Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on social housing development and management

DECREE

On social housing development and management[1]

Pursuant to the December 25, 2001 Law on Organization of the Government;

Pursuant to the November 25, 2014 Housing Law;

Pursuant to the June 18, 2014 Construction Law;

Pursuant to the November 29, 2013 Land Law;

At the proposal of the Minister of Construction,

The Government promulgates the Decree on social housing development and management.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Decree details and guides the implementation of a number of articles and clauses of Housing Law No. 65/2014/QH13 (below referred to as Housing Law) regarding social housing development and management.

2. The management and use of social houses built in the forms prescribed in Clause 1, Article 53 of the Housing Law must comply with the Decree detailing and guiding the implementation of a number of articles of the Housing Law.

3. Those who have signed contracts or received funds disbursed under the Government’s regulations on a number of solutions for removing difficulties for production and business, supporting the market, settling non-performing loans, and guiding documents issued by competent agencies are not governed by the this Decree.

Article 2.Subjects of application

This Decree applies to the following entities:

1. Organizations and individuals of domestic and foreign economic sectors and overseas Vietnamese investing in commercial housing projects or social housing projects for lease, lease-purchase or sale to eligible subjects in accordance with the Housing Law.

2. Households and individuals building social houses for lease, lease-purchase or sale to eligible subjects in accordance with the Housing Law.

3. Subjects eligible for housing support and entitled to rent, rent-purchase or purchase social houses in accordance with the Housing Law.

4. State management agencies and other organizations involved in social housing development and management.

Article 3.Interpretation of terms

In this Decree, the terms below are construed as follows:

1. Households and individuals means those who are named in household books or temporary residence registration books granted in accordance with the Law on Residence.

2. Industrial parks in the phrase “social houses built to meet the demand of households and individuals working in industrial parks” include industrial parks, economic zones, export processing zones, hi-tech parks, small- and medium-sized industrial complexes, industrial and cottage industry production establishments (including also exploiting and processing establishments), regardless of their trades and economic sectors.

3. Social houses for lease only means social houses built for lease.

Chapter II

SOCIAL HOUSING DEVELOPMENT

Article 4.Principles of determining land areas for social housing development

1. For special urban centers and grade-1, -2 and -3 urban centers, when formulating, appraising and approving urban master plans, land use master plans and plans, master plans on construction of rural residential areas and master plans on development of industrial parks, People’s Committees of provinces and centrally run cities (below referred to as provincial-level People’s Committees) shall base themselves on the demand for social housing in their localities to arrange land areas for social housing development; direct functional agencies to determine the specific location and size of each social housing project, ensuring synchronous technical and social infrastructure systems for social housing development.

2. Information on areas and locations of land parcels reserved for social housing development shall be published on the portals of provincial-level People’s Committees and provincial-level housing management agencies in accordance with the land and housing laws.

3. The use of land for social housing development must conform with approved urban planning, land use master plans and plans and master plans on construction of rural residential areas and comply with construction permits, for cases which require construction permits granted by competent state agencies in accordance with the construction law.

4. The change of the use purpose of adjacent horticultural land and other agricultural land for social housing development shall be decided by provincial-level People’s Committees, for organizations, and by district-level People’s Committees, for households and individuals.

Article 5.Land areas for building social houses under commercial housing development projects and urban development investment projects

1. Owners of commercial housing development projects and urban development investment projects (including also build-transfer (BT) and build-operate-transfer (BOT) projects), regardless of their land areas, in urban centers of grade 3 or higher grades and in areas planned as urban centers of grade 3 or higher grades, shall reserve 20% of the total residential land area stated in the detailed plan or total floor area approved by a competent agency, with built technical infrastructure facilities, for construction of social houses.

Owners of commercial housing development projects and urban development investment projects shall directly build social houses on the 20-percent land area reserved for building social houses (except cases when the State recovers the 20-pecent land area to build social houses with state budget funds and cases when project owners do not want to build social houses; in these cases, project owners shall transfer the land areas reserved for social housing to provincial-level People’s Committees of the localities where their projects are implemented).

2. For a commercial housing development or urban development investment project using less than 10 hectares of land, the owner may either reserve 20% of the project’s land area for building social houses under Clause 1 of this Article or hand over a number of houses equivalent to the value of the 20-percent land area, which shall be calculated at the land price at which the owner performs its  obligations toward the State at the time of handover of land, for construction of social houses, or pay a money amount equaling the value of the 20-percent land area, which shall be calculated at the land price at which the owner performs its obligations toward the State, to the local budget for investment in the construction of social houses in the locality.

3. In case the arrangement of the 20-percent land area for building social houses does not conform to the local master plan or the land arranged for building social houses is less than 20% of the project’s land area prescribed in Clause 1 of this Article, the provincial-level People’s Committee shall report such to the Prime Minister for consideration and approval.

4. For a commercial housing development or urban development investment project for which the owner has been selected before the effective date of this Decree but under which the 20-percent land area for building social houses has not yet been arranged, if after this Decree takes effect, the project is recovered in accordance with law and assigned to a new project owner, the new project owner shall formulate or adjust the project’s plan so as to arrange a 20-percent land area for building social houses under Clauses 1 and 2 of this Article.

5. In case the State invests state budget funds in building social houses on the 20-percent land areas reserved for building social houses under a commercial housing development or urban development investment project, the project owner shall build a synchronous technical infrastructure system under the approved master plan before handing over such land area to the State.

When handing over the 20-percent land area reserved for building social houses to the State, the project owner shall be refunded ground clearance compensation expenses, technical infrastructure construction expenses and other lawful expenses it has paid for such land area (or have such expenses cleared against the amount the project owner is obliged to pay into the state budget). The remaining amount, not yet refunded or cleared against (if any), shall be included in social house construction expenses of the State.

6. The arrangement of land for a social housing project directly implemented by State with central budget capital must comply with the following regulations:

a/ In case the capital amount allocated from the central budget for the project accounts for 50% or more of the project’s total investment, the provincial-level People’s Committee of the locality where the project is implemented shall assume the prime responsibility for, and coordinate with the Ministry of Construction in, considering and selecting a land area for the project’s implementation.

b/ In case the capital amount allocated from the central budget for the project accounts for less than 50% of the project’s total investment, the provincial-level People’s Committee of the locality where the project is implemented shall consider and select a land area for the project’s implementation.

Article 6.Land areas for social housing development in industrial parks

1. For an industrial park which is under construction, the local industrial park management board or the enterprise dealing in industrial park infrastructure shall take charge of ground clearance and building a technical infrastructure system for social houses for workers in the industrial park under the approved master plan and hand over such system to the owner of the social housing construction project selected under Article 8 of this Decree for the latter to implement the project. Expenses for compensation, ground clearance and construction of the technical infrastructure system for social houses shall be partially or wholly allocated to the cost price of dealing in the industrial park’s infrastructure.

2. For an industrial park which has been formed but does not have or still lacks accommodations for workers, the provincial-level People’s Committee shall formulate, appraise and approve (or adjust) the master plan so as to add an appropriate land area for social housing development; conduct compensation and ground clearance and recover land for allocation to the social house construction project owner selected under Article 8 of this Decree for implementing the project. Expenses for compensation and ground clearance shall be paid with land use levy and land rental retained by localities.

For an industrial park in which the industrial land area has not yet been fully occupied, the provincial-level People’s Committee shall adjust the construction master plan and land use master plan and plan to change the land use purpose according to its competence or propose the Prime Minister to consider and decide to use part of the industrial park’s land area to build social houses for workers in the industrial park.

3. The compensation and ground clearance to have land areas for building social houses for workers in industrial parks must comply with the land law.

Article 7.Types and standard areas of social houses

1. Types and standard areas of social houses must comply with the following regulations:

a/ Social houses being condominium apartments shall be designed and constructed as self-contained apartments according to construction standards and regulations and construction master plans approved by competent state agencies; each apartment must have a floor area of at least 25 m²and at most 70 m². Project owners may increase the construction density or land use coefficient by up to 1.5 times that prescribed in current standards and regulations promulgated by competent agencies.

Based on their local practical situation, provincial-level People’s Committees may increase the maximum standard area of each apartment by at most 10% of the standard area of 70 m²but must ensure that the number of apartments with a floor area exceeding 70 m²built under a social housing project does not exceed 10% of the total number of apartments of the project.

b/ Social houses being low semi-detached houses must conform with construction master plans approved by competent state agencies; the construction land area of each house must not exceed 70 m²and the land use coefficient must not exceed 2 times;

Projects to build low semi-detached houses for use as social houses shall be approved by provincial-level People’s Committees. For projects in special urban centers and grade-1 and -2 urban centers, provincial-level People’s Committees shall report and consult provincial-level People’s Councils before making investment policy decision.

c/ Social houses being individual houses built by households and individuals must meet construction quality standards and minimum construction conditions and conform with master plans promulgated with competent state agencies. The Ministry of Construction shall specifically guide design standards and promulgate regulations on minimum construction conditions applicable to individual houses used as social houses.

2. Social housing projects funded with state budget capital shall apply model designs or typical designs provided by competent agencies. In case project owners propose other designs, such designs shall be approved by agencies competent to make investment policy decision.

Article 8.Procedures for selection of owners of social housing projects

1. For social housing projects funded with the capital sources or implemented in the forms prescribed in Clause 1, Article 53 of the Housing Law with central budget capital, the Ministry of Construction shall propose the Prime Minister to decide on the selection of project owners.

Within 30 days after receiving the Ministry of Construction’s report, the Prime Minister shall issue a document on selection of the project owner or authorize the Ministry of Construction to select the project owner.

2. For social housing  projects funded with the capital sources or implemented in the forms prescribed in Clause 1, Article 53 of the Housing Law with local budget capital, provincial-level Construction Departments shall propose provincial-level People’s Committees to select project owners or authorize People’s Committees of urban districts, rural districts and towns (below referred to as district-level People’s Committees) to select project owners.

Within 30 days after receiving provincial-level Construction Departments’ reports, provincial-level People’s Committees shall issue documents on selection of project owners or authorize district-level People’s Committees to select project owners. If being authorized, within 30 days after receiving the provincial-level People’s Committees’ written authorization, district-level People’s Committees shall issue documents on selection of project owners.

3. For social housing projects neither funded with  the capital sources nor implemented in the forms prescribed in Clause 1, Article 53 of the Housing Law, provincial-level Construction Departments shall propose provincial-level People’s Committees to select project owners under Clause 2, Article 57 of the Housing Law and guiding documents issued by competent agencies.

Within 30 days after receiving provincial-level Construction Departments’ reports, provincial-level People’s Committees shall issue documents on selection project owners or authorize district-level People’s Committees to select project owners.  If being authorized, within 30 days after receiving provincial-level People’s Committees’ written authorization, district-level People’s Committees shall issue documents on selection of project owners.

4. Project owners shall carry out procedures for investment policy approval and decision; develop, appraise, approve and implement social housing projects in accordance with the housing and relevant laws.

5. The Ministry of National Defense and the Ministry of Public Security may implement social housing projects under this Decree to create accommodations for the subjects specified in Clause 6, Article 49 of the Housing Law in conformity with their current situation and particular conditions but shall adhere to the principle that each person receives support only once.

Article 9.Mechanisms on supports and incentives for social housing project owners

1. Owners of social housing projects not funded with state budget capital are entitled to land use levy or land rental exemption under Point a, Clause 1, Article 58 of the Housing Law, specifically as follows:

a/ They are exempted from land use levy or land rental for the land areas allocated or leased by the State, including the land areas for building business works approved by competent agencies within social housing projects;

Provincial-level People’s Committees shall consider and decide to refund or clear against the project owners’ financial obligations toward the State in case the project owners have paid land use levy amounts when being allocated land by the State or receiving land use rights transferred from other organizations, households or individuals, if the project owners use such land areas for building social houses or have paid land use levy for the 20-percent land area;

b/ Project owners are entitled to reserve 20% of the total land area for house construction under their social housing projects (including also projects using the 20-percent land area) for building commercial houses (including high-rises and low-rises) to cover part of investment expenses so as to reduce sale prices, rental rates and rent-purchase rates of social houses and social house management and operation expenses.

c/ For projects of which detailed plans approved by competent state agencies do not set aside separate land areas for building business works, their owners are entitled to reserve 20% of the total floor area of houses built under their projects for sale, lease or lease-purchase at business prices;

Income from business activities prescribed in this Clause shall be accounted into the projects’ income and must comply with the maximum profit norm prescribed in Article 21 of this Decree. In addition to the business area prescribed at Point c of this Clause, project owners shall arrange areas for common use by households (areas for community activities, parking, and other essential infrastructure facilities). These areas shall be determined according to current standards and regulations and planning-architectural plans approved by competent agencies.

2. Project owners are entitled to value-added tax and enterprise income tax exemption and reduction under Point b, Clause 1, Article 58 of the Housing Law and relevant tax laws.

Those who build social houses for lease only are entitled to a 70-percent reduction of value-added tax and enterprise income tax rates under current tax regulations applicable to social houses.

3. Project owners are entitled to borrow concessional loans from the Vietnam Bank for Social Policies or credit institutions under Point c, Clause 1, Article 58 of the Housing Law.

Those who build social houses for lease only are entitled to borrow concessional loans with a term of between 15 and 20 years. A project owner that wishes to borrow loans with a term of under 15 years may reach agreement with banks on a term shorter than the prescribed minimum term.

4. Project owners are entitled to support from provincial-level People’s Committees for part or the whole of expenses for construction of technical infrastructure systems within their social housing projects under Point d, Clause 1, Article 58 of the Housing Law.

Those who build social houses for lease only are entitled to support for the whole of expenses for construction of technical infrastructure systems.

5. Project owners shall be exempted from appraisal of basic designs if they use model or typical designs of social houses provided by competent agencies; and may themselves perform consultancy and construction and installation work if being capable to do so in accordance with the construction law.

6. Households and individuals participating in building social houses that meet the requirements prescribed in Clause 2, Article 58 of the Housing Law are entitled to the incentives prescribed at Point a, Clause 1, and in Clauses 2, 3 and 4, of this Article.

Article 10.Raising capital for social housing development

1. Capital for social housing development shall be raised by the State from the following sources:

a/ Direct investment capital from the central budget; government bonds (if any); local housing development funds (if any), funds lawfully established and operated by the Ministry of National Defense (if any); annual supports from local budgets according to resolutions of provincial-level People’s Councils; local administration bonds, housing bonds; and other lawful sources in accordance with law;

b/ Official development assistance (ODA) and other foreign loans (if any).

2. Non-state budget capital raised by entities from different economic sectors (including households and individuals) engaged in social housing development, including:

a/ Own capital of project owners, households or individuals;

b/ Concessional loans borrowed from the Vietnam Bank for Social Policies or credit institutions designated by the State under Chapter III of this Decree;

c/ Government-guaranteed bonds issued under regulations on issuance of government bonds, local administration bonds and corporate bonds;

d/ Commercial loans borrowed from credit institutions established and operating in accordance with law;

dd/ Loans borrowed from local housing development funds (if any) and the funds lawfully established and operated by the Ministry of National Defense (if any).

e/ Capital raised from other lawful sources in accordance with law.

Article 11.Social housing development in the form of build-transfer

1. Based on approved local social housing development master plans and plans, provincial-level Construction Departments shall make a list of social housing projects to be implemented in the BT form and determine conditions for BT investor selection and report them to provincial-level People’s Committees for approval. The list of social housing projects implemented in the BT form as well as information relating to these projects and conditions for investor selection shall be published on the portals of the provincial-level People’s Committees and provincial-level Construction Departments for at least 30 days for registration by investors.

2. The selection of social housing project owners must comply with the housing and relevant laws.

3. Provincial-level Construction Departments shall propose provincial-level People’s Committees to consider and sign or authorize provincial-level Construction Departments to sign BT contracts. BT investors shall formulate and submit to competent agencies for appraisal and approval 1:500-scale detailed plans (for projects to be implemented in areas for which 1:500-scale detailed plans are unavailable) and develop social housing projects for appraisal and approval in accordance with the housing and relevant laws.

4. The construction of social houses under BT social housing projects must comply with the construction law.

5. After completing the construction and acceptance test of social houses under BT contracts, BT investors shall hand over these houses to provincial-level Construction Departments for management and operation under regulations.

6. The payment for BT investors must comply with current laws.

Article 12.Purchase of commercial houses for use as social houses

1. In case of lack of social houses, competent agencies may base themselves on Clause 2 of this Article to purchase houses built under commercial housing projects for use as social houses, provided such commercial houses meet quality standards prescribed by the construction law and conform with regulations on types and standard areas of social houses.

2. The purchase of commercial houses for use as social houses is prescribed as follows:

a/ For cases in which the purchase is made with central budget capital, the Ministry of Construction shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, preparing and submitting house purchase projects to the Prime Minister for approval, or preparing and approving such projects, if authorized by the Prime Minister;

b/ For cases in which the purchase is made with capital of the Ministry of National Defense or Ministry of Public Security, the Ministry of National Defense or Ministry of Public Security shall assign its attached agencies to prepare and submit house purchase projects to the Ministry of National Defense or Ministry of Public Security for approval, or prepare and approve such projects, if authorized;

c/ For cases in which the purchase is made with local budget capital, provincial-level Construction Departments shall assume the prime responsibility for, and coordinate with provincial-level Finance Departments in, preparing and submitting house purchase projects to provincial-level People’s Committees for decision and approval;

d/ A project to purchase commercial houses for use as social houses must specify the position, types and number of houses; area of houses of each type, purchase and sale prices of houses and related expenses, capital sources for house purchase, method of payment for house purchase, agency signing house sale and purchase contracts, agency in charge of managing purchased houses, and responsibilities of related agencies for project implementation.

3. Order and procedures for purchasing commercial houses for use as social houses:

a/ Based on the approved house purchase project, the agency assigned to act as project owner shall sign a  house sale and purchase contract with the commercial housing project owner under regulations on sale and purchase of commercial houses;

b/ Based on the signed house sale and purchase contract, the commercial housing project owner shall hand over houses and provide relevant legal documents to the purchaser;

c/ After receiving houses, the social housing project owner shall manage such houses in accordance with the Housing Law and the Decree detailing and guiding the implementation of a number of articles of the Housing Law;

d/ The commercial housing project owner shall request competent agencies to grant certificates of land use rights and ownership of houses and other land-attached assets (below referred to as certificates) to the house purchaser. For the case prescribed at Point a, Clause 2 of this Article, certificates shall be granted to the Ministry of Construction; for the case prescribed at Point b, Clause 2 of this Article, certificates shall be granted to the Ministry of National Defense or Ministry of Public Security, for the case prescribed at Point b, Clause 2 of this Article, certificates shall be granted to provincial-level People’s Committees or provincial-level Construction Departments.

The order and procedures for grant of certificates to the agencies prescribed at this Point must comply with the land law.

Chapter III

BORROWING OF CONCESSIONAL LOANS FOR IMPLEMENTATION OF SOCIAL HOUSING POLICIES

Article 13.Principles of implementation of concessional loan policy

1. Concessional loans shall be provided to eligible subjects and must meet prescribed conditions.

2. A subject eligible for concessional loans under different housing support policies is only entitled to the highest support level.

3. A household with many members being eligible for concessional loans under different support policies is only entitled to one of these policies.

4. The Vietnam Bank for Social Policies or credit institutions designated by the State Bank of Vietnam shall provide concessional loans under the social housing support policy, ensuring conformity with the housing, credit and relevant laws.

5. When borrowing concessional loans from the Vietnam Bank for Social Policies, households and individuals shall make a savings deposit at the Vietnam Bank for Social Policies for a term of at least 12 months at levels set by the lender.

Article 14.Borrowing of concessional loans under target housing programs

1. The subjects prescribed in Clauses 1, 2 and 3, Article 49 of the Housing Law may borrow concessional loans to built, renovate or repair houses under specific regulations of each target program decided by the Government or the Prime Minister.

2. Loan conditions, levels, terms and interest rates, and policies on handling of debts and loan security and loan extension must comply with specific provisions in decisions approving relevant target housing programs issued by competent state agencies.

Article 15.Borrowing of concessional loans for social housing construction

1. Eligible subjects:

a/ Enterprises and cooperatives being owners of projects to build social houses for lease, lease-purchase or sale, which are neither funded with the capital sources nor implemented in the forms prescribed in Clause 1, Article 53 of the Housing Law;

b/ Enterprises and industrial production or service cooperatives that build houses for their workers without collection of rental or with collection of rentals at a rate not exceeding the social house rental rates set by provincial-level People’s Committees;

c/ Households and individuals that build social houses for lease, lease-purchase or sale.

2. Conditions for borrowing loans applicable to the subjects prescribed at Points a and b, Clause 1 of this Article:

a/ Being established and operating in accordance with law; having their social housing projects included in social housing development programs or plans approved by competent agencies;

b/ Having investment projects on which investment policy has been decided by competent authorities in accordance with the investment and housing laws;

c/ Having obtained land allocation decisions or acquired land use rights in accordance with the land law and having completed compensation and ground clearance work;

d/ Having been granted construction permits in accordance with the construction law;

dd/ Having the minimum capital for project implementation and having a loan borrowing plan as required by lenders;

e/ Having loan security and mortgages in accordance with law.

3.  To be entitled to borrow loans, subjects specified at Point c, Clause 1 of this Article must have investment plans approved by competent authorities and satisfy the conditions prescribed at Points c, d, dd and e, Clause 2 of this Article.

4. Loan levels:

a/ For a project to build social houses for lease: The maximum loan level must equal up to 80% of the total investment of the project or loan borrowing plan but must not exceed 80% of the value of loan security assets;

b/ For a project to build social houses for lease-purchase or sale: The maximum loan level must equal up to 70% of the total investment of the project or loan borrowing plan but must not exceed 70% of the value of loan security assets.

5. Loan terms:

a/ For projects to build social houses for lease, loan terms must be at least 15 years and at most 20 years, counted from the date of first disbursement;

b/ For projects to build social houses for lease-purchase, loan terms must be at least 10 years and at most 15 years, counted from the date of first disbursement;

c/ For projects to build social houses for sale, loan terms must be at least 5 years and at most 10 years, counted from the date of first disbursement;

d/ Those who wish to borrow loans with a term shorter than the minimum loan term specified at Point a, b or c of this Clause may reach an agreement thereon with the lender.

6. The payment of loan principal and interest must comply with the lender’s regulations.

7. Loan interest rates:

a/ The interest rates on concessional loans provided by the Vietnam Bank for Social Policies shall be decided by the Prime Minister at the request of the Bank’s Board of Management for each period;

b/ The interest rates on concessional loans provided by credit institutions shall be determined and announced by the State Bank of Vietnam, which must not exceed 50% of the average market lending interest rate applied by banks in the same period.

8. Loan disbursement: Loans shall be disbursed according to project implementation schedules and project owners’ requests. The money amount disbursed at each time must depend on the completed work volume at each technical cessation point.

Article 16.Concessional loans for purchase, rent and rent-purchase of social houses and house construction, upgrading or repair

1. Eligible borrowers are those specified in Clauses 1, 4, 5, 6 and 7, Article 49 of the Housing Law.

2. Conditions for a household or an individual to borrow loans for purchase, rent or rent-purchase of a social house:

a/ Having the minimum capital for borrowing a loan as required by the Vietnam Bank for Social Policies or a state-designated credit institution;

b/ Possessing a complete dossier as prescribed in Article 22 of this Decree;

c/ Having income and capability to repay loans as committed with the Vietnam Bank for Social Policies or a state-designated credit institution;

d/ Filing a written request for a loan to purchase, rent or rent-purchase a social house, which must specify the commitment by the individual or household members that they have not borrowed any concessional loans from another bank for purchase, rent or rent-purchase of social houses;

dd/ Having a contract on purchase, rent or rent-purchase of a social house with the project owner in accordance with this Decree and the housing law;

e/ Providing loan security with assets formed from the loan in accordance with law. The lending bank, project owner and borrower shall clearly specify the methods of management and disposal of security assets under a tripartite contract.

3. Conditions for a household or an individual to borrow a loan for house construction, upgrading or repair:

a/ Having the minimum capital for borrowing a loan as required by the Vietnam Bank for Social Policies or a state-designated credit institution;

b/ Having a complete dossier as prescribed in Article 22 of this Decree;

c/ Having income and capability to repay the loan as committed with the lending credit institution;

d/ Filing a written request for a loan for house construction, upgrading or repair, which must specify the commitment by the individual or household members that they have not borrowed any concessional loans for social housing support from another bank;

dd/ Possessing a certificate of the rights to use land and own houses and other land-attached assets in the place of permanent residence registration granted by a competent state agency in accordance with the land law;

e/ Having a design and cost estimate or cost calculation plan in accordance with the construction law;

g/ Making loan security with the value of the rights to use residential land and land-attached assets or other assets in accordance with law.

4. Loan levels:

a/ For purchase, rent or rent-purchase of a social house, the loan must not exceed 80% of the value of the contract on social house purchase, rent or rent-purchase;

b/ For house construction, upgrading or repair, the loan must not exceed 70%  of the value of the cost estimate or loan borrowing plan and must not exceed 70% of the value of security assets.

5. Loan interest rates:

a/ The concessional loan interest rate at the Vietnam Bank for Social Policies shall be decided by the Prime Minister at the proposal of the Board of Management for each period;

b/ The concessional loan interest rate at credit institutions shall be decided by the Prime Minister at the proposal of the State Bank of Vietnam for each period.

6. Loan term: The term of a loan must be at least 15 years from the date of first disbursement of the loan. A borrower that wishes to borrow the loan for a term shorter than the minimum term may reach agreement with the bank on a shorter term.

7. The payment of loan principal and interest must comply with the lenders’ regulations.

8. Loan disbursement: A loan shall be disbursed under the loan contract signed between a household or an individual and the lending credit institution.

Article 17.Sources of concessional loans for implementation of social housing policy

1. Concessional loans through the Vietnam Bank for Social Policies:

a/ On the basis of approved annual plans, the state budget shall provide 100% of the capital for the Vietnam Bank for Social Policies to lend to eligible borrowers prescribed in Clause 1, Article 14, and Clause 1, Article 15, of this Decree;

b/ On the basis of approved annual plans, the state budget shall provide 50% of the capital; the Vietnam Bank for Social Policies shall provide 50% of the capital from savings deposits of borrowers and raised capital, and state budget shall offset the interest difference and management expenses for the Vietnam Bank for Social Policies under regulations, for provision of loans to borrowers prescribed in Clause 1, Article 16 of this Decree;

c/ Entrusted capital from local housing development funds (if any), annual local budget support, capital from the issuance of housing bonds and debentures and other lawful sources as prescribed by law which are approved by provincial-level People’s Committees for fulfillment of social housing targets and plans decided by provincial-level People’s Councils.

2. Concessional loans from credit institutions:

On the basis of approved social housing development programs and plans in each period, the state budget shall offset interests for state-designated credit institutions to provide loans to borrowers that invest in social housing construction or are entitled to social housing support policies at an interest rate not exceeding 50% of the average market lending interest rate in the same period.

Article 18.Management and use of capital for concessional loans

1. The Vietnam Bank for Social Policies or state-designated credit institutions shall manage capital for, and manage the use of, concessional loans for social housing support.

2. The handling of non-performing loans must comply with the Prime Minister’s regulations.

3. The Vietnam Bank for Social Policies and credit institutions shall, depending on their assigned functions, tasks and powers, specifically guide the mechanism for raising of savings and contents related to concessional loans.

Chapter IV

SOCIAL HOUSING MANAGEMENT AND USE

Article 19.Provisions on sale, lease and lease-purchase of social houses

1. Social houses shall be sold, leased or leased-sold to the subjects and on the conditions prescribed in Articles 49 and 51 of the Housing Law. Every household or individual may receive social housing support only once in accordance with Article 52 of the Housing Law.

2. The sale, lease and lease-purchase of state-invested social houses must comply with the law on management and use of state-owned houses.

3. The lessee of a social house may not lease or transfer this house in any form during the house rent term under the contract signed with the lessor.

4. The purchaser or lessee-purchaser of a social house may neither mortgage (except in case of bank mortgage for a loan to purchase or rent-purchase that house) nor transfer this house in any form within at least 5 years from the time of making full payment for that house under the contract signed with the seller or lessor-seller; and may sell, mortgage or lease this house only after obtaining a certificate of land use rights and ownership of houses and other land-attached assets in accordance with the land law.

From the time the purchaser or lessee-purchaser of a social house may sell this house, in addition to payable amounts upon house sale as prescribed by law, the seller of a condominium apartment or a low semi-detached house shall pay to the State respectively 50% or 100% of the value of the land use levy for that apartment or house at the land price set by the provincial-level People’s Committee at the time of house sale.

5. Within 5 years from the time of making full payment for a social house, the purchaser or lessee-purchaser that wishes to sell this house may only sell it to the State (in case he/she rents a state-invested social house) or to the owner of the social housing construction investment project (in case he/she purchases or rents a social house built with non-state funds) or to those eligible to purchase and rent-purchase social houses prescribed in Article 49 of the Housing Law, at a price maximum equal to the sale price of social houses of the same category in the same place and at the same time, and is not required to pay personal income tax.

6. The owner of a project to build social houses for lease may only sell these houses at least 10 years after completing the house handover for lease to those prescribed in Article 49 of the Housing Law at a price maximum equal to that of social houses of the same category at the same time.

7. In case of purchase or rent-purchase of individual social houses invested by households or individuals, the transfer of land use rights must comply the land law.

8. Pursuant to this Decree and guiding documents promulgated by competent agencies, provincial-level People’s Committees shall specify the approval and order of priority for those wishing to purchase, rent or rent-purchase social houses in their localities in conformity with their local situations and socio-economic conditions.

9. The Ministry of National Defense and Ministry of Public Security shall specify subjects of and conditions for purchase, rent and rent-purchase of social houses built under projects implemented by the two ministries after reaching written agreement with the Ministry of Construction.

Article 20.Order and procedures for purchase, rent and rent-purchase of social houses

1. For a social house project invested with non-state funds

a/ After starting the project construction, the owner of the social housing construction project shall provide information on the project (project name; project owner; project construction site; contact address, address for submission of registration applications; project implementation schedule; project size; number of apartments (including numbers of apartments for sale, lease and lease-purchase); apartment area; prices of sale, lease and lease-purchase (temporarily calculated) for each category of apartments; time for starting and closing the receipt of registration applications and other related contents) for posting on the portal of the provincial-level Construction Department of the locality where the project is located, for publication at least once on the official newspaper of the local administration and for announcement on the project owner’s real estate trading floor (if any) for the people’s information, registration, monitoring and supervision;

b/ Before its sale, lease and lease-purchase, the owner of the social housing construction project shall report in writing on the numbers of apartments on sale, lease and lease-purchase and the time of the sale, lease and lease-purchase to the provincial-level Construction Department for information and examination and posting of such on the portal of the provincial-level Construction Department of the locality where the project is located for at least 30 working days from the time of starting receiving registration dossiers for purchase, rent and rent-purchase of houses of the project;

c/ On the basis of information on the social housing project in the locality published under Point a of this Clause, households and individuals wishing to register their purchase, rent or rent-purchase of social houses shall submit dossiers to the project owner under Article 22 of this Decree and the Ministry of Construction’s specific guidance;

d/ After collecting all registration papers of applicants, the owner of the social housing construction project shall consider every registration dossier under regulations on subjects and conditions prescribed in Articles 49 and 51 of the Housing Law, provisions of this Decree and the Ministry of Construction’s specific guidance in order to make a list of subjects eligible to purchase, rent and rent-purchase social houses in its project.

In case a person wishing to purchase, rent or rent-purchase a social house has submitted a valid dossier under Article 22 of this Decree to the project owner but the project has no house left, the project owner shall return the dossier (including papers proving eligibility to purchase, rent or rent-purchase social houses submitted by the applicant), clearly stating the reason, to the applicant for information and submission of his/her dossier to another project.

When an applicant submits a dossier, the person receiving that dossier shall issue a receipt slip. If the dossier is invalid (failing to comply with Article 22 of this Decree), this person shall clearly write the reason and return the dossier to the applicant for supplementation and finalization of the dossier;

dd/ The social housing construction project owner shall send the list of expected purchasers, lessees and lessees-purchasers of social houses in the order of priority (on the basis of scoring according to the principles prescribed in Article 23 of this Decree) to the provincial-level Construction Department of the locality where the project is located for examination to exclude those that have received support.

In case an expected purchaser, lessee or lessee-purchaser of a social house on the list made by the project owner has received house and residential land support from the State under regulations or has purchased, rented or rented-purchased a social house in another project, the provincial-level Construction Department shall send a notice to the project owner for removal of this person from the list. If the provincial-level Construction Department gives no feedback within 15 working days after receiving the list, the project owner shall notify purchasers, lessees and lessees-purchasers of social houses in its project to come for discussion, agreement and contract signing.

For a person who satisfies all the conditions and has been included in the list of purchasers, lessees and lessees-purchasers of social houses of the project but no longer wishes to purchase, rent or rent-purchase a social house, the project owner shall return the dossier (including papers proving eligibility for purchase, rent or rent-purchase of social houses) to this person.

e/ Each household or individual may only submit a registration dossier for purchase, rent or rent-purchase of social houses at one project. In case the project has no house left for sale, lease or lease-purchase, the project owner shall state the reason and return the dossier to the applicant for submission at another project.

The purchaser, lessee or lessee-purchaser of a social house may make payment directly to the project owner or through a bank as agreed by the two parties;

g/ After signing contracts on purchase and sale, lease, and lease-purchase of social houses, the project owner shall make a complete list of purchasers, lessees and lessees-purchasers of social houses (including household members) and send it to the provincial-level Construction Department of the locality where the project is located for public announcement for 30 working days (from the date of receiving this list) and for archives to serve management and examination (post-registration inspection). The project owner shall concurrently post up this list at its office and its real estate trading floor or on its website on social housing (if any).

2. For social houses invested by a household or an individual

a/ The household or individual investing in social houses shall report in writing on the construction site; construction schedule; size and number of apartments, including numbers of apartments for sale, for lease and for lease-purchase; sale, lease and lease-purchase prices of houses; and time for starting sale, lease and lease-purchase of houses, to the commune-level People’s Committee of the locality where houses are built, for posting up at the office of the commune or ward for the local administration’s and people’s information, monitoring and supervision;

b/ On the basis of information on social houses in the locality published under regulations, persons wishing to register their purchase, rent or rent-purchase of social houses shall submit dossiers to the household owner investing in social housing construction under Article 22 of this Decree;

c/ After collecting all registration dossiers of applicants, the owner of the household or individual investing in social housing construction shall send a list of expected purchasers, lessees and lessees-purchasers of social houses to the commune-level People’s Committee before signing contracts on purchase, rent or rent-purchase of social houses with these purchasers, lessees and lessees-purchasers;

d/ The commune-level People’s Committee shall copy registration dossiers and the list of expected purchasers, lessees and lessees-purchasers of social houses and send them to the provincial-level Construction Department for examination to exclude those who have received support.

Article 21.Prices of sale, lease and lease-purchase of social houses

1. The sale price of a social house shall be set by the project owner on the basis of fully calculating expenses to retrieve house construction investment capital, loan interests (if any) and a profit for the whole project which must neither exceed 10% of the total investment cost nor include the State’s incentives prescribed in Article 58 of the Housing Law.

2. The rent-purchase price of a social house shall be set by the project owner on the basis of fully calculating expenses to retrieve house construction investment capital, loan interests (if any) and a profit for the whole project which must neither exceed 15% of the total investment cost nor include the State’s incentives prescribed in Article 58 of the Housing Law.

The lessee-purchaser of a social house shall make the first payment equal to 20% of the house value and periodical payments for the remaining value as agreed with the lessor-seller, counted from the time of handover of that house. The rent-purchase term of a social house must be at least 5 years from the time the lessor hands over the house to the lessee.

3. The rent rate of a social house shall be set by the project owner on the basis of fully calculating expenses for maintenance; expenses to retrieve house construction investment capital, loan interests (if any) and a profit for the whole project which must neither exceed 15% of the total investment cost nor include the State’s incentives prescribed in Article 58 of the Housing Law. The capital retrieval period must be at least 15 years from the date of contract signing.

4. Provincial-level People’s Committees shall assign specialized agencies to appraise sale, rent and rent-purchase prices of social houses built under construction investment projects with non-state funds in their localities.

5. For a social house invested by a household or an individual for lease, lease-purchase or sale, the household or individual shall set its price which must not exceed the price bracket set by the provincial-level People’s Committee.

6. The lessee of a social house shall pay the lessor a deposit as agreed by the two parties, which must be neither higher than the rental of 12 months nor lower than the rental of 3 months, to secure the fulfillment of the lessee’s obligations.

The lessor and lessee of a social house may reach agreement on a deposit higher than the level prescribed in this Clause, which, however, must not exceed 50% of the value of the leased house. A lessee that pays the deposit prescribed in this Clause is entitled to rental reduction or exemption from rental for a certain period as agreed by the two parties.

A person who is the member of a poor household or of a household living just above the poverty line or is a person prescribed in Clause 1, 3, 9 or 10, Article 49 of the Housing Law is not required to pay a deposit when renting a social house.

7. A person that purchases, rents or rents-purchases a social house may borrow a concessional loan from the Vietnam Bank for Social Policies or a state-designated credit institution to pay for the purchase, rent or rent-purchase in accordance with Chapter III of this Decree.

8. The Ministry of Construction shall guide pricing methods for sale, lease and lease-purchase of social houses.

Article 22.Dossiers proving eligible subjects and eligibility for social housing support policy

1. When requesting social housing support, a subject prescribed in Article 49 of the Housing Law that has not enjoyed any social housing support policy shall make an application for housing support and must have papers proving his/her eligibility, specifically as follows:

a/ A subject prescribed in Clause 1, Article 49 of the Housing Law must have papers proving his/her eligibility as prescribed by the law on persons with meritorious services to the revolution and a certification of his/her housing status and that he/she has not received any state support, which is granted by the commune-level People’s Committee of the locality of his/her permanent residence registration;

b/ A subject prescribed in Clause 4, 5, 6 or 7, Article 49 of the Housing Law must have his/her employer’s certification of his/her eligibility and housing status;

c/ A subject prescribed in Clause 8, Article 49 of the Housing Law must have a written certification of his/her return of the official-duty house, which is granted by the agency managing official-duty houses;

d/ A subject prescribed in Clause 9, Article 49 of the Housing Law must have a certificate granted by the training institution where he/she is studying;

dd/ A subject prescribed in Clause 10, Article 49 of the Housing Law must have a certified copy proving he/she is named on a competent agency’s list of those subject to recovery of residential land, houses and other land-attached assets, together with a written certification that this person has not received any state compensation in house and residential land for resettlement, which is granted by the district-level People’s Committee of the locality where he/she has his/her house and land recovered.

2. Papers proving satisfaction of the residence condition are as follows:

a/ An applicant for purchase, rent or rent-purchase of a social house that has permanent residence registration in the province or centrally run city where the social house is located must have a certified copy of the permanent residence registration book or collective residence registration certificate in that locality;

b/ An applicant for purchase, rent or rent-purchase of a social house that does not have permanent residence registration as prescribed at Point a of this Clause must have a certified copy of the temporary residence registration certificate; certified copy of the labor contract with a term of at least one year by the time of application submission or indefinite-term contract and a written certification of (or a paper proving) payment of social insurance premiums, which is granted by the insurance agency in the province or centrally run city where this person registers social housing purchase, rent or rent-purchase. A person who works at a branch or representative office in the province or centrally run city where the social house is located but pays insurance premiums in the locality where the head office is based must have a written certification of his/her insurance payment by the head office.

3. Papers proving satisfaction of the income condition are as follows:

a/ A subject prescribed in Clause 5, 6 or 7, Article 49 of the Housing Law must have his/her employer’s certification of his/her income level not subject to regular income tax payment as prescribed by the law on personal income tax;

b/ A subject prescribed in Clause 4, Article 49 of the Housing Law shall declare his/her income level and shall take responsibility for the declared information. The provincial-level Construction Department shall, when necessary, contact the local Tax Department to verify income tax of this person.

4. A subject prescribed in Article 49 of the Housing Law must satisfy the conditions for enjoying housing support policies prescribed in Article 51 of the Housing Law. In case he/she owns a house, this house must have a per capita average area of under 10 m².

5. The Ministry of Construction shall promulgate forms of papers for implementation of this Article.

Article 23.Principles and criteria for approval of purchasers, lessees and lessees-purchasers of social houses

1. Principles of approval of purchasers, lessees and lessees-purchasers of social houses built under projects:

a/ In case the total number of (valid) registration dossiers for purchase, rent and rent-purchase is equal to or smaller than the total number of apartments announced by the project owner, apartments shall be selected under agreement between the project owner and clients;

b/ In case the total number of (valid) registration dossiers for purchase, rent and rent-purchase is larger than the total number of apartments announced by the project owner, the approval and selection of applicants shall be conducted by scoring according to the criteria prescribed in Clause 2 of this Article.

After approving and selecting sufficient valid dossiers corresponding to the total number of apartments announced by the project owner, the identification of each specific apartment before contract signing shall be conducted according to the principle agreed between the project owner and clients. In case the number of valid dossiers with the same score exceeds the total number of available apartments, the project owner shall conduct selection through open draw;

c/ A registered purchaser, lessee or lessee-purchaser of a social house in a project whose need is not satisfied may have his/her dossier returned for registration at another project if he/she does not like other remaining apartments in that project.

2. Scores shall be determined on the basis of the following specific criteria:

3. Based on the principles and scoring criteria prescribed in Clauses 1 and 2 of this Article, provincial-level People’s Committees shall specify criteria of priority for selection of purchasers, lessees and lessees-purchasers of social houses in their localities, which must not be higher than the criteria prescribed at Point 4, Clause 2 of this Article, for project owners, households and individuals to follow in the sale, lease and lease-purchase of social houses to proper subjects as prescribed.

4. Project owners and households and individuals investing in social housing construction shall sell, lease and lease-sell social houses built by them according to the principles and scoring criteria prescribed in Clauses 1 and 2 of this Article and specific regulations promulgated by provincial-level People’s Committees (if any).

5. A subject prescribed in Clause 6, Article 49 of the Housing Law may register to purchase, rent or rent-purchase a social house in a project invested by any economic sector or a project implemented by the Ministry of National Defense or the Ministry of Public Security but may receive support only once.

The Ministry of National Defense and Ministry of Public Security shall specify criteria for approval of subjects and conditions for purchase, rent and rent-purchase of social houses in their social housing construction projects suitable to specific characteristics of the armed forces, and send them to the Ministry of Construction for written agreement before promulgation. Within 15 working days, the Ministry of Construction shall give reply on the consulted issues.

For registration of purchase, rent and rent-purchase of social houses in projects invested by various economic sectors, the principles and criteria for approval of subjects must comply with Clauses 1 and 2 of this Article.

Article 24.Contracts on purchase and sale, rent and rent-purchase of social houses

1. The purchase and sale, rent and rent-purchase of social houses prescribed in the Housing Law and this Decree shall be agreed by involved parties on the basis of the model contract promulgated by the Ministry of Construction.

2. A contract on social house rent shall be signed between the project owner or an enterprise entrusted by the project owner to manage and operate social houses and the lessee.

3. Upon expiration of a contract, if the lessee is still eligible and satisfies the conditions for social housing rent, the parties may reach agreement to sign another house rent contract. Three months before the rent contract expires, if the lessee still wishes to rent the house and does not fall into any of the cases subject to house rent contract termination under the signed house rent contract, he/she may sign a new house rent contract or extend the social house rent contract.

Article 25.Management of social housing quality

1. The management of construction work quality of social housing construction projects must comply with the law on construction work quality management.

2. Social houses built by households and individuals must comply with the laws on construction planning, urban planning and planning of rural residential points and must obtain a construction permit in accordance with the construction law.

Article 26.Operation and use management of social houses

1. The operation and use management of state-invested social houses must comply with the law on management and use of state-owned houses.

2. Project owners shall manage the use, operation and exploitation of social houses invested with non-state funds. A project owner shall set aside at least 20% of the total floor area within the project for lease. At least 5 years after starting the lease, the project owner may sell these houses to current lessees or those prescribed in Article 49 of the Housing Law at the price prescribed in Article 21 of this Decree.

3. The management and use of social houses being condominiums must comply with the housing law.

Social housing management and operation services are entitled to mechanisms applicable to public services.

4. A social house management, operation and exploitation unit may commercially provide other services in accordance with law within the social housing area to create funds to offset expenses for management, operation and maintenance in order to reduce expenses for social housing management and use services.

5. For social houses invested by households and individuals:

a/ The owner of houses for lease may itself/himself/herself manage or hire or entrust a unit licensed to provide housing management services to manage and operate, its/his/her invested houses;

b/ During the house lease term under the signed contract, the house owner may sell the house to the lessee, if this person wishes to buy it, and is not required to pay land use levy to the State when selling this house;

c/ A house owner is entitled to benefits and shall fulfill obligations toward its/his/her houses in accordance with the civil law and housing law;

d/ The Ministry of Construction shall promulgate specific regulations on quality management, exploitation, use and management of social houses built by households and individuals for sale, lease and lease-purchase.

Article 27.Rights, obligations and responsibilities of sellers, lessors, lessors-sellers and purchasers, lessees, lessees-purchasers of social houses

1. The seller, lessor or lessor-seller and purchaser, lessee or lessee-purchaser of a social house shall exercise the following rights and fulfill the following obligations:

a/ For the seller, lessor or lessor-seller:

- To strictly implement terms and provisions of the signed contract on house purchase and sale, lease, or lease-purchase;

- To terminate the contract on house purchase and sale, lease, or lease-purchase as agreed under the signed contract;

- To form a social house management board and issue the Regulation on social housing management under the Ministry of Construction’s guidance, for social houses being condominiums;

- For social house lease, the lessor may recover the leased house upon termination of the house rent contract, but shall notify such to the lessee at least one month in advance and return the lessee the deposit and pre-paid rental (if any) as agreed under the house rent contract;

- To collect service charges for social housing management and use as agreed under the signed contract and the Regulation on social housing management;

- Not to increase the sale, lease or lease-purchase price of houses without permission from competent agencies as prescribed in this Decree;

- To observe competent agencies’ decisions on handling of violations and settlement of complaints and disputes related to the purchase and sale, lease or lease-purchase of social houses;

- To exercise other rights and fulfill other obligations as prescribed by law.

b/ For the purchaser, lessee or lessee-purchaser:

- To terminate the contract on social house purchase and sale, rent or rent-purchase as agreed under the signed contract;

- To implement terms and provisions of the signed contract on social house purchase and sale, rent or rent-purchase and the Regulation on management of social houses for lease promulgated by a competent agency;

- To observe competent agencies’ decisions on handling of violations and settlement of complaints and disputes related to the purchase and sale, lease or lease-purchase of social houses, and to exercise other rights and fulfill other obligations as prescribed by law;

- For social houses for lease, to return the house to the lessor as agreed under the signed house rent contract; if unilaterally terminating the contract ahead schedule, to notify such to the lessor at least one month in advance; if having paid the rental for the whole rent term under the contract, to receive the prepaid rental for the remaining rent period and the deposit (if any); to purchase the leased house if the house owner sells the house in accordance with this Decree and relevant laws on housing; not to maintain and upgrade the leased house or use it for other purposes or lease or lend it to another person without permission; not to transfer the house rent contract or swap the leased house without the lessor’s consent.

2. Pursuant to this Decree and guiding documents of competent agencies, the parties shall reach agreement and clearly write their rights and obligations in the contract on social house purchase and sale, lease or lease-purchase.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 28.Responsibilities of the Ministry of Construction

1. To perform its assigned tasks in accordance with the Housing Law and this Decree.

2. To promulgate according to its competence the model design and typical design of a social house and the Regulation on management of the use, operation and exploitation of the social housing fund.

3. To direct and assign tasks to its attached state enterprises to coordinate with provincial-level People’s Committees in developing social houses in accordance with this Decree.

4. To assume the prime responsibility for, and coordinate with ministries, sectors and provincial-level People’s Committees in, guiding, examining and inspecting the development and management of social houses according to its competence; to review and evaluate the implementation of this Decree; to submit amendments and supplements to suit the practical situation to the Government for consideration and decision.

5. To join the Council for management of capital sources and management of the use of concessional loans for social housing development and support households and individuals in borrowing loans for purchase, rent and rent-purchase of social houses.

6. To perform other tasks and exercise other powers as prescribed by law.

Article 29.Responsibilities of related ministries and sectors

1. The Ministry of Planning and Investment:

a/ To assume the prime responsibility for, and coordinate with ministries and sectors in, reviewing, proposing and allocating funds from the central budget under medium-term and annual plans through the Vietnam Bank for Social Policies and state-designated credit institutions for the implementation of social housing support policies;

b/ To assume the prime responsibility for studying and proposing competent agencies to consider and add social housing projects to the list of projects entitled to concessional loans or investment support (including ODA funds) in accordance with the housing and investment laws;

c/ To assume the prime responsibility for, and coordinate with ministries and sectors in, guiding the mobilization of national debentures, bonds, ODA funds, concessional loans of donors, and development investment credit loans of the State (including ODA funds) for the implementation of policies on development and management of social houses for lease and lease-purchase in accordance with the Housing Law and this Decree.

2. The Ministry of Finance:

a/ To guide the implementation of incentives related to financial, tax and credit policies, method of formation and creation of investment funds at industrial manufacture enterprises, issue of government-guaranteed bonds, bonds of local administrations and corporate bonds for the implementation of policies on development and management of social houses for lease and lease-purchase in accordance with the Housing Law and this Decree;

b/ To coordinate with the Ministry of Planning and Investment and related ministries and sectors in, allocating central budget funds under annual plans through the Vietnam Bank for Social Policies and state-designated credit institutions for the implementation of support policies on preferential lending to eligible households and individuals upon purchase, rent and rent-purchase of social houses; to provide concessional loans to enterprises and cooperatives being social housing construction project owners and households and individuals participating in social housing construction in accordance with the Housing Law and this Decree;

c/ To provide specific guidance on the exemption from land use levy and land rental, refund prescribed in Clause 1, Article 9, and the method for determination of the value of land use levy payable by social house sellers prescribed in Clause 4, Article 19 of this Decree;

d/ To guide according to its competence or propose a competent agency to prescribe the exemption from and reduction of value-added tax, enterprise income tax, personal income tax and other taxes related to the development and management of social houses in accordance with this Decree.

3. The Ministry of Natural Resources and Environment:

a/ To assume the prime responsibility for, and coordinate with the Ministry of Construction in, guiding localities in developing land use master plans and plans, ensuring sufficient land areas for implementation of social housing construction projects;

b/ To assume the prime responsibility for, and coordinate with the Ministry of Construction in, guiding the grant of certificates of land use rights and ownership of houses and other land-attached assets to purchasers and lessees-purchasers of social houses under regulations.

4. The State Bank of Vietnam:

a/ To promulgate regulations on methods of refinancing, lending, loan payment extension, conversion into overdue debts, procedures for preferential lending for state-designated credit institutions to ensure efficient and proper use of this credit; to direct the Vietnam Bank for Social Policies to guide the mobilization of savings, procedures for lending, loan payment extension, and conversion into overdue debts in conformity with the organization and operation of the Vietnam Bank for Social Policies;

b/ To designate a number of credit institutions to provide social housing support loans; to perform its assigned tasks in accordance with this Decree.

5. The Vietnam Bank for Social Policies:

a/ To manage and use capital sources, to provide loans to eligible borrowers in accordance with this Decree;

b/ To coordinate with ministries and sectors in reporting on difficulties and problems in the provision of social housing support loans to competent authorities for settlement;

c/ To assume the prime responsibility for, and coordinate with related ministries and sectors in, developing a plan on provision of concessional loans for social housing construction investment for the subjects prescribed in Clause 1, Article 15 of this Decree, and submit it to the Prime Minister for consideration and approval before its implementation.

6. Related ministries and sectors shall study and promulgate according to their competence or propose competent agencies to promulgate amendments and supplements to mechanisms and policies related to the development and management of social houses prescribed in this Decree.

Article 30.Responsibilities of provincial-level People’s Committees

1. To organize and direct the study, survey and summarization of demands to develop annual, medium- and long-term programs, plans and targets for social housing construction investment in their localities; to direct and assign tasks to local enterprises and coordinate with the Ministry of Construction in directing the assignment of tasks to its attached state enterprises for development of social houses in accordance with this Decree.

2. To review, adjust and increase land areas for social housing development under local master plans, zoning plans and detailed plans on urban areas; to recover land under projects on commercial houses and new urban centers already assigned to project owners that, however, fail to implement or implement them behind the approved schedule and the 20% land area for social housing construction under projects on commercial houses and new urban centers, which has not been used, for assignment to project owners with demands for social housing construction investment.

3. To specify and publicly announce criteria, subjects and conditions for purchase, rent and rent-purchase of social houses in their localities suitable to local conditions; to manage and closely monitor the sale, lease and lease-purchase; to promulgate the price bracket for sale, lease and lease-purchase of social houses within their localities according to their competence.

4. To implement mechanisms and policies on social housing development and management at the central level; to promulgate specific regulations on local additional incentive mechanisms of their localities to call for economic sectors to invest in social housing development in their localities; and the regulation on management of the use, exploitation and operation of the social housing fund in their localities.

5. To organize inspection, examination, supervision and handle violations related to the sale, lease and lease-purchase of social houses in their localities.

6. To request owners of social housing construction projects in their localities to periodically report on their project implementation to the local state management agencies of housing; to organize briefing and review of the situation and results of social housing development in their localities annually or upon request and report to the Ministry of Construction for summarization and reporting to the Prime Minister.

7. To direct provincial-level Construction Departments and district- and commune-level administrations and other specialized agencies in appraising and certifying eligible borrowers and conditions for borrowing concessional loans in accordance with this Decree; to closely coordinate with the Vietnam Bank for Social Policies and state-designated credit institutions in handling non-performing loans and secured assets to retrieve loans.

Article 31.Responsibilities of enterprises having production establishments in industrial parks

1. Enterprises that have conducted and are conducting production in industrial parks shall develop housing plans and set aside funds to support investment in social houses for households and individuals at these enterprises who have housing difficulties.

2. Newly established enterprises or enterprises expanding production shall ensure housing for households and individuals working for them.

Article 32.Transitional provisions

1. Projects on development of housing for industrial park workers and for low-income earners in urban areas implemented under the Prime Minister’s Decision No. 66/2009/QD-TTg of April 24, 2009, and Decision No. 67/2009/QD-TTg of April 24, 2009, and the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, for which project owners request change to application of this Decree must obtain approval of provincial-level People’s Committees.

2. Social housing projects approved before the effective date of this Decree are not subject to re-approval, except in case project owners request adjustments to the project contents.

3. Contracts on social housing purchase and sale, lease and lease-purchase signed before the effective date of this Decree under which eligible subjects have not borrowed concessional loans and are not required to have papers proving satisfaction of the income condition prescribed in Clause 3, Article 22 of this Decree, may apply this Decree.

4. Papers proving and certifying eligible subjects and housing status granted by competent agencies before the effective date of this Decree are not subject to re-certification if eligible subjects have not signed contracts on purchase and sale, lease or lease-purchase of social houses.

Article 33.Effect

1. This Decree takes effect on December 10, 2015.

2. During 2015-2020, the Vietnam Bank for Social Policies shall not provide loans to the subjects prescribed in Clause 1, Article 15 of this Decree.

3. This Decree replaces the Government’s Decree No. 188/2013/ND-CP of November 20, 2013, on social housing development and management.

4. Ministers, heads of ministerial-level agencies, heads of government-attached agencies and chairpersons of provincial-level People’s Committees shall implement this Decree.-

On behalf of the Government
Prime Minister
NGUYEN TAN DUNG