Circular No. 02/2013/TT-BXD dated March 8, 2013 of the Ministry of Construction guiding the restructuring of apartments to be built under commercial housing projects and urban center construction investment projects and the conversion of commercial houses into social houses or service works

MINISTRY OF CONSTRUCTION 

Circular No.02/2013/TT-BXD dated March 08, 2013 of the Ministry of Construction guiding the adjustment for apartment structure of commercial housing projects, urban area construction investment projects; and the transfer commercial housing apartments to social housing apartments or public service constructions

Pursuant to the Decree No. 17/2008/ND-CP dated February 04, 2008 of the Government defining the functions, tasks and powers of the Ministry of Construction;

Pursuant to the Decree No. 71/2010/ND-CP dated June 23, 2010 of the Government detailing and guiding the implementation of the Law on Housing;

Pursuant to the Decree No. 12/2009/ND-CP dated February 12, 2009 of the Government on management of works construction investment projects;

At the proposal of the Director of House and Real Estate Market Management Department;

The Minister of Construction issues the Circular guiding the adjustment for apartment structure of commercial housing projects, urban area construction investment projects; and the transfer commercial housing apartments to social housing apartments or public service constructions as follows:

Article 1. Objectives allowed having adjustments for apartment structure, transfer commercial housing apartments to social housing apartments or public service constructions

1. Objectives allowed having adjustments for apartment structure, transfer commercial housing apartments to social housing apartments are commercial housing projects, urban construction investment projects approved by authorized agencies but failed to build or already built but the apartment structure or usage purposes are not suitable with market’s demands.

2. Investors of commercial housing development projects and urban center construction investment projects are allowed for adjusting commercial apartment scale with large area to commercial apartment with small area or transferring apartment buildings and low-rise commercial buildings into social housing or public service constructions (hospitals, medical centers, schools, hotels, commercial works…) and must comply with regulations specified in Article 2 and 3 of this Circular and the Decision on approval for allowing the adjustment of apartment structure or transfer of the usage purposes of commercial housing of the Chairman of People’s Committees of provinces or municipal cities (hereafter called provincial-level People’s Committee).

3.The adjustment of apartment structure, transfer of usage purposes of commercial housingintothe commercial house or public service constructions are only made for the items of construction works and apartments (including high-rise and low-rise ones) that the investors have not signed capital contribution contracts and trading contracts with customers. In case of having signed capital contribution contracts and trading contracts with customers, before adjustment of apartment structure and usage purposes, there must be a written consent of all customers who have signed contracts.

4. The commercial housing development projects and urban center construction investment projects with the size of 500 apartments or more, before the provincial-level People’s Committee makes a decision on allowing the adjustment of apartment structure or conversion of usage purposes must be agreed upon by the Ministry of Construction.

Article 2. Regulations on adjusting commercial apartment structure from large to small area

The adjustment of commercial housing apartment structure from large to small area must ensure the following regulations:

1. Safety and convenience assurance for users;

2. Small area apartments after transfer must have sufficient space and minimum usable area such as: kitchen, toilets, showers and so on;

3. Apartment’s transfer after the transfer is not lower than the minimum standard of commercial housing design in accordance with the Law on housing;

4. In case the project whose apartment structure is adjusted without changing the total construction floor area in accordance with the plans approved by the authorized agencies, it is not necessary to review and re-approve the target population and detailed planning of 1/500 or general ground plan of the project; not applying regulation on area and apartment structure at Point 6.2.4.9 and 6.2.4.10 of the high-rise housing design standards TCXDVN 323:2004.

5. In case of adjusting apartment structure of the project whose total housing construction floor area has been changed compared with the plans approved by the authorized agencies, the adjustment of detailed planning of 1/500 or general ground plan shall be implemented.

In the process of adjustment, the provisions in terms of area and structure of the apartment at Point 6.2.4.9 and 6.2.4.10 of the design standard of high-rise buildings TCXDVN 323:2004 shall not be applied but make adjustments under Regulation on construction plan (issued by Decision No. 04/2008/QD-BXD dated April 03, 2008 of the Minister of Construction) for review and adjustment of the detailed planning of 1/500 or general ground plan of that project.

Article 3. Regulations on transferring commercial housing projects into social housing apartments or public service constructions and adjustment of commercial housing apartment

1. The transfer of commercial housing project into social housing is adjusted to increase the building density, coefficient of land use and enjoy the incentives under the current regulations, but must meet the standard of social housing design and sell, lease, purchase lease in accordance with the subjects as prescribed by the law on housing.

2. The conversion of commercial housing apartment into public service constructions must comply with the minimum standard and regulation and implement the management, operation and use of the works after construction investment in accordance with regulations issued by the authorized agencies.

3. The projects with land use fee paid shall be refunded by the State or deducted from the financial obligations that the investor must pay the State basing on the re-calculation of land use fee.

Article 4. Order, procedures and dossier application for transfer and adjustment of project

1. Dossier application for transfer and adjustment of apartment structure and area and transfer of usage purposes of commercial housing apartment includes:

a) Application for transfer and conversion (in accordance with Annex No. 1 attached to this Circular).

b) Copies approved and issued by the authorized agencies including: Investor recognition document; written approval of investment; investment certificate; decision on project approval; dossier, detailed plan drawing at a scale of 1/500 or project’s general ground plan; basic design dossier of the project;

c) The plan for adjustment of apartment structure or transfer of commercial housing apartments into the social housing apartments and public service constructions (together with interpretation drawings).

2. Construction Departments of provinces and municipal cities is the focal unit to receive and handle dossier application for the transfer and adjustment of investors to organize the appraisal before submission to the provincial-level People’s Committee for review and decision.

3. In the appraisal for dossiers on adjustment and transfer of project, the Department shall organize meeting to gather opinions from relevant agencies including: Architecture and Planning Department (if any), Natural Resources and Environment Department, Planning and Investment Department, People’s Committee of district where the projects are located (hereafter called district People’s Committee). The focal unit shall send dossier to relevant agencies before meeting. Opinions of agency’s representatives at the appraisal meeting are the official opinions about the project and are made in written forms.

4. After the appraisal meeting, the Construction Department shall send the minutes of the appraisal meeting on the adjustment and transfer of the project together and the draft decision on permission of adjustment or transfer (in accordance with the Annex 02). In case that the project is not approved for adjustment and transfer, in addition to the minutes of appraisal meeting, the draft written reply clearly stating the reason for disapproval so that the provincial-level People’s Committee can review and make a decision. Within 07 working days after the receipt of the minutes and the draft decision on permission for adjustment and transfer of project (or draft written disapproval for adjustment and transfer of project) submitted by the Construction Department, the provincial-level People’s Committee shall sign for issuance under its authorities.

In case the project must be agreed upon by the Ministry of Construction prescribed in Clause 4, Article 1 of this Circular, the Construction Department shall prepare document for submission to the provincial-level People’s Committee for reviewing, signing and sending it to the Ministry of Construction for collecting opinions. Within 15 working days after receiving the written opinion, the Ministry of Construction shall reply in written forms.

5. The appraisal time and decision on permission for project’s adjustment and transfer is not more than 30 working days after the receipt of valid dossier.

For the projects which must be agreed upon by the Ministry of Construction specified in Clause 4, Article 1 of this Circular, within 10 days after receiving written agreement of the Ministry of Construction, the provincial-level People s Committee shall sign the decision to allow adjustment and transfer of the usage purposes of the project or reply in written form to the investor with respect to disapproval for adjustment and conversion of the usage purposes of the project.

Article 5. Implementation organization’s responsibilities

1. The provincial-level People s Committee shall direct the agencies concerned to convert the commercial housing projects and urban center construction investment projects into the social housing apartment or public service constructions; adjust apartment structure of the commercial housing projects and urban center construction investment projects on the local scale.

2. The Construction Department shall assume the prime responsibility and coordinate with the local competent agencies to carry out the appraisal of commercial housing projects and urban center construction investment projects transferred into the social housing or public service constructions and the commercial housing projects and urban center construction investment projects whose investors have a need to adjust the apartment structure for submission to provincial-level People s Committee for review and decision.

3.Housingand Real Estate MarketManagement Departmentshall assume the prime responsibility and coordinate with the agencies under the Ministry of Construction to guide and answer the difficult problems and obstacles in the process of implementation; advise the Minister of Construction to monitor, urge and inspect the implementation of adjustment of apartment structure and transfer of commercial housing project into the social housing projects or public service constructions to resolve difficulties for business and production, marketing support, bad debt settlement under the provisions of this Circular.

Article 6. Implementation provision

1. This Circular takes effect from April 22, 2013 to the end of December 31, 2014.

2. Any difficulties arising during the course of implementation should be promptly reported to the Ministry of Construction for settlement or submitted to the authorized agencies for review and decision.

For the Minister

Deputy Minister

Nguyen Tran Nam

* All appendices are not attached here