Circular No. 07/2013/TT-BXD dated May 15, 2013 of the Ministry of Construction guiding the determination of subjects eligible for housing support loans under the Government’s Resolution No. 02/NQ-CP of January 7, 2013

THE MINISTRY OF CONSTRUCTION

Circular No. 07/2013/TT-BXD of May 15, 2013, guiding the determination of subjects eligible for housing support loans under the Government’s Resolution No. 02/NQ-CP of January 7, 2013

Pursuant to the November 29, 2005 Housing Law;

Pursuant to the Government’s Decree No. 17/2008/ND-CP of February 4, 2008, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

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

Pursuant to the Government’s Resolution No. 02/NQ-CP of January 7, 2013, on solutions for removing difficulties for production and business, supporting the market and settling non-performing loans;

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

The Minister of Construction promulgates the Circular guiding the determination of subjects and conditions for borrowing housing support loans under the Government’s Resolution No. 02/NQ-CP of January 7, 2013.

Article 1. Scope of regulation and subjects of application

1. Scope of regulation

This Circular regulates contents relating to the determination of subjects eligible to borrow loans for renting, rent-purchasing or purchasing social houses; and loans for renting or purchasing commercial houses with a floor area of under 70m² and a sale price of under VND 15 million/m² each and loans for investment in the development of social houses under the Government’s Resolution No. 02/NQ-CP of January 7, 2013.

2. Subjects of application

a/ Cadres, civil servants, public employees, armed forces and low-income earners who borrow loans for renting, rent-purchasing or purchasing social houses;

b/ Cadres, civil servants, public employees, armed forces and low-income earners  who borrow loans for renting or purchasing commercial houses with a floor area of under 70m² and a sale price of under VND 15 million/m² each;

c/ Enterprises that are investors of social housing projects; and enterprises are investors of commercial housing projects converted into social housing projects;

d/ Related organizations and individuals.

Article 2. Provisions on subjects eligible to borrow loans for renting, rent-purchasing or purchasing social houses and subjects eligible to borrow loans for renting or purchasing commercial houses each with a floor area of under 70m² and a sale price of under VND 15 million/m²

1. Cadres, civil servants and public employees of the Party and State agencies, the Fatherland Front and socio-political and socio-professional organizations who are salaried from the state budget; public employees of public non-business units; and the people’s armed forces;

2. Low-income earners who are employees of non-public non-business units, enterprises of all economic sectors and cooperatives set up and operating in accordance with law; people who have retired under regulations; self-employed people and private business people.

Article 3. Conditions for borrowing loans for renting, rent-purchasing or purchasing social houses and conditions for borrowing loans for renting or purchasing commercial houses with a floor area of under 70m² and a sale price of under VND 15 million/m²  each

1. Conditions for borrowing loans for renting, rent-purchasing or purchasing social houses

Subjects prescribed in Article 2 are eligible to borrow loans for renting, rent-purchasing or purchasing social houses after signing social housing rent, rent-purchase or purchase contracts in accordance with law.

2. Conditions for borrowing loans for renting or purchasing commercial houses each with a floor area of under 70m² and a sale price of under VND 15 million/m²

a/ Subjects and households of subjects prescribed in Article 2 must fully satisfy the following conditions:

- Not possessing any homes, or possessing homes which are too cramped, specifically:

+ Their homes are apartments with the average housing space of less than 8m² per person;

+ Their houses are separate houses with the average housing space of less than 8m² per person and their land area smaller than the standard of the minimum land area permitted for renovation and construction as prescribed by provincial-level People’s Committees.

- Subjects eligible to borrow loans must have permanent residence registration in provinces and centrally run cities that have housing projects. For temporary residents, they must have paid social insurance premiums for at least one (1) year.

- Having signed commercial house rent and purchase contracts in accordance with law.

b/ Certification of conditions for borrowing loans prescribed in Clause 2 of this Article:

- Subjects prescribed in Clause 1 of Article 2 must have certifications of their workplace and housing conditions granted only once by units where they are working (made according to the form provided in Appendix 1);

- Subjects prescribed in Clause 2 of Article 2 must have written certifications of their residence registration and housing conditions granted only once by communal (ward) People’s Committees where they have permanent residence or register temporary residence (made according to the form provided in Appendix 2).

c/ Each household is eligible to borrow housing support loans only once as prescribed in this Circular.

3. Subjects prescribed in Article 2 must satisfy the conditions prescribed in this Article and conditions for borrowing loans specified in the State Bank of Vietnam’s Circular No. 11/2013/TT-NHNN of May 15, 2013, providing the grant of housing support loans under the Government’s Resolution No. 02/NQ-CP of January 7, 2013.

Article 4. Provisions on conditions for enterprises being investors of social housing projects, and enterprises being investors of commercial housing projects converted into social housing projects to borrow loans

1. In addition to the conditions for borrowing loans specified in the State Bank of Vietnam’s Circular No. 11/2013/TT-NHNN of May 15, 2013, providing the grant of housing support loans under the Government’s Resolution No. 02/NQ-CP of January 7, 2013, enterprises being investors of social housing projects must satisfy the following conditions:

- Having investment projects approved by competent authorities in accordance with law;

- Having investment approval documents of competent authorities;

- Having land available for construction and construction license, excluding the case of exemption from construction license in accordance with the law on construction.

2. Apart from the conditions specified in Clause 1 of this Article, enterprises being investors of commercial housing projects converted into social housing projects must have the decision issued by a competent authority to permit the conversion of commercial houses into social houses.

3. Enterprises satisfying the conditions specified in this Article and having demand for loans shall send their dossiers satisfying the conditions specified in Clauses 1 and 2 of this Article together with their demand for loan amounts to the Ministry of Construction for examination, appraisal and summarization before sending to the State Bank of Vietnam and other banks stipulated in the State Bank of Vietnam’s Circular No. 11/2013/TT-NHNN of May 15, 2013, for consideration.

4. Banks shall grant loans to enterprises being investors of social housing projects and commercial housing projects converted into social housing projects under the Government’s Resolution No. 02/NQ-CP of January 7, 2013, on the basis of the list of projects announced by the Ministry of Construction in each period. Banks’ total loans for enterprises must not exceed 30% of the State Bank of Vietnam’s refinancing source for banks.

Article 5. Provisions on commercial houses each with a floor area of under 70m² and a sale price of under VND 15 million/m²

1. Commercial houses with a floor area of under 70m² and a sale price of under VND 15 million/m² each prescribed in this Circular are those of housing development projects invested by enterprises.

2. The area of apartments and houses prescribed in Clause 1 of this Article is defined as follows:

a/ For apartments, it is the floor area (including the area of the balconies and loggias privately used for the apartment) written in the purchase and sale contract on the principle of calculating the apartment’s clearance sizes (including the area of walls separating rooms but not that of pillars and technical boxes inside the apartment);

b/ For low-rise houses, they have a floor area of under 70m² and a land area of under 70m².

3. Sale prices of apartments and houses prescribed in Clause 1 of this Article are determined as follows:

a/ The sale price written in the house purchase and sale contracts is that of a completed house, inclusive of value-added tax and maintenance costs in accordance with the Housing Law;

b/ For apartments, the sale price is that of 1m² of floor area as prescribed at Point a, Clause 2 of this Article;

c/ For low-rise houses, the sale price is that of 1m² of floor area, including the land price.

Article 6. Handling of violations

1. Administrative violations prescribed in this Circular must be handled in accordance with the law on sanctioning of administrative violations, the construction law, the housing law and the law on real estate business.

2. Organizations and individuals committing deceitful acts related to subjects and conditions for borrowing housing support loans for renting, rent-purchasing or purchasing houses prescribed in this Circular shall be sanctioned under the law on sanctioning of administrative violations in housing management and development, and also forced to return their loans and terminate their loan contracts signed with credit institutions.

 3. Depending on the severity of violations, persons who take advantage of their position and power to violate regulations on certification of subjects eligible to borrow housing support loans as prescribed in this Circular shall be administratively handled or examined for criminal liability. If causing material damage, violators shall compensate for such damage.

Article 7. Implementation provisions

1. This Circular takes effect on June 1, 2013.

2. Any difficulties or problems arising in the course of implementation should be reported to the Ministry of Construction for coordinated settlement or submission to competent agencies for consideration and decision.-

For the Minister of Construction
Deputy Minister
NGUYEN TRAN NAM