.
Article 29. Responsibility of
relevant Ministries and agencies
1. The Ministry of Planning and Investment shall:
a) Take charge and cooperate with other Ministries
and agencies in proposing and allocating capital from central government budget
according to midterm and annual plans via Vietnam Bank for Social Policies and
credit institutions appointed by the State to implement social housing
policies;
b) Propose additional social housing projects to
the list of projects eligible for concessional loans or investment assistance
(including ODA) to competent authorities in accordance with regulations of law
on housing and investment;
c) Take charge and cooperate with other Ministries
and agencies in raising capital from government bonds, ODA, concessional loans
from sponsors, development capital to implement policies on lease and lease
purchase of social housing as prescribed by the Law on Housing and this Decree.
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a) Provide guidance on incentives related to
finance, tax, credit policies, methods for establishment of investment funds in
manufacturing enterprises, issuance of bonds guaranteed by the government,
municipal bonds, and corporate bonds to implement policies on development and
management of social housing for lease and lease purchase as prescribed by the
Law on Housing of this Decree;
b) Cooperate with the Ministry of Planning and
Investment, relevant Ministries and agencies in allocating capital from central
government budget according to annual plans via Vietnam Bank for Social
Policies and credit institutions appointed by the State to grant concessional
loans for to households and individuals eligible for purchase, lease, and lease
purchase of social housing; grant concessional loans for enterprises and
cooperatives that invest in social housing projects, households and individuals
that participate in construction of social housing in accordance with the Law
on Housing and this Decree;
c) Provide specific guidance on exemption of land
levies, land rents, and refund thereof as set out in Clause 1 Article 9, method
for determination of land levies payable by sellers of social housing as set
out in Clause 4 Article 19 of this Decree;
d) Provide guidance or request a competent
authority to regulate conditions for exemption and reduction of VAT, CIT,
personal income tax, and other taxes related to development and management of
social housing in accordance with this Decree.
3. The Ministry of Natural Resources and
Environment shall:
a) Take charge and cooperate with the Ministry of
Construction in instructing local governments to formulate land-use planning
and ensuring sufficient land for execution of social housing project;
b) Take charge and cooperate with the Ministry of
Construction in providing guidance on issuance of the Certificate to entities
eligible for purchase and lease purchase of social housing.
4. The State bank of Vietnam shall:
a) Promulgate regulations on refinancing, granting
loans, rescheduling debts, converting overdue debts, procedures for granting
concessional loans by credit institutions appointed by the State in order to
ensure efficiency of credit extension; direct Vietnam Bank for Social Policies
provide guidance on raising saving deposits, rescheduling debts, and converting
overdue debts.
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5. Vietnam Bank for Social Policies shall:
a) Manage and use capital sources, grant loans to
eligible borrowers specified in this Decree;
b) Cooperate with Ministries and other agencies in
resolving difficulties that arise while granting loans.
c) Take charge and cooperate with relevant
Ministries and agencies in formulating the scheme for concessional loans for
investment in construction of social housing to the entities specified in
Clause 1 Article 15 of this Decree, submit the scheme to the Prime Minister for
consideration.
6. Relevant Ministries and agencies shall introduce
policies on development and management of social housing, or request competent
authorities to do so.
Article 30. Responsibility of
the People’s Committees of provinces
1. Direct the survey on demand to formulate annual,
midterm, and long-term social housing construction programs of their provinces;
assign duties to local enterprises; cooperate with the Ministry of Construction
in assigning its affiliated state-owned enterprises in accordance with this
Decree.
2. Review and adjust the land area for social
housing development in the overall planning and detailed planning; withdraw
land of commercial housing projects and new urban areas the investors in which
have failed to stick to the schedule, provide 20% land area for construction of
social housing in commercial housing projects and new urban areas for investors
who wish to build social housing.
3. Establish and publish standards, eligible
entities, and conditions for purchase, lease, and lease purchase of local
social housing; monitor the purchase, lease, or lease purchase of social
housing; establish brackets of selling prices, rents, and lease purchase prices
for local social housing.
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5. Carry out inspection, supervision, and take
actions against violations related to purchase, lease, and lease purchase of
social housing in their provinces.
6. Request investors in local social housing
projects submit periodic reports on project progress to housing authorities of
their provinces; periodically review the social housing development in their
provinces every year or on request; submit reports to the Ministry of
Construction.
7. Direct Departments of Construction, governments
of districts, communes, and other authorities to verify eligible entities,
conditions for taking concessional loans specified in this Decree; cooperate
with Vietnam Bank for Social Policies and credit institutions appointed by the
State in settling bad debts and collateral to recover loans.
Article 31. Responsibility of
enterprises having manufacturing facilities in industrial parks
1. Enterprises having manufacturing facilities in industrial
parks have the responsibility to plan the housing provision, provide financial
assistance in development of social housing for households and individuals of
such facilities who face housing difficulties;
2. New enterprises and enterprises that expand
their manufacturing scale have the responsibility to ensure that all every
household and individual who work for them have a house to live.
Article 32. Transition clauses
1. If investors in housing development projects for
workers in industrial parks and housing development projects for low earners in
urban areas that have been launched in accordance with the Prime Minister’s
Decision No. 66/2009/QD-TTg April 24, 2009 and Decision No. 67/2009/QD-TTg
dated April 24, 2009, the Government's Decree No. 71/2010/ND-CP dated June 23,
2010 wish to apply this Decree, it is subject to approval by the People’s
Committees of provinces.
2. Social housing projects approved by competent
authority before this Decree comes into force are not required to be approved
again unless they are adjusted by their investors.
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4. Documents proving an entity’s eligibility and
housing situation issued by competent authority before this Decree comes into
force are not required to be certified again if a contract for purchase, lease,
or lease purchase of social housing has not been concluded.
Article 33. Effect
1. This Decree comes into force from December 10,
2015.
2. During the period 2015 – 2020, Vietnam Bank for
Social Policies shall not grant loans to the entities specified in Clause 1
Article 15 of this Decree.
3. This Decree replaces the Government's Decree No.
188/2013/ND-CP dated November 20, 2013 on development and management of social
housing.
4. Ministers, Heads of ministerial agencies, Heads
of Governmental agencies, Presidents of the People’s Committees of provinces
are responsible for the implementation of this Decree./.
ON BEHALF OF
THE GOVERNMENT
THE PRIME MINISTER
Nguyen Tan Dung
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