Decree No. 34/2013/ND-CP dated April 22, 2013 of the Government on the management and use of state-owned houses

THE GOVERNMENT

Decree No. 34/2013/ND-CP of April 22, 2013, on the management and use of state-owned houses

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

Pursuant to the November 26, 2003 Land Law;

Pursuant to the June 14, 2005 Civil Code;

Pursuant to the November 29, 2005 Housing Law;

Pursuant to the June 3, 2008 Law on Management and Use of State Assets;

Pursuant to June 29, 2005 Ordinance No. 26/2005/PL-UBTVQH11 on Preferential Treatment of People with Meritorious Services to the Revolution, and July 16, 2012 Ordinance No. 04/2012/UBTVQH13 Amending and Supplementing a Number of Articles of the Ordinance on Preferential Treatment of People with Meritorious Services to the Revolution;

At the proposal of the Minister of Construction,

The Government promulgates the Decree on the management and use of state-owned houses.

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree details and guides the implementation of a number of regulations on management, use, lease, lease-purchase and sale of state-owned houses.

2. State-owned houses referred to in this Decree include:

a/ Official-duty houses;

b/ Social houses built partially or wholly with state budget funds (below collectively referred to as state-owned social houses);

c/ Student dormitories built partially or wholly with state budget funds or funds originating from the state budget and currently managed by educational institutions; student houses built by the State under the Prime Minister’s decisions (below collectively referred to as student houses);

d/ Houses built with state budget funds or funds originating from other sources and transferred to state ownership and used for residence in accordance with law, including also self-managed houses (below referred to as old houses).

3. State assets that are working offices, offices, working houses, guest houses, official-duty accommodations and houses of other types under state ownership are not subject to this Decree.

Article 2. Subjects of application

1. Lessees, hire-purchasers, purchasers of state-owned houses.

2. Agencies and units managing state-owned houses.

3. Individuals and organizations involved in the management and use of state-owned houses.

Article 3. Principles of management and use of state-owned houses

1. The management of state-owned houses must be uniform, closely coordinated and clearly assigned among related agencies and units; and the maintenance and development of these houses must be assured.

2. The use of state-owned houses must be for proper purposes and assure efficiency and avoid loss and waste.

3. State-owned houses must be managed and used in a manner that assures their quality and safety for users in strict accordance with the housing law, construction law and relevant laws.

4. The lease, lease-purchase and sale of state-owned houses must assure eligible subjects, satisfy prescribed conditions and comply with this Decree.

5. All acts in violation of regulations on management and use of state-owned houses must be promptly and strictly handled in accordance with law.

Chapter II

ORGANIZATION OF MANAGEMENT OF STATE-OWNED HOUSES

Article 4. Agencies and units managing state-owned houses

1. Agencies that represent the owner of state-owned houses built with the central budget’s funds are defined as follows:

a/ The Ministry of Construction represents the owner of the Government’s official-duty houses, state-owned social houses built with the central budget’s funds (excluding state-owned social houses built by the Ministry of National Defense and the Ministry of Public Security) and student houses currently managed by educational institutions attached to the Ministry of Construction;

b/ The Ministry of National Defense and the Ministry of Public Security represent the owner of official-duty houses, state-owned social houses built by the Ministry of National Defense and the Ministry of Public Security, and student houses currently managed by educational institutions attached to the Ministry of National Defense and the Ministry of Public Security. Particularly, the Ministry of National Defense represents the owner of old houses it is currently managing;

c/ Ministries, sectors and other central agencies represent the owner of official-duty houses currently assigned to them for management and student houses currently managed by educational institutions attached to them.

2. People’s Committees of provinces or centrally run cities (below collectively referred to as provincial-level People’s Committees) represent the owner of local state-owned houses of all types assigned to them for management.

3. Agencies that manage state-owned houses are those assigned by representatives of the owner defined in Clauses 1 and 2 of this Article to perform the management of state-owned houses, specifically:

a/ For ministries, sectors and central agencies, they are agencies assigned to manage houses and attached to these ministries, sectors and central agencies;

b/ For localities, they are provincial-level Construction Departments;

c/ Educational institutions, for student houses currently under their management.

4. State-owned house management and operation units are organizations or enterprises with the function and professional capacity to manage and operate houses and tasked by house management agencies defined in Clause 3 of this Article to manage and operate houses through appointment or bidding.

Official-duty houses for teachers, doctors and health workers which lie within or adjacent to schools or medical establishments may be assigned to such schools or medical establishments for management and operation.

Article 5. Powers and responsibilities of representatives of the owner of state-owned houses

1. Agencies that represent the owner of state-owned houses defined in Clauses 1 and 2, Article 4 of this Decree have the following powers and responsibilities over houses assigned to them for management:

a/ To decide on persons who may rent official-duty houses or hire-purchase old houses; to decide on persons who may rent or hire-purchase state-owned social houses;

b/ To select units to manage and operate houses;

c/ To approve the maintenance, renovation, dismantlement or reconstruction of houses;

d/ To set or decide on house rent rates, hire-purchase or sale prices;

dd/ To decide on recovery of houses;

e/ Other powers and responsibilities assigned by the Prime Minister.

2. Agencies that represent the owner of state-owned houses defined in Clauses 1 and 2, Article 4 of this Decree may authorize house management agencies defined in Clause 3, Article 4 of this Decree to perform the powers provided at Point b, Clause 1 of this Article. Particularly, the Ministry of National Defense and the Ministry of Public Security may authorize house management agencies to perform the powers provided at Points a, b and dd, Clause 1 of this Article.

Article 6. Powers and responsibilities of agencies managing state-owned houses

Agencies that manage state-owned houses defined in Clause 3, Article 4 of this Decree have the following powers and responsibilities:

1. To review, make statistics on and categorize houses assigned to them for management; to take over self-managed houses (if any) transferred from central agencies for management in accordance with this Decree.

2. To make plans on maintenance, renovation or reconstruction of houses and submit them to agencies representing the owner of such houses for approval.

3. To gather, make and preserve house dossiers and hand over one dossier of complete construction (for newly constructed houses) or one dossier of resurvey (for old houses) to a house management and operation units.

4. To make and submit dossiers to agencies representing the owner of houses for decision on persons eligible to rent official-duty houses or persons eligible to rent or hire-purchase state-owned social houses or persons eligible to rent or purchase old houses. Particularly for houses of the Ministry of National Defense and the Ministry of Public Security, they may decide on persons eligible to rent, hire-purchase or purchase these houses if they are assigned to do so.

5. To propose agencies representing the owner of houses to decide on units to manage and operate houses or to decide by themselves on managing and operating units if they are assigned to do so.

6. On the basis of regulations on rent rates, hire-purchase or sale price or price brackets of state-owned houses to set rent rates, hire-purchase or sale prices of houses they are currently managing, and submit them to agencies representing the owner of such houses for decision.

7. To report to agencies representing the owner of houses to decide on recovery of houses. Particularly for houses managed by the Ministry of National Defense and the Ministry of Public Security, house management agencies attached to these ministries may decide on recovery of these houses, if they are assigned to do so.

8. To manage, examine and urge the lease, warranty, maintenance and management of operation of houses, and sell or lease houses in accordance with this Decree.

9. To examine financial revenue-expenditure reports of house management and operation units.

10. To inspect, supervise, handle violations or request competent agencies to handle violations related to the management and use of houses.

11. To summarize and report on the management and use of houses under regulations.

Article 7. Powers and responsibilities of state-owned house management and operation units

1. To receive houses handed over by competent agencies defined in Clause 3, Article 4 of this Decree for management and operation in accordance with this Decree and relevant laws.

2. To lease, and manage the use of, houses according to their assigned tasks or under contracts signed with house management agencies and this Decree.

3. To elaborate and issue internal regulations on house management and use under the Ministry of Construction’s guidance and publicize these regulations among house lessees, hire-purchasers and users.

4. To strictly manage unsold housing areas within the premises of state-owned houses.

5. To exploit areas reserved for business or service provision (if any) in state-owned official-duty house or social house projects in accordance with law for creating sources to cover expenses for house management, operation and maintenance. The management and operation of houses prescribed in this Clause are eligible for mechanisms applicable to public-utility services.

6. To gather and preserve dossiers related to the construction, operation, warranty, maintenance and renovation of houses. In case of incomplete dossiers, to supplement or restore them or conduct re-survey; and hand new or supplemented dossiers to house management agencies for preservation under regulations.

7. To organize the maintenance, operation and renovation of houses under plans approved by competent authorities.

8. To inspect, monitor and promptly detect and request competent agencies to handle violations in the management and use of houses.

9. To coordinate with local functional agencies in assuring security and order for house lessees and hire-purchasers.

10. To recover houses under decisions of competent agencies.

11. To regularly or irregularly summarize and report on the management and use of houses.

12. To exercise other powers and perform other obligations in accordance with law.

Article 8. Order, regime and contents of reporting on the management of state-owned houses

1. The order of reporting on the management of state-owned houses is prescribed as follows:

a/ House management and operation units shall report to house management agencies defined in Clause 3, Article 4 of this Decree;

b/ House management agencies shall report to agencies representing the owner of houses currently under their management;

c/ Provincial-level People’s Committees, ministries, sectors and central agencies currently managing state-owned houses shall report to the Ministry of Construction on the management and use of houses currently under their management;

d/ The Ministry of Construction shall summarize and report to the Prime Minister on the management and use of houses nationwide.

2. Reporting regime and contents are prescribed as follows:

a/ Agencies defined in Clause 1 of this Article shall report on the management and use of houses in December every year or at the request of the Prime Minister or the Ministry of Construction;

b/ The Ministry of Construction shall guide reporting contents to assure the development of a uniform national housing database and apply information technology suitable to each development period of the country.

Article 9. Management of rentals or proceeds from hire-purchase or sale of state-owned houses

1. Rentals or proceeds from hire-purchase or sale of state-owned houses in accordance with this Decree, after subtracting management expenses and other lawful expenses (including expenses for organization of sale or hire-purchase of houses in accordance with law), must be remitted into the housing development fund or included in a separate item of the budgets of provincial-level People’s Committees (for localities where no housing development fund has been set up) for maintaining and developing state-owned houses under the following regulations:

a/ Maintaining and renovating state-owned houses;

b/ Re-investing in the construction of state-owned houses.

2. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Construction in, specifically guiding the management of revenues and expenses and the use of rentals or proceeds from hire-purchase or sale of state-owned houses prescribed in Clause 1 of this Article in order to assure publicity and transparency and avoid loss and waste in the management and use of these revenues.

Article 10. Prohibited acts in the management and use of state-owned houses

1. Leasing, hire-purchasing or selling houses ultra vires or to ineligible subjects or subjects lacking the conditions prescribed in this Decree.

2. Unlawfully transferring lease or hire-purchase contracts or subleasing or letting others use rented or hire-purchased houses.

3. Using houses for non-residential purposes.

4. Repairing, renovating, dismantling or reconstructing houses without permission.

5. Using rentals or proceeds from hire-purchase or sale of houses not for the purposes prescribed in this Decree.

6. Other prohibited acts in the management and use of houses as prescribed by law.

Chapter III

MANAGEMENT OF LEASE, LEASE-PURCHASE OR USE OF STATE-OWNED HOUSES

Article 11. Persons eligible and conditions for renting official-duty houses

1. Official-duty houses may only be leased to eligible persons for residence during their terms of office. When lessees are no longer eligible to rent or move elsewhere or retire, they shall return these houses to the State. Persons eligible to rent official-duty houses include:

a/ Leading cadres of the Party or the State who are entitled to stay in official-duty houses during their terms of office;

b/ Cadres and civil servants of agencies of the Party, State and socio-political organizations who are seconded or transferred according to their work requirements;

c/ Officers and career soldiers of the people’s armed forces who are transferred to serve national defense or security requirements;

d/ Teachers who are dispatched to work in deep-lying, remote, extreme difficulty-hit, border or island communes;

dd/ Doctors and health workers who are dispatched to work in deep-lying, remote, extreme difficulty-hit, border or island communes or dispatched in rotation to work for a definite term in lower-level hospitals or health centers.

In case a person eligible to rent an official-duty house defined at this Point has his/her family members (including his/her parents, spouse and children named in the same permanent residence registration book) living with him/her, they may be entitled to an extra official-duty housing area under the Prime Minister’s Decision on official-duty house use standards.

2. Conditions for renting official-duty houses are prescribed as follows:

a/ Persons defined at Point a, Clause 1 of this Article are provided with official-duty houses according to security requirements;

b/ Persons defined at Points b, c, d and dd, Clause 1 of this Article must be those who have no own houses or are not yet allowed to purchase, rent or hire-purchase social houses in the localities where they work.

In case official-duty houses for lease are insufficient, agencies or organizations that are directly managing the persons eligible to stay in official-duty houses shall rent other houses of standards equivalent to leased official-duty houses and deduct the rentals for these houses from the salaries of these persons. In case actual rentals are higher than rent rates these cadres have to pay, the state budget shall pay the difference on the principle that the central budget shall pay for centrally managed officials and local budgets shall pay for locally managed officials.

Article 12. Persons eligible and conditions for renting or hire-purchasing state-owned social houses

1. Persons eligible for renting or hire-purchasing state-owned social houses include:

a/ Persons with meritorious services to the Revolution defined in the Ordinance on Preferential Treatment of Persons with Meritorious Services to the Revolution;

b/ Cadres, civil servants and public employees of administrative and non-business agencies, Party agencies and mass organizations who are salaried by the state budget;

c/ Officers and career soldiers of the people’s armed forces who are salaried by the state budget;

d/ Workers of industrial parks, industrial clusters and production and business establishments outside industrial parks;

dd/ Low-income earners and poor urban households that meet housing difficulties;

e/ People with disabilities, lonely aged people and urban dwellers that meet extreme housing difficulties. People with disabilities and lonely aged people that have neither relatives nor incomes may be sent to the State’s social protection centers;

g/ Persons who have returned their official-duty houses when they are no longer eligible to rent these houses;

h/ Households and individuals that are eligible for resettlement but have not yet been provided with residential land or houses for resettlement.

2. Conditions for a person to rent a state-owned social house include:

a/ Owning no house and having not been leased or hire-purchased any social house or received any house or land supports in any form from the State, or owning a house which is too small for his/her household with an average housing area of under 5 m²/person, or which is damaged or dilapidated;

b/ Having a permanent residence registration or a labor contract with a term of one year or more and paying social insurance premiums in the locality where the house for lease is located.

Low-income earners defined at Point dd, Clause 1 of this Article are those not liable to pay regular income tax in accordance with the law on personal income tax; poor households defined at Point dd, Clause 1 of this Article are those living below the poverty line prescribed by the Prime Minister; people with disabilities and lonely aged people must be certified by commune-level People’s Committees of the localities where they reside;

c/ Particularly for persons defined at Point h, Clause 1 of this Article, the conditions prescribed at Points a and b of this Clause do not apply but they are subject to the specific conditions prescribed by provincial-level People’s Committees.

3. Conditions for a person to hire-purchase a state-owned social house include:

a/ Fully satisfying the conditions prescribed in Clause 2 of this Article. Particularly, persons defined at Point h, Clause 1 of this Article shall satisfy conditions prescribed by provincial-level People’s Committees;

b/ Paying the first hire-purchase installment equal to 20% of the value of the house to be hire-purchased.

Article 13. Persons eligible and conditions for renting state-owned student houses

1. Eligible to rent state-owned student houses are pupils and students (below collectively referred to as students) of universities, colleges, professional secondary schools, vocational colleges and vocational secondary schools. In case student housing areas are insufficient to meet students’ needs, these areas may be leased in the following order of priority: students who are children of policy beneficiary or poor households as defined by the State; students in deep-lying and remote areas or provinces far from cities; brilliant students; and freshmen.

2. To be eligible to rent state-owned student houses, students must be studying at an educational institution (as certified by this institution).

Article 14. Persons eligible and conditions for renting state-owned old houses

1. Eligible for renting state-owned old houses are persons who are actually renting and wish to continue renting these houses.

2. A person renting an old house must fall into one of the following cases:

a/ If he/she is actually using the house and named in the house rent contract, he/she is not required to sign a new contract, unless the contract has expired;

b/ In case he/she is actually using the house and is not named in the house rent contract but named in the decision on house allocation or arrangement, he/she is required to carry out procedures for signing a house rent contract with the house management and operation unit;

c/ In case he/she is actually using the house and is not named in the house rent contract as well as the decision on house allocation or arrangement and such house is not subject to any dispute, he/she shall obtain a written approval of the house management agency and carry out procedures for signing a house rent contract with the house management and operation unit.

Article 15. Rent rates, hire-purchase prices and expenses related to the rent, hire-purchase of state-owned houses

1. For official-duty houses, rent rates must be determined on the principle that they include all expenses for management, operation and maintenance but exclude construction investment capital depreciation and land use levy.

2. For state-owned social houses, rent rates must be determined on the principle that they include all expenses to ensure recovery of construction investment capital within at least 20 (twenty) years from the date of signing the rent contract and maintenance expenses but exclude land use levy.

In case of hire-purchase of state-owned social houses, hire-purchase prices must include all expenses to ensure recovery of capital within at least 10 (ten) years and maintenance expenses but exclude land use levy. The hire-purchaser shall pay the first hire-purchase installment equal to 20% of the value of the house and pay the rest within at least 10 (ten) years from the date of signing the house hire-purchase contract.

3. For student houses, rent rates must be determined on the principle that they include all expenses for house management, operation and maintenance but exclude construction investment capital depreciation and land use levy.

4. For old houses, rent rates are prescribed as follows:

a/ In case houses or non-residential buildings are those arranged for living before July 5, 1994 (the date of promulgation of the Government’s Decree No. 61/CP on house trading) but have not yet been renovated or reconstructed, rent rates prescribed in the Prime Minister’s Decision on rent rates of state-owned houses which are not yet renovated or reconstructed will apply;

b/ For houses prescribed at Point a of this Clause which have been renovated or reconstructed; and houses or non-residential buildings arranged for living after July 5, 1994, rent rates applicable to state-owned social houses will apply.

5. For condominiums which are state-owned social houses or old houses, lessees are obliged to pay expenses for house management and operation under regulations.

6. The Ministry of Construction shall specifically guide the method of determining rent rates of state-owned houses mentioned in this Article.

Article 16. Exemption from or reduction of rentals for state-owned houses

1. The house rental exemption or reduction is given on the following principles:

a/ Rental exemption or reduction is not given for official-duty houses, student houses and houses defined at Points c and d, Clause 1, Article 22 of this Decree;

b/ Persons eligible for house rental exemption or reduction must be named in the house rent contracts (including representatives of parties to the contracts and other members named in the contracts);

c/ House rental exemption or reduction is considered only once for each lessee. In case a person rents many state-owned houses, he/she may enjoy rental exemption or reduction for only one of these houses;

d/ For a person eligible for different house rental exemption or reduction policies, he/she may enjoy the highest exemption or reduction level only;

dd/ In case two or more persons of the same household are currently renting a house eligible for rental reduction, they will be given rental exemption.

2. Persons eligible for rental exemption or reduction include:

a/ Revolutionary activists before January 1, 1945;

b/ Revolutionary activists from January 1, 1945, to the August 1945 Uprisings;

c/ Next of kin of fallen heroes;

d/ Heroic Vietnamese mothers;

dd/ Heroes of the people’s armed forces;

e/ Labor heroes during resistance wars;

g/ War invalids and persons entitled to policies like war invalids;

h/ Sick soldiers;

i/ Resistance war combatants who are affected by toxic chemicals;

k/ Revolutionary activists and resistance war combatants who had been arrested and imprisoned by the enemies;

l/ Resistance war combatants for national liberation, national defense or performance of international duties;

m/ Persons with meritorious services to the Revolution;

n/ Poor households living below the poverty line set by the Prime Minister;

o/ People with disabilities, lonely aged people and urban dwellers who meet extreme housing difficulties.

3. House rental exemption or reduction levels for persons defined in Clause 2 of this Article must be given under decisions of the Prime Minister.

Particularly, poor households, people with disabilities, lonely aged people and urban dwellers meeting extreme housing difficulties that are leased houses are entitled to 60% reduction of house rentals. For poor households, this reduction level is applied to the whole households (not to each household member).

Article 17. State-owned house rent or hire-purchase contracts

1. The state-owned house rent or hire-purchase must be effected through a contract signed with the house management and operation unit (in case of house rent) or with the house management agency (in case of house hire-purchase). For official-duty houses, house management and operation units shall sign house rent contracts with lessees or with agencies that directly manage the lessees.

2. A state-owned house rent or hire-purchase contract must have the following principal details:

a/ Names and addresses of the parties;

b/ Description of features of the house (with its location and site plan);

c/ Rent rate or hire-purchase price and mode of payment.

For state-owned old houses or social houses, the contract must clearly state the exempted or reduced rental amount (if the lessee is eligible for rental exemption or reduction); for hire-purchase of state-owned social houses, the contract must clearly state the first rental installment to be paid by the lessee which is equal to 20% of the value of the house and subsequent rental installments;

d/ House rent or hire-purchase term; in case of hire-purchase, the hire-purchase term stated in the contract must be at least 10 (ten) years from the date of signing the contract.

dd/ Rights and obligations of the parties;

e/ Commitments of the parties;

g/ Dispute settlement principles and settling agency;

h/ Other agreements (if any);

i/ Date of contract signing;

k/ Signatures of the parties.

3. Cases of termination of a state-owned rent or hire-purchase contract include:

a/ When the two parties agree to terminate the contract;

b/ When the house lessee is no longer eligible to rent the house;

c/ When the house lessee dies without any member of his/her household (his/her parents, spouse or children) living with him/her. If the lessee of an official-duty house dies, the lessor may terminate the house rent contract.

For house hire-purchase, the contract is terminated when the hire-purchaser dies without any lawful heir or with a lawful heir but the hire-purchaser has not yet fulfilled two thirds of the hire-purchase term as required;

d/ When the lessee or hire-purchaser defaults in paying the house rental for three consecutive months without any plausible reason;

dd/ When the lessee or hire-purchaser repairs, changes the structure, renovates or expands the rented or hire-purchased house without permission;

e/ When the lessee or hire-purchaser transfers the right to rent or hire-purchase the house to another person without permission;

g/ When the rented or hire-purchased house is heavily damaged and at risk of collapse and the lessee or hire-purchaser has to move from the house under a competent agency’s decision or the rented or hire-purchased house is located in an area subject to land recovery, ground clearance or house dismantlement under the decision of a competent agency;

h/ When either of the parties unilaterally terminates the house rent or hire-purchase contract as agreed upon in the contract or in accordance with law.

4. Pursuant to this Article, the Ministry of Construction shall prescribe house rent contract terms suitable to each type of lessee and promulgate the model contract on rent or hire-purchase of state-owned houses for uniform application nationwide.

Article 18. Dossiers, order and procedures for rent or hire-purchase of state-owned houses

1. A dossier for rent or hire-purchase of a state-owned house comprises a written request for house rent or hire-purchase (according to a form set by the Ministry of Construction), papers proving that the requester is eligible for house rental exemption or reduction, and other relevant papers.

2. The time limit for completion of procedures for house rent or hire-purchase is 30 days after the house management and operation unit receives a complete and valid dossier.

3. The Ministry of Construction shall specifically guide this Article, assuring strict management, simple procedures and convenience for house lessees and hire-purchasers.

Article 19. Rights and obligations of state-owned house lessors or lease-sellers

1. To sign house rent or hire-purchase contracts with eligible subjects, under prescribed conditions and for proper use purposes; to terminate house rent or hire-purchase contracts in the cases prescribed in Clause 3, Article 17 of this Decree.

2. To collect house rentals or hire-purchase installments fully and on time. For official-duty house lessees that directly sign contracts but defaults in paying rentals for three consecutive months, official-duty house management and operation units shall request agencies directly managing these lessees to deduct house rentals from their salaries. Agencies directly managing official-duty house lessees shall deduct rentals from the latter’s salaries and pay them to lessors.

3. To maintain, manage and operate leased or hire-purchased houses in accordance with the construction and housing laws.

4. To notify lessees or hire-purchasers of the regulations on house management and use, for state-owned official-duty, students and social houses, and publicize among lessees and hire-purchasers the regulations on condominium or villa management (in case leased or hire-purchased houses are within condominiums or villas); to urge and examine lessees or hire-purchasers in strictly observing these regulations.

5. In case of state-owned social house hire-purchase, to refund 20% of the contract value (with an interest calculated at the demand deposit interest rate of state-owned commercial banks at the time of refund) paid as the first installment by the hire-purchaser in case the hire-purchaser no longer needs to hire-purchase the house. In case the hire-purchaser violates the provisions of Points d, dd and e, Clause 3, Article 17 of this Decree during the hire-purchase period, to recover the house and refuse to refund the first installment of 20% of the contract value paid by the hire-purchaser.

6. To promptly detect violations in the house management and use for handling according to their competence or request competent agencies to consider and handle such violations.

7. To settle disputes and complaints related to the house management and use according to their competence or request competent agencies to consider and handle such disputes and complaints.

8. To recover houses under decisions of competent agencies defined in this Decree.

Article 20. Rights and obligations of state-owned house lessees or hire-purchasers

1. Rights of house lessees:

a/ To take over leased houses under contracts;

b/ To use housing areas under rent contracts for themselves and members of their families for living; for student houses, to use only for their own living;

c/ To request house management and operation units to promptly repair damage not caused by their fault; to create conditions for lessers to maintain the houses under regulations;

d/ To continue signing house rent contracts upon the expiration of the rent terms if they are still eligible and fully satisfy the prescribed conditions for renting houses;

dd/ In case official-duty house lessees that have returned rented official-duty houses still own no houses or are not yet leased or allowed to hire-purchase social houses in their places of residence, they may be considered for purchase, rent or hire-purchase of social houses or provided by provincial-level People’s Committees of their places of residence with other supports suitable to local practical conditions;

e/ To exercise other rights provided by law.

2. Rights of house hire-purchasers:

a/ The rights provided at Points a, b and c, Clause 1 of this Article;

b/ To request lease-sellers to carry out procedures for grant of certificates of land use rights and right to own houses and other land-attached assets (below collectively referred to as certificates) after fully paying house hire-purchase money;

c/ To conduct house transactions after fully paying hire-purchase money to lease-sellers under signed contracts and receiving the certificates, provided the hire-purchase has lasted for at least 10 years from the date of signing the house hire-purchase contracts. In case a house hire-purchaser wishes to sell a house he/she has hire-purchased for less than 10 years, he/she may only sell it to the State at a price not higher than that of a social house of the same type at the time of sale;

d/ To be refunded 20% of the contract value paid by them as the first installment for state-owned social houses (with an interest at the demand deposit interest rate applied by state-owned commercial banks at the time of refund) when they no long need to hire-purchase and terminate the house hire-purchase contracts, except the cases specified at Point d, dd and e, Clause 3, Article 17 of this Decree.

3. Obligations of house lessees:

a/ To use rented houses for residence only; to preserve rented houses and domestic equipment and utensils (if any); to repair deteriorations and pay compensations for damage caused by their fault;

b/ To pay rentals fully and on time as stated in the house rent contracts. In case of rent of state-owned social or old condominium apartments, to pay fully management and operation expenses. In case one party to an official-duty house rent contract is an agency directly managing the official-duty house lessee, such agency shall deduct the rental from the lessee’s salary and pay it to the house management and operation unit;

c/ Not to repair, renovate, dismantle and reconstruct rented houses without permission;

d/ Not to change the use purpose of or let others use or sub-lease rented houses in any forms. In case of old houses, the transfer of the lease right to others must be approved in writing by the house management agency and to sign house rent contracts with the house management and operation unit under regulations;

dd/ To observe regulations on house management and use and decisions of competent state agencies;

e/ To observe regulations on maintenance of environmental sanitation, security and order in their areas of residence;

g/ To return rented houses when they breach their contracts and such breach is subject to house return, or upon house recovery by a competent agency or when they are no longer eligible to rent houses under regulations;

h/ To properly and fully exercise the rights and perform the obligations prescribed in house rent contracts;

i/ To perform other obligations prescribed by law.

4. Obligations of house hire-purchasers:

a/ The obligations prescribed at Points a, b, c, dd, e, g, h and i, Clause 3 of this Article;

b/ Not to lease, sub-lease, put in mortgage or transfer rented houses in any form before fully paying the hire-purchase money and the hire-purchase period reaches 10 (ten) years from the date of signing house hire-purchase contracts, except the case of sale of hire-purchased houses to the State specified at Point c, Clause 2 of this Article.

Article 21. Management and use of state-owned houses

The management and use of state-owned houses (including compilation and preservation of house dossiers, warranty, maintenance, renovation, dismantlement and reconstruction of houses) are prescribed as follows:

1. The compilation and preservation of house dossiers must be conducted by house management agencies. House management agencies shall hand over house dossiers to house management and operation units for preservation to serve house management, use and operation;

2. The house warranty complies with the Housing Law and the Decree guiding the implementation of the Housing Law;

3. The house maintenance complies with the law on maintenance of construction works and the housing law. House maintenance activities include regular house keeping and maintenance, and regular and irregular repairs in order to maintain the house quality.

For old houses of which privately used areas have been partially or wholly sold by the State to lessees under the Government’s Decree No. 61/CP on house trading, co-owners of these houses shall contribute funds for maintenance of common-use house areas in proportion to areas under their respective private ownership.

4. The house renovation and dismantlement must comply with the Housing Law and competent agencies’ legal documents guiding the house renovation and dismantlement.

In case rented houses are determined by competent construction work quality inspection agencies to be seriously damaged or degraded and in danger of collapse, current lessees shall move from these houses together with their property in order to ensure safety for their lives and property.

During the period of house renovation or dismantlement for reconstruction, if lessees cannot find places for temporary residence, house management agencies shall arrange other houses for them which meet the prescribed housing conditions. Lessees will be resettled in renovated or reconstructed houses under house rent contracts signed with house management and operation units.

Article 22. Lease of houses and non-residential buildings arranged for residence before November 27, 1992 (below collectively referred to as houses)

1. The State shall continue to lease the following houses under this Decree:

a/ Houses permitted by competent agencies for construction with the state budget before November 27, 1992 (the date of promulgation of the Prime Minister’s Decision No. 118/TTg on house rent rates and inclusion of housing benefits in salaries) but completed, commissioned and distributed to cadres, workers and public employees for rent under this Decision after November 27, 1992;

b/ Houses rented by persons who have been transferred to other working positions, returned these houses and been leased other houses by managing state agencies after November 27, 1992;

c/ Houses or non-residential buildings arranged for residence during the period from November 27, 1992, to before July 5, 1994;

d/ Houses arranged for residence in the period from July 5, 1994, to before January 19, 2007 (the date of promulgation of the Prime Minister’s Decision No. 09/2007/QD-TTg on rearrangement and handling of state-owned houses and land).

2. Rent rates for houses specified in Clause 1 of this Article are determined as follows:

a/ For houses specified at Points a, b and c, Clause 1 of this Article which have not yet been renovated or reconstructed, rent rates prescribed by the Prime Minister for state-owned houses which have not yet been renovated or reconstructed will apply. If houses specified at Points a, b and c, Clause 1 of this Article have been renovated or reconstructed, rent rates for state-owned social houses will apply;

b/ For houses specified at Point d, Clause 1 of this Article, rent rates are those applicable to state-owned social houses.

3. Houses used from January 19, 2007, will be leased under regulations on management of state-owned assets, houses and land.

Article 23. Cases subject to recovery of state-owned houses

1. Houses have been sold ultra vires, to ineligible persons, or not under the conditions prescribed in this Decree.

2. A leased house will be recovered in one of the following cases:

a/ It has been leased ultra vires, to an ineligible person or not under the conditions prescribed in this Decree;

b/ It falls into one of the cases prescribed in Clause 3, Article 17 of this Decree;

c/ The lessee returns the rented house;

d/ Other cases prescribed by law.

3. A hire-purchased house will be recovered in one of the following cases:

a/ It has been hire-purchased ultra vires, to an ineligible person or not under the conditions prescribed in this Decree;

b/ It falls into one of the cases prescribed at Points a, c, d, dd, e, g and h, Clause 3, Article 17 of this Decree;

c/ The hire-purchaser returns the hire-purchased house;

d/ Other cases prescribed by law.

4. The Ministry of Construction shall guide the order and procedures for recovering houses prescribed in this Article.

Chapter IV

MANAGEMENT OF SALE OF STATE-OWNED HOUSES

Article 24. Types of houses not for sale

1. The State does not sell the following state-owned houses:

a/ State-owned official-duty houses, student houses and social houses, except the cases prescribed in Clauses 2 and 3, Article 25 of this Decree;

b/ Houses located in areas planned for construction of official-duty houses or key works of the State;

c/ Houses subject to land recovery under decisions of competent agencies for renovation or reconstruction into new ones or for construction of other works;

d/ Non-residential buildings currently arranged for residence as houses and subject to the handling and rearrangement of state-owned houses and land under the Prime Minister’s decisions;

dd/ Houses planned for use as official-duty houses or working offices as approved by competent agencies; houses attached to historical-cultural relics which have been classified by competent agencies in accordance with the law on cultural heritage;

e/ Condominiums which are seriously damaged or degraded and in danger of collapse according to conclusions of competent construction work quality inspection agencies, non-self-contained condominium apartments which have not yet been renovated by the State, except those already renovated by their lessees themselves without permission before the effective date of this Decree and independently and voluntarily used as are agreed in their written commitments and requests for purchase, and not in damaged condominiums mentioned in this Point;

g/ Villas on the list of villas not for sale already reported by provincial-level People’s Committees and approved by the Prime Minister before the effective date of this Decree.

Villas which are categorized as not for sale after provincial-level People’s Committees report the list of villas not for sale to the Prime Minister will be managed according to the criteria set and reported by provincial-level People’s Committees to the Prime Minister before the effective date of this Decree.

2. When the State handles houses not for sale specified in Clause 1 of this Article, current lessees will be considered for enjoying current housing and land policies on a case-by-case basis.

Article 25. Persons eligible to purchase and conditions for selling state-owned houses

1. For old houses allowed for sale, persons eligible to purchase and conditions for selling these houses are prescribed as follows:

a/ Purchasers must be named in house rent contracts, have paid fully house rentals and filed written requests for purchase of houses, and these houses are subject to no dispute, complaint or lawsuit;

b/ For old houses over which all-people ownership must be established under the National Assembly’s Resolution No. 23/2003/QH11 of November 26, 2003, on houses and land that were managed and arranged by the State for use in the course of implementation of house and land management policies and socialist reformation policies before July 1, 1991, and the National Assembly Standing Committee’s Resolution No. 755/2005/NQ-UBTVQH11 of April 2, 2005, on the settlement of a number of specific housing and land cases in the course of implementation of house and land management policies and socialist reformation policies before July 1, 1991, competent state agencies shall complete procedures for establishment of all-people ownership before selling these houses;

c/ In case of sale of non-residential buildings arranged for residential purpose before November 27, 1992, these buildings must satisfy the following conditions: Land plots are separate from the premises of working offices; these buildings have separate passageways and do neither block the front of working offices nor affect the surrounding settings and landscapes; agencies or units have no need to use these buildings and these buildings are conformable with local land use plans approved by competent authorities. Agencies or units that have no need to use these buildings shall transfer them to provincial-level People’s Committees in the localities where these buildings are located for sale under this Decree.

2. For official-duty houses and student houses which the State no longer needs to use or must be relocated under plans approved by competent authorities but are not dismantled for construction of other works, ministries, central sectors or provincial-level People’s Committees that are managing these buildings shall report to the Ministry of Construction for appraisal and submission to the Prime Minister for permission on the conversion of their use functions, and further manage their use in accordance with the law on management of state assets or sell them under the guidance of the Ministry of Construction.

3. For state-owned social houses which are currently managed by ministries, central sectors and provincial-level People’s Committees and need to be sold for reinvestment in the construction of other social houses, the Ministry of Construction shall study and propose the Government to consider and decide on policies and mechanisms for sale of this type of house.

4. The Ministry of Construction shall guide in detail this Article.

Article 26. Agencies to sell state-owned houses

Agencies representing the owner defined in Clauses 1 and 2, Article 4 of this Decree are responsible for the sale and assign house management agencies defined at Points a and b, Clause 3, Article 4 of this Decree to sell state-owned houses under this Decree.

Article 27. Sale prices of state-owned houses

1. House management agencies shall set up a council to determine house sale prices to be proposed to agencies representing the house owner defined in Clause 1, Article 4 (for houses managed by central agencies) or to agencies representing the house owner defined in Clause 2, Article 4 (for houses managed by local agencies) for approval before selling houses.

2. For old houses (regardless of purchase of one or more than one house), a sale price includes the house price and land use levy which are prescribed as follows:

a/ The house price is determined on the basis of the remaining value of the house and the use value coefficient; the remaining value is determined according to the percentage of the remaining quality of the house multiplied (x) by the standard price of a new house promulgated by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract and multiplied (x) by the usable housing area. For grade-IV houses which have been dismantled and reconstructed by lessees before the effective date of this Decree, the remaining value of the house is zero;

b/ Land use levy is calculated according to the land price bracket promulgated by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract and based on the location of the residential land and number of stories of the house as follows:

- For a multi-storied house with many households, land use levy is equal to 10% of the residential land price upon the transfer of land use rights and allocated to each story according to its corresponding coefficient;

- For a single- or multi-storied house with only one household or a villa with one or more than one household, land use levy is equal to 40% of the residential land price upon the transfer of land use rights for the land area within the residential land limit set by the provincial-level People’s Committee; for the land area in excess of the residential land limit set by the provincial-level People’s Committee, the land use level is equal to 100% of the residential land price.

For a villa with more than one household, the land area for calculation of land use levy payable by each household includes: The undisputed land area under private use; the land area of the villa allocated to households according to the housing area of each household and its story coefficient; the common-use land area within the villa’s premises allocated to each household (according to the number of households using the villa). The land use levy of each household is calculated first of all on the land area of the villa with more than one household, then on other areas.

Provincial-level People’s Committees shall specify the allocation of land areas for sale of villas suitable to local practical conditions.

c/ For old houses constructed partially with contributions of individuals and collectives not originating from the state budget, payments for purchasing these houses are calculated as follows:

- The house price is determined according to Point a of this Clause, and the purchaser(s) will have their previous contributions for the construction of the house deducted (calculated according to the proportion (%) of the contributions to the finalized construction value of the house);

- The land use levy is calculated according to Point b of this Clause.

3. The Ministry of Construction shall guide specifically the method of determining the remaining value of houses; coefficients regulating the use value of houses; the use of house story coefficients upon the transfer of land use rights for old multi-storied houses with many households.

Article 28. Principles of state-owned house purchase payment exemption or reduction

1. The payment for purchase of a state-owned house includes land use levy and house price.

2. The land use levy exemption or reduction must adhere to the following principles:

a/ The land use levy exemption or reduction upon the sale of a state-owned house is considered and given only once for purchasers. In case a person is eligible for many reduction policies, only the highest reduction level will apply. In case a household has many members eligible for land use levy reduction, the reductions enjoyed by these members may be aggregated but must not exceed the land use levy amount payable by purchasers.

b/ Land use levy exemption or reduction is not given to purchasers of houses defined at Points c and d, Clause 1, Article 22 of this Decree;

c/ Persons who have enjoyed land use levy exemption or reduction upon the purchase of state-owned houses or upon the allocation of land for house construction or received monetary supports for housing improvement before the effective date of this Decree, are not entitled to land use levy exemption or reduction when purchasing houses under this Decree.

3. The house price reduction must adhere to the following principles:

a/ The house price reduction must not be given more than once for the same period or person. Each person is entitled to only one reduction when purchasing the house which he/she is renting;

b/ The house price reduction is not given to purchasers of houses defined at Points c and d, Clause 1, Article 22 of this Decree;

c/ For a household having many members named in the same house rent contract or in the same household permanent residence registration book at the house’s address and eligible for house price reduction, the house price reductions enjoyed by these members may be aggregated for the whole household which must not exceed the house sale price in the house purchase payment (excluding land use levy);

d/ The number of years for calculating house price reduction is the number of actual working years in agencies or units in a state-managed sector by the time of signing the house purchase contract signing. The working period of less than six months may be rounded up to half a year while the working period of more than six months may be rounded up to a year.

Article 29. Persons eligible for state-owned house purchase payment exemption or reduction, and exemption or reduction levels              

1. Persons eligible for land use levy exemption or reduction when purchasing state-owned houses include:

a/ Persons with meritorious services to the Revolution defined in Clause 2, Article 16 of this Decree;

b/ Poor households living below the poverty line set by the Prime Minister;

c/ Persons with disabilities, lonely aged persons and urban dwellers meeting special housing difficulties.

2. Land use levy reduction levels for house purchasers defined in Clause 1 of this Article comply with the Prime Minister’s decisions.

Particularly, poor households, persons with disabilities, lonely aged persons and urban dwellers meeting special housing difficulties are eligible for 60% reduction of payable land use levy. For poor households, this reduction level is for the whole households (not for each household member).

3. Persons eligible for house price reduction when purchasing state-owned houses include:

a/ Cadres, civil servants and public employees in administrative and non-business agencies, Party agencies or mass organizations who are salaried by the state budget;

b/ Persons who are salaried by the state budget in the armed forces;

c/ Non-commissioned officers and soldiers who are entitled to the cost-of-living allowance and previously operated in A, B, C and K battlefields;

d/ Cadres who work in communes or wards and are salaried by the state budget or entitled to the cost-of-living allowance prescribed by the State;

dd/ Workers and public employees who work regularly for at least one year in state enterprises, organizations or units permitted to conduct production or business activities or provide services and attached to administrative and non-business agencies, armed forces, Party agencies or mass organizations;

e/ Persons defined at Points a, b, c and dd of this Clause who are dispatched to work in foreign-invested enterprises, industrial parks, export processing zones, economic or commercial representative offices established and operating in Vietnam, diplomatic missions, international organizations or non-governmental organizations, foreign press agencies, radio or television broadcasting agencies based in Vietnam, and units of other economic sectors;

g/ Persons who are on pension, working capacity loss allowance, labor accident or occupational disease allowance, allowance for rubber workers, lump-sum social insurance allowance or severance allowance since before and after the promulgation of Decision No. 111/HDBT of April 12, 1991, of the Council of Ministers (now the Government) or since before and after the promulgation of the 1995 Labor Code;

h/ Salaried persons in the armed forces who are not eligible for monthly pension or working capacity loss allowance but are enjoying the demobilization allowance; and persons who were demobilized before 1960;

i/ Persons defined in Clause 1 of this Article.

Papers for identifying persons eligible for house price reduction and the actual working periods for calculating house purchase payment reductions must comply with the Prime Minister’s decisions.

4. House price reduction levels upon the purchase of state-owned houses are prescribed as follows:

a/ For each working year, a house purchase is entitled to a reduction equal to 0.69 time the Government-set minimum salary applicable to cadres, civil servants, public employees and personnel of the armed forces. For house purchasers who have once served in the armed forces, for each year of service they are entitled to a reduction equal to 1.24 times the minimum salary mentioned at this Point;

b/ For a person with meritorious services to the Revolution, member of a poor household, person with disabilities or lonely aged person who has a working period for reduction calculation but the total reduction amount calculated according to his/her working years is smaller than 6.9 times the minimum salary, he/she will be entitled to the reduction equal to 6.9 times the minimum salary. If such person has no working period, he/she will be entitled to a reduction equal to 6.9 times the minimum salary.

Particularly for members of poor households, reduction will be calculated for the whole households (not for each household member).

Article 30. State-owned house sale and purchase contracts

1. The purchase of a state-owned house must be effected through a sale and purchase contract signed between house management agency and the purchaser. A house sale and purchase contract must have the following principal details:

a/ Names and addresses of the parties;

b/ Description of the house (address, type, etc.;

c/ Sale price and mode of payment, the exempted or reduced amount (in case the purchaser is eligible for house payment exemption or reduction);

d/ Rights and obligations of the parties;

dd/ Commitments of the parties;

e/ Dispute settlement principles and settling agency;

g/ Other agreements (if any);

h/ Date of contract signing;

i/ Signatures of the parties.

2. Pursuant to Clause 1 of this Article, the Ministry of Construction shall promulgate a model contract on state-owned house sale and purchase for uniform application nationwide.

Article 31. Order and procedures for sale of state-owned houses

1. The order and procedures for sale of a house are as follows:

a/ The purchaser submits a dossier of request for house purchase to the house management and operation unit;

b/ The house management and operation unit receives the dossier and makes a list of purchasers. When the dossiers are complete and valid, it shall report to the house management agency for examination and submission to the agency representing the house owner for decision on the sale;

c/ Based on the decision on the sale of the house issued by the competent agency, the house management and operation unit shall notify the purchasers of the time for signing the house sale and purchase contracts with the house management agency;

d/ The time limit for sale of a house is 45 days after the house management and operation unit receives complete and valid dossiers. This time limit is not counted into the time for the competent agency to grant a certificate.

The grant of certificates to house purchasers complies with the law on grant of certificates. The agency competent to grant certificates shall send a list of house purchasers that have been granted certificates and send one (1) copy of each certificate to the house management agency for preservation and monitoring.

2. The Ministry of Construction shall specifically guide the order and procedures for sale of houses prescribed in this Article, ensuring proper dossier, simple procedures, time saving and convenience for purchasers.

Article 32. Rights and responsibilities of sellers of state-owned houses

1. To sell houses according to the order and procedures and within the time limit prescribed in this Decree and the guidance of the Ministry of Construction.

2. To request purchasers to make house purchase payments and fulfill financial obligations as prescribed and within the time limit stated in house sale and purchase contracts.

3. To publicize the regulations on management and use of condominium apartments or villas among their purchasers.

4. To carry out procedures for requesting competent state agencies to grant certificates for purchasers after completing procedures for house sale and purchase.

5. Not to request purchasers to submit additional papers not prescribed in house purchase dossiers as prescribed.

6. To exercise other rights and perform other obligations provided by law.

Article 33. Rights and obligations of purchasers of state-owned houses

1. To request house sellers to strictly comply with the prescribed order, procedures and time limit for sale of houses.

2. To be given house purchase payment exemption or reduction if they are eligible for and fully satisfy the conditions for exemption or reduction provided in this Decree.

3. To request house sellers to hand papers related to the houses within the time limit agreed upon in house sale and purchase contracts.

4. To make house purchase payments fully and on time as agreed upon in house sale and purchase contracts.

5. To fulfill financial obligations related to house sale and purchase as prescribed by law.

6. To request sellers to carry out procedures for requesting competent state agencies to grant certificates for purchased houses and receive such certificates.

7. To exercise other rights and perform other obligations as provided by law.

Article 34. Sale of houses and non-residential buildings arranged for residential purposes after November 27, 1992

1. Houses arranged for use during the period from November 27, 1992, to before July 5, 1994, may be sold to current lessees according to the following provisions:

a/ Conditions of a house for sale:

- It does not fall into a case defined in Clause 1, Article 24 of this Decree, and is free from disputes and lawsuits and conformable with house construction plans, and the current lessee wants to purchase it;

- A non-residential building must also satisfy the conditions: It is separated from the premises of the working office, has separate passageways, neither blocks the front of the working office nor affects the surrounding space or landscape, and is conformable with the local land use plan, and the managing agency or unit no longer need to use it.

b/ Sale prices of houses comply with Clause 2, Article 27 of this Decree.

2. Houses arranged for use during the period from July 5, 1994, to before January 19, 2007, may be sold to current lessees according to the following provisions:

a/ Houses must satisfy the conditions prescribed at Point a, Clause 1 of this Article;

b/ The sale price of a house includes:

- The house price which is determined on the basis of the percentage of the remaining quality of the house multiplied (x) by the standard price of a new house promulgated by the provincial-level People’s Committee and effective at the time of sale and purchase contract signing and multiplied (x) by the usable housing area;

- Land use levy which is calculated equal to 100% of the land price in the land price bracket promulgated by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract (regardless of the land area within or beyond the residential land limit).

3. The cases of house purchase specified in Clauses 1 and 2 of this Article are not eligible for house purchase payment exemption or reduction.

4. Non-residential buildings arranged for residential purposes without satisfying the conditions for sale prescribed in Clauses 1 and 2 of this Article will be handled according to the law on management of state-owned houses and land.

Article 35. Handling of common-use house areas and land areas adjacent to state-owned houses

1. For houses with many households, if all house areas under private use rights have been already sold by the State to these households but the common-use house and land areas within the premises of the house have not yet been sold, and the person currently owning the whole purchased house area wishes to purchase the whole common-use area, this case will be handled as follows:

a/ The purchaser shall pay the house price and land use levy for such common-use area;

b/ The house price is determined on the basis of the percentage of the remaining value of the house multiplied (x) by the standard price of a new house promulgated by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract and multiplied (x) by the usable area;

c/ The land use levy is equal to 100% of the land price in the land price bracket promulgated by the People’s Committee and effective at the time of signing the sale and purchase contract.

2. For the land area adjacent to a state-owned house with its use rights not yet transferred by the State to the purchaser(s) that are actually using such house when it was sold to the current lessees(s) at agreed prices or under the Government’s Decree No. 61/CP on house trading, or when such house is sold by the State under this Decree, such land area will be handled as follows:

a/ The State transfers the rights to use such land area if this area is free from disputes and lawsuits and conformable with the house construction plan;

b/ The payable land use levy is equal to 40% of the land price, the area within the residential land limit, or 100% of the land price, for the area beyond the residential land limit in the premises of such state-owned house (the residential land limit includes the land area under the purchased house and the adjacent land area). The land price for calculating the land use levy is based on the land price bracket promulgated by the provincial-level People’s Committee and effective at the time of recognizing the rights to use such adjacent land area.

The land use levy on the land area outside the premises of the state-owned house will be calculated and collected in accordance with the land law.

3. For houses constructed on open land areas within the premises of state-owned houses and conformable with the house construction master plans and free from disputes, current land users will have their land use rights recognized by the State. The land use levy payable in this case is equal to 100% of the residential land price in the land price bracket promulgated by the provincial-level People’s Committees and effective at the time of recognizing land use rights.

4. Common-use house areas not purchased by house owners will be managed by house management agencies under this Decree and the housing law.

5. Provincial-level People’s Committees shall base themselves on this Article and local practical conditions to promulgate specific regulations on dossiers, order and procedures for handling of cases specified in this Article.

Chapter V

ORGANIZATION OF IMPLEMENTATION

Article 36. Responsibilities of the Ministry of Construction

1. To specify the provisions of this Decree.

2. To assume the prime responsibility for, and coordinate with ministries, sectors and provincial-level People’s Committees in, organizing the implementation of this Decree.

3. To direct its attached house management agencies in strictly managing official-duty houses of the Government and state-owned social houses constructed with the central budget; and to direct educational institutions in strictly managing student houses under their management.

4. To assist the Government in supervising the exercise of the rights of representatives of the owner by ministries and central sectors over state-owned houses under their management.

5. To urge, monitor, examine and inspect the management of lease, hire-purchase and sale of state-owned houses nationwide.

6. To handle according to its competence or request competent agencies to handle violations of the management, use, lease, hire-purchase and sale of state-owned houses.

7. To report to the Prime Minister on the management and use of state-owned houses under this Decree; to propose amendments and supplements to the regulations on management of state-owned houses to suit the practical situation.

8. To perform other duties as prescribed in this Decree and when assigned by the Prime Minister.

Article 37. Responsibilities of provincial-level People’s Committees

1. To direct local functional agencies in managing state-owned houses in their localities under this Decree and relevant laws; to direct related local agencies in closely coordinating with one another in the receipt of self-managed houses and in the management of sale, lease and hire-purchase of houses under this Decree.

2. To promulgate or decide on rent rates of official-duty houses, rent rates or hire-purchase prices of state-owned social houses, rent rates of student houses and old houses under local management.

3. To base them selves on the guidance of the Ministry of Construction to promulgate processes of sale and hire-purchase of state-owned houses to current lessees in their localities; to direct competent agencies in carrying out procedures for sale, purchase or hire-purchase of houses and granting certificates to lessees or hire-purchasers, ensuring simple procedures, time saving and convenience for house purchasers.

4. To direct provincial-level Construction Departments in promulgating charge rates of state-owned house management and operation services for application to houses of central agencies and local houses constructed in their localities.

5. To post lists of state-owned houses not for sale in their localities on their websites and websites of provincial-level Construction Departments.

6. To urge and examine the management of state-owned houses in their localities (including those not for sale or ineligible for sale); to make plans and formulate a mechanism to encourage all economic sectors to invest in the renovation or reconstruction of houses not for sale or houses which current lessees do not want to purchase, ensuring the requirements of safety, improvement of residential areas and contribution to the urban embellishment on the principle of strict management and preservation of investment capital.

7. To report to the Ministry of Construction on the management and use of state-owned houses under this Decree.

8. To handle according to their competence or request competent agencies to handle violations of the management, use, lease, hire-purchase and sale of state-owned houses.

9. To issue decisions on recovery of local state-owned houses under their management (including also state-owned houses currently managed by central agencies) and enforce these decisions in case lessees or hire-purchasers refuse to return the houses after competent agencies issue recovery decisions.

10. To perform other duties as prescribed in this Decree and relevant laws.

Article 38. Responsibilities of related ministries and sectors

1. Related ministries and sectors shall manage and use houses under their management in compliance with this Decree and the guidance of the Ministry of Construction; promulgate or decide on rent rates of official-duty houses, student houses, rent rates and hire-purchase prices of state-owned social houses under their management according to regulations; report to the Ministry of Construction on the management and use of houses under their management as prescribed in this Decree; to handle according to their competence or request competent agencies to handle violations of the management, use, lease, hire-purchase and sale of houses.

2. Ministries and sectors that have self-managed old houses shall expeditiously transfer these houses to provincial-level People’s Committees for management under this Decree, except old houses managed by the Ministry of National Defense. The transfer must adhere to the principles that houses and land are handed over in their current state and with all current house users at the time of transfer, procedures are simple and time saving and convenience for related agencies and organizations to transfer and receive these houses.

3. Related ministries and sectors shall coordinate with the Ministry of Construction and provincial-level People’s Committees in implementing this Decree.

4. The Ministry of Finance shall coordinate with the Ministry of Construction in guiding the management and use of rentals, hire-purchase installment payments and proceeds from the sale of state-owned houses and the application of the mechanism applicable to public-utility services to the state-owned house management and operation for implementation by house management agencies and related agencies.

Chapter VI

IMPLEMENTATION PROVISIONS

Article 39. Effect

1. This Decree takes effect on June 6, 2013.

2. This Decree replaces the following legal documents:

a/ The Government’s Decree No. 61/CP of July 5, 1994, on house trading;

b/ The Government’s Decree No. 21/CP of April 16, 1996, amending and supplementing Articles 5 and 7 of Decree No. 61/CP of July 5, 1994, on house trading;

c/ The Government’s Resolution No. 23/2006/NQ-CP of September 7, 2006, on a number of solutions to step up the sale of state-owned houses to current lessees under Decree No. 61/CP of July 5, 1994;

d/ The Government’s Resolution No. 48/2007/NQ-CP of August 30, 2007, adjusting a number of policies on sale of state-owned houses to current lessees under Decree No. 61/CP of July 5, 1994, and rent rates of state-owned houses which have not yet been renovated or reconstructed.

3. To annul the following legal documents and regulations:

a/ The Prime Minister’s Decision No. 188/1998/QD-TTg of September 28, 1998, on the sale of villas in Ho Chi Minh City; and Decision No. 189/1998/QD-TTg of September 28, 1998, on the sale of villas in Hanoi city;

b/ To annul Articles 23, 24, 25, 26, 27, 28, 29, 30, 37; Clause 1, Article 38; Clause 1, Article 39; and the provisions on management of state-owned social houses of Article 40 of the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the implementation of the Housing Law;

c/ To annul the regulations on management, use, lease, hire-purchase and sale of state-owned houses promulgated by the Prime Minister, ministries, sectors and provincial-level People’s Committees before the effective date of this Decree and contrary to this Decree.

4. To continue to sell state-owned houses according to the policies provided in Decree No. 61/CP of July 5, 1994, on house trading, to persons that have filed written requests for purchase of old houses before the effective date of this Decree, provided these houses are eligible for sale under this Decree.

Article 40. Implementation responsibility

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