Vietnam Law has regulations on policies on social housing. Let’s find out this issue with Lawyer X through the following situation: “Dear Lawyer! I want to ask what entities eligible for incentive policies on social housing? What are regulations on implementation of incentive policies on social housing? What are Rules for the implementation of incentive policies on social housing? Thanks for answering question!”
Legal grounds
2014 Vietnam Law on Housing
Entities eligible for incentive policies on social housing
If the entities below satisfy requirements prescribed in Article 51 of 2014 Vietnam Law on Housing, they shall be eligible for incentive policies on social housing:
– People with meritorious services to the Resolution prescribed in law on preferential treatment for people with meritorious services to the Resolution;
– Households living in poverty or near poverty in rural areas;
– Households that are often affected by natural disasters or climate changes in rural areas;
– Individuals living in low income, poverty or near poverty in the urban areas;
– Employees working in enterprises inside or outside the industrial zones;
– Commissioned officers, professional and technical non-commissioned officers, standing army, and workers in the agencies of People’s Police and People’s Army;
– Officials and civil servants prescribed in law on officials and civil servants;
– Entities who have returned official residence as prescribed Clause 5 Article 81 of 2014 Vietnam Law on Housing;
– Students of institutes, universities, colleges, vocational training institutions; students of the public ethnic boarding schools using social housing during their duration of study;
– Households or individuals subject to land withdrawal and land clearance as prescribed without any compensation in form of housing or residential land paid by the State.
Implementation of incentive policies on social housing
– Lease, lease and purchase, or sell the social housing to entities prescribed in Clause 1, 4, 5, 6, 7, 8 and 10 Article 49 of 2014 Vietnam Law on Housing; or only lease the social housing to entity prescribed in Clause 9 Article 49 of 2014 Vietnam Law on Housing.
– Support entities prescribed in Clause 1, 2 and 3 Article 49 of 2014 Vietnam Law on Housing in construction or renovation of housing according to the target programs for housing.
– Allocate residential land with reduction or exemption from land levies or gift housing to the entities prescribed in Clause 1, 2 and 3 Article 49 of 2014 Vietnam Law on Housing as prescribed in law on land or housing gifting.
– Grant preferential loans given by the State for entities prescribed in Clause 1, 4, 5, 6 and 7 Article 49 of 2014 Vietnam Law on Housing though social policy banks or credit institutions appointed by the State to build or renovate their housing.
Requirements for eligibility for incentive policies on social housing
– The entities eligible for the policies as prescribed in Clause 1 Article 50 of 2014 Vietnam Law on Housing shall satisfy the requirements pertaining to housing, residence, and income as follow:
+ They have not had any house under their homeownership, have not concluded any agreements on social housing purchase, lease, or lease purchase, have not benefited from any policy on housing or residential land support in any shape or form at the places where they live, study, or have houses under their homeownership, but the floor space per capita in the household is lower than the minimum space standard regulated by the Government in every period and every area;
+ They are required to register permanent residence in the province where the social housing is located; if not, they are required to register temporary residence in that province for at least one year, except for cases prescribed in Clause 9 Article 49 of 2014 Vietnam Law on Housing;
+ With respect to entities prescribed in Clause 4, 5, 6 and 7 Article 49 of 2014 Vietnam Law on Housing, they are required to be not subject to regular income tax as prescribed in law on personal income tax; with respect to households living in poverty and near poverty, they must be subject to the households living in poverty and near poverty as prescribed in regulations of the Prime Minister. With respect to entities prescribed in Clause 1, 8, 9 and 10 Article 49 of 2014 Vietnam Law on Housing, they are not required to satisfy requirements pertaining to income as prescribed in this Point.
– The entities eligible for the policies as prescribed in Clause 2 and Clause 3 Article 50 of 2014 Vietnam Law on Housing must conform to approval for target programs for housing granted by the competent agency.
– Any entity eligible for the policies as prescribed in Clause 4 Article 50 of 2014 Vietnam Law on Housing shall satisfy the requirements pertaining to housing, residence, and income as follows:
+ They have residential land without housing, or they have housing but it is damaged or dilapidated;
+ They have registered permanent residence in the place where their residential land or housing required construction or renovation is located.
Rules for the implementation of incentive policies on social housing
– The policy on social housing support must follow the rules below:
+ There is a combination between the State, communities, relatives and beneficiaries of the policies during the implementation of the policy;
+ The policy must be publicized and transparent, under close inspection of the competent agency and communities;
+ The policy only applies to entities meeting all requirements as prescribed;
+ In case an entity benefits from more than one policy, h+she shall only benefit from the best policy; in case there are many entities meeting the same requirements, the disabled or women shall be given priority;
+ In case a household has more than one entity benefiting from the policies, there is only one policy applying to that household.
– The People’s Committee of the province shall implement and inspect the policies on social housing in the province.
Forms of social housing development
– The State invests in social housing construction using government budget, national bonds, bonds, Official Development Assistance, concessional loans given by the sponsors, credit capital for development or invests in social housing construction for lease or lease purchase according to the Build-Transfer contracts on the proper land as prescribed.
– The enterprises or cooperatives invest in social housing construction for lease, lease purchase or sale; or buy or rent housing for their workers’ accommodation though lease contracts and receive the State’s incentives prescribed in Clause 1 Article 58 and 59 of 2014 Vietnam Law on Housing.
– The households or individuals invest in social housing construction on their lawful residential land for lease, lease purchase or sale and receive the State’s incentives prescribed in Article 58 of 2014 Vietnam Law on Housing.
Requirements pertaining to projects for social housing construction
– Conform to requirements prescribed in Article 19 of 2014 Vietnam Law on Housing; regarding the social housing construction which is not approved in the plans for housing development, the People’s Committee of the province shall consult the People’s Councils of province before granting the approval for the housing construction project.
– The People’s Committee of the province shall reserve a private area to set up a project for social housing construction for lease.
– With regard to a project for social housing construction which is not in the area required to set up private project for social housing construction for lease prescribed in Clause 2 of this Article, the investor shall reserve at least 20% of area of social housing in the project for lease; the investor is eligible for incentives for housing construction for lease as prescribed in Clause 1 Article 58 of 2014 Vietnam Law on Housing equivalent to such 20% of area and entitled to sell this house to the lessees as prescribed in regulations on social housing sale after 5-year-lease term.
– The projects for social housing construction must be managed their quality and standard areas, rents, lease-purchase prices, selling prices, and the approval of entities eligible for housing lease, lease purchase, or sale.
Requirements regarding types of housing and housing area standards of social housing
– They are apartment buildings or separate houses in conformity with the specific planning for construction approved by the competent agency.
– With respect to separate houses, they must be designed and built according to standards of construction and housing area standards of social housing.
– With respect to apartment buildings, they must be designed and built in self-contained style, and in conformity with standards of construction and housing area standards of social housing.
Land used for social housing construction
– When approving an planning for urban area construction, a planning for rural area construction, or a planning for industrial zone an+or training research zone construction, the People’s Committee in charge of planning approval shall determine the area of pieces of land used for social housing construction.
– The area of land and information about location used for social housing development shall be announced on the website of the People’s Committee of the province and the housing authority of province.
– Land used for social housing development includes:
+ Land allocated by the State for housing construction for lease, lease purchase an+or sale;
+ Land leased by the State for housing construction for lease;
+ The area of residential land in the projects for commercial housing construction which is reserved for social housing as prescribed in Clause 2 Article 16 of 2014 Vietnam Law on Housing;
+ Lawful residential land of organizations, households an+or individuals used for social housing construction.
Investors in projects for commercial housing construction
– With respect to the social housing invested by capital resources prescribed in Clause 1 Article 53 of 2014 Vietnam Law on Housing, the competent persons in charge of investment approval shall select the investor(s) according to the report sent by the Ministry of Construction regarding central investment-related capital or sent by the housing authority of province regarding local investment-related capital.
– With respect to social housing not invested by capital resources prescribed in Clause 1 Article 53 of 2014 Vietnam Law on Housing, the People’s Committee of the province shall select the investor(s) according to the report sent by the housing authority of province as follows:
+ With respect to the social housing which is constructed on the piece of land allocated or leased by the State, if there are more than one investors registering for being the investor(s), they shall be selected through inviting bids; if there is only one investor registering for being the investor, h+she shall be appointed;
+ With respect to the social housing which is constructed on the piece of land resaved in a project for commercial housing construction as prescribed Clause 2 Article 16 of 2014 Vietnam Law on Housing, the investor in that project shall be appointed as the investor in the project for social housing construction, unless the State allocates such piece of land to other organization for social housing construction;
+ In case any enterprise or cooperative has lawful piece of land in conformity with the planning for housing construction, meets all requirement for being the investor and wishes to build social housing, such enterprise or cooperative shall be assigned as the investor in the project for social housing construction;
+ In case the social housing is constructed to provide accommodation for workers in a industrial park, any enterprise providing infrastructure services, manufacturing enterprise, or real estate enterprise shall be assigned as the investor in the project by the State.
– Any household or individual is entitled to build social housing on their lawful piece of residential land.
– The investor(s) prescribed in Clause 1, 2 and 3 of this Article shall be in charge of social housing construction as prescribed.
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Frequently asked questions
There is a combination between the State, communities, relatives and beneficiaries of the policies during the implementation of the policy;
The policy must be publicized and transparent, under close inspection of the competent agency and communities;
Any household or individual is entitled to build social housing on their lawful piece of residential land.
Conclusion: So the above is General regulations on policies on social housing. Hopefully with this article can help you in life, please always follow and read our good articles on the website: lsxlawfirm.com
