Circular No. 07/2014/TT-BXD dated May 20, 2014 of the Ministry of Construction guiding a number of contents of the Government’s Decree No. 84/2013/ND-CP of July 25, 2013, providing the development and management of resettlement houses

CIRCULAR

Guiding a number of contents of the Government’s Decree No. 84/2013/ND-CP of July 25, 2013, providing the development and management of resettlement houses[1]

Pursuant to the Government’s Decree No. 62/2013/ND-CP of June 25, 2013, defining the functions, tasks, powers and organizational structure of the Ministry of Construction;

Pursuant to the Government’s Decree No. 84/2013/ND-CP of July 25, 2013, providing the development and management of resettlement houses;

Pursuant to the Government’s Decree No. 34/2013/ND-CP of April 22, 2013, on the use management of state-owned houses;

Pursuant to the Government’s Decree No. 188/2013/ND-CP of November 20, 2013, on the development and management of social houses;

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

The Minister of Construction promulgates the Circular guiding a number of contents of the Government’s Decree No. 84/2013/ND-CP of July 25, 2013, providing the development and management of resettlement houses.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

This Circular guides a number of contents of the Government’s Decree No. 84/ 2013/ND-CP of July 25, 2013, providing the development and management of resettlement houses (below referred to as Decree No. 84/2013/ND-CP), including plans on housing development to serve resettlement; management of investment in construction of houses to serve resettlement and purchase of commercial houses for resettlement; management of the sale and lease of houses to serve resettlement; and management of operation of houses to serve resettlement.

Article 2.Subjects of application

1. Households and individuals to be relocated upon land recovery by the State for implementation of projects on construction of works for national defense or security purposes, national interests or public interests under approved master plans or plans.

2. Organizations and individuals involved in the development and management of houses to serve resettlement.

3. Agencies performing the state management of houses at all levels.

Chapter II

PLANS FOR DEVELOPMENT OF HOUSES TO SERVE RESETTLEMENT, MANAGEMENT OF INVESTMENT IN CONSTRUCTION OF HOUSES TO SERVE RESETTLEMENT
AND PURCHASE OF COMMERCIAL HOUSES FOR RESETTLEMENT

Article 3.Order of formulating and approving plans for development of houses to serve resettlement in provinces or centrally run cities

Plans for development of houses to serve resettlement shall be formulated and approved according to the following order:

1. Investors of projects prescribed in Clauses 5, 6 and 7, Article 3 of Decree No.84/2013/ND-CP shall assume the prime responsibility for, and coordinate with the Ground Clearance Compensation Councils of the People’s Committees of urban districts, rural districts, provincial towns or provincial cities (below referred to as district-level People’s Committees) and the People’s Committees of communes, wards or townships (below referred to as commune-level People’s Committees) of the localities where the projects are located, in conducting sociological investigations and surveys of the demands of households and individuals in the ground clearance areas, identifying the resettlement demands of to-be-relocated households and individuals, (such as locations, types of houses to serve resettlement; quantity of houses and areas of houses and residential land with constructed technical infrastructure, which are commercially purchased for resettlement; total investment capital; projected schedule of arrangement of houses and residential land for resettlement), according to the forms provided in Appendix No. 01 to this Circular and report them to district- level People’s Committees. For a project involving two district-level units or more, the investor shall report on the demand for houses to serve resettlement to each district.

2. District-level People’s Committees shall direct the formulation and approval of plans on compensation, support and resettlement and summarize the demands for houses to serve resettlement in their respective localities and report to the provincial-level Departments of Construction on these demands for houses to serve resettlement to be invested from every funding source (including: locations, types of houses to serve resettlement; quantity and areas of houses, residential land with constructed technical infrastructure, which are commercially purchased for resettlement; total investment fund from the central budget, local budget and other funding sources; projected schedule for arrangement of resettlement houses and land), made according to the form provided in Appendix No. 02 to this Circular.

3. Provincial-level Departments of Construction shall assume the prime responsibility for, and coordinate with the related provincial-level Departments, committees and sectors in, formulating annual and five-year plans for housing development to serve resettlement and submit them to the People’s Committees of provinces or centrally run cities (below referred to as provincial-level People’s Committees), with the following main contents:

a/ Forecast of the numbers of households and individuals to be resettled annually and in 5 subsequent years;

b/ The total number of apartments, total flooring space and size, space structure of condominium apartments (projected for investment construction, purchase of commercial houses for resettlement), quantity and residential ground floor with technical infrastructure to be developed annually and in 5 subsequent years;

c/ Identification of areas, locations and total land areas reserved for housing development to serve resettlement, including land funds reserved for exchange for investors participating in project implementation under Build-Transfer contracts (BT contracts) for construction of houses to serve resettlement;

d/ Lists of resettlement quarter projects, resettlement housing projects; projects on commercial houses with apartments to be tentatively purchased for annual and five-year resettlement; schedule for supply of resettlement houses of each project;

dd/ Investment capital demand, investment capital sources (central budget, local budget, capital mobilized from different economic sectors and other lawful sources as prescribed by law);

e/ Responsibilities of local functional agencies in housing development to serve resettlement;

g/ Other contents related to housing development to serve resettlement.

4. Provincial-level People’s Committees shall base themselves on their respective approved socio-economic development plans, land use master plans and plans, construction master plans and housing development programs to consider and approve annual and five-year plans for housing development to serve resettlement and publicize plans on housing development to serve resettlement and concurrently send reports to the Ministry of Construction, made according to the form provided in Appendix No. 03 to this Circular, before October 31 of the year preceding the plan year.

Article 4.Order of selecting investors for resettlement quarter and resettlement housing projects

1. The selection of investors for resettlement quarter and resettlement housing projectsmust comply with Decree No. 84/2013/ND-CP and shall be carried out on the following bases:

a/ The resettlement house development plans already approved by provincial-level People’s Committees;

b/ The scale of resettlement quarter and resettlement housing projects;

c/ The selected investors prescribed at Points a and b, Clause 1, Article 10 of Decree No. 84/2013/ND-CP must fully satisfy the conditions on legal person status and professional capability as prescribed by the laws on construction investment and housing and real estate dealing;

d/ The selected investors prescribed at Point c, Clause 1, Article 10 of Decree No. 84/2013/ND-CP must, apart from the conditions prescribed at Point c of this Clause, be financially capable for construction investment and real estate dealing.

2. The order of, and procedures for, selection of investors for resettlement quarter and resettlement house projects funded by the state budget must comply with Clause 4, Article 10 of Decree No.84/2013/ND-CP.

a/ Provincial-level People’s Committees shall direct the publicization on the websites of their own and of provincial-level Departments of Construction and publish them on “Dau Thau” (Bidding) newspaper (of the Ministry of Planning and Investment) at least for three consecutive issues before provincial-level Departments of Construction, acting as the focal points, issue bidding dossiers at least 10 days after the first notification on the following contents to investors for use as grounds for registration of their participation as resettlement quarter or resettlement housing project investors:

- The urban center and rural residential area construction master plan of the 1:2000 scale;

- The locations, boundaries and areas of the land areas reserved for housing development to serve resettlement;

- Types of houses, systems of technical infrastructure, social infrastructure and other architectural works in the project areas; project implementation schedule;

- Capital sources for project implementation (central budget, local budget and other lawful funding sources as prescribed by law);

- Conditions for participation in bidding for selection of resettlement quarter or resettlement housing project investors as prescribed at Points c and d, Clause 1 of this Article.

b/ The order of selecting investors for resettlement quarter or resettlement housing projects funded with the central and local budgets in localities as prescribed at Point b, Clause 4, Article 10 of Decree No. 84/2013/ND-CP

- If in the bid-receiving duration only one investor registers to be the resettlement quarter or resettlement housing project investor, the order is as follows:

+ Within 10 working days after receiving a valid dossier of that investor, the provincial-level Department of Construction shall report it to the provincial-level People’s Committee for decision to form an experts’ team composed of representatives of the provincial-level Department of Construction (focal point) and the provincial-level Departments of Natural Resources and Environment, Planning and Investment, Finance, Architecture and Planning (for provinces or cities with the Architecture and Planning Departments) to consider and assess the capability dossier of the investor.

+ If the investor satisfies the conditions to act as investor as prescribed at Points c and d, Clause 1 of this Article, within 10 working days after the formation of the experts’ team, the provincial-level Department of Construction shall submit a report enclosed with the minutes of the meeting of the experts’ team to the provincial-level People’s Committee for decision on the resettlement quarter or resettlement housing project investor.

+ If the investor fails to meet the conditions to act as project investor, the provincial-level Department of Construction shall notify in writing the investor of the reasons and report it to the provincial-level People’s Committee for consideration and appointment of another resettlement quarter or resettlement housing project investor.

- If in the bid-receiving duration two or more investors register to be the resettlement area or resettlement housing project investor, the order is as follows:

+ The provincial-level Department of Construction shall publicize the list of participating investors on its website and notify the investors thereof for preparation of bids as required and report it to the provincial-level People’s Committee for organization of bidding to select investors.

+ Within 10 working days after the expiration of the bid-receiving time limit, the provincial-level Department of Construction shall send a report to the provincial-level People’s Committee on the formation of the experts’ team for selection of investors and issue specific regulations on organization of bidding and the working regulation of the experts’ team.

+ Within 10 working days, the provincial-level People’s Committee shall issue the decision to form the experts’ team for selection of investors, issue specific regulations on organization of bidding and the working regulation of the experts’ team. The experts’ team shall be composed of representatives of the provincial-level Departments of: Construction (as focal point), Natural Resources and Environment, Planning and Investment, Finance, Architecture- Planning (for provinces or cities with the Architecture-Planning Department) and other departments, committees and sectors involved in the project to consider and assess the capability dossiers of the investors. The experts’ team shall develop assessment criteria and specific score scales based on the contents of bidding dossiers to consider and mark every bid according to regulations.

+ Within 30 working days, the experts’ team shall notify in writing the assessment results and bidding results to the provincial-level Department of Construction, which shall send a report, enclosed with the report on bidding results, of the expert’s team to the provincial-level People’s Committee chairperson for decision on selection of the resettlement quarter or resettlement housing project investor.

+ The duration from the organization of the bidding to the issuance of the decision on selection of resettlement quarter or resettlement housing project investor must not exceed 60 working days after the provincial-level Department of Construction receives bids.

+ Within 5 working days after the issuance of the investor selection decision, the provincial-level Department of Construction shall notify the decision to the selected investor and the bidders who are not selected.

c/ The order of selecting investors for resettlement quarter or  resettlement housing projects to serve important national projects or works prescribed at Point a, Clause 4, Article 10 of Decree No. 84/2013/ND-CP

- The important national project or work investor shall send a written request to the provincial-level People’s Committee of the locality where the project is located, for submission to the Prime Minister to decide on the selection of resettlement quarter or resettlement housing project investors;

- Within 10 working days after receiving the written request of the important national project or work investor, the provincial-level People’s Committee shall direct the publicization of information on the resettlement project as prescribed at Point a of this Clause;

- Within 10 working days, the provincial-level People’s Committee shall issue a decision to form the experts’ team for investor selection, issue specific regulations on organization of bidding and the working regulation of the experts’ team, which shall be composed of representatives of the provincial-level Departments of Construction (as focal point), Natural Resources and Environment, Planning and Investment, Finance, Architecture-Planning (for provinces or cities with the Architecture- Planning Departments) and other departments, committees and sectors involved in the project to assess the capability dossier of the registered participating investor as prescribed at Point d, Clause 1 of this Article;

- Within 20 working days, the experts’ team shall give the assessment results and the provincial-level Department of Construction shall send a report to the provincial-level People’s Committee, enclosed with assessment of the experts’ team of the investors’ capabilities; the provincial-level People’s Committee shall send a written proposal on investor selection, enclosed with two sets of dossiers on investors’ capabilities as prescribed at Point d, Clause 1 of this Article, to the Prime Minister;

- Within 10 working days after receiving the investor selection decision of the Prime Minister, the provincial-level People’s Committee shall direct in writing the resettlement area or resettlement housing project investor to formulate an investment project to be submitted to competent agencies for appraisal and approval.

3. For resettlement quarter projects implemented under BT contracts prescribed in Article 12 of Decree No. 84/2013/ND-CP, provincial-level People’s Committees may consider and select organizations or individuals with the real estate dealing function and full financial capability as prescribed by the laws on housing and real estate dealing to be investors of these projects.

Article 5.Order of formulating, appraising and approving resettlement quarter or resettlement housing projects

The order of formulating, appraising and approving resettlement quarter or resettlement housing projects must comply with the laws on housing and construction and the following specific provisions:

1. For resettlement quarter or resettlement housing projects financed with state budget capital, except the cases prescribed in Clause 2 of this Article, investors shall make written requests for project approval enclosed with 10 sets of dossiers prescribed in Clause 4 of this Article and submit them to competent agencies for appraisal and approval.

Investors shall submit dossiers to provincial-level Departments of Construction, for projects falling under the approval competence of provincial-level People’s Committees; or to district-level Housing Management Sections, for projects falling under the approval competence of district-level People’s Committees.

Provincial-level Departments of Constructions or district-level Housing Management Sections shall examine and receive the dossiers if all conditions are met and issue dossier receipts, make appointments for return of the results; if the dossiers fail to meet the conditions, they shall guide the investors to supplement papers and complete the dossiers at a time.

After receiving complete and valid dossiers, provincial-level Departments of Construction or district-level House Management Sections shall assume the prime responsibility for appraising and collecting comments of the offices of: Natural Resources and Environment, Finance, Planning and Investment and other related agencies; provincial- level Departments of Construction shall also gather comments of the provincial-level Architecture and Planning Departments (for provinces or cities with the Architecture- Planning Departments) and the district-level People’s Committees of the localities where the projects are located. The time limit for related agencies to give their replies is 15 days for Group-A and Group-B projects or 10 days for Group-C projects after receiving documents of the provincial-level Departments of Construction or district-level House Management Sections. After obtaining the comments of related agencies, the primary appraising agencies shall make reports to the chairpersons of the People’s Committees of the same level for project approval; the time for appraisal and approval of a resettlement quarter or resettlement housing project must not exceed 45 days.

2. For resettlement quarter or resettlement housing projects to serve important national projects or works prescribed at Point b, Clause 2, Article 11 of Decree No. 84/2013/ND-CP, resettlement quarter or resettlement housing project investors shall submit documents enclosed with 10 sets of project dossiers as prescribed in Clause 4 of this Article to the provincial-level People’s Committees.

Within 20 days after receiving project dossiers of investors, provincial-level People’s Committees shall assign provincial-level Departments of Construction to gather comments of related departments, committees, sectors and district-level People’s Committees on the projects, summarize the comments and request the project investors to assimilate them and adjust the project contents, then report such to provincial-level People’s Committees.

The provincial-level People’s Committees of localities where resettlement quarter or resettlement housing projects are located shall send written requests to the Ministry of Construction and related ministries and sectors for comment on the project contents.

Within 20 working days after receiving written requests of the provincial-level People’s Committees, the Ministry of Construction and related ministries and sectors shall give their written comments on the project contents. The provincial-level People’s Committees shall assign the provincial-level Departments of Construction to summarize and assimilate the comments of the Ministry of Construction and related ministries and sectors on the project contents and request the resettlement quarter or resettlement housing project investors to adjust the project dossiers and report thereon to the provincial-level People’s Committees.

The provincial-level People’s Committees shall submit reports asking for project approval, enclosed with 10 sets of valid project dossiers prescribed in Clause 4 of this Article, to the Prime Minister for consideration and decision to approve the projects.

3. For resettlement quarter or resettlement housing projects not funded by state budget capital, the investors shall formulate and decide to approve the projects in accordance with the laws on construction investment and housing and this Circular.

4. Contents of a dossier on a resettlement quarter or resettlement housing project cover:

a/ The Part on project explanation:

- The project name;

- The necessity and legal grounds of the project;

- The investment objectives and form; the construction location; the project size; land use demand; the natural conditions of the area where the project is located;

- Implementation solutions: construction standards and norms applicable to the project; fire prevention and fighting plans; solutions to technical infrastructure and their connection to the common technical infrastructure of the area; possibility to use the existing social infrastructure in the project area;

- Public car parks and parking lots for households and individuals living in the project area (including parking lots for bicycles, vehicles for the disabled, motorized two-wheelers and cars);

- Social infrastructure system (kindergartens, schools, health stations, services, sports, entertainment and recreation and public parks), unless social infrastructure facilities are already available in the project area;

- The quantity and ratio of houses (including separate houses and condominium apartments), total flooring space of houses; product sale plan (quantity of houses to be sold or leased); quantity of residential land lots with constructed technical infrastructure;

- Proposals on mechanisms applicable to the project (regarding land use, finance and other mechanisms);

- Project implementation time and schedule (phrased schedule) and form of project management;

- The total investment amount, funding sources, forms of capital raising, capability to reimburse and recover capital;

- The State’s investment in the construction of technical infrastructure outside the project area;

- Plan for operation management of the resettlement quarter or resettlement housing project (organizational model, form of operation management, service charges).

b/ The Part on the project’s base design:

- The base design explanation: brief introduction of the project location; the project’s technical infrastructure system and its connection to the common technical infrastructure system in the area; fire prevention and fighting plan;

- The base-design drawings: the whole project ground plan drawing, cross-section drawings, ground drawing and solutions to major force-bearing structures of the work; drawing on the project’s technical infrastructure system connected to the common technical infrastructure in the area. The architectural designs of resettlement houses must comply with the construction planning and conform to local culture, customs and practices, natural topographical conditions, the location and scale of the project.

c/ Copies of the approval decision and detailed planning drawings of the 1:500 scale already approved by competent agencies; if the detailed planning drawing of the 1:500 scale is not required, a copy of the whole ground drawing approved by the competent planning office in accordance with the law on planning is required;

d/ A copy of the document on handover of the project to the investor, issued by a competent agency.

Article 6.Order of, and procedures for, purchase of commercial houses with state budget capital for resettlement

1. The order of purchasing commercial houses for resettlement

a/ Based on the approved distribution plan and supply schedule for each resettlement housing project, the resettlement quarter or resettlement housing investor (below referred to as the house purchaser) shall make a plan on purchase of commercial houses, clearly stating the position, location, quantity and type of apartments, the floor area of each apartment, including the common-use area of the condominium (in case of purchase of all apartments of that condominium for resettlement); the quantity and area of each residential land lot with technical infrastructure already tested and accepted; projected house purchase prices (in case of buying commercial condominium apartments, the purchase price must include 2% maintenance fund as prescribed), projected prices of residential land lots with constructed technical infrastructure and schedule of handover of resettlement houses or residential land, and report it to the provincial-level Department of Construction;

b/ The house purchaser shall publish notices of purchase offer of commercial apartments and residential land lots with tested and accepted technical infrastructure (below referred to as commercial houses for short) for resettlement and the time for purchase of houses and land lots on a daily paper of the province or centrally run city for three consecutive issues. This expense shall be included in the compensation, support and resettlement fund;

c/ The house purchaser shall agree on the purchase prices of commercial houses with organizations selling or transferring houses or residential land (below referred to as the house seller for short) on the principles prescribed at Point b, Clause 1, Article 13 of Decree No. 84/2013/ND-CP (in the purchase prices of commercial houses, the profit percentage shall be calculated on the value of investment construction of commercial houses), and send a written request to the provincial-level Department of Construction for organization of the appraisal of the commercial house purchase plan and prices, enclosed with the appraisal dossier prescribed at Point e of this Clause;

d/ Within 30 working days after receiving a written request of the house purchaser, the provincial-level Department of Construction shall coordinate with the provincial-level Department of Finance and related agencies in appraising or hiring licensed consulting organizations to appraise the plan for, and determine the prices of, purchase of commercial houses for resettlement as stated at Points a and c of this Clause (this expense shall be included in the compensation, support and resettlement fund), and submit them to the provincial-level People’s Committees for approval;

dd/ An appraisal dossier must comprise:

- The house purchaser’s written request for the provincial-level Department of Construction to appraise the commercial house purchase plan and prices;

- The detailed master plan approved by a competent authority, land use papers, the approved investment project for construction of commercial houses;

- The construction technical design drawings and explanation; total cost estimate already verified; contracts on house construction and equipment installation; financial settlements of construction items of commercial houses and relevant documents (supplied by the house seller);

- The house seller’s written agreement on sale of commercial houses for resettlement.

2. The procedures for purchase of commercial houses for resettlement

a/ The house seller shall supply the house purchaser with relevant legal dossiers, including the approved detailed construction master plan, land use papers, investment projects on construction of commercial houses and construction of technical infrastructure on residential land; dossiers and documents prescribed by the laws on construction and housing and the written agreement on sale of commercial houses or transfer of land lots with constructed technical infrastructure;

b/ Within 15 working days after the provincial-level People’s Committee approves the commercial house purchase plan and prices, the resettlement quarter or resettlement housing investor shall sign commercial house purchase contracts with organizations and individuals wishing to transfer their houses or land. In case of purchase of condominium apartments for resettlement, contracts shall be made according to the form provided in Appendix No. 04 to this Circular;

c/ The purchase of commercial houses for resettlement is not required to be carried out through real estate transaction floors.

3. Project investors with resettlement demand that directly purchase commercial houses for resettlement shall follow the order and procedures prescribed in Clauses 1 and 2 of this Article and apply the methods of payment of purchase of commercial houses and handover of houses according to the principles prescribed in Article 7 of this Circular.

Article 7.Methods of payment for purchase of commercial houses with state budget capital and handover of houses for resettlement

1. The method of payment for purchase and handover of completely constructed commercial houses for resettlement is as follows:

a/ If the house purchaser is a resettlement quarter or resettlement housing project investor

- Based on the approved plan for, and prices of, purchase of commercial houses for resettlement, the house purchaser shall sign a commercial house purchase contract with the house seller;

- The provincial-level People’s Committee shall direct the advance of local budget money for purchase of commercial houses for resettlement at the written proposal of the house purchaser;

- The commercial house purchaser shall pay an amount equal to 95% of the contractual value to the house seller prior to the handover of commercial houses for resettlement;

- The house purchaser shall pay the remaining 5% of the contractual value to the house seller after the resettlement households or individuals are granted certificates of house ownership and residential land use rights and ownership of other land-attached assets;

- The house purchaser shall sign contracts on sale of resettlement houses with every household or individual and make the payment and settlement of house sale money with each household or individual, and recover the resettlement house sale money for reimbursement of the advanced money to the local budget.

b/ If the house purchaser being a project investor with demand for houses to serve resettlement directly purchases commercial houses for use as resettlement houses, the method is as follows:

- The house purchaser shall sign a commercial house purchase contract with the house seller and pay an amount equal to 95% of the value of the commercial house purchase contract prior to the handover of houses for resettlement;

- The house purchaser shall pay the remaining 5% of the contractual value to the house seller after the resettlement households or individuals are granted certificates of house ownership and land use rights and ownership of other land-attached assets;

- The house purchaser shall sign contracts on sale of resettlement house to every household or individual and make the payment and settlement of house sale money with every household or individual.

2. The method of payment for purchase of commercial condominium apartments in housing projects when the house seller only possesses approved house designs and has at least completed the construction and pre-acceptance test of condominium foundations under the laws on construction and housing is as follows:

a/ Based on the approved ground clearance schedule of the resettlement project, plan for, and price of, purchase of commercial houses for resettlement, the house purchaser shall sign a contract for purchase of commercial houses for resettlement;

b/ After signing the contract for purchase of commercial houses according to the approved house purchase plan and price, the house purchaser shall send a written request to the provincial-level People’s Committee for advancing an amount at most equal to 20% of the contractual value from the local budget to the house seller;

c/ After the commercial houses are built up to the roofs, the house purchaser shall make the first payment of an amount equal to 50% of the contractual value to the house seller and concurrently carry out procedures for the reimbursement of the advanced amount equal to 20% of the contractual value by the house seller;

d/ After the house seller hands over to the house purchaser the commercial houses already pre-acceptance tested according to the laws on construction and housing, within 30 days, the house purchaser shall make the second payment with the total amount of the two payments equal to 95% of the contractual value;

dd/ Immediately after resettlement households and individuals are granted certificates of land use rights and ownership of houses and other land-attached assets, the house purchaser shall pay the remaining 5% of the contractual value to the house seller.

3. Responsibilities of the house seller after handing over commercial houses for resettlement to the house purchaser:

a/ The house seller shall provide warranty for commercial condominium apartments and technical infrastructure on resettlement land (if any) in accordance with the laws on construction and housing; open a separate account at a commercial bank to deposit the maintenance fund, which equals to 2% of the contractual value and hand over the maintenance fund account to the Condominium Management Board when it is elected for the management of this maintenance fund;

b/ Where all apartments in a commercial condominium are purchased for resettlement, the house seller shall hand over the common-use areas to the unit assigned by the provincial-level People’s Committee for management in accordance with the law on management of state-owned houses;

c/ The house seller shall carry out procedures to request local functional agencies to grant certificates of land use rights and ownership of houses and other land-attached assets to every resettlement household and individual.

Chapter III

MANAGEMENT OF THE SALE AND LEASE OF,
AND MANAGEMENT OF OPERATION OF,
RESETTLEMENT HOUSES

Article 8.Subjects, sale prices, method of sale of resettlement houses

1. The subjects, sale prices and method of sale of resettlement houses must comply with Article 15 of Decree No. 84/2013/ND-CP.

2. The sale of resettlement houses between resettlement quarter or resettlement housing investors and resettlement households and individuals shall be effected through contracts made according to the form provided in Appendix No. 5 to this Circular.

Article 9.Resettlement households and individuals that purchase, rent or rent-purchase social houses

If the resettlement households or individuals prescribed in Clause 4, Article 3 of Decree No. 84/2013/ND-CP have no demand to purchase or rent resettlement houses but wish to purchase, rent or rent-purchase social houses, the following provisions shall be complied with:

1. Based on the approved resettlement plan, resettlement households or individuals that wish to purchase, rent or rent-purchase social houses shall file their applications (proposing the position of the social-house project) with the district-level People’s Committee for consideration and settlement of their places of residence.

2. The district-level People’s Committee shall sum up the list of resettlement households and individuals wishing to purchase, rent or rent-purchase social houses and send an official letter enclosed with the list to the provincial-level Department of Construction.

3. Within 10 working days after receiving the official letter of the district-level People’s Committee, the provincial-level Department of Construction shall examine and review it, make a report proposing the list of households and individuals eligible to purchase, rent or rent-purchase social houses and submit it to the provincial-level People’s Committee.

4. The provincial-level People’s Committee shall consider and decide on the list of resettlement households and individuals eligible to purchase, rent or rent-purchase social houses in accordance with the law on management of social houses.

5. The provincial-level People’s Committee shall assign the provincial-level Department of Construction and the district-level People’s Committee of the locality where such households or individuals reside to implement the above-said decisions. The provincial-level Department of Construction shall send written requests to social housing development project investors in the localities for arrangement of social houses to households and individuals on the approved list. Concurrently, the district-level People’s Committee shall notify the resettlement households and individuals on the approved list to contact the social house development project investors for purchase, rent or rent-purchase of social houses.

Article 10.Lease and rental rates of resettlement houses

1. The lease of resettlement houses must comply with Decree No. 84/2013/ND-CP and shall be effected through contracts made according to the form provided in Appendix No. 6 to this Circular. The tenants shall use the houses for proper purpose and may not transfer, exchange or sublease them.

2. The rental rate of resettlement houses must fully cover the expenses in order to recover the construction investment capital, including loan interests (if any), maintenance and operation management expenses, set profit of 10% and VAT prescribed by the law on value-added tax, and shall be determined as follows

a/ If the resettlement houses are constructed with state budget capital for lease:

Of which:

G_tis the rental rate per m²of an apartment for use in a month (VND/m²/month).

V_đis the construction investment cost distributed annually on the principle of capital preservation (VND/year).

The formula for determination of V_đ:

+ T_đis the total project construction investment cost at the time of handover for use according to the investment capital settlement value approved by competent authorities (VND). If the housing project is not yet financially settled, T_đis the total investment cost of construction of resettlement houses in the total approved investment amount.

+ r is the investment capital preservation interest rate (annual) to be decided by persons with competence to decide on the investment (%/year).

+ n  is the number of years for capital recovery, depending on the specific conditions of each project and the person competent to decide on investment, which is, however, at least 20 years.

- Q₁is the annual expense for management of house operation (VND/year).

- B_tis the annual expense for maintenance of resettlement houses (VND/year).

- T_dvis the revenue from services provided in the residential quarter in a year, such as  parking and cafeteria, and other revenues (VND/year).

- S is the total used flooring area of leased apartments of the project (m²).

- K is the distribution coefficient according to story height on the principle of capital preservation according to the following formula:

Of which:

+ K_iis the coefficient of story i.

+ S_iis the used floor area of leased apartments of story i.

+ m is the number of leased stories.

- L is the coefficient of the project’s position, determined on the basis of the convenient position of the project, decided by the provincial-level People’s Committee to suit the practical conditions.

- P is the set profit of the resettlement house operation management unit.

- VAT is calculated under the law on value-added tax.

- 12 is the number of months in a year.

b/ If the resettlement houses are constructed with state budget capital for partial sale and partial lease of apartments:

Of which:

G_tis the rental rate per m²of an apartment for use in a month (VND/m²/month).

V_đis the total construction investment cost of resettlement houses, distributed annually on the principle of capital preservation (VND/year),

The formula for determination of V_đ:

Of which:

+ T_đis the total construction investment cost of resettlement houses (pre-tax value) according to the investment capital settlement value approved by competent authorities (VND). If the houses are not yet financially settled, T_đis the total construction investment cost of resettlement houses in the total approved investment amount (VND).

+ S¹is the total used area of the leased apartments of the project (m²).

+ S²is the total area of the project’s apartments sold for resettlement (m²).

+ r is the (annual) investment capital preservation interest rate decided by the person competent to decide on investment (%/year).

+ n is the number of capital recovery years, depending on the specific conditions of each project and the person competent to decide on investment, which is, however, at least 20 years;

- Q₁is the annual cost of house operation management (VND/year).

- G_kdis the value of sold resettlement apartments (pre-tax value).

- B_tis the annual expense for maintenance of resettlement houses (VND/year).

- T_dvis the annual revenue from services provided in the resettlement quarter, such as  parking and cafeteria, and other revenues (VND/year).

- L is the project’s position coefficient, determined on the basis of the convenient position of the project, decided by the provincial-level People’s Committees to suit the practical conditions.

- P is the set profit of the resettlement house operation management unit.

- VAT is calculated according to the law on value-added tax.

- 12 is the number of months in a year.

c/ If commercial condominium apartments are purchased for resettlement:

Of which:

- G_tis the rental rate per m²of an apartment used for a month (VND/m²/month).

- V_mis the expense for purchase of commercial condominium apartments, with 2% for maintenance fund, which is distributed annually (VND/year).

- Q₁is the annual operation management expense (VND/year).

- T_dvis the annual revenue from services provided in the residential quarter such as parking and cafeteria, and other revenues (VND/year).

- S is the total area of leased apartments of the project (m²).

- L is the coefficient of the project’s position, determined on the basis of its convenient position, decided by the provincial-level People’s Committee to suit the practical conditions.

- P is the set profit of the resettlement house operation management unit.

- VAT is calculated according to the law on value-added tax.

- 12 is the number of months in a year.

Article 11.Provisions on operation management of resettlement houses being condominiums

1. General principles

a/ The resettlement condominium operation management must comply with the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the implementation of the Housing Law, Decree No. 34/2013/ND-CP of April 22, 2013, on use management of state-owned houses, Decree No. 84/2013/ND-CP and relevant guiding documents;

b/ The resettlement condominium operation management must comply with the principles of financial autonomy, publicity and transparency;

c/ Resettlement condominium operation management services are eligible for the regimes applicable to public-utility services in the provision of services for condominiums as prescribed by law.

2. For resettlement condominiums funded with state budget capital, including non-residential areas (parking areas in the ground floor or other areas inside and outside the resettlement houses; business and service areas prescribed in the approved resettlement projects) and the part of the value of these areas which is not distributed into the purchase prices of resettlement apartments, the provincial-level People’s Committees shall perform the management as follows:

a/ Deciding to establish state ownership over the non-residential areas prescribed in this Clause and managing these areas in accordance with the law on management of state-owned houses, and concurrently exercising the rights and performing the responsibilities like other owners and users in the condominiums;

b/ Assigning local management agencies to select state enterprises with functions and professional capabilities in the localities (if any) or sign contracts to hire professionally capable units to manage the operation of resettlement houses, including areas under state ownership stated in this Clause.

3. The operation management of resettlement condominiums constructed with non- state budget capital, including cases of purchasing commercial houses in condominiums for resettlement must comply with the laws on housing and use management of condominiums and this Circular. Resettlement housing project investors are encouraged to give priority to resettlement households and individuals in exploiting the business and service areas (if they so wish) through public and transparent auctions, aiming to create jobs for these households and individuals.

Chapter IV

ORGANIZATION OF IMPLEMENTATION

Article 12.Transitional provisions

1. For projects on resettlement quarters or resettlement houses to serve national important projects, which are not yet approved under the Prime Minister’s decisions after this Circular takes effect, the order of formulating, appraising and approving the resettlement quarter or resettlement house projects must comply with this Circular.

2. In case the provincial-level People’s Committees have not yet approved the projects or they have already approved the projects but the investors request change of project contents after this Circular takes effect, the order of formulating, appraising and approving the projects must comply with this Circular.

3. For resettlement quarter and housing projects already pre-acceptance tested and put to use, but still in the warranty duration prescribed by the law on housing after this Circular takes effect, the project investors shall provide warranty for the projects as prescribed by current law.

4. In case the resettlement condominiums currently subject to operation management forms other than those prescribed by this Circular, which, however, remain effective, such management forms will still apply. However, plans shall be worked out for conversion into the operation management model under the principles prescribed in this Circular within 18 months, for resettlement houses built with state budget capital, or within 24 months, for resettlement houses built with non-state budget capital, after this Circular takes effect.

5. Management of maintenance funds of the common-use sections of resettlement condominiums

a/ If upon purchasing a resettlement apartment before this Circular takes effect, the sale price does not cover the 2% of fund for maintenance of the common-use sections, the condominium apartment owner shall contribute such fund upon maintenance and this fund shall be distributed according to the floor area of his/her apartment.

b/ For resettlement houses funded with state budget capital, of which the sale price already covers the 2% of maintenance fund of the common-use sections, the resettlement quarter or resettlement housing project investors shall deduct the 2% of maintenance fund from the sale price and deposit it into a separate account at a commercial bank and hand over the maintenance fund account to the elected Management Boards; and coordinate with the latter in managing the maintenance fund in accordance with the law on housing.

Article 13.Responsibilities of provincial-level People’s Committees

1. To direct the investigation, survey and summarization of demands for resettlement houses; to direct the formulation and approval of annual and five-year plans on housing development to serve resettlement in their localities and report them to the Ministry of Construction as prescribed by this Circular.

2. To select investors and BT investors, approve resettlement quarter or resettlement housing projects, approve plans on purchase of commercial houses for resettlement according to their competence; to prescribe the operation management of resettlement houses being condominiums in their localities according to Decree No. 84/2013/ND-CP and this Circular, suitable to their local practical conditions.

3. To direct the inspection and examination of the management of planning and architecture in the course of implementation of resettlement quarter and resettlement housing projects.

4. To assign provincial-level Departments of Construction to coordinate with related units in:

a/ Receiving the project-proposing dossiers, assuming prime responsibility for organizing the appraisal of plans for, and results of, selection of BT investors  for implementation of resettlement housing projects in form of BT, which fall under the approval jurisdiction of provincial-level People’s Committees;

b/ Formulating the order of, procedures for, trading in, and leasing resettlement houses; organizing the appraisal of resettlement quarter or resettlement housing projects, the appraisal of plans for, and purchase prices of, commercial houses for resettlement in localities and submitting them to the provincial-level People’s Committees for decision;

c/ Organizing the inspection and examination of the trading in, and lease of, resettlement houses, the purchase of commercial houses for resettlement; sanctioning administrative violations or reporting to competent authorities for handling according to the law on sanctioning of administrative violations in the development and management of houses and public offices;

d/ Organizing annual preliminary reviews to assess the results of implementation of this Circular and reporting them to the Ministry of Construction.

Article 14.Responsibilities of the Housing and Real Estate Market Management Department

The Housing and Real Estate Market Management Department shall assist the Minister of Construction in guiding, urging and inspecting the implementation of this Circular, and summarize and make periodical reports on the implementation and propose amendments and supplements to suit the practical situation.

Article 15.Effect

1. This Circular takes effect on July 9, 2014.

2. Any problems arising in the course of implementation should be reported to the Ministry of Construction for consideration and settlement.-

For the Minister of Construction
Deputy Minister
NGUYEN TRAN NAM