Decree No. 101/2015/ND-CP dated October 20, 2015 of the Government on renovation and reconstruction of condominiums

DECREE

On renovation and reconstruction of condominiums[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 June 17, 2009 Law on Urban Planning;

Pursuant to the November 29, 2013 Land Law;

At the proposal of the Minister of Construction,

The Government promulgates the Decree on renovation and reconstruction of condominiums.

Chapter I

GENERAL PROVISIONS

Article1.Scope of regulation

1. This Decree prescribes in detail the renovation or reconstruction of severely damaged condominiums which are at risk of collapse and unsafe to users as prescribed in Article 110 of the Housing Law, and the arrangement of residences for resettled people; and prescribes a number of mechanisms and policies on planning, land, finance, credit and construction technology to renovate or reconstruct condominiums.

2. The demolition of condominiums and ground clearance when the State recovers land for the purpose of national defense or security or in the national or public interest are not regulated by this Decree.

Article2.Subjects of application

1. Domestic organizations, households and individuals, overseas Vietnamese, and foreign organizations and individuals involved in the renovation and reconstruction of condominiums.

2. State management agencies involved in the renovation and reconstruction of condominiums.

3. Other organizations and individuals involved in the renovation and reconstruction of condominiums.

Article3.Interpretation of terms

In this Decree, the terms below shall be construed as follows:

1. Independent condominium means a condominium block (consisting of one or several units) constructed on a land parcel under planning.

2. Condominium quarter means a quarter consisting of two or more condominium blocks constructed on a land parcel under planning.

3. Severely damaged condominium which is at risk of collapse and unsafe to users (below referred to as severely damaged condominium) means a condominium which has expired, is subsiding, cracked or tilted and shows other abnormal problems according to the standards for assessment of the danger of condominium structure and the quality inspection conclusion made by a competent agency, and therefore its users need to be relocated for safety and for its demolition within a given period of time.

4. Dangerous condominium means a condominium which has expired, is subsiding, cracked or tilted and shows other abnormal problems according to the standards for assessment of the danger of condominium structure and the quality inspection conclusion made by a competent agency, and therefore its users need to be relocated for emergency demolition.

5. Investment project on renovation or reconstruction of a condominium means a project that demolishes part or the whole of an old condominium and existing works (if any) in order to renovate and upgrade its appearance and structure, expand the area, adjust the area structure of its apartments, or construct anew it together with architectural and infrastructural works under a plan approved by a competent agency.

6. Condominium owners means owners of condominium apartments and owners of other areas within a condominium.

7. Condominium apartment owner means a person who has been granted, or is eligible for the grant of, a certificate of house ownership, residential land use rights and ownership of other land-attached assets for such apartment in accordance with the land and housing laws.

8. Owner of other areas in a condominium means a person who has been granted, or is eligible for the grant of, a certificate of house ownership, residential land use rights and ownership of other land-attached assets for such areas in accordance with the land and housing laws.

In case a condominium has apartments and other areas under the state ownership, their owner representative is an organization or agency or a unit as prescribed by the law on management and use of state-owned houses.

9. Condominium user means the owner or an organization, a household or an individual that is lawfully using a condominium through lease, borrowing, permitted stay, or authorized management or use under a decision of a competent state agency.

Article 4.Principles of renovation and reconstruction of condominiums

1. The renovation or reconstruction of condominiums shall be conducted under projects; reconstruction of individual condominiums (except independent ones) is prohibited to meet the requirements prescribed in Clause 3, Article 112 of the Housing Law.

2. For each area with condominiums in need of renovation or reconstruction, one or more than one project may be carried out under the urban planning approved by competent agencies and in accordance with promulgated construction standards and regulations.

3. If the owner of an old condominium wishes to be resettled on the spot and his/her current apartment has two or more household registration books, in addition to the new housing area arranged under Point b, Clause 1, Article 116 of the Housing Law, he/she will have the preemptive right to buy additional apartments in the same location at the price agreed between him/her and the project owner.

4. Organizations and individuals participating in implementing projects on renovation or reconstruction of condominiums and owners of condominiums subject to demolition for renovation or reconstruction prescribed in Article 110 of the Housing Law are entitled to mechanisms and policies prescribed in Chapter III of this Decree.

Article 5.Forms of implementation of projects on renovation or reconstruction of condominiums

The forms of implementation of projects on renovation or reconstruction of condominiums must comply with Article 113 of the Housing Law, specifically as follows:

1. Owners of a condominium subject to demolition for renovation or reconstruction under Article 110 of the Housing Law shall select enterprises or cooperatives lawfully established and operating and having the real estate business function (below referred to as real estate businesses) to invest capital in or contribute capital to the demolition for renovation or reconstruction of such condominium.

2. The State shall invest capital in the renovation or reconstruction of the following condominiums:

a/ Condominiums subject to demolition for renovation or reconstruction under Clauses 1 and 2, Article 110 of the Housing Law whose owners fail to select real estate businesses to demolish and reconstruct these condominiums after the expiration of the time limit prescribed in Clause 5 or 6, Article 7 of this Decree. In this case, the State shall organize the coerced demolition in order to directly invest in the renovation or reconstruction of such condominiums with capital sources prescribed in Clause 3, Article 36 of the Housing Law;

b/ The State signs a build-transfer (BT) contract with an investor to reconstruct an old condominium on the same land area or at another location to meet the resettlement demand of the owners of the condominium subject to demolition for renovation or reconstruction.

The implementation of housing investment projects under BT contracts must comply with the housing and relevant laws.

Chapter II

ORDER AND PROCEDURES FOR, AND RIGHTS AND OBLIGATIONS OF PROJECT OWNERS AND OWNERS IN, IMPLEMENTING PROJECTS ON RENOVATION OR RECONSTRUCTION OF CONDOMINIUMS

Section 1

ORDER AND PROCEDURES FOR IMPLEMENTING PROJECTS ON RENOVATION OR RECONSTRUCTION OF CONDOMINIUMS

Article6.Organization of investigation, survey and quality inspection of condominiums

1. Provincial-level Construction Departments shall assume the prime responsibility for, and coordinate with local functional agencies in, organizing investigation and survey of the actual status of condominiums which have expired in accordance with the construction law and condominiums showing signs of severe damage in their localities, and organize quality inspection of these condominiums.

The quality inspection of condominiums must comply with the law on quality management of construction works.

The Ministry of Construction shall guide in detail the assessment of danger of structures and the process of quality inspection of condominiums.

2. For severely damaged condominiums which are subject to demolition for renovation or reconstruction, provincial-level Construction Departments shall issue written quality inspection conclusions and report them to the People’s Committees of provinces or centrally run cities (below referred to as provincial-level People’s Committees) for written notification of inspection results to owners of these condominiums. Written notifications of inspection results shall be published on e-portals of provincial-level People’s Committees and Construction Departments and at least once on official mouthpieces of localities where such condominiums are located.

A quality inspection document must clearly state whether the condominium is severely damaged or dangerous under the guidance of the Ministry of Construction in Clause 1 of this Article.

3. If a condominium quarter has at least one block subject to demolition as notified by the provincial-level People’s Committee and a damaged one not yet subject to demolition but there is a plan on complete reconstruction of the whole quarter approved by a competent state agency, all of these blocks shall be demolished for renovation or reconstruction under the plan approved by the provincial-level People’s Committee.

Article7.Formulation and publication of plans on reconstruction or reconstruction of condominiums

1. After organizing the quality inspection of condominiums, provincial-level Construction Departments shall formulate plans on renovation and reconstruction of condominiums in their localities and submit them to provincial-level People’s Committees for publication for at least 30 days on the e-portals of provincial-level People’s Committees and Construction Departments and display at the head offices of People’s Committees of rural districts, urban districts, towns and provincial cities (below referred to as district-level People’s Committees) and of People’s Committees of communes, wards and townships (below referred to as commune-level People’s Committees), and for concurrent announcement to residential quarters where condominium reconstruction projects will be carried out.

If there are any feedback on the plan on condominium renovation and reconstruction, within 15 working days after receiving such feedback, if making no adjustments or supplements to the approved plan, the provincial-level Construction Department shall consider and respond to persons making such feedback.

If making any adjustments or supplements to the plan on condominium renovation and construction, the provincial-level Construction Department shall propose them to the provincial-level People’s Committee for consideration and approval according to its competence.

2. Local plans on condominium renovation and reconstruction may be formulated and separately approved or incorporated in local housing development plans.

3. For condominiums to be demolished for renovation or reconstruction under Article 110 of the Housing Law, a plan on condominium renovation and reconstruction must include the following major contents:

a/ Lists of severely damaged condominiums, dangerous condominiums and condominiums to be renovated or reconstructed synchronously as they are located within the condominium quarter to be demolished under construction plans approved by competent state agencies;

b/ Scope and boundaries of the area under condominium renovation or reconstruction;

c/ Major planning and architectural norms (construction height; construction density; land use coefficient) for the area under renovation or reconstruction;

d/ Tentative plan on capital allocation and raising for condominium renovation and reconstruction;

dd/ Time and schedule of condominium renovation and reconstruction;

e/ Plan implementation responsibilities of related organizations and individuals.

4. Based on the plan on condominium renovation and reconstruction approved and published by the provincial-level People’s Committee, owners of condominiums to be demolished for reconstruction shall select real estate businesses to invest in or contribute capital to the implementation of the project under Article 9 of this Decree.

5. For severely damaged condominiums and condominiums not yet subject to demolition but situated within condominium quarters to be demolished for renovation or reconstruction as prescribed in Clauses 1 and 2, Article 110 of the Housing Law, upon the expiration of the time limit of 12 months from the date the provincial-level People’s Committee publishes the plan on condominium renovation and reconstruction, if owners fail to select a real estate business to act as owner of the renovation and reconstruction project, the provincial-level People’s Committee shall organize coerced demolition and renovation and reconstruction of such condominiums in the form prescribed in Clause 2, Article 113 of the Housing Law.

6. For dangerous condominiums, upon the expiration of the time limit of 3 months from the date the provincial-level People’s Committee organizes emergent relocation for demolition, if owners fail to select a real estate business as project owner, the provincial-level People’s Committee shall organize renovation and reconstruction of such condominiums in the form prescribed in Clause 2, Article 113 of the Housing Law.

Article8.Planning of renovation and reconstruction of condominiums

1. Planning of renovation and reconstruction of condominiums must ensure synchronous technical and social infrastructure facilities and connection with adjacent areas; and ensure sufficient area and space (including underground facilities) for public use.

2. The formulation, appraisal, approval and adjustment of plans for areas where are located condominiums subject to demolition for renovation and reconstruction must comply with the urban planning and construction planning laws.

3. Based on plans on condominium renovation and reconstruction approved and published under Article 7 of this Decree, provincial-level People’s Committees shall organize review of plans on areas where are located condominiums subject to demolition for renovation and reconstruction as follows:

a/ For a condominium subject to demolition for renovation and reconstruction which is located in an area on which there already is an approved zoning plan (of 1:2,000 or 1:5,000 scale) which does not need adjustment or supplementation, the plan shall be implemented as follows:

- If the condominium quarter or independent condominium occupies a land area of under 2 hectares, the project owner is not required to make a detailed plan and is allowed to formulate an investment project on condominium renovation and reconstruction in accordance with the construction planning and construction laws;

- If the condominium quarter occupies a land area of 2 hectares or larger, the project owner shall make a detailed plan (of 1:500 scale) and submit it to a competent agency for approval in accordance with the urban planning law before formulating an investment project on condominium renovation and reconstruction.

b/ For a condominium subject to demolition for renovation or reconstruction is located in an area on which there are no approved zoning plan (of 1:2,000 or 1:5,000 scale) and detailed plan (of 1:500 scale) or there are such plans which need adjustment and supplementation, the project owner shall apply for a planning permit for the area where such condominium is located in accordance with the urban planning law before formulating an investment project on condominium renovation and reconstruction.

4. Within 30 days after the detailed plan on condominium reconstruction prescribed Clause 3 of this Article is approved, the provincial-level Construction Department (or Planning and Architecture Department, if the locality has this Department) shall announce the plan for at least 30 days at its head office and on its e-portal and at the head offices of the district-level and commune-level People’s Committees of the locality where the investment project on condominium renovation and reconstruction will be implemented.

5. Based on the approved general and detailed plans of the area where is located a condominium subject to demolition for renovation or reconstruction, the provincial-level People’s Committee shall decide to permit the increase of the land use coefficient and construction height, ensuring connection of infrastructure systems, conformity with the approved plans in terms of architectural space, and the investment effectiveness.

Increase of land use coefficient and construction height during the renovation and reconstruction of condominiums located in downtown areas in urban centers where development of high rises is restricted and construction density and population density shall be reduced according to approved general plans, shall be considered and approved by the Prime Minister.

6. To-be-published information on a detailed plan on condominium renovation and reconstruction includes:

a/ Name of the condominium quarter or independent condominium;

b/ Location of project implementation;

c/ Situation and characteristics of the actual conditions, boundary and area of land and population in the area;

d/ Planning and architecture-related norms after renovation and reconstruction, including construction height; construction density; land use coefficient; area of housing and service and trade facilities; technical and social infrastructure facilities, greeneries and other public facilities (if any); requirements on organization of architectural space; landscape and environment, requirements on norms of connection of urban technical infrastructure facilities (including underground facilities);

dd/ Time and schedule of reconstruction and investment phasing plan (if any).

Article9.Selection of owners of investment projects on condominium renovation and reconstruction

1. Order and procedures for project owner selection in case real estate businesses invest capital in or contribute capital to the demolition for renovation and reconstruction in the form prescribed in Clause 1, Article 5 of this Decree are as follows:

a/ After the plan on condominium renovation and reconstruction is published under Clauses 1, 2 and 3, Article 7 of this Decree, the provincial-level People’s Committee shall direct the provincial-level Construction Department in drawing up a list of real estate businesses eligible to act as project owners for introduction and notification to owners of condominiums subject to demolition for renovation and reconstruction, for selection;

b/ The list of real estate businesses introduced by the provincial-level Construction Department shall be publicly displayed at the head office of the commune-level People’s Committee and in the street quarter where the condominium is located for at least 15 working days before the condominium meeting is organized to select the project owner;

c/ In addition to the list introduced by the provincial-level Construction Department, other real estate businesses may directly register with owners of condominiums subject to demolition for introduction to the condominium meeting for consideration and selection of investors to implement investment projects on condominium renovation and reconstruction;

d/ The condominium management boards or district-level People’s Committees, for condominiums without management boards, shall send invitation letters to all owners of condominiums to hold condominium meetings to consider and decide on the selection of investors on the following principles:

- The selection of investors to implement an investment project on condominium renovation and reconstruction shall be adopted on the majority voting by a show of hands or casting of ballots, of which a written record shall be made and signed by the chairing persons and secretary of the condominium meeting;

- If the condominium subject to demolition has an area under the state ownership, the owner representative for such area shall participate in the condominium meeting;

- The condominium meeting may invite experts to give advice on the selection of investors. Funds for hiring experts shall be agreed upon by related parties and paid by condominium owners;

- The condominium meeting shall be attended by at least 70% of total condominium owners;

- Condominium owners shall consider and select a project owner based on dossiers of proposal for project participation and compensation, support and resettlement plans proposed by real estate businesses. Businesses registering for project participation shall present their dossiers of proposal under the guidance of the Ministry of Construction, which shall be enclosed with compensation, support and resettlement plans prescribed in Article 116 of the Housing Law and Clause 1, Article 14 of this Decree, for comment at the meeting.

dd/ If only one business registers for project participation and it is consented by 51% or more of total condominium owners, it shall be selected and reported to the provincial-level People’s Committee for consideration and approval;

e/ If more than one business register for project participation, the business that is consented by the highest number of condominium owners shall be selected and reported to the provincial-level People’s Committee for consideration and approval;

g/ If there are more than 3 businesses sending dossiers of registration, the condominium management board (or the group of owner representatives, if the condominium has no management board) shall assume the prime responsibility for, and coordinate with the experts’ team (if any) in organizing a prequalification to select 3 businesses at most to be reported to the condominium meeting for consideration and selection of the project owner;

h/ If a project owner cannot be selected at the first condominium meeting, within 30 days following this meeting, the management board or district-level People’s Committee shall hold another meeting to select a project owner and reach agreement on the compensation, support and resettlement plan under Point d of this Clause;

i/ After a real estate business is selected as the project owner, the chairing person of the condominium meeting shall make a report on the selection result and send it together with the real estate business’s compensation, support and resettlement plan to the provincial-level Construction Department of the locality whether the project will be implemented.

Within 20 working days after receiving the report, the provincial-level Construction Department shall appraise the plan on selection of the project owner enclosed with its compensation, support and resettlement plan and submit it to the provincial-level People’s Committee for consideration and approval. Within 10 working days after receiving the appraisal document from the provincial-level Construction Department, the provincial-level People’s Committee shall consider and issue a written approval of the project owner and its compensation, support and resettlement plan;

k/ After the provincial-level People’s Committee issues the decision on approval of the project owner and its compensation, support and resettlement plan, all owners of the condominium (including those who disagree with the plan submitted by the condominium meeting and approved by the provincial-level People’s Committee) shall observe the contents approved by the provincial-level People’s Committee. The provincial-level People’s Committee shall coerce the relocation of those who refuse to comply with the project owner approval decision and duly approved compensation, support and resettlement plan;

l/ After 90 days from the date the project owner approval document is issued, if the project owner fails to carry out activities in accordance with the construction and housing laws under the assigned project due to its fault, the provincial-level People’s Committee shall decide to revoke the project owner approval document and direct the holding of a condominium meeting to select again a project owner.

2. In case the State directly invests in the renovation or reconstruction of a condominium in the form prescribed at Point a, Clause 2, Article 5 of this Decree, the provincial-level Construction Department shall report to the provincial-level People’s Committee for decision the selection of a project owner in accordance with the public investment and housing and relevant laws.

3. In case the State applies the BT contract to the investor under Point b, Clause 2, Article 5 of this Decree, the provincial-level Construction Department shall report to the provincial-level People’s Committee for decision the selection of a project owner through bidding or contractor appointment in accordance with the housing and bidding laws.

Article10.Formulation, appraisal, approval and implementation of investment projects on condominium renovation and reconstruction

1. The formulation, appraisal, approval and implementation managenent of investment projects on condominium renovation and reconstruction must comply with the construction and relevant laws.

2. Dossiers of proposal, order and procedures for requesting approval of investment policy on projects on condominium renovation and reconstruction must comply with the investment and housing and relevant laws.

3. The implementation steps, including designing, construction, test before acceptance and putting of construction works into operation and use, within an investment project on condominium renovation and reconstruction must comply with the construction and relevant laws.

Article11.Demolition of condominiums

1. In case a real estate business invests capital in, or contributes capital with owners of a condominium to, renovating or reconstructing the condominium under Clause 1, Article 5 of this Decree, the project owner shall organize the demolition thereof as follows:

a/ The project owner itself may demolish the condominium if it is fully capable under the construction law, or hire capable construction organizations and individuals to do so;

b/ Before the demolition, the project owner shall prepare a demolition plan under Point c of this Clause, and send it to the provincial-level Construction Department for appraisal and approval. Within 30 days after receiving the demolition plan proposed by the project owner, the provincial-level Construction Department shall organize the appraisal and approval of such plan;

c/ Principal contents of a demolition plan:

- Name of the work to be demolished;

- Location of the work;

- Number, volume and size of work items to be demolished;

- Technical solutions to be applied in the demolition;

- Solutions for ensuring occupational safety, sanitation and environment;

- Workforce and tools, vehicles and machines to be used for demolition;

- Demolition time and schedule;

- Other relevant contents (if any).

2. In case the State directly invests in the renovation or reconstruction of a condominium under Clause 2, Article 5 of this Decree, the project owner selected by the provincial-level People’s Committee shall organize the demolition of such condominium according to the order and procedures prescribed in Clause 1 of this Article.

3. In case a dangerous condominium is to be urgently demolished under decision of the provincial-level People’s Committee, the provincial-level Construction Department shall propose the plan on relocation and arrangement of temporary residences and the plan on urgent coercive demolition to the provincial-level People’s Committee for approval.

Section 2

RIGHTS AND RESPONSIBILITIES OF PROJECT OWNERS AND CONDOMINIUM OWNERS IN IMPLEMENTING INVESTMENT PROJECTS ON CONDOMINIUM RENOVATION AND RECONSTRUCTION

Article12.Rights and responsibilities of owners of investment projects on condominium renovation and reconstruction

1. Rights of owners of investment projects on condominium renovation and reconstruction

a/ To request related organizations and agencies to carry out procedures in accordance with law during the formulation, appraisal, approval and implementation of investment projects on condominium renovation and reconstruction;

b/ To lease, put on lease-purchase and sell houses and service works (if any) within the premises of the projects; to raise capital, collect rentals and proceeds from the lease-purchase and sale of houses and service works (if any) in accordance with the Housing Law and the Law on Real Estate Business with regard to service works which the project owners are permitted to commercially operate and to remaining housing areas after arranging resettlement under the plans agreed with condominium owners and approved by provincial-level People’s Committees;

c/ To manage and operate the technical infrastructure system within the premises of the projects under decisions on project investment policy issued by competent state agencies;

d/ To request competent state agencies to grant certificates of land use rights and ownership of houses and other land-attached assets for houses constructed under the projects for on-the-spot resettlement of owners and for transferrable houses and other construction works to other owners in accordance with the housing and real estate business laws;

dd/ To be supported by provincial-level People’s Committees in capital and temporary residences (if any) and entitled to mechanisms and policies provided by this Decree and relevant laws during the project implementation;

e/ To exercise other rights as provided by the construction, land and relevant laws.

2. Responsibilities of owners of investment projects on condominium renovation and reconstruction:

a/ To perform the responsibilities of project owners prescribed in Clauses 1, 2, 3, 5, 6, 7, 8, 9 and 10, Article 26 of the Housing Law;

b/ To arrange temporary residences, pay compensation, and support resettlement for owners of demolished condominiums in accordance with the Housing Law, this Decree and relevant laws;

c/ To fulfill financial and other obligations in accordance with this Decree and relevant laws.

Article13.Rights and responsibilities of condominium owners related to investment projects on condominium renovation and reconstruction

1. Rights of condominium owners:

a/ To participate in the selection of real estate businesses that invest capital in or contribute capital to the condominium renovation or reconstruction;

b/ To select forms of compensation, on-the-spot resettlement or other forms of housing arrangement to serve resettlement and contents prescribed in Article 14 of this Decree;

c/ To be granted by competent agencies certificates of land use rights and ownership of houses and other land-attached assets in accordance with law for houses arranged for their resettlement;

d/ To participate in supervising the project implementation in accordance with law;

dd/ To propose competent agencies to change project owners and be compensated for damage when project owners fail to properly implement the project on schedule as stated in the decisions on project investment policy issued by competent state agencies. The replacement of project owners shall be approved at condominium meetings and considered and approved by provincial-level People’s Committees.

2. Responsibilities of condominium owners:

a/ To obey relocation orders for ground clearance and demolition of houses and construction works within the premises of projects according to approved plans;

b/ To create conditions for project owners and contractors to implement projects approved by competent agencies;

c/ To fulfill obligations when carrying out procedures for the grant of certificates of land use rights and ownership of houses and other land-attached assets in accordance with law.

Article14.Compensation, support and resettlement plans

1. Compensation, support and resettlement plans in case real estate businesses invest capital in or contribute capital together with condominium owners to implementing investment projects on condominium renovation and reconstruction:

a/ The compensation, support and resettlement plan shall be specified for each condominium owner, covering the following principal details:

- Name and address of the owner;

- Area of the old apartment and other areas (if any), location of the apartment; if the old apartment has auxiliary sections outside the apartment as initially designed, such sections shall be included in the area of the old apartment for resettlement arrangement;

- Number of households and number of household members living in the to-be-demolished apartment who are eligible for resettlement arrangement;

- Resettlement arrangement: area and location of the new apartment to be arranged for the owner (free); area and location of the new apartment allowed to be additionally purchased (if any) in case there are 2 or more households living in the old apartment;

- Temporary residence arrangement: monetary support or arrangement of temporary residences (specifying the area and location of the temporary apartment for the owner);

- Other contents related to resettlement and arrangement of temporary residences (if any) as agreed between the real estate business and the condominium owner.

b/ The collection of opinions on the compensation, support and resettlement plan shall be conducted in combination with the selection of project owners at condominium meetings under Clause 1, Article 9 of this Decree;

c/ Compensation, support and resettlement plans shall be submitted to provincial-level People’s Committees for approval at the same time with the plans on selection of owners for investment projects on condominium renovation and reconstruction under Clause 1, Article 9 of this Decree;

d/ Based on the compensation, support and resettlement plan approved by the provincial-level People’s Committee, the real estate business and each condominium owner shall sign a contract on arrangement of resettlement or temporary residence, made according to the form guided by the Ministry of Construction.

2. Compensation, support and resettlement plan in case the State invests in renovation and reconstruction of condominiums:

a/ The project owner selected by the provincial-level People’s Committee shall organize the formulation of compensation, support and resettlement plans for every condominium owner and send them to the provincial-level People’s Committee for approval. A compensation, support and resettlement plan must have the following principal contents:

- Name and address of the owner;

- Number of households and number of household members living in the to-be-demolished apartment who are eligible for resettlement arrangement;

- Area of the old apartment and other areas (if any), location of the apartment; if the old apartment has auxiliary sections outside the apartment as initially designed, such sections shall be included in the area of the old apartment for resettlement arrangement;

- Area and location of the new apartment to be arranged for the owner (free); area and location of the new apartment (if any) the owner is allowed to purchase at the price set by the provincial-level People’s Committee in case there are two or more households living in the old apartment;

- Bases for calculation for resettlement arrangement: price of the old apartment, price of the new apartment, and difference between these prices;

- Temporary residence arrangement: monetary support or arrangement of temporary houses (specifying the area and location of the temporary apartment for the owner);

- Other related contents (if any).

b/ Within 10 working days after receiving the project owner’s compensation, support and resettlement plan, the provincial-level Construction Department shall appraise and report it to the provincial-level People’s Committee for approval. Within 7 working days after receiving the appraisal document of the provincial-level Construction Department, the provincial-level People’s Committee shall consider and approve the compensation, support and resettlement plan;

c/ In case a dangerous condominium is to be urgently demolished, the provincial-level People’s Committee shall direct the urgent coerced demolition of such condominium under Clause 3, Article 11 of this Decree. After the demolition is completed, the owner of the project on reconstruction of the condominium selected by the provincial-level People’s Committee shall formulate a compensation, support and resettlement plan and submit it to the provincial-level People’s Committee for approval. The order and procedures for the formulation, appraisal and approval of compensation, support and resettlement plans must comply with Points a and b of this Clause.

3. For condominium owners who have no need for on-the-spot resettlement, the arrangement of resettlement must comply with Article 36 of the Housing Law. If condominium owners who receive monetary compensation request for purchase, rent or rent-purchase of social houses, their requests shall be handled under the law on development and management of social houses.

4.  For social infrastructure facilities (if any) within the premises of a project, compensation and support must comply with the land law.

5. Cases of expansion and construction of houses and works on illegally occupied land are not entitled to compensation but may receive only support in accordance with the land law. Cases eligible for purchase, rent or rent-purchase of social houses shall be settled in accordance with the housing law.

6. Expenses for arrangement of temporary residences shall be accounted as expenses for implementation of investment projects on condominium renovation and reconstruction.

Chapter III

A NUMBER OF MECHANISMS AND POLICIES APPLICABLE TO INVESTMENT PROJECTS ON CONDOMINIUM RECONSTRUCTION

Article15.Land-related mechanisms and policies

Real estate businesses acting as owners of projects on condominium renovation and reconstruction are entitled to the following mechanisms and policies:

1. To be allocated land and permitted to change land use purposes by the State for areas within the premises of projects on condominium renovation and reconstruction in accordance with the land law.

2. The order and procedures for land recovery, land allocation, permission for change of use purposes of land areas of condominiums subject to demolition for renovation or reconstruction must comply with the land law.

3. To be allowed to change use purposes of part of land areas within the premises of the projects for business and service activities in accordance with planning and investment policy decisions approved by competent state agencies.

4. To be exempted from land use levy, land rental and charge (if any) for change of use purposes for the entire land areas in the premises of the projects (including land areas permitted for use purpose change mentioned in Clause 3 of this Article).

Article16.Mechanisms and policies on capital raising

1. Real estate businesses acting as owners of investment projects on condominium renovation and reconstruction may raise capital from the following sources:

a/ Own capital of project owners;

b/ Capital raised in the forms of contribution, investment cooperation, business cooperation, joint venture and joint operation from organizations, households and individuals;

c/ Money to purchase, rent-purchase and rent future houses in remaining housing areas (after arranging resettlement) and areas for business works (if any) within the premises of the projects;

d/ Loans from credit institutions and financial institutions operating in Vietnam;

dd/ Loans from the housing development fund and other capital sources available in localities for project implementation.

2. In case condominium owners are allocated new apartments and pay money for the area difference, they may borrow loans from credit institutions and financial institutions operating in Vietnam; loans from the housing development fund and other capital sources available in localities (if any) in accordance with the credit and finance laws to pay for such difference.

3. Project owners may do business in accordance with the housing law in remaining housing areas (after resettlement arrangement) and in business and service areas (if any) within the premises of the projects  according to approved planning and investment policy decisions.

Article17.Other incentive mechanisms and policies

1. Project owners may adjust land use coefficients and increase construction heights under Clause 5, Article 8 of this Decree.

2.  To be provided with free model designs and typical designs of houses as well as scientific and technical advances in construction and installation to reduce construction costs; to apply the self-execution form if qualified as prescribed by law.

3. To be appointed as contractors in accordance with the bidding law for bidding packages to be urgently implemented.

4. Owners who are compensated with new houses are not required to pay registration fee for the grant of certificates of land use rights and ownership of houses and other land-attached assets in accordance with the law on registration fee.

5. In case condominium users are renting state-owned apartments (not yet transferred to private ownership) and such condominiums are subject to demolition for renovation or reconstruction, they are entitled to the following mechanisms and policies:

a/ To be further allowed to rent new apartments (after renovation or reconstruction) of equivalent areas in the location of the demolished condominium;

b/  To be considered and allowed to purchase new apartments in accordance with the law on management and use of state-owned houses;

c/ To be considered and allowed to purchase, rent or rent-purchase social houses (if they so wish) in localities in accordance with the housing law.

6. Real estate businesses decided by provincial-level People’s Committees to act as owners of investment projects on condominium renovation and reconstruction under Clause 2, Article 9 of this Decree are entitled to a profit equal to 10% of the projects’ total investment.

Chapter IV

IMPLEMENTATION PROVISIONS

Article18.Transitional provisions

1. In case dossiers of proposal for approval of or decision on investment policy on investment projects on condominium renovation and reconstruction have been submitted before the effective date of this Decree but competent agencies have not yet issued any investment policy decisions, the investment policy approval and decision shall be effected according to the competence prescribed by the housing law and this Decree.

2. Investment projects on condominium renovation and reconstruction already approved before the effective date of this Decree are not required to be approved again under this Decree.

3. In case project owners have completed procedures for approval of investment projects on condominium renovation and reconstruction by the effective date of this Decree but competent agencies have not yet approved the projects, these projects shall be approved in accordance with the housing law and this Decree; in case compensation, support and resettlement plans are approved by competent agencies before the effective date of this Decree, these plans may be further implemented.

4. In case project owners have been selected but not yet approved by competent agencies by the effective date of this Decree, the selection of project owners and approval of compensation, support and resettlement plans must comply with this Decree.

5. In case projects have been approved but project owners fail to implement the projects after 12 months from the date of approval or implement the projects more than 24 months behind the approved schedule due to the project owners’ fault, provincial-level People’s Committees shall issue decisions to withdraw the projects for transfer to other project owners for implementation in accordance with this Decree.

6. For ongoing investment projects on condominium renovation and reconstruction which are enjoying incentive mechanisms and policies lower than those prescribed in this Decree, their owners are entitled to the incentive mechanisms and policies prescribed in this Decree.

Article19.Implementation responsibilities

1. The Ministry of Construction shall:

a/ Promulgate according to its competence regulations guiding in detail the assessment of the danger of structures and the process of quality inspection of condominiums as prescribed in Clause 1, Article 6 of this Decree; prescribe in detail dossiers of proposal for participation in projects as prescribed at Point d, Clause 1, Article 9 of this Decree; and prescribe in detail contents and forms of contract on resettlement arrangement as prescribed at Point d, Clause 1, Article 14 of this Decree;

b/ Assume the prime responsibility for, and coordinate with related ministries and sectors in, supervising, urging, inspecting and summarizing the renovation and reconstruction of condominiums and reporting it to the Prime Minister on a periodical basis;

c/ Study amendments and supplements to mechanisms and policies related to the demolition, renovation and reconstruction of condominiums for promulgation according to its competence or submission to competent agencies for consideration and promulgation.

2. Related ministries and sectors shall, within the ambit of their assigned functions and tasks, promulgate new regulations or amend and supplement existing regulations within their assigned competence concerning the demolition of condominiums for renovation and reconstruction to be compliant with this Decree.

3. Provincial-level People’s Committees shall:

a/ Arrange funds for and direct functional agencies in organizing investigation, survey and quality inspection of condominiums in their localities, including independent condominiums and condominium quarters which have expired, are severely damaged and dangerous in their localities in order to make renovation and reconstruction plans and plans for their assigned tasks specified in Clauses 1 and 2, Article 99 of the Housing Law;

b/ Direct functional agencies in formulating, appraising and submitting to competent agencies for approval or adjustment urban and construction plans for implementation of investment projects on condominium renovation and reconstruction;

c/ Organize formulation, approval and publication of plans on renovation and reconstruction of condominiums in their localities in accordance with this Decree, and report them to the Ministry of Construction for monitoring and summarization;

d/ Organize formulation, appraisal and approval of land plans and arrange new land areas for the implementation of projects on development of houses for resettlement for households and individuals to be relocated from condominiums subject to demolition for renovation or reconstruction;

dd/ Promulgate according to their competence specific regulations, mechanisms and policies suitable to local conditions for the demolition of condominiums in their localities for renovation and reconstruction;

e/ Organize coerced relocation of condominium owners who refuse to comply with the selection of project owners and compensation, support and resettlement plans already approved by provincial-level People’s Committees, and perform assigned tasks according to their competence prescribed in this Decree and relevant laws.

Article20.Effect

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

2. The Government’s Resolution No. 34/2007/NQ-CP of July 3, 2007, on solutions for renovation and reconstruction of damaged and degraded condominiums, ceases to be effective on the effective date of this Decree.

3. Contents related to the demolition, renovation and reconstruction of condominiums prescribed in various decrees of the Government, decisions of the Prime Minister and legal documents promulgated by ministries, sectors and provincial-level People’s Committees before the effective date of this Decree which are at variance with the provisions of this Decree shall be implemented in accordance with this Decree.

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