Decree 69/2021/ND-CP on renovation and reconstruction of condominiums

DECREE

On renovation or reconstruction of condominiums^[1]

Pursuant to the June 19, 2015 Law on Organization of the Government; and the November 22, 2019 Law Amending and Supplementing a Number of Articles of the Law on Organization of the Government and the Law on Organization of Local Administration;

Pursuant to the June 17, 2009 Law on Urban Planning;

Pursuant to the November 29, 2013 Land Law;

Pursuant to the November 26, 2013 Bidding Law;

Pursuant to the June 18, 2014 Law on Construction; and the June 17, 2020 Law Amending and Supplementing a Number of Articles of the Law on Construction;

Pursuant to the November 25, 2014 Housing Law;

Pursuant to the June 17, 2020 Law on Investment;

At the proposal of the Minister of Construction;

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

Chapter I

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree provides in detail the renovation or reconstruction of condominiums specified in Article 110 of the Housing Law, covering quality inspection and evaluation of condominiums, formulation and approval of condominium renovation or reconstruction plans; planning-related requirements for condominium renovation or reconstruction areas; selection of project owners; compensation, support, resettlement, and arrangement of temporary residences for resettled persons; rights and responsibilities of project owners and condominium owners and users in the relocation, demolition, renovation or reconstruction of condominiums, and a number of mechanisms in implementation of condominium renovation or reconstruction projects.

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

Article 2. Subjects of application

1. Domestic organizations, households and individuals, overseas Vietnamese, and foreign organizations and individuals involved in condominium renovation or reconstruction.

2. State management agencies and other organizations and individuals involved in condominium renovation or reconstruction.

Article 3. Interpretation of terms

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

1. Condominium means an independent block consisting of 1 or more unit(s) that is identified under Clause 3, Article 3 of the Housing Law and built on a land parcel as planned.

2. Condominium complex means a complex consisting of 2 or more condominiums specified in Clause 1 of this Article and other works, including individual houses (if any), that are built on a land parcel as planned.

3. Condominium renovation or reconstruction project means a resettlement project that aims to upgrade the quality, expand the area or change the area structure of existing condominiums or to demolish condominiums for construction of new condominiums and other works (if any). Condominium renovation or reconstruction projects include condominium renovation or reconstruction projects and condominium complex renovation or reconstruction projects.

4. On-spot resettlement means arrangement of houses or other areas (if any) for organizations, households and individuals that are eligible for resettlement in their old places under a condominium renovation or reconstruction project.

5. Condominium renovation or reconstruction project owner means a real estate business that is selected in one of the forms specified in Articles 14 and 15 of this Decree or an organization that is assigned by the State under Article 16 of this Decree to implement the project.

6. Condominium owner means the owner of a condominium apartment or owner of other areas within a condominium (below collectively referred to as condominium owner).

Condominium owners are organizations or individuals that have been granted or are eligible for grant of certificates of ownership of houses and use rights of residential land and land-attached assets in different periods (below referred to as certificates), except owners of state-owned housing areas.

7. Condominium user means an owner that is directly using a condominium or an organization, household or individual that is lawfully using an apartment or other areas in a condominium in the form of rent, borrowing, permitted stay, or authorized use management or use under a competent state agency’s decision.

Article 4. Principles of condominium renovation or reconstruction

1. The condominium renovation or reconstruction shall be carried out under projects in combination with renovation and embellishment of urban areas and in conformity with construction master plans, land use master plans and plans, housing development programs, and condominium renovation or reconstruction plans approved by competent agencies.

In case it is required to urgently demolish a condominium due to an incident, or a natural disaster, fire or explosion while such condominium has not yet been included in an approved condominium renovation or reconstruction plan, the provincial-level People’s Committee shall immediately relocate households from the condominium, then add such condominium to a local plan on condominium renovation or reconstruction.

2. The implementation of condominium renovation or reconstruction projects must comply with the construction, housing, and land laws, other relevant laws, and this Decree. Project owners shall demolish the condominiums specified in Clause 1, and at Point a, Clause 2, Article 5 of this Decree for reconstruction before demolishing other condominiums subject to demolition. Condominium renovation or reconstruction projects are not required to reserve land areas for construction of social houses in accordance with the housing law.

3. The scope of a condominium or condominium complex renovation or reconstruction project shall be stated in a detailed master plan or included in contents of the approved project investment policy.

4. For existing condominium complexes specified in Clause 2, Article 110 of the Housing Law, a local administration may implement 1 or more condominium renovation or reconstruction project(s) but shall ensure connection of technical infrastructure and social infrastructure systems and comply with the detailed master plan for the whole condominium complex approved by a competent agency.

In case of implementing 1 project, the project owner may carry out investment phasing but shall demolish the condominiums specified in Clause 1, and at Point a, Clause 2, Article 5 of this Decree for reconstruction before demolishing other condominiums in the condominium complex for reconstruction under the condominium renovation or reconstruction plan approved by the provincial-level People’s Committee. The investment phasing for a condominium renovation or reconstruction project shall be stated in the investment policy approved by a competent agency as suitable to reality and project implementation duration for each condominium and must meet the requirements specified in this Article.

5. In case the implementation of an investment project is delayed against the competent agency’s investment policy approval decision, such agency shall decide to prolong the implementation duration or terminate the implementation of the project. In case of termination of project implementation, the provincial-level People’s Committee shall organize re-selection of the project owner in accordance with this Decree. For the condominium renovation or reconstruction projects specified in Clause 1, Article 6 of this Decree, agencies competent to decide on investment policy shall permit the prolongation of their implementation duration as for projects using public investment funds.

Article 5. Cases requiring demolition of condominiums for reconstruction or for construction of other works as planned

Condominiums subject to demolition for reconstruction or for construction of other works as planned specified in this Decree include:

1. Condominiums subject to urgent demolition due to incidents, natural disasters, fires or explosions in accordance with law.

2. Condominiums the use duration of which has expired as specified by law or the use duration of which has not yet expired but which, under inspection conclusions of provincial-level housing management agencies, fall into one of the following cases:

a/ There appears an overall danger in the main load-bearing structure of a condominium, making such condominium likely to collapse and unqualified for further use, and requiring urgent relocation of condominium owners and users;

b/ A condominium is seriously damaged, there appears a  danger in a section of the main load-bearing structure of the condominium, and one of the following phenomena occurs: the technical infrastructure system for fire prevention and fighting; water supply and drainage and wastewater treatment system; or electricity supply or internal traffic system fails to satisfy requirements of current technical regulations or standards or is likely to become unsafe for operation or use and required to be demolished in order to ensure safety for users and meet requirements on renovation and embellishment of urban areas.

3. Condominiums with one of main structural components damaged, such as foundation, pillar, wall or beam, failing to meet requirements for normal use which, however, are not subject to demolition as specified in Clause 2 of this Article but are located in areas having condominiums subject to demolition specified in Clause 2, Article 110 of the Housing Law.

Article 6. The State’s implementation of condominium renovation or reconstruction projects with funding sources specified in Clause 3, Article 36 of the Housing Law (revised under Point a, Clause 6, Article 99 of the 2020 Law on Investment in the Form of Public-Private Partnership)

1. The State shall carry out condominium renovation or reconstruction with funding sources specified in Clause 3, Article 36 of the Housing Law (revised under Point a, Clause 6, Article 99 of the 2020 Law on Investment in the Form of Public-Private Partnership) in the following cases:

a/ Condominiums or condominium complexes are wholly owned by the State and subject to demolition as specified in Article 5 of this Decree;

b/ It is impossible to select project owners under Article 15 of this Decree.

2. Based on condominiums subject to demolition for reconstruction specified in Clause 1 of this Article, provincial-level People’s Committees shall report to same-level People’s Councils for decision the allocation of funding sources for implementation of condominium renovation or reconstruction projects.

3. Investment policy for condominium renovation or reconstruction projects specified in this Article shall be decided in the same manner as for projects using public investment funds.

4. The demolition of condominiums and implementation of condominium renovation or reconstruction projects specified in this Article must comply with the law on construction, this Decree, and relevant laws.

Chapter II

REQUIREMENTS ON QUALITY INSPECTION OF CONDOMINIUMS, CONDOMINIUM RENOVATION OR RECONSTRUCTION PLANS AND MASTER PLANS, AND SELECTION OF PROJECT OWNERS

Section 1

QUALITY INSPECTION AND EVALUATION OF CONDOMINIUMS

Article 7. Principles of quality inspection and evaluation of condominiums

1. Provincial-level People’s Committees shall direct provincial-level state management agencies to assume the prime responsibility for, and coordinate with local competent agencies and district-level People’s Committees of localities where condominiums are located in, organizing quality inspection and evaluation of condominiums specified in Article 110 of the Housing Law in accordance with the construction law and this Decree.

2. For condominium complexes, it is required to carry out quality inspection and evaluation of the whole complexes before they are included in condominium renovation or reconstruction plans.

3. The quality inspection and evaluation of condominiums specified in this Article must comply with the construction and housing laws.

Article 8. Requirements for and contents of quality inspection and evaluation of condominiums

1. Units or organizations assigned to carry out quality inspection and evaluation of condominiums shall base themselves on contents of and requirements for quality inspection and evaluation of the actual state of works specified in the construction law and this Decree to carry out quality inspection and evaluation of condominiums and, at the same time, make it clear whether such condominiums are not damaged or are damaged and subject to demolition as specified in Clause 2 or 3, Article 5 of this Decree.

2. Units or organizations carrying out quality inspection and evaluation of condominiums shall send reports on results of inspection specified in Clause 1 of this Article to provincial-level housing management agencies. For condominiums specified in Clause 2 or 3, Article 5 of this Decree, provincial-level housing management agencies shall issue inspection conclusions and report on inspection results to provincial-level People’s Committees for use as a basis for implementation of projects under approved master plans.

3. After receiving reports from provincial-level housing management agencies, provincial-level People’s Committees shall notify thereof in writing to owners of condominiums subject to renovation or reconstruction specified in Article 5 of this Decree and, at the same time, publicize lists of such condominiums on portals of provincial-level People’s Committees and provincial-level housing management agencies.

Section 2

CONDOMINIUM RENOVATION OR RECONSTRUCTION PLANS

Article 9. Requirements on formulation of condominium renovation or reconstruction plans

1. For localities where the quality inspection and evaluation of all condominiums have been completed under Articles 7 and 8 of this Decree, within 3 months from the effective date of this Decree, provincial-level housing management agencies shall formulate renovation or reconstruction plans for the condominiums specified in Article 5 of this Decree and submit them to provincial-level People’s Committees for approval.

After a condominium renovation or reconstruction plan is issued, if the condominiums specified in Article 5 of this Decree come into existence, the provincial-level People’s Committee shall list and add such condominiums to the local plan on condominium renovation or reconstruction under Clause 3 of this Article for use as a basis for project implementation.

2. For localities where the quality inspection and evaluation of all condominiums have not yet been completed under Articles 7 and 8 of this Decree, within 3 months from the effective date of this Decree, provincial-level housing management agencies shall formulate renovation or reconstruction plans for condominiums for which the quality inspection has been completed and which are specified in Clause 2 or 3, Article 5 of this Decree and submit them to provincial-level People’s Committees for approval.

3. For condominiums for which the quality inspection has not yet been completed under Clause 2 of this Article, provincial-level housing management agencies shall, once every 6 months, review, and organize quality inspection and evaluation of, condominiums and make lists of condominiums subject to renovation or reconstruction as specified in Clause 2 or 3, Article 5 of this Decree, and the condominiums specified in Clause 3, Article 110 of the Housing Law, for reporting to provincial-level People’s Committees for the latter to add such condominiums to condominium renovation or reconstruction plans for use as a basis for implementation.

Article 10. Formulation and approval of condominium renovation or reconstruction plans

1. In case the formulation and approval of condominium renovation or reconstruction plans are carried out simultaneously with the formulation and approval of local housing development plans, provincial-level People’s Committees may incorporate the former plans in the latter plans or formulate the former plans separately.

2. In case local administrations modify or supplement their housing development programs which require a change in contents of condominium renovation or reconstruction plans, provincial-level People’s Committees shall organize formulation of and approve modifications of housing development plans and condominium renovation or reconstruction plans.

3. In case the condominiums specified in Clause 2 or 3, Article 5 of this Decree have been included in condominium renovation or reconstruction plans but are not yet included in local housing development plans, provincial-level People’s Committees may implement projects on renovation or reconstruction of such condominiums, then report to provincial-level People’s Councils for approval the addition of such projects to the local housing development plans.

Article 11. Contents of condominium renovation or reconstruction plans

1. Contents of a condominium renovation or reconstruction plan include:

a/ List and locations of condominiums and condominium complexes that need renovation or reconstruction, which must state that the demolition of the condominiums specified in Clause 1, or at Point a, Clause 2, Article 5 is carried out before the demolition of the condominiums specified at Point b, Clause 2, or in Clause 3, Article 5 and other works (if any). In case of renovation or reconstruction of a condominium complex, it is required to project the time of demolition and reconstruction of the first condominium of the condominium complex and the time of demolition and reconstruction of other condominiums in the condominium complex;

b/ Funding sources expected to be mobilized for renovation or reconstruction of condominiums and condominium complexes in the locality; for the condominiums specified in Clause 1, Article 6 of this Decree, it is required to estimate funding sources for implementation of projects for reporting to People’s Councils for consideration and decision;

c/ Responsibilities of People’s Committees at all levels, provincial-level Departments of Construction and related agencies in the implementation of condominium renovation or reconstruction plans;

d/ Other relevant contents (if any).

2. After a condominium renovation or reconstruction plan (including also modifications thereof) is approved, the provincial-level People’s Committee shall publicize contents of such plan on its portal and send it to the district- and commune-level People’s Committees of the localities where condominiums subject to renovation or reconstruction are located for notification to condominium owners and users for implementation and, at the same time, send it to the Ministry of Construction for monitoring and management.

Section 3

REQUIREMENTS ON MASTER PLANS ON CONDOMINIUM RENOVATION OR RECONSTRUCTION AREAS

Article 12. Principles of and requirements for formulation of master plans on condominium or condominium complex renovation or reconstruction areas

The formulation of master plans on zoning of, and detailed master plans on, condominium or condominium complex renovation or reconstruction areas must meet the following principles and requirements:

1. Competent state agencies shall organize the formulation, appraisal and approval of detailed master plans on areas accommodating condominiums or condominium complexes subject to renovation or reconstruction for use as a basis for formulation of plans on compensation, support and resettlement and arrangement of temporary residences (below referred to as compensation plans) under Articles 20 thru 23 of this Decree.

2. Upon formulation, appraisal and approval of master plans on zoning of, or detailed master plans on, areas accommodating condominiums or condominium complexes subject to renovation or reconstruction, competent agencies shall determine a number of land use indicators under construction master plans and population size, or determine land areas that may be used for construction of service and trade works, offices or other social infrastructure facilities ensuring socio-economic efficiency and environmental protection in order to involve investors in the project implementation, while ensuring connection of all technical and social infrastructure systems of the areas and in the localities.

3. The formulation, appraisal and approval of master plans on condominium renovation or reconstruction areas may be carried out simultaneously with the quality inspection and evaluation of condominiums and the formulation and approval of condominium renovation or reconstruction plans in accordance with this Decree.

Article 13. Formulation, appraisal and approval of master plans on condominium renovation or reconstruction areas

1. The formulation, appraisal and approval of master plans on condominium renovation or reconstruction areas must comply with the law on urban planning and the law on construction. In the process of formulation of master plans, in addition to soliciting opinions of residential communities and related individuals under regulations, competent agencies may also solicit opinions of investors that wish to participate in the implementation of condominium renovation or reconstruction projects so as to ensure their feasibility and suitability to reality.

2. After approving master plans, competent agencies shall disclose information on such master plans in accordance with the planning law and publicly notify them at residential quarters where condominium renovation or reconstruction projects will be implemented for condominium owners and users to comply with.

3. In case a condominium or condominium complex renovation or reconstruction area is smaller than 2 hectares, a competent state agency is not required to formulate a detailed master plan but shall formulate and approve general plan drawings and architectural plans for works according to the order and procedures for formulation, appraisal and approval of detailed master plans. General plan drawings and architectural plans for works approved by competent agencies serve as a basis for proceeding with subsequent steps of projects in accordance with the construction law and other relevant laws.

4. Upon formulation and approval of master plans on areas accommodating condominiums or condominium complexes subject to renovation or reconstruction, provincial-level People’s Committees shall base themselves on local conditions to work out planning solutions for the whole condominiums or condominium complexes or solutions for consolidation of a number of condominiums in the same commune- or district-level locality as a basis for deciding on implementation of one or more condominium or condominium complex renovation or reconstruction project(s) in order to ensure socio-economic efficiency and environmental protection and combination with renovation and embellishment of urban areas.

 The consolidation of condominiums specified in this Clause only applies in case houses will not be built but business, service, commercial or public works will be built in places accommodating condominiums subject to consolidation.

5. In case the modification of an approved master plan is proposed, such master plan shall be modified in accordance with the planning and construction laws.

Section 4

SELECTION OF CONDOMINIUM RENOVATION OR RECONSTRUCTION PROJECT OWNERS AND DEMOLITION OF CONDOMINIUMS

Article 14. Selection of condominium renovation or reconstruction project owners in case condominium owners reach agreement with real estate businesses

1. The selection of project owners specified in this Article shall apply to cases of condominium renovation or reconstruction specified in Article 110 of the Housing Law, except those specified in Clause 1, Article 6 of this Decree.

2. Based on approved plans on condominium renovation or reconstruction and master plans on areas accommodating condominiums subject to renovation or reconstruction, land area, population size in the project areas, and requirements on compensation and project implementation duration and schedule, provincial-level People’s Committees shall set and issue criteria for selection of project owners (regarding financial capacity, equity, capacity and experience in project implementation, financial plan for project implementation, and other criteria applicable to different projects); and publicize such criteria and the time limit for receipt of dossiers for registration to act as project owners applicable to different projects on portals of provincial- and district-level People’s Committees of localities where such projects will be implemented for condominium owners to select project owners.

3. Based on the criteria and time limit for dossier receipt publicized under Clause 2 of this Article and detailed master plans on areas accommodating condominiums subject to renovation or reconstruction, a real estate business that wishes to act as the project owner shall send a request for registration for acting as the project owner (made according to the form provided in Appendix I to this Decree), together with a dossier showing that its capacity meets the criteria issued by the provincial-level People’s Committee and conforms to the compensation plan formulated under Articles 20 thru 23 of this Decree, to the agency assigned by the provincial-level People’s Committee to receive dossiers (the district-level People’s Committee of the locality accommodating condominiums subject to renovation or reconstruction or the provincial-level housing management agency).

4. Within 15 days after the expiration of the time limit for dossier receipt specified in Clause 2 of this Article, the agency assigned to receive dossiers shall assume the prime responsibility for, and coordinate with local competent agencies in, checking capacity dossiers based on publicized criteria and contents of enclosed compensation plans of registered real estate businesses. If the dossiers meet law-specified requirements, such agency shall make a list of such businesses for organizing the selection of project owners.

5. Within 90 days after the expiration of the time limit specified in Clause 4 of this Article, the agency assigned to examine dossiers (in case such agency is the district-level People’s Committee, it shall coordinate with the provincial-level housing management agency; in case such agency is the provincial-level housing management agency, it shall coordinate with the district-level People’s Committee of the locality where the project will be implemented) shall solicit opinions of condominium owners on selection of the project owner. Condominium owners shall base themselves on the criteria for selection of project owners publicized under Clause 2 of this Article and list of qualified enterprises, enclosed with capacity dossiers and compensation plans proposed by the enterprises, decide to select project owners.

6. The solicitation of opinions of condominium owners upon selection of the condominium renovation or reconstruction project owner must adhere to the principles that each condominium apartment has one vote and at least 70% of the total owners of apartments of such condominium or condominium complex participate in the voting. To be selected, an enterprise must obtain approval of at least 75% of the total owners of apartments of such condominium or condominium complex that participate in the voting. In case more than one enterprise registers for acting as the project owner, the enterprise that has obtained the highest rate of approval of the owners of apartments of such condominium or condominium complex will be selected, which, however, must exceed 51% of the total. The selection of the project owner shall be recorded in a minutes bearing signatures of a representative of the district-level People’s Committee of the locality where the project is implemented, a representative of the provincial-level housing management agency, and representatives of the condominium owners and selected enterprise.

In case a condominium or condominium complex has an area under the state ownership, the state owner’s representative for this area shall participate in selection of the project owner.

For other areas in a condominium or condominium complex other than apartments under the ownership of organizations or individuals or the state ownership, the total area in use among such areas shall be divided by the area in use of the largest apartment in such condominium or condominium complex for determining the rate of votes of the owners on the principle that each area portion equivalent to the area of the largest apartment after the division shall be counted as one vote. In case the area left after the division is larger than half of the apartment area specified at this Point, it shall be counted as one vote. In case the area left after the division is smaller than half of the apartment area specified at this Point, no vote shall be counted.

7. In the course of selection of project owners, condominium owners and real estate businesses participating in the selection may agree to modify contents of compensation plans formulated by real estate businesses but shall comply with contents of master plans approved by competent agencies and contents of compensation plans specified in Articles 20 thru 23 of this Decree.

8. Within 15 days after a minutes on selection of the project owner is made under Clause 6 of this Article, the agency assigned to receive dossiers shall send a report, enclosed with such minutes and compensation plan of the selected investor, to the provincial-level People’s Committee for consideration and approval. The provincial-level People’s Committee’s decision on approval of the compensation plan must state the name of the selected enterprise.

After the compensation plan is approved, the provincial-level People’s Committee shall publicize on its portal contents of such plan and name of the selected enterprise and send it to the district- and commune-level People’s Committee of the locality accommodating the condominium for notification to the condominium owners.

9. After the compensation plan is approved, the real estate business selected to act as the project owner shall carry out procedures for requesting approval of investment policy for the project in accordance with the investment and housing laws and this Decree. In the decision on approval of investment policy for the project, the competent state agency shall also show its approval of the enterprise selected to act as the condominium renovation or reconstruction project owner.

Article 15. Selection of condominium renovation or reconstruction project owners through bidding

1. The bidding for selection of condominium renovation or reconstruction project owners specified in this Article shall be organized in case it is impossible to select project owners under Article 14 and in the case specified in Clause 1, Article 5 of this Decree. For the case specified in Clause 3, Article 110 of the Housing Law in which it is impossible to select project owners under Article 14 of this Decree, the selection of project owners may not continue to be carried out under this Article.

2. On the basis of the list of projects stated in the approved plan on condominium renovation or reconstruction or in case it is required to urgently demolish condominiums as specified in Clause 1, Article 5 of this Decree, the provincial-level housing management agency shall make a list of condominium renovation or reconstruction projects in order to organize bidding for selection of project owners and report it to the provincial-level People’s Committee for approval and notification of such list on its portal.

3. Before organizing bidding, a competent agency shall carry out procedures for approval of project investment policy in accordance with the investment and housing laws and this Decree. The provincial-level People’s Committee shall assign the provincial-level housing management agency to act as the bid solicitor and shall organize bidding for selection of the project owner as specified in this Article.

4. Contents related to dossiers used in bidding, methods of and criteria for evaluation of dossiers, setting of scores for bid evaluation, and criteria for selection of project owners:

a/ Methods of and criteria for evaluation of bid dossiers, making of bidding dossiers, and other contents related to bidding for selection of project owners must comply with the bidding law; no evaluation of investment efficiency shall be carried out for the land area specified in Clause 2, Article 25 of this Decree, except the case specified in Clause 5 of this Article;

b/ Scores for bid evaluation shall be determined as follows: The total scores for criteria for implementation of a project is 100, including criteria on financial capacity, experience, project implementation progress, time of handover of houses or construction works, investment in technical and social infrastructure systems, contents of plan on resettlement and arrangement of temporary residences, financial plan for project implementation, and business and commercial plan of the project. The bid solicitor shall set specific scores for each criterion specified in this Clause for application to different projects as suitable to reality;

c/ Forms of bidding-related notices are those specified in the bidding law.

5. In case the land area of a project is expanded as compared to that of the existing condominium or condominium complex, the provincial-level housing development agency shall, when setting conditions and criteria for bid invitation for the project, clearly state land use norms under the approved master plan with regard to the expanded land area for use as a basis for determination of the minimum amount to be remitted into the state budget as for commercial housing construction projects.

6. The process of bidding for selection of condominium renovation or reconstruction project owners is the same as that for selection of investors specified in the bidding law; expenses for organization of bidding shall be included in total investment amounts of projects; expenses for bid guarantee must comply with the bidding law.

7. The bid-winning investor mentioned in the decision on approval of contractor selection result specified in this Article is the condominium renovation or reconstruction project owner. The project owner shall formulate a compensation plan based on the bid-winning result and send it to the provincial-level housing development agency for the latter to assume the prime responsibility for, and coordinate with related local agencies in, appraising the plan, and report it to the provincial-level People’s Committee for approval. After the compensation plan is approved, the project owner shall carry out subsequent procedures for investment in the project in accordance with this Decree and relevant laws.

Article 16. Selection of project owners in case the State is directly engaged in implementation of condominium renovation or reconstruction projects

1. The State shall make direct investment with the funding sources specified in Clause 3, Article 36 of the Housing Law (revised under Point a, Clause 6, Article 99 of the 2020 Law on Investment in the Form of Public-Private Partnership) for implementation of condominium renovation or reconstruction projects specified in Clause 1, Article 6 of this Decree.

2. The selection of project owners specified in this Article must comply with Point a, Clause 1, Article 114 of the Housing Law. In case the State decides to organize selection of project owners through bidding, Article 15 of this Decree shall apply.

3. The formulation, appraisal and approval of compensation plans for condominium renovation or reconstruction projects specified in this Article must comply with the land law.

Compensation plans shall be formulated under Articles 20 thru 23 of this Decree and, after being approved, shall be publicized on portals of provincial-level People’s Committees and sent to district- and commune-level People’s Committees of localities accommodating condominiums for notification to condominium owners for compliance.

Article 17. Ground clearance, demolition of condominiums

1. The ground clearance for condominium renovation or reconstruction projects must comply with the following provisions:

a/ For the projects specified in Article 14 of this Decree, their owners shall coordinate with district-level People’s Committees of localities where the projects will be implemented in organizing payment of compensations and ground clearance for project implementation;

b/ For the projects specified in Article 15 or 16 of this Decree, ground clearance shall be carried out in accordance with the land law.

2. The demolition of condominiums must comply with the following provisions:

a/ Before demolishing condominiums, project owners shall formulate and approve demolition plans and solutions in accordance with the construction law;

b/ Project owners shall demolish condominiums by themselves if fully satisfying the capacity conditions specified in the construction law or may hire capable organizations to do so under approved demolition plans and solutions;

c/ In case it is required to urgently demolish condominiums as a result of incidents, natural disasters, fires or explosions, the units assigned to demolish condominiums shall do so in accordance with the law on construction.

Chapter III

RIGHTS AND RESPONSIBILITIES OF PROJECT OWNERS AND CONDOMINIUM OWNERS AND USERS; COMPENSATION PLANS; MECHANISMS APPLICABLE TO CONDOMINIUM RENOVATION OR RECONSTRUCTION PROJECTS

Section 1

RIGHTS AND RESPONSIBILITIES OF PROJECT OWNERS AND CONDOMINIUM OWNERS AND USERS

Article 18. Rights and responsibilities of condominium renovation or reconstruction project owners

1. For the cases specified in Articles 14 and 15 of this Decree, project owners have the following rights:

a/ To request related agencies and organizations to carry out procedures for project implementation in accordance with law;

b/ To lease, put on lease-purchase or sell houses and commercial service works (if any) within premises of their projects; to raise capital to invest in construction of houses and other works under their projects in accordance with the housing law and law on real estate business;

c/ To manage and operate technical infrastructure systems within premises of their projects in accordance with law and the project investment policy approved by a competent state agency;

d/ To commercially operate business and service works under their projects in accordance with the approved investment policy (if any); 

dd/ To request competent state agencies to grant certificates for houses and other works (if any) under their projects in accordance with the land law and housing law;

e/ To be allocated or leased land by the State or permitted by the State to change land use purposes for land areas used for residential, business, service provision or commercial purpose, and other land categories within premises of condominium renovation or reconstruction projects in accordance with law;

g/ To enjoy preferential mechanisms in accordance with this Decree and relevant laws in the course of project implementation;

h/ To exercise other rights as provided by law. 

2. For cases specified in Article 16 of this Decree, project owners have the following rights:

a/ To sell, lease or put on lease-purchase resettlement apartments or other areas other than houses in accordance with law; 

b/ To exercise the rights provided at Points a, c, d, e and h, Clause 1 of this Article;

c/ To exercise other rights provided by law.

3. Owners of the condominium renovation or reconstruction projects specified in Articles 14 and 15 of this Decree have the following responsibilities: 

a/ To perform the responsibilities of project owners specified in Clauses 1, 3, 5, 6, 7, 8, 9 and 10, Article 26 of the Housing Law and relevant provisions of the law on real estate business;

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

c/ To organize pre-acceptance tests and handover of houses and resettlement works in accordance with the construction law to owners under approved compensation plans; to hand over social and technical infrastructure facilities to the State in accordance with the investment policy approval and law;

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

4. Owners of the projects specified in Article 16 of this Decree have the following responsibilities:

a/ To comply with Clauses 1, 3, 5, 6, 8, 9 and 10, Article 26 of the Housing Law and Points b and c, Clause 3 of this Article;

b/ To fulfill other obligations provided by law.

Article 19. Rights and responsibilities of owners and users of condominiums subject to demolition for renovation or reconstruction

1. Condominium owners (except those specified in Clause 2 of this Article) have the following rights:

a/ To participate in the selection of real estate businesses for condominium renovation or reconstruction under this Decree;

b/ To be resettled or provided with temporary residences; to select forms of compensation under this Decree; to request project owners to pay compensation difference (if any) under this Decree;

c/ To be granted certificates by competent agencies in accordance with the housing law and land law for their houses and works for which compensations or resettlement houses have been paid or arranged;

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

dd/ To purchase temporarily arranged houses in case such houses are eligible for being put for sale under this Decree if they do not wish to purchase or rent-purchase resettlement houses under this Decree;

e/ To transfer contracts on purchase and sale of resettlement houses or temporarily arranged houses (if so permitted); the order and procedures for transfer of such purchase and sale contracts shall be carried out as for transfer of contracts on purchase and sale of commercial houses in accordance with the housing law and law on real estate business; ultimate transferees of resettlement house purchase and sale contracts shall be granted certificates in accordance with the land law and housing law;

g/ To receive compensations for damage, if any, in accordance with law and clauses and terms of signed contracts;

h/ To exercise other rights provided by law.

2. Owners of state-owned houses and other works have the rights provided at Points a, b, d, g and h, Clause 1 of this Article.

3. Responsibilities of condominium owners:

a/ To comply with approved compensation plans; to obey relocation orders for ground clearance and demolition of houses and construction works within premises of projects under approved demolition plans and solutions;

b/ To submit to, and create conditions for organizations, units and competent agencies to carry out, inspection and evaluation of quality of their condominiums in accordance with the construction law and this Decree;

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

d/ To participate in the solicitation of opinions for selection of project owners under Article 14 of this Decree; to comply with contents of signed contracts on purchase, rent or rent-purchase of resettlement houses; to pay expenses for maintenance of parts under common ownership of their condominiums upon purchase or rent-purchase of resettlement houses in accordance with the housing law;

dd/ To abide by related decisions of competent state agencies;

e/ To fulfill other obligations and perform other responsibilities as provided by law.

4. Users of condominiums subject to demolition for renovation or reconstruction may be provided with resettlement houses under this Decree and shall fulfill obligations and perform responsibilities specified at Points a, b, c, dd and e, Clause 3 of this Article as agreed upon with condominium owners.

Section 2

COMPENSATION PLANS FOR CONDOMINIUM OWNERS AND USERS

Article 20. Compensation, support and resettlement principles, contents of compensation plans for condominium owners and users

1. The formulation and implementation of compensation plans applicable to condominium renovation or reconstruction projects must adhere to the following principles:

a/ Compliance with Article 4 of this Decree; resettlement apartments must conform to relevant national technical regulations and standards on condominiums;

b/ Such plans must have the contents specified in Clause 2 of this Article and shall be formulated based on the approved detailed plans, general plan drawings or work architecture plans;

c/ Resettlement houses must be arranged under resettlement house purchase and sale, rent or rent-purchase contracts, ensuring interests of condominium owners and users;

d/ The organization of compensation, support and resettlement, and arrangement of temporary residences must be open, transparent, objective and compliant with compensation plans approved by competent state agencies; expenses for organizing compensation, support and resettlement shall be determined in the total investment of projects;

dd/ For condominiums subject to demolition which, under approved master plans, are not for reconstruction but for construction of other works (including also those subject to consolidation in the case specified in Clause 4, Article 13 of this Decree), their owners may choose either to receive monetary compensations or to be resettled in other places.

In case of resettlement in other places, condominium owners and users may be resettled within premises of projects on construction of resettlement houses or commercial housing projects in the same commune-level locality, or in the same district-level locality if the commune-level locality has no such resettlement houses, or within premises of other projects in the adjacent district-level locality if the district-level locality has no such resettlement houses, or may, if they so wish, purchase, rent or rent-purchase social houses in the locality in accordance with the housing law. In case of payment of compensations with individual houses under Clause 4, Article 21 of this Decree, condominium owners shall not be resettled in their old places of residence but in other places as planned by the provincial-level People’s Committee on the principle of determination of localities specified at this Point;

e/ Resettled owners shall be granted certificates in accordance with the land law and housing law and are not required to pay land use levy for resettlement land areas (including also those resettled in other places or those purchasing houses for temporary residence), except owners of state-owned houses.

2. Contents of a compensation plan include:   

a/ Names and addresses of condominium owners and users;

b/ Locations and areas of old condominiums; locations and areas of resettlement houses to be arranged;

c/ Selling prices, rent rates, or rent-purchase prices of resettlement houses and other works (if any); value of houses and other construction works (if any) arranged for resettlement;

d/ Prices of houses and other construction works (if any) for calculation of compensations to be paid therefor; value of houses and other construction works (if any) eligible for compensation;

dd/ Monetary differences (if any) payable by project owners or condominium owners;

e/ Project implementation period; time limit for completing compensation, support and resettlement, and arrangement of temporary residences; expected date of handover of resettlement houses;

g/ Arrangement of temporary residences, and expenses for arrangement of temporary residences;

h/ The contents specified in Articles 21, 22 and 23 of this Decree and other related contents (if any).

Article 21. Compensation, support and resettlement plans for houses and construction works not under the state ownership

1. A compensation, support and resettlement plan applicable to condominium apartment owners that wish to be resettled on the spot must comply with the following provisions:

a/ Based on specific conditions of the project in a specific location, the provincial-level People’s Committee shall decide on coefficient k for payment of compensations which is equal to between 1 time and 2 times the usable areas of old apartments stated in certificates granted in different periods or the areas eligible for grant of certificates, for use as a basis for the project owner to formulate the compensation plan. Any areas other than the areas stated in the certificates or the areas eligible for grant of certificates shall be handled in accordance with the land law. Areas of resettlement apartments shall, after being multiplied by coefficient k, be converted into monetary amounts and clearly stated in the compensation plan for use as a basis for determination of the value of resettlement house purchase and sale or rent-purchase contracts and the obligation of the parties to pay monetary differences (if any).

For ground-level apartment owners that spare apartment areas for commercial purposes before the effective date of this Decree and housing projects that spare some floor areas for service provision or commercial activities under approved master plans, in addition to compensations specified at this Point, owners may purchase or rent some of such floor areas for business purposes if they so wish. Selling prices of such areas shall be equal to the construction investment cost per square meter of floor areas for commercial activities or service provision plus 10% of the set rate of return. Rent rates of floor areas for commercial activities or service provision shall be agreed upon by the parties;

b/ In case the value of a resettlement apartment is larger than that of the old apartment after being multiplied by coefficient k specified at Point a of this Clause, the parties shall enter into a resettlement house purchase and sale or rent-purchase contract and additionally pay the difference. If the apartment owner does not wish to purchase or rent-purchase the resettlement apartment, he/she will not be arranged a resettlement house and may receive money for the whole compensation value under regulations. In case the value of a resettlement apartment is smaller than that of the old apartment after being multiplied by coefficient k specified at Point a of this Clause, the project owner shall pay the difference to the apartment owner;

c/ For housing areas for common use, coefficient k = 1 shall be applied. For state-owned housing areas for common use, project owners shall pay to the State monetary amounts equal to housing areas currently in use multiplied by (x) standard prices of newly built houses set by provincial-level People’s Committees at the time of formulation of compensation plans multiplied by (x) percentage of the remaining house quality. For land areas for common use for which use rights have not yet been transferred by the State upon the sale of houses in accordance with law, project owners shall pay to the State monetary amounts equal to 100% of residential land prices set by provincial-level People’s Committees at the time of formulation of compensation plans multiplied by (x) land areas for common use multiplied by (x) coefficient k (if any).                 

2. In case condominium apartment owners do not wish to be resettled on the spot and project owners have housing and land areas in other places for resettlement arrangement, the former may be arranged resettlement houses under Clause 1 of this Article if they so wish.

3. In case condominium apartment owners do not wish to be resettled under Clauses 1 and 2 of this Article, they may receive compensations in monetary amounts equal to the value of their apartments multiplied by coefficient k under Point a, Clause 1 of this Article. In case they wish to be resettled, they may purchase, rent or rent-purchase social houses in the locality in accordance with the housing law.

4. Resettlement houses shall be arranged for individual house owners on the principle specified at Point dd, Clause 1, Article 20 of this Decree and compensations shall be paid as follows:

a/ For land areas, compensations shall be equal to existing land areas stated in certificates or areas eligible for grant of certificates multiplied by (x) specific land prices for compensation calculation in accordance with the land law at the time of formulation of compensation plans. Compensations for land areas other than those specified at this Point shall be paid in accordance with the land law;

b/ Land areas used for resettlement shall be determined under master plans approved by competent agencies and converted into monetary amounts equal to land prices determined under Point a of this Clause multiplied by (x) land areas used for resettlement. In case of a difference in the compensation value, the parties shall pay such difference;

c/ For floor areas for house construction, compensations shall be equal to housing areas currently in use multiplied by (x) prices of newly constructed houses set by provincial-level People’s Committees at the time of formulation of compensation plans multiplied by (x) percentage of the remaining house quality. In case project owners construct resettlement houses, house owners shall pay construction investment costs of their houses to project owners;

d/ In case house owners do not wish to be resettled in individual houses, they may receive monetary compensations on the principles specified at Points a and c of this Clause. If house owners wish to be resettled, they may purchase condominium apartments in housing projects at selling prices of resettlement apartments determined in approved compensation plans or may purchase or rent-purchase social houses in the locality in accordance with the housing law.

5. Owners of working offices under the lawful ownership of organizations which do not fall into the case specified in Clause 2, Article 22 of this Decree and continue to have some of their areas used as working offices under approved master plans may receive compensations calculated with coefficient k = 1 of the old land areas determined on the principle specified at Point a, Clause 1 of this Article. For floor areas for construction of working offices under their lawful ownership, they may receive compensations on the principle specified at Point c, Clause 4 of this Article.

In case house owners do not wish to receive compensations in old places or, under approved master plans, working offices will not be reconstructed, they may receive monetary compensations under Point d, Clause 4 of this Article. In case there are floor areas for working offices or floor areas for service provision or commercial activities within premises of housing projects, house owners may, if they so wish, enjoy priority to purchase, rent or rent-purchase some of such areas at prices specified at Point a, Clause 1 of this Article.

Article 22. Compensation, support and resettlement plans for state-owned houses and construction works

1. For state-owned condominiums subject to demolition, current lessees shall be resettled under the following provisions:

a/ In case of demolition of condominiums for reconstruction, current lessees may rent apartments of areas under approved designs which must not be smaller than areas of old apartments, unless they do not wish to rent houses. Apartment rent rates are those applicable to state-owned social houses. If the State sells such apartments, current lessees may purchase them under regulations on sale of state-owned houses;

b/ In case condominiums are not to be reconstructed in old places under approved master plans, current lessees may rent apartments in other places under Point dd, Clause 1 of Article 20 and Point a of this Clause. Current lessees may purchase, rent or rent-purchase social houses in the locality in accordance with the housing law if they so wish.

2. For state-owned social infrastructure facilities and working offices (if any) within premises of projects:

a/ In case such social infrastructure facilities and working offices continue to be arranged within premises of condominium renovation or reconstruction projects upon their implementation under approved master plans, the State shall invest and construct or assign project owners to carry out reconstruction of such works. In case the project owners specified in Articles 14 and 15 of this Decree carry out construction activities, after such works are handed over to competent agencies, the State shall pay all construction investment costs of such works to the project owners with state budget funds;

b/ In case such social infrastructure facilities and working offices are not to be reconstructed under approved master plans, compensation, support and resettlement shall be carried out in accordance with the land law.

Article 23. Plans on arrangement of temporary residences for condominium owners and users

The arrangement of temporary residences for condominium owners and users in the course of implementation of condominium renovation or reconstruction projects shall be clearly stated in compensation plans under the following provisions:

1. In case condominium owners can arrange by themselves their residences, project owners shall pay house rentals and other expenses (if any) in the course of project implementation under approved compensation plans.

2. In case condominium owners cannot arrange by themselves their residences, provincial-level People’s Committees of localities where projects are implemented shall assume the prime responsibility for, and coordinate with project owners in, arranging temporary residences for condominium owners in the form of purchase of commercial houses or use of existing resettlement houses or construction of new houses with state budget funds or money from local development investment funds or housing development funds (if any).

3. For current lessees of state-owned houses, provincial-level People’s Committees shall arrange temporary residences or make payments for condominium users for the latter to seek by themselves their residences in the course of project implementation in accordance with the housing law.

4. The arrangement of temporary residences must ensure convenience for daily life of condominium owners and users. In case of construction of new houses to be arranged as temporary residences, requirements on house construction quality, technical regulations and standards shall be satisfied. In case houses arranged as temporary residences are eligible for sale and condominium owners currently using such temporary residences wish to purchase them, such houses shall be sold to condominium owners instead of resettlement. Selling prices of such houses and payment of monetary differences (if any) shall be determined as for cases of compensation, support and resettlement stated in compensation plans.

Article 24. Entry into contracts on purchase, rent or rent-purchase of houses or construction works for resettlement

1. Persons who are to be resettled may enter into contracts on rent, rent-purchase or purchase and sale of resettlement houses with project owners or units assigned to arrange resettlement.

2. In case of purchase or rent-purchase of resettlement houses, contracts shall be entered into under the following provisions:

a/ The parties shall reach agreement on entry into a contract on purchase and sale or rent-purchase of a resettlement house. A resettlement house rent-purchase contract shall be entered into only in case the value of the resettlement house is larger than that of the old house after being multiplied by coefficient k specified at Point a, Clause 1, Article 21 of this Decree;

b/ In case of entry into a condominium apartment purchase or rent-purchase contract, the parties shall clearly state in the contract the money amount for maintenance of the condominium area under common ownership to be paid by the purchaser or rent-purchaser in accordance with the housing law;

c/ Purchase and sale contracts and rent-purchase contracts shall be made according to the forms provided in Appendix II and Appendix III to this Decree, respectively. Based on such contract forms, the parties may agree on addition of clauses and terms as appropriate to specific cases which must not be contrary to the clauses, terms and contents available in contract forms, social ethics and law. The notarization and authentication of such contracts must comply with the Housing Law.

3. In case of purchase or rent-purchase of social houses, house purchase or rent-purchase contracts shall be entered into in accordance with regulations on social house development and management.

4. In case of arrangement of resettlement in the form of lease of state-owned houses, house rent contracts shall be entered into in accordance with regulations on management and lease of state-owned houses.    

5. In case of purchase, rent or rent-purchase of floor areas for commercial activities or service provision, contracts shall be entered into with project owners or units assigned to arrange resettlement in accordance with the law on real estate business.

6. The contracts specified in this Article shall be entered into after the construction of house foundations is completed in accordance with the housing law and law on real estate business or after houses are tested for acceptance in accordance with the construction law. The handover of resettlement houses or construction works must be clearly stated in contracts and may only be carried out after such houses, other construction works and technical and social infrastructure facilities are completely tested for acceptance and put into use to serve residential needs (if any) in accordance with the construction law and relevant laws. 

Section 3

MECHANISMS APPLICABLE TO CONDOMINIUM RENOVATION OR RECONSTRUCTION

Article 25. Land-related mechanisms

1. The issuance of decisions on land recovery and land allocation, land lease or permission for land use purpose change for implementation of condominium renovation or reconstruction projects under this Decree must comply with the following provisions:

a/ For the cases specified in Article 14 of this Decree, such decisions shall be issued after competent agencies decide to approve the project investment policy;

b/ For the cases specified in Articles 15 and 16 of this Decree, such decisions shall be issued in accordance with the land law;

c/ The order and procedures for land recovery, land allocation, land lease and permission for land use purpose change for implementation of projects under this Clause must comply with the land law. In case owners fail to abide by land recovery by competent state agencies, provincial-level People’s Committees shall organize coerced land recovery for handover of grounds to project owners.

2. Condominium renovation or reconstruction project owners are entitled to exemption from land use levy, land rental or land use purpose change charge for land areas allocated for implementation of projects on renovation or reconstruction of condominiums or condominium complexes (including land areas for construction of existing condominiums and existing individual houses (if any), land areas for construction of works for business, service provision or commercial activities, public works, and areas for construction of technical and social infrastructure facilities within premises of such existing condominiums or condominium complexes, except the case specified in Clause 2, Article 22 of this Decree). 

3. In case the premises of projects specified in Clause 3, Article 4 of this Decree have land areas larger than those specified in Clause 2 of this Article, project owners shall pay land use levy, land rental or land use purpose change charge for the excessive land areas under the following regulations:

a/ In case of bidding for project owner selection, project owners shall fulfill the land-related financial obligation based on bid-winning prices under Article 15 of this Decree;

b/ In case no bidding is organized for project owner selection, project owners shall fulfill the land-related financial obligation in accordance with the land law.

4. In case project owners, after being selected, propose an increase in the land use coefficient to conform to approved master plans and obtain approval from competent agencies, they shall pay additional land use levy amounts for the increased land areas for use in accordance with law.

5. In case condominiums are subject to demolition not for reconstruction but for construction of other works under approved master plans (except the case specified in Clause 6 of this Article) or for construction of new houses but condominium owners agree not to be resettled on the spot and have received compensations from project owners for resettlement in other places under this Decree, project owners are entitled to land-related incentives specified in Clause 2 of this Article.

6. In case of implementation of resettlement projects by the measure of consolidation specified in Clause 4, Article 13 of this Decree, project owners are entitled to land-related incentives specified in Clause 2 of this Article. In case projects are unable to balance  financial efficiency, provincial-level People’s Committees shall report such to the Prime Minister for consideration and decision on exemption from land use levy, land rental or land use purpose change charge for land areas accommodating old condominiums after the consolidation in order to balance financial efficiency of projects. For other land areas not eligible for land use levy exemption, project owners shall fulfill the land-related financial obligation in accordance with law, except the case of construction of public works.

Article 26. Fundraising mechanisms

1. In case of condominium renovation or reconstruction not with the funding sources specified in Clause 3, Article 36 of the Housing Law, project owners may raise funds from:

a/ The funding sources specified in Article 72 of the Housing Law, including equity of project owners, funds raised through capital contribution, investment cooperation, business cooperation, joint venture or joint operation by/among organizations, households and individuals; money from land development funds, compensation, support and resettlement money for ground clearance in accordance with law, and funds raised from other lawful sources;

b/ Money amounts for purchase, rent-purchase or rent of future houses and areas of works for service provision or commercial activities (if any) within premises of projects;

c/ Loans from credit institutions or financial institutions (if any) currently operating in Vietnam.

2. Condominium owners that are resettled and obliged to pay money amounts for housing area differences may borrow loans from credit institutions or financial institutions currently operating in Vietnam or from house development funds and other local sources (if any) in accordance with the banking law and relevant laws for payment of such differences.

Chapter IV

IMPLEMENTATION PROVISIONS

Article 27. Transitional provisions

1. Localities that approve condominium renovation or reconstruction plans before the effective date of this Decree are not required to formulate and approve such plans again under this Decree, unless it is necessary to modify such plans to conform to house development programs or to meet their practical needs. Provincial-level People’s Committees shall publicly notify plans approved before the effective date of this Decree to condominium owners and users under Clause 2, Article 11 of this Decree.

2. For condominium renovation or reconstruction projects for which competent agencies have issued investment policy decisions or approval, such decisions or approval are/is not required again under this Decree, unless they are subject to modification of such decisions or approval.

In case dossiers of request for investment policy approval have been submitted for such projects but, by the effective date of this Decree, competent agencies have not yet issued investment policy approval decisions, investment policy for such projects shall be approved under this Decree.

3. Condominium renovation or reconstruction projects with owners already selected by competent agencies are not required to select project owners again under this Decree, unless they fall into the case specified in Clause 5, Article 4 of this Decree or their owners have not yet paid compensations under Clause 5 of this Article. 

4. Project owners that pay compensations under approved compensation plans before the effective date of this Decree are not required to do so again under this Decree, except house and land areas not yet included in compensation plans for which compensations shall be paid under this Decree. 

5. In case compensation plans are approved but compensations are not yet paid before the effective date of this Decree, the parties shall reach agreement on such compensation plans again under this Decree, unless they still agree to such plans. In case the parties reach agreement on such compensation plans again but, under approved detailed master plans, project owners are unable to balance financial efficiency of projects, they may propose competent agencies to consider and modify approved master plans in order to be able to balance financial efficiency of their projects.  

Past 12 months for condominium renovation or reconstruction projects or 24 months for condominium complex renovation or reconstruction projects from the effective date of this Decree, excluding the period of plan modification specified in this Clause (if any), if project owners and condominium owners cannot reach agreement on plans on compensations at the percentage specified in Clause 6, Article 14 of this Decree, provincial-level People’s Committees shall terminate the project implementation and organize project owner selection again under this Decree. 

6. Condominium renovation or reconstruction projects approved to be implemented in the form of build-operate (BT) shall be transitionally handled in accordance with the law on investment in the form of public-private partnership.

Article 28. Implementation responsibility

1. Responsibilities of the Ministry of Construction:

a/ To assist the Government and Prime Minister in guiding, directing and urging localities in organizing the implementation of regulations on condominium renovation or reconstruction under this Decree and the Housing Law;

b/ To specifically guide inspection and evaluation of factors to determine the quality of condominiums in accordance with the construction law and the condominiums referred to in Article 5 of this Decree;

c/ To assume the prime responsibility for or coordinate with related ministries and sectors in inspecting and examining the implementation of this Decree; to regularly or extraordinarily sum up and report to the Prime Minister on condominium renovation and reconstruction nationwide;

d/ To study and propose mechanisms and policies related to condominium demolition and renovation or reconstruction for promulgation according to its competence or submit them to competent agencies for consideration and promulgation;

dd/ To perform assigned tasks in accordance with the Housing Law, this Decree and other tasks assigned by the Government and Prime Minister.

2. Related ministries and sectors shall, within the ambit of their functions and tasks, promulgate according to their competence or propose competent agencies to amend or supplement regulations on condominium renovation and reconstruction; assume the prime responsibility for or coordinate with the Ministry of Construction in organizing the implementation of this Decree.

3. Responsibilities of provincial-level People’s Committees:

a/ To organize, urge and direct condominium renovation and reconstruction activities in their localities according to set schedules and the Housing Law, this Decree and relevant laws in order to ensure safety for life and property of people living in condominiums and condominium complexes in their localities;

b/ To allocate funds from local budgets for the following activities: inspection and evaluation of condominium quality; to formulate and approve condominium renovation or reconstruction plans; to formulate, appraise and approve master plans on areas accommodating condominiums or condominium complexes subject to renovation or reconstruction; to renovate or reconstruct condominiums or condominium complexes specified in Clause 1, Article 6 of this Decree and perform tasks in investment stages falling within their responsibility;

c/ To clearly determine land areas eligible for exemption from land use levy, land rental or land use purpose change charge within premises of condominium renovation or reconstruction projects under Clause 2, Article 25 of this Decree, preventing loss of state budget funds; 

d/ To organize coerced land recovery and relocation under this Decree and the land law;

dd/ To promulgate according to their competence specific mechanisms and policies suitable to local conditions to implement condominium renovation or reconstruction projects in their localities;

e/ To regularly or extraordinarily report on results of condominium renovation and reconstruction in their localities to the Ministry of Construction for summarization and reporting to the Government and Prime Minister;

g/ To perform other tasks in accordance with the Housing Law, this Decree and relevant laws.

Article 29. Effect

1. This Decree takes effect on September 1, 2021.

2. This Decree replaces the Government’s Decree No. 101/2015/ND-CP of October 20, 2015, on renovation and reconstruction of condominiums.

3. From the effective date of this Decree, requirements on general plan drawings and work architecture plans specified in Clause 4, Article 14 of the Government’s Decree No. 37/2010/ND-CP of April 7, 2010, on formulation, appraisal, approval and management of master plans on urban areas, and Clause 5, Article 10 of the Government’s Decree No. 44/2015/ND-CP of May 6, 2015, detailing a number of provisions on construction master plans for renovation or reconstruction of condominiums, must comply with this Decree.

4. Provisions on relocation, coercion, demolition and renovation or reconstruction of condominiums of the Government’s decrees, the Prime Minister’s decisions, and legal documents promulgated by ministries, sectors and provincial-level People’s Committees before the effective date of this Decree which fall within the scope of regulation of this Decree must now comply with this Decree. 

5. 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
For the Prime Minister
Deputy Prime Minister
LE VAN THANH