Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government on detailing and guiding the implementation of a number of articles of the Housing Law

DECREE

Detailing and guiding the implementation of a number of articles of the Housing Law[1]

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

Pursuant to the November 25, 2014 Housing Law;

At the proposal of the Minister of Construction,

The Government promulgates the Decree detailing and guiding the implementation of a number of articles of the Housing Law.

Chapter I

GENERAL PROVISIONS

Article 1.Scope of regulation

1. This Decree details and guides the implementation of a number of articles and clauses on house ownership, development, management and use, housing transactions, and the state management of housing in Vietnam in Housing Law No. 65/2014/QH13 (below referred to as the Housing Law).

2. The detailing of a number of articles and clauses on social housing development; management and use of social houses not under state ownership; renovation and reconstruction of condominiums; building, management and use of the housing information system; transactions of purchase, sale, lease or lease-purchase of commercial houses of real estate businesses and cooperatives; inspection and sanctioning of administrative violations in the field of housing must comply with other decrees of the Government.

Article 2.Subjects of application

1. Domestic organizations, households and individuals, overseas Vietnamese, foreign organizations and individuals involved in house ownership, development, management and use and housing transactions in Vietnam.

2. State management agencies in charge of housing.

Article 3.Local housing development programs and plans

1. People’s Committees of provinces or centrally run cities (below referred to as provincial-level People’s Committees) shall formulate and implement local housing development programs and plans under Articles 15 and 169 of the Housing Law.

2. Contents of a local 5-year, 10-year or longer-term housing development program include:

a/ Assessment of the actual state of houses of various types (individual houses and condominiums) and houses of groups of subjects specified in Article 49 of the Housing Law in the locality;

b/ Analysis and assessment of results, difficulties, existing problems and their causes in the housing development and management, land use planning and construction planning related to housing development in the locality;

c/ Identification of housing demand (number and types of houses, total construction floor area); demand for land area for construction of houses of various types in each area in the locality, specifying the housing demands of groups of subjects that need housing support specified in Article 49 of the Housing Law; demand for capital (from the state budget and other sources) for housing investment;

d/ Identification of housing development targets (including per-capita housing area, minimum housing floor area, number and floor area of houses of each type to be constructed, quality of houses in urban and rural areas);

dd/ Identification of housing development requirements and relationship with urban development requirements in urban centers;

e/ Implementation solutions, including solutions regarding housing mechanisms and policies promulgated by the locality, construction planning, land area allocation and forms of investment in construction of houses of various types; construction science and technology solutions to reduce construction costs, capital raising; financial and land incentive mechanisms, and plans to implement social housing support policies for each group of eligible subjects specified in Article 49 of the Housing Law;

g/ Implementation schedule and responsibilities of local functional agencies for the program implementation;

h/ Other relevant contents.

3. Contents of a local 5-year or annual housing development plan include:

a/ Locations and areas for housing development, number of housing investment projects, number of houses and total housing floor area that needs construction investment, clearly planned for the year or five-year period;

b/ Proportions of houses of various types (individual houses and condominiums) that need construction investment; number of social houses and social housing floor area that needs construction investment in the year or 5-year period, specifying the social housing floor area for lease;

c/ Identification of targets of per-capita housing area in urban and rural areas and in the whole locality; and the minimum housing area target;

d/ Identification of land area for construction of houses of various types (commercial houses, social houses, houses for resettlement and official-duty houses) for the year or 5-year period; forms of housing investment;

dd/ Identification of capital sources to be mobilized for housing development; mobilization schedule for the year or 5-year period;

e/ Method of implementation organization and responsibilities of related local agencies for plan implementation;

g/ Other relevant contents.

4. In the middle and at the end of the period of implementation of a housing development program and when approving a housing development plan for the subsequent year, a provincial-level People’s Committee shall review and assess the implementation of the program or plan and adjust impractical contents and targets.

In case of a change in the national housing development strategy or local socio-economic development master plan, the provincial-level People’s Committee shall submit modifications to the housing development program to the People’s Council of the same level for adoption before approving it under Article 169 of the Housing Law.

5. Targets set forth in a housing development program, including per-capita housing area, minimum housing area, number of houses, total new housing floor, and quality of houses in urban and rural areas shall be incorporated in local socio-economic development tasks, and their achievement shall be assessed in the preliminary and final reviews of the performance of these tasks.

Article 4.Order and procedures for formulation of local housing development programs and plans

1. The order and procedures for formulation of a local 5-year, 10-year or longer-term housing development program are as follows:

a/ The provincial-level Construction Department shall prepare the program outline, stating program contents, estimated fund and unit expected to be hired to provide consultancy on program formulation, and report it to the provincial-level People’s Committee for approval;

b/ After obtaining the provincial-level People’s Committee’s approval of the program outline, the provincial-level Construction Department shall directly, or hire a capable consultancy unit experienced in the formulation of housing development programs to, coordinate with related local agencies, organizations and individuals and People’s Committees of districts, towns and provincial cities (below collectively referred to as district-level People’s Committees) in conducting surveys, synthesizing data and drafting the program, and reporting it to the provincial-level People’s Committee for comment;

c/ After the provincial-level People’s Committee gives its comment on the draft program, the provincial-level Construction Department shall supplement, revise and finalize the draft for the provincial-level People’s Committee to submit it to the provincial-level People’s Council of the same level for adoption. For centrally run cities, before submitting the program to the provincial-level People’s Council for adoption, the provincial-level People’s Committee shall send the draft program to the Ministry of Construction for its consent to the program contents;

d/ The provincial-level People’s Council shall consider and adopt the local housing development program. After obtaining the provincial-level People’s Council’s adoption, the provincial-level People’s Committee shall approve the program and organize the implementation thereof.

2. The order and procedures for formulation of local 5-year and annual housing development plans are as follows:

a/ Based on the local housing development program approved by the provincial-level People’s Committee, the provincial-level Construction Department may directly, or hire a capable consultancy unit experienced in the formulation of housing development programs and plans to, coordinate with related local agencies in formulating local 5-year and annual housing development plans, and submit them to the provincial-level People’s Committee for approval. District-level People’s Committees and related local agencies shall provide housing information at the request of the provincial-level Construction Department and coordinate with the provincial-level Construction Department and the consultancy unit in formulating housing development plans.

In case a plan intends to use state budget funds for housing development, the provincial-level People’s Committee shall seek opinions of the People’s Council of the same level on the budget use plan before approving it;

b/ The provincial-level People’s Committee shall consider and approve the housing development plan proposed by the provincial-level Construction Department, and organize the implementation thereof.

An annual housing development plan shall be approved by the provincial-level People’s Committee before December 31 of the year preceding the planning year; a 5-year housing development plan shall be approved by the provincial-level People’s Committee before December 31 of the final year of the planning period.

3. After approving housing development programs and plans, provincial-level People’s Committees shall publish these programs and plans on their websites and websites of provincial-level Construction Departments. Provincial-level People’s Committees shall allocate local budget funds for the formulation of housing development programs and plans in accordance with this Decree.

The Ministry of Construction shall specifically guide funding levels for the formulation of local housing development programs and plans.

Chapter II

HOUSE OWNERSHIP

Article 5.Papers proving identity or status of subjects eligible for house ownership

1. To apply for certificates of land use rights and ownership of houses and other land-attached assets (below referred to as certificates), domestic organizations, households and individuals must have identification papers as prescribed by the land law’s provisions on grant of certificates.

2. Overseas Vietnamese must have the following papers:

a/ If they hold Vietnamese passports, such passports must be valid and bear the entry certification mark affixed by the Vietnamese immigration agency;

b/ If they hold foreign passports, such passports must be valid, bear the entry certification mark affixed by the Vietnamese immigration agency, and be enclosed with papers proving that they still retain Vietnamese citizenship, or with written certifications of their Vietnamese origin granted by provincial-level Justice Departments, overseas Vietnamese representation missions or the agency managing overseas Vietnamese, or other papers as prescribed by Vietnamese law.

3. Foreign organizations and individuals must have papers proving their status or identity prescribed in Article 74 of this Decree. In case a foreign individual has a written certification of his/her Vietnamese origin, he/she may only choose to be treated either as an overseas Vietnamese or as a foreigner eligible to own houses in Vietnam.

Article 6.Grant of certificates to house owners

1. Domestic organizations, households and individuals, overseas Vietnamese and foreign organizations and individuals that have papers proving their lawful acquisition of houses (satisfaction of prescribed conditions and forms) under the Housing Law, real estate business law and relevant laws (including also houses built under approved construction master plans in projects specified in Clause 2, Article 17 of the Housing Law) and papers proving their eligibility to own houses specified in Article 5 of this Decree shall be granted certificates for such houses by the State.

If overseas Vietnamese who are not permitted to enter Vietnam are given as gifts or inherit houses in Vietnam, their house ownership shall not be recognized and they shall comply with Clauses 2, 3, 4 and 5, Article 78 of this Decree.

2. For an individual house with two or more stories, each of which is designed and constructed to have two or more self-contained apartments (each having its own living room, kitchen, toilet and bathroom), each of which has a floor area of at least 30 m², and satisfying the conditions on condominiums prescribed in Clause 2, Article 46 of the Housing Law, the State shall grant a certificate for every apartment. In case the owner sells, puts for lease-purchase, donates or bequeaths apartments of this house to other organizations, households and individuals eligible to own houses in Vietnam, the residential land on which the house is built shall come under the use rights of all subjects that purchase, rent-purchase, receive as donations or inheritances such apartments.

3. In addition to the contents prescribed by the land law, the agency granting a certificate shall also include the following contents in the certificate:

a/ Information on the house prescribed in Clause 3, Article 9 of the Housing Law;

b/ House ownership term and rights of the house purchaser to sell, donate, bequeath or contribute as capital the house as agreed upon in definite-term house purchase and sale contracts in the cases specified in Article 123 of the Housing Law, or the house ownership term for foreign organizations or individuals in Vietnam as stated in Article 161 of the Housing Law and Articles 7 and 77 of this Decree;

c/ The term upon the expiration of which the owner may sell the social house, in case of purchase and sale of social houses under Clauses 4 and 5, Article 62 of the Housing Law.

4. The order and procedures for grant of certificates to house owners must comply with the land law. Housing investment project owners shall carry out the procedures to apply for certificates for house purchasers and lessees. In case house purchasers and lessees wish to do so, project owners shall provide them with dossiers and legal documents related to the purchased or leased houses.

Article 7.House ownership term

1. In case of definite-term house ownership prescribed in Article 123 of the Housing Law, the seller and purchaser shall agree on a specific term during which the purchaser is entitled to own the house; rights and obligations of the purchaser during the house ownership term; the responsibility to register and grant a certificate to the purchaser; handover of the house associated with residential land use rights and recipient of the house upon the expiration of the ownership term; the disposal of the certificate upon the expiration of the ownership term and responsibility of the parties to perform the house purchase and sale contract. During the house ownership term, the purchaser shall be granted a new certificate for the house after the State revokes the old certificate of the seller, or receive the certificate previously granted to the seller after such certificate is added with information on the purchaser on its third page.

In case the house purchaser and seller agree that the purchaser may sell, donate, bequeath or contribute as capital the house during the house ownership term, the subsequent purchaser, donee, heir or capital contribution recipient may only own the house only within the definite term agreed upon by the initial purchaser and owner.

2. A foreign organization specified at Point b, Clause 1, Article 159 of the Housing Law may own houses for a term not exceeding the term stated in the investment registration certificate granted to it. Upon the expiration of the house ownership term stated in the certificate, if the house owner wishes to have such term extended, the State shall consider and extend the term under Article 77 of this Decree. In case no term is stated in the investment registration certificate, an indefinite term shall be stated in the certificate granted to the house owner.

In case the foreign organization falls bankrupt or is dissolved or terminates its operation before the expiration of the house ownership term mentioned in this Clause or has its investment registration certificate or Vietnam-based operation permit revoked by the Vietnamese State, the house shall be handled under Clause 1, Article 8 of this Decree. In case the foreign organization becomes a domestic organization as a result of merger or capital transfer in accordance with law, it may own houses in a stable manner and for a long term.

3. A foreigner specified at Point c, Clause 1, Article 159 of the Housing Law may own houses for no more than 50 years after he/she is granted a certificate. Upon the expiration of the house ownership term stated in the certificate, if the house owner wishes to have the term extended, the State shall consider and extend the term under Article 77 of this Decree.

4. In case a foreigner sells or donates a house before the expiration of the house ownership term, the purchaser or donee may own the house under the following provisions:

a/ In case the house is sold or donated to a domestic organization, household or individual or an overseas Vietnamese, the purchaser or donee may own the house in a stable manner and for a long term;

b/ In case the house is sold or donated to a foreign organization or individual eligible to own houses in Vietnam, the purchaser or donee may only own the house for the rest of the house ownership term. Upon the expiration of the house ownership term, if the house owner wishes to have the term extended, the State shall consider and extend it under Article 77 of this Decree;

c/ The house seller or donor shall pay taxes and fulfill financial obligations to the Vietnamese State in accordance with Vietnamese law.

Article 8.Handling of cases of expiration of the house ownership term

1. In case of expiration of the house ownership term agreed upon by the initial seller and purchaser of the house under Clause 1, Article 7 of this Decree, the house ownership and residential land use rights shall be handled under the agreement between the parties to the initial house purchase and sale contract. If the parties cannot reach an agreement on handling of the house, the house ownership and residential land use rights shall be returned to the initial house owner or its/his/her lawful heir.

In case the initial house owner being an organization falls bankrupt or is dissolved or terminates its operation, its house shall be handled in accordance with the law on bankruptcy, dissolution or operation termination, and the house ownership shall be transferred to the individual or organization permitted to own the house in accordance with the law on bankruptcy, dissolution or operation termination. Pending the  identification of the house owner, the organization or individual currently managing the house may continue doing so and may not sell, put for lease-purchase, donate, bequeath, mortgage, lease or contribute as capital the house. The handover of the house shall be carried out within 3 months after the house owner is identified.

In case the foreign organization has its investment registration certificate or written permission for operation in Vietnam revoked by the Vietnamese State, it shall sell or donate the house to a subject eligible to own houses in Vietnam.

2. In case the initial house purchaser and seller mentioned in Clause 1, Article 7 of this Decree fail to reach agreement on the handling of the certificate upon the expiration of the house ownership term, the agency competent to grant the certificate shall revoke the certificate granted to the current owner and grant a new certificate to the subject identified as the initial house owner under Clause 1 of this Article. In case it is impossible to revoke the certificate granted to the current owner, the agency competent to grant the certificate shall issue a decision to invalidate it and grant a new certificate to the subject identified as the initial owner. The order and procedures for grant of a certificate mentioned in this Clause must comply with the land law’s provisions on grant of certificates.

3. Before the expiration of the house ownership term prescribed in Clauses 2 and 3, Article 7 of this Decree (including the case of extension under Article 77 of this Decree), a foreign organization or individual may directly sell or donate the house under its/his/her lawful ownership or authorize another organization or individual to do so under Clause 4, Article 7 of this Decree. In case the foreign organization or individual fails to sell or donate the house under its/his/her lawful ownership after the house ownership term expires, the house shall come under the ownership of the Vietnamese State. The provincial-level Construction Department shall propose the provincial-level People’s Committee of the locality where the house is located to issue a decision to establish all-people ownership over the house and recover it for management, lease or sale under the regulations on management of state-owned houses.

In case the foreign organization or individual is forced by a competent Vietnamese agency to leave the country or terminate its/his/her operation in Vietnam for the use of the house under its/his/her ownership violates Vietnamese law, the house shall be handled under a decision of the competent Vietnamese agency.

Chapter III

HOUSING DEVELOPMENT

Section 1

HOUSING INVESTMENT PROJECTS

Article 9.Decision on or approval of investment policy on housing projects

1. Before formulating a housing investment project specified in Clause 2, Article 17 of the Housing Law, an organization or individual shall request decision on or approval of investment policy in accordance with this Decree.

2. In case of housing investment with capital sources specified in Clauses 3, Article 36, and Clause 1, Article 53, of the Housing Law, the dossier, order, procedures and competence for deciding on investment policy must comply with the Law on Public Investment; the agency assuming the prime responsibility for appraising a housing project shall send to the Ministry of Construction for appraisal house-related contents of the project, if it is funded by the central budget, or to the provincial-level Construction Department of the locality where the project is located for appraisal house-related contents of the project, if it is funded by the local budget.

In case the Minister of Construction decides on investment policy on a housing project according to his/her competence provided in the Investment Law, the Ministry of Construction shall appraise the project before deciding on investment policy.

3. In case of housing investment not under any project mentioned in Clause 2 of this Article but under a project specified at Point a, Clause 1 and Clause 2, Article 31, and Point a, Clause 1 and Clause 2, Article 32, of the Investment Law, the dossier, order, procedures and competence for deciding on investment policy must comply with the Investment Law; the agency assuming the prime responsibility for appraising a housing project shall obtain the Ministry of Construction’s appraisal of house-related contents of the project, if it is subject to investment policy decision by the Prime Minister, or the provincial-level Construction Department’s appraisal of house-related contents of the project, if it is subject to investment policy decision by the provincial-level People’s Committee.

4. For house construction not under a project specified in Clauses 2 and 3 of this Article but under a project specified below, the project dossier shall be sent to the Ministry of Construction for appraisal before being submitted to the Prime Minister for investment policy approval:

a/ A project using a land area of 100 ha or more or using a land area of under 100 ha and constructing 2,500 houses and apartments or more (including villas, individual houses and condominium apartments) in a non-urban area;

b/ A project using a land area of 50 ha or more or using a land area of under 50 ha and constructing 2,500 houses and apartments or more in an urban area;

c/ A project, regardless of its land area and number of houses and apartments, located within the administrative boundaries of more than one province or centrally run city.

5. For house construction projects specified below, other than projects specified in Clauses 2, 3 and 4 of this Article, the provincial-level People’s Committee shall consult the People’s Council of the same level before approving investment policy:

a/ A project using a land area of between 20 ha and under 100 ha and constructing less than 2,500 houses and apartments in a non-urban area;

b/ A project using a land area of between 10 ha and under 50 ha and constructing less than 2,500 houses and apartments in an urban area;

c/ A project, regardless of its land area and number of houses and apartments, located in a restricted development or historical downtown area (as determined in plans) of a special-grade urban center.

6. For house construction not under projects specified in Clauses 2, 3, 4 and 5 of this Article, investment policy shall be submitted to provincial-level People’s Committees for approval.

Article 10.Dossiers and procedures for requesting decision on or approval of investment policy on housing projects

1. For the cases specified in Clauses 2 and 3, Article 9 of this Decree, in addition to the contents proposed for investment policy approval in accordance with the laws on public investment and investment, the following housing-related contents shall also be approved:

a/ Land areas under rice, planted protection or special-use forests (if any) of which the use purpose shall be changed for housing investment projects;

b/ Ratios and numbers of houses of various types calculated as residence units (condominium apartments, villas and individual houses); total housing floor area;

c/ Construction of technical and social infrastructure facilities, public parking areas and parking areas for households and individuals living in project areas;

d/ Land areas reserved for construction of social houses and houses for lease in accordance with the Housing Law; plans to manage or hand over to localities technical infrastructure facilities of projects after the construction is completed;

dd/ Responsibilities of local administrations and project owners for implementation of projects and construction of social infrastructure facilities of projects, unless social infrastructure facilities are available in project areas.

2. For the cases specified in Clauses 4, 5 and 6, Article 9 of this Decree, a dossier of request for investment policy approval must comprise:

a/ The legal dossier of the unit assigned to act as the project owner, comprising papers proving the function of real estate business and legal status, and papers proving the financial capacity and experience of the project owner in accordance with law. In case no project owner has been selected yet, there must be a report on the form of investment selection and expected conditions for investment selection;

b/ A written request for approval of investment policy on the project, clearly stating legal base(s) for the request; contents proposed for approval as specified in Clause 2, Article 11 of this Decree; reason(s) for the request and proof of the conformity of the project contents with the approved local housing development program or plan;

c/ The decision approving the master plan accompanied by detailed planning drawings of the project area approved by a competent agency;

d/ Contents of the approved local housing development program or plan related to the implementation of the project subject to investment policy approval.

3. The order and procedures for approving policy investment on a housing project specified in Clause 4, 5 or 6, Article 9 of this Decree are as follows:

a/ In case of investment policy approval under Clause 4, Article 9 of this Decree, the provincial-level Construction Department shall compile the project dossier and send a report on the project to the provincial-level People’s Committee for requesting in writing the Ministry of Construction to appraise the project; if the project uses land under rice, protection or special-use forest, the provincial-level People’s Committee shall also consult the Ministry of Natural Resources and Environment. After appraising the project, the Ministry of Construction shall report it in writing to the Prime Minister for investment policy approval.

The time limit for appraising a project and reporting it to the Prime Minister for investment policy approval is 30 days after the Ministry of Construction receives a complete dossier requesting its appraisal from the provincial-level People’s Committee; the time limit for the Ministry of Natural Resources and Environment to give its opinions (if any) on a project is 15 days after its receives a complete and valid dossier;

b/ In case of investment policy approval under Clause 5, Article 9 of this Decree, the provincial-level Construction Department shall compile the project dossier and send a report on the project to the provincial-level People’s Committee for reporting and consulting the People’s Council of the same level before approving the investment policy;

c/ In case of investment policy approval under Clause 6, Article 9 of this Decree, the provincial-level Construction Department shall appraise the project and send a report on the project to the provincial-level People’s Committee for issuing a written approval of investment policy.

4. After obtaining the competent state agency’s decision on or written approval of investment policy on a housing project, the provincial-level People’s Committee shall direct investment preparation and project implementation in accordance with law.

Article 11.Contents of decisions on or written approvals of investment policy on  housing projects

1. For the cases specified in Clauses 2 and 3, Article 9 of this Decree, in addition to the investment policy decision contents specified in the Public Investment Law and Investment Law, the competent agency shall decide on the project name under Point a, Clause 2 of this Article and the contents specified in Clause 1, Article 10 of this Decree.

2. For the cases specified in Clauses 4, 5 and 6, Article 9 of this Decree, contents of a written approval of investment policy on a housing project include:

a/ The project name in Vietnamese. If the project is a commercial housing investment project and its owner wishes to give it a foreign-language name, its full name in Vietnam shall be written first, followed by the foreign-language name;

b/ The name of the project owner (if already selected);

c/ Location, boundary and land area of the project. If the project uses any land area under rice, planted protection or special-use forest, such area, of which the use purpose shall be changed for the project, shall be stated;

d/ Objectives of the project; form of investment;

dd/ Principal contents of the project (works to be constructed, number of houses of each type that needs construction investment, total housing floor area, and project implementation plan);

e/ Total investment capital and capital source(s);

g/ Modes of land allocation, land lease or land use rights transfer (if any); land areas for construction of social houses and houses for lease; construction floor area of houses to be reserved for lease;

h/ Infrastructure facilities which the project owner may manage or shall transfer to the State after they are completely constructed;

i/ Duration and schedule of project implementation; investment phases (if any);

k/ The State’s support and incentive mechanisms for the project and conditions for application of these mechanisms (if any); responsibilities of the project owner and local administration for the project implementation;

l/ Validity duration of the written approval of investment policy.

3. The Ministry of Construction shall specifically guide the order and procedures for requesting investment policy approval, form of written request for investment policy approval and form of written approval for the cases specified in Clauses 4, 5 and 6, Article 9 of this Decree.

Article 12.Contents of housing investment project dossiers

1. A housing investment project specified in Clause 2, Article 17 of the Housing Law must have the following explanatory contents:

a/ Project name, given under Point a, Clause 2, Article 11 of this Decree;

b/ Necessity and legal grounds of the project;

c/ Investment objectives and form; construction location; project size; land use demand; natural conditions of the project area;

d/ Implementation solutions: Plan on compensation and ground clearance, support and resettlement (if any); plan on use of construction technology; construction regulations and standards applicable to the project; environmental impact assessment; fire prevention and fighting plan; solutions regarding technical infrastructure and connection to common technical infrastructure facilities in the area; usability of social infrastructure of the area;

dd/ Public parking area and parking lots (for bicycles, wheelchairs for the disabled, motorbikes and automobiles) for households and individuals living in the project area after the house construction is completed;

e/ Areas for construction of social infrastructure facilities (kindergartens, schools, health establishments; service and sports facilities, entertainment and recreation centers, parks), unless these facilities are available in the project area;

g/ Numbers and ratios of houses of various types (individual houses and condominium apartments), total housing floor area; land area reserved for construction of social houses or floor area of social houses (if any); plan on sale of products (number of houses for sale, lease or lease-purchase);

h/ Proposed mechanisms applicable to the project (construction planning and density, financial and other mechanisms);

i/ Total investment capital and capital source(s), form(s) of capital raising, capital recoverability;

k/ Responsibility of the State to construct technical infrastructure facilities outside the project fences or running through the project area;

l/ Project implementation duration and schedule (schedule of each phase) and form of project management;

m/ Works to be transferred to the State without compensation; works or project areas which the project owner may manage after completing the construction thereof;

n/ Plan on management and operation of the project and public-utility works within the project (organizational model, forms of management and operation, service charges).

2. Basic designs of housing investment projects specified in Clause 2, Article 17 of the Housing Law must comply with the construction law.

3. In case of construction of houses on land areas put for auction under Point a, Clause 1, Article 18 of this Decree, auction winners shall organize the formulation, appraisal, approval and implementation of housing investment projects under the Housing Law and this Decree. In case project owners wish to transfer land use rights in the form of division of foundation grounds within their projects for sale for house self-construction, they shall comply with the land law and relevant laws.

Article 13.Formulation, appraisal and approval of housing investment projects

1. The formulation, appraisal and approval of housing investment projects funded with capital sources specified in Clause 3, Article 36, and Clause 1, Article 53, of the Housing Law (except investment projects on construction of official-duty houses mentioned in Clause 2 of this Article) must comply with the public investment law and construction law. The Ministry of Construction shall appraise housing contents of projects subject to the Prime Minister’s approval, while provincial-level Construction Departments shall appraise housing contents of projects subject to provincial-level People’s Committees’ approval.

In case the Minister of Construction approves housing investment projects according to his/her competence in accordance with the Law on Public Investment, the Ministry of Construction shall appraise such projects before they are approved.

2. The formulation, appraisal and approval of investment projects on construction of official-duty houses must comply with Article 23 of this Decree.

3. The formulation, appraisal and approval of housing investment projects not specified in Clauses 1 and 2 of this Article must comply with the construction law.

4. The owner of a project specified in Clause 2, 3, 4 or 5, Article 9 of this Decree, except those subject to the Ministry of Construction’s approval, shall send one project dossier to the Ministry of Construction for monitoring and inspection after the project is approved.

Article 14.Housing investment projects implemented in build-transfer form

1. Based on the construction master plan approved by a competent agency, the provincial-level Construction Department shall make a list of investment projects to be implemented in the build-transfer (BT) form to construct social houses and houses for resettlement and set conditions for selection of BT investors for reporting to the provincial-level People’s Committee for approval and posting on its e-portal and the e-portal of the provincial-level Construction Department for eligible and capable investors to register and undertake.

2. Owners of housing investment projects implemented in the BT form are specified as follows:

a/ For the construction of houses for resettlement, project owners are specified in Clause 2, Article 38 of the Housing Law;

b/ For the construction of social houses, project owners are specified in Article 57 of the Housing Law.

3. A housing project’s BT investor shall be selected in accordance with the bidding law, if 2 or more investors register to act as the project owner, or in the form of project owner appointment, if only one investor registers to act as the project owner. The provincial-level Construction Department shall advise the provincial-level People’s Committee on the selection of project owners under this Clause. For a project subject to investment policy decision or approval by the Prime Minister, the provincial-level People’s Committee shall request the Prime Minister to decide on or approve investment policy before selecting a BT investor.

4. After obtaining the investor selection result, the provincial-level Construction Department shall report to the provincial-level People’s Committee for consideration the signing of a BT contract. The BT investor shall make and submit to a competent agency for appraisal and approval detailed plans of 1:500 scale (in case there is no detailed plan of 1:500 scale on the project area) and formulate the housing investment project for appraisal and approval under Article 13 of this Decree.

5. After completing the construction and pre-acceptance test of houses under the BT contract, the BT investor shall hand over these houses to the provincial-level Construction Department for management and operation.

6. The payment to the BT investor shall be made in accordance with current regulations.

Article 15.Implementation of housing investment projects

1. Project owners of housing projects shall comply with the provisions of the Housing Law, this Decree and the construction law when investing in the housing.

2. Project owners shall construct synchronous technical infrastructure and social infrastructure systems according to schedules of their approved projects. In case they are required to construct social infrastructure facilities under project approval decisions or investment policy decisions or written approvals of competent state agencies, they shall strictly comply with the approved project contents and schedules and contents of approved documents.

Article 16.Completion of the stage of housing project construction investment

Upon completing the construction investment, a housing project owner shall:

1. Report on the project result to the provincial-level Construction Department of the locality where the project is implemented. For a housing project subject to the Prime Minister’s investment policy decision or written approval, the project owner shall also report to the Ministry of Construction.

2. Complete dossiers and documents to be archived in accordance with the Housing Law, this Decree and the construction law.

3. Conduct pre-acceptance test of houses and technical and social infrastructure systems serving residence in the project in accordance with the construction law.

4. Hand over technical and social infrastructure facilities to the local administration or the specialized management agency according to the approved project contents or perform the management according to the investment policy written approval or decision. Houses may be handed over to users only upon completion of the pre-acceptance test and commissioning of houses and social infrastructure facilities serving residential needs stated in the approved project in accordance with the construction law.

5. Report on financial finalization in accordance with the finance law.

6. Requesting a competent agency to grant certificates for houses within the project to their owners in accordance with the Housing Law, this Decree and the land law.

7. Coordinate with the local administration in settling matters related to administrative management in the project area.

8. Manage the operation of works not to be handed over to the local administration or the specialized management agency.

9. Perform other jobs in accordance with law.

Article 17.Management of individual housing areas in housing investment projects

1. Project owners shall manage the exterior architecture of individual houses and the use and maintenance of the technical and social infrastructure systems for owners and users of individual houses in their projects according to the approved project contents.

2. Project owners may, for management purpose, divide and give names to individual housing areas separately planned and constructed in their projects. For investment projects on construction of social houses or houses for resettlement, project owners shall give them Vietnamese names. For commercial housing investment projects, the naming of projects and areas in projects must comply with Clause 3, Article 19 of the Housing Law and be clearly stated in investment policy decisions or written approvals (if their projects are subject to investment policy approval), or shall be approved by the provincial-level People’s Committees if they are not subject to investment policy decision or approval.

3. After houses are handed over and commissioned, project owners may set up house self-management boards to manage the maintenance of the exterior architecture of houses and tend trees and flower gardens, and the maintenance of facilities or technical infrastructure systems to serve such houses, except infrastructure systems already handed over to the State or assigned by the State to project owners for management and maintenance. A house self-management board shall be composed of representatives of owners and users of houses in the area, and of the project owner (if any).

4. Owners and users of houses in an individual housing area shall hold a meeting to reach agreement on election of a house self-management board (number and composition of its members), adopting the operation regulation and term of the self-management board and internal regulations on management and use of the housing area, and decide on contribution of funds to pay remuneration for the board members and persons tending trees and flower gardens and maintaining service facilities to serve the housing area.

5. The project owner shall organize the initial election of the housing area self-management board. The self-management board shall organize by itself or authorize the project owner to organize subsequent elections. In case house owners and users cannot reach agreement on election of a housing area self-management board, the project owner shall manage the housing area according to the approved project contents.

6. The project owner may provide funding support for the self-management board to tend trees and flower gardens and maintain service facilities or technical infrastructure system to serve the housing area. The jobs specified in this Clause shall be performed by the project owner. In case the project owner fails to do so, the housing area self-management board may hire another unit capable to perform the jobs.

Section 2

COMMERCIAL HOUSING DEVELOPMENT

Article 18.Order and procedures for selection of commercial housing project owners

1. In case the State assigns or leases land for house construction, project owners shall be selected as follows:

a/ For areas for which compensations have been made for ground clearance, project owners shall be selected through auction of land use rights. The time limit for and process of land use rights auction must comply with the land law and auction law.

In case land parcels put for auction are located in areas planned for housing projects, participants in the auction of land use rights in these areas must meet all the conditions for acting as project investors as prescribed in Article 21 of the Housing Law, Clause 2, Article 119 of the Land Law, and the law on real estate business. Auction winners shall make, appraise, approve and implement projects under Articles 12, 13, 15, 16 and 17 of this Decree.

b/ For areas where compensations for ground clearance have not yet been made, project owners shall be selected through bidding in case two or more investors that meet all the conditions prescribed in Article 21 of the Housing Law register for acting as project owners. In case only one investor that meets all the conditions prescribed in Article 21 of the Housing Law registers to participate in the bidding, such investor shall be appointed as the project owner. The provincial-level Construction Department shall assist the provincial-level People’s Committee in organizing bidding to select housing project owners under this Point. The time limit for, and process of, bidding to select housing project owners must comply with the bidding law.

c/ Provincial-level People’s Committees are competent to decide on project owner selection in the cases specified at Points a and b of this Clause.

2. In case organizations, households and individuals that have lawful residential land use rights in conformity with housing master plans and land use master plans and plans approved by competent agencies and meet all the conditions for acting as project owners under Article 21 of the Housing Law and wish to invest in housing, provincial-level Construction Departments shall verify their conditions and report to provincial-level People’s Committees for decision to assign them to act as project owners.

The time limit for selection of a project owner specified in this Clause is 30 days after the provincial-level Construction Department receives a written registration to act as a project owner.

3. For a project subject to the Prime Minister’s written approval of investment policy under Clause 4, Article 9 of this Decree, before selecting the project owner, the provincial-level People’s Committee shall request the Prime Minister to approve in writing investment policy under Articles 10 and 11 of this Decree. For a project specified in Clause 5, Article 9 of this Decree, before selecting the project owner, the provincial-level Construction Department shall report it to the provincial-level People’s Committee for issuance of a written approval of investment policy.

4. The Ministry of Construction shall specifically guide legal dossiers for registration to act as project owners and the process of project owner selection under this Article.

Article 19.Signing of contracts to raise capital for commercial housing development

1. The signing of a contract to raise capital for investment in construction of commercial houses may only be conducted in the forms specified in Clauses 2, 3 and 4, Article 69 of the Housing Law. In case of signing a capital raising contract in contravention of Articles 68 and 69 of the Housing Law and this Article, such contract will be legally invalid and the project owner shall be sanctioned for violation in accordance with law and shall pay compensation for damage caused to capital contributors.

2. The signing of contracts to raise capital for commercial housing development must comply with the following provisions:

a/ In case of signing a capital raising contract under Clause 2, Article 69 of the Housing Law, the contract must take the form and satisfy the conditions prescribed in the Housing Law and Clause 3 of this Article.

Capital contributors, parties to investment or business cooperation, a joint venture or an association mentioned in this Point may only receive distributed profits (in cash or stocks) in proportion to their capital contribution ratios agreed upon in the contract. The project owner may not apply the form of capital raising prescribed at this Point or other forms for the purpose of dividing housing products, or giving priority to certain parties in making registration or deposits, or enjoying the right to purchase houses, or dividing the rights to use the project land to capital contributors, except the case of capital contribution for establishing a new legal entity to be assigned by the State as to act as the project owner;

b/ In case of signing a contract on purchase and sale, rent or rent-purchase of an future house with the collection of advance payments or rents from the purchaser or  lessee under Clause 3, Article 69 of the Housing Law, the conditions for and form of purchase and sale, rent or rent-purchase of future houses prescribed by the law on real estate business shall be complied with.

The project owner shall send to the provincial-level Construction Department a written request enclosed with papers proving that the house fully satisfies the conditions for sale or lease-purchase prescribed in Clause 1, Article 55 of the Law on Real Estate Business. In case the construction investment project or house to be sold or put for lease-purchase has been mortgaged, the project owner shall enclose the written request with papers proving the release of the mortgage or the written agreement between the house purchaser or lessee-purchaser and the mortgagee that the mortgage release is not required and the house may be purchased and sold or put for lease-purchase. In case the project or house to be sold or put for lease-purchase is not mortgaged, in the written request sent to the provincial-level Construction Department, the project owner shall clearly state the commitment to bear responsibility therefor.

Within 15 days after receiving the project owner’s dossier of request, the provincial-level Construction Department shall examine the dossier. If the dossier has sufficient papers specified at this Point, the provincial-level Construction Department shall notify in writing the project owner of the house’s satisfaction of the conditions for sale or lease-purchase. If the dossier lacks certain papers as prescribed, the provincial-level Construction Department shall notify in writing the reason for rejection of the house sale or lease-purchase. In case the project owner has submitted the dossier but receives no written reply from the provincial-level Construction Department upon the expiration of the time limit prescribed at this Point and the house fully satisfies the conditions for sale or lease-purchase, the project owner may sign a contract on purchase and sale or lease-purchase of the future house but shall bear responsibility for the sale or putting for lease-purchase of this house. After receiving the project owner’s dossier of request, the provincial-level Construction Department shall notify or bear responsibility for failure to notify the house’s satisfaction of the conditions for sale or lease-purchase.

In case the project owner neither sells nor puts for lease-purchase the house but puts it in mortgage after the provincial-level Construction Department notifies in writing that the house fully satisfies the conditions for sale or lease-purchase, the sale or lease-purchase of the mortgaged house may be conducted only after the conditions for sale or lease-purchase are satisfied and there is a written notice of the provincial-level Construction Department under this Point;

c/ In case the project owner borrows loans from credit institutions or financial institutions or issues bonds to raise capital it still lacks for the house construction, it must satisfy the conditions as agreed upon in the borrowing contract or prescribed by the regulations on bond issuance.

3. The raising of capital for investment in house construction under Point a, Clause 2 of this Article shall be carried out under capital contribution contracts or investment cooperation contracts or business cooperation contracts A project owner may sign these contracts when fully satisfying the following conditions:

a/ Having a lawfully approved dossier of the housing investment project;

b/ Having completed the ground clearance for the housing investment project according to the approved project implementation schedule;

c/ Having made a written record of handover of project boundary markers;

d/ Having received a notice of satisfaction of the capital raising conditions from the provincial-level Construction Department of the locality where the project is implemented. The project owner shall send a written request, enclosed with papers proving the satisfaction of the capital raising conditions prescribed at Points a, b and c of this Clause, to the provincial-level Construction Department for notification of satisfaction of the conditions for capital raising for house construction.

Within 15 days after receiving the project owner’s dossier of request, the provincial-level Construction Department shall examine the dossier. If the dossier has sufficient papers prescribed at this Point, the provincial-level Construction Department shall notify in writing the investor of the satisfaction of the capital raising conditions. If the dossier has insufficient papers proving the satisfaction of the capital raising conditions, it shall send a written reply to the project owner, clearly stating the reason for refusal to issue a notice. In case the capital raising conditions prescribed at Points a, b and c of this Clause are satisfied and the project owner has sent the dossier of request but the provincial-level Construction Department issues no notice to the project owner after the time limit prescribed at this Point expires, the project owner may sign capital raising contracts but shall bear responsibility for the capital raising. The provincial-level Construction Department shall bear responsibility for issuance of or refusal to issue a notice of satisfaction of the capital raising conditions after receiving the dossier of request.

4. Organizations and individuals that raise capital under Clauses 1 and 2 of this Article shall use raised capital amounts for the purpose of house construction under their housing projects. Project owner are prohibited from raising capital in excess of money amounts for house purchase or lease-purchase to be advanced by clients in accordance with law. In case of use for improper purposes or appropriation of raised capital amounts or raising of capital amounts in excess of money amounts to be advanced by clients for house purchase or lease-purchase, project owners shall refund the raised amounts, pay compensations (if causing damage), or be administratively sanctioned in accordance with the law on sanctioning of administrative violations, or be examined for penal liability in accordance with law.

5. The Ministry of Construction shall specifically guide the capital raising prescribed in Clauses 2 and 3 of this Article.

Section 3

DEVELOPMENT OF OFFICIAL-DUTY HOUSES

Article 20.Plan on development of official-duty houses

1. The formulation and approval of plans on development of official-duty houses must comply with Clause 3, Article 27 of the Housing Law.

2. A plan on development of official-duty houses must specify the type and number of houses (individual houses or condominium apartments); total housing use area; construction location and land area for house construction or number and type of commercial houses which need to be purchased or rented for use as official-duty houses; capital source(s) and method of capital raising for construction or purchase or rent-purchase of commercial houses for use as official-duty houses; annual and five-year investment phases; plan implementation schedule; responsibilities of the agency in charge of plan formulation and coordinating agencies.

3. The central agencies defined at Point a, Clause 3, Article 27 of the Housing Law shall identify their demand for official-duty houses according to the form guided by the Ministry of Construction and send reports thereon to the Ministry of Construction for appraisal. After appraising the central agencies’ demand for official-duty houses, the Ministry of Construction shall formulate a plan on development of official-duty houses and report it to the Prime Minister for approval.

4. The Ministry of National Defense and Ministry of Public Security shall make their own plans on development of official-duty houses and consult the Ministry of Construction on these plans. After reaching agreement with the Ministry of Construction, the Ministry of National Defense and Ministry of Public Security shall report their plans to the Prime Minister for approval.

5. For localities, provincial-level Construction Departments shall assume the prime responsibility for, and coordinate with local functional agencies in, formulating plans on development of official-duty houses and submitting them to provincial-level People’s Committees for incorporation in local housing development plans and approval or for approval before reporting to the Ministry of Construction for summarization.

6. The Ministry of Construction shall specifically guide the order and procedures for identifying the demand for official-duty houses and approval of plans on development of official-duty houses.

Article 21.Forms of investment in construction of official-duty houses

The State shall directly invest state budget sources, including central and local budgets, in the construction of official-duty houses or purchase of commercial houses for use as official-duty houses.

The allocation of budget capital for the construction of official-duty houses or purchase of commercial houses for use as official-duty houses shall be based on approved plans on development of official-duty houses and investment projects on construction or purchase of commercial houses for use as official-duty houses and in accordance with the budget and public investment laws.

Article 22.Order and procedures for selection of official-duty housing project owners

1. For investment projects on construction of official-duty houses as approved by the Prime Minister for lease to employees of central agencies (except the subjects specified at Point d, Clause 1, Article 32 of the Housing Law), the Ministry of Construction shall propose units to act as project owners to the Prime Minister for decision.

Within 30 days after receiving the proposals of the Ministry of Construction, the Prime Minister shall issue a decision on project owner selection or authorize the Ministry of Construction to select project owners.

2. For investment projects on construction of official-duty houses as approved by the Ministry of National Defense or Ministry of Public Security for lease to the subjects specified at Point d, Clause 1, Article 32 of the Housing Law, the Ministry of National Defense or Ministry of Public Security shall decide on project owner selection.

Within 30 days after receiving a dossier of registration to act as the project owner, the Minister of National Defense or Public Security shall issue a decision on project owner selection.

3. For investment projects on construction of official-duty houses as approved by provincial-level People’s Committees, their owners shall be selected as follows:

a/ Provincial-level Construction Departments shall report to provincial-level People’s Committees for decision on project owner selection or authorization of district-level People’s Committees to decide on project owner selection if the projects fall in the cases where provincial-level People’s Committees may authorize district-level People’s Committees to approve projects;

b/ Within 30 days after receiving a report of the provincial-level Construction Department, the provincial-level People’s Committee shall issue a decision on project owner selection or authorize the district-level People’s Committee to issue such a decision. Within 30 days after receiving a letter of authorization from the provincial-level People’s Committee, the district-level People’s Committee shall issue a decision on selection of the owner for the official-duty housing project.

4. Owners of official-duty housing projects specified in Clauses 1, 2 and 3 of this Article may be agencies, state agencies or real estate business enterprises.

5. The Ministry of Construction shall specifically guide the dossier and procedures for selection of real estate business enterprises that register to act as official-duty housing project owners.

Article 23.Formulation, appraisal and approval of official-duty housing projects

1. Official-duty housing projects shall be formulated, appraised and approved in accordance with the Housing Law, this Decree and the construction law.

2. For projects subject to investment decision by the Prime Minister under Point a, Clause 2, Article 28 of the Housing Law, the Ministry of Construction shall organize the formulation, appraisal and submission thereof to the Prime Minister for approval. If authorized by the Prime Minister, the Ministry of Construction shall approve such projects.

3. For projects subject to investment decision by the Ministry of National Defense or Ministry of Public Security under Point b, Clause 2, Article 28 of the Housing Law, the Ministry of National Defense or Ministry of Public Security shall organize the formulation and appraisal thereof and consult the Ministry of Construction before reporting them to the Prime Minister for consent. After the Prime Minister gives consent to such projects, the Ministry of National Defense or Ministry of Public Security shall approve them.

4. For projects subject to investment decision by provincial-level People’s Committees under Point c, Clause 2, Article 28 of the Housing Law, provincial-level Construction Departments shall organize the formulation and appraisal of these projects and submit them to the People’s Committees for approval.

In case of construction of houses for lease to persons transferred or rotated to work in urban districts, rural districts, towns or provincial cities, the subjects specified at Points c, dd, e and g, Clause 1, Article 32 of the Housing Law, provincial-level People’s Committees may authorize district-level People’s Committees to approve projects.

Article 24.Purchase of commercial houses for use as official-duty houses

1. In case a locality lacks official-duty houses but has commercial houses constructed under projects and of quality prescribed by the construction law and of suitable types and up to official-duty housing area standards, the competent agency defined in Clause 2, Article 28 of the Housing Law may purchase these houses for use as official-duty houses.

2. The purchase of commercial houses for use as official-duty houses is as follows:

a/ In case of lease of houses to employees of central agencies (except the subjects specified at Point d, Clause 1, Article 32 of the Housing Law), the Ministry of Construction shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, formulating and reporting on projects to the Prime Minister for approval, or formulate and approve projects if authorized by the Prime Minister;

b/ In case of lease of houses to the subjects specified at Point d, Clause 1, Article 32 of the Housing Law, the Ministry of National Defense or Ministry of Public Security shall formulate projects on house purchase, reach agreement with the Ministry of Construction, the Ministry of Finance and the Ministry of Planning and Investment before submitting them to the Prime Minister for consent. After the Prime Minister gives consent to the projects, the Ministry of National Defense or Ministry of Public Security shall approve such projects;

c/ In case of lease of houses to local subjects, provincial-level Construction Departments shall assume the prime responsibility for, and coordinate with provincial-level Finance Departments in, formulating projects and reporting them to provincial-level People’s Committees for approval;

d/ Contents of a project on purchase of commercial houses for use as official-duty houses include the house location, type and number of, use area of each type of houses, house prices, related expenses, capital source for house purchase, mode of payment for house purchase, agency signing the house purchase and sale contracts, agency responsible for housing management after purchase, and responsibilities of related agencies for project implementation.

3. The order and procedures for purchase of commercial houses for use as official-duty houses are as follows:

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

b/ Based on the signed housing purchase and sale contract, the owner of the commercial housing project shall hand over houses and provide legal dossiers related to these houses to the purchaser;

c/ After being handed over houses, the owner of the official-duty housing project shall manage and lease such houses in accordance with the Housing Law and this Decree;

d/ The owner of the commercial housing project shall request a competent agency to grant certificates to the house purchaser. In the case specified at Point a, Clause 2 of this Article, the Ministry of Construction shall represent the purchasers to be named in the certificates. In the case specified at Point b, Clause 2 of this Article, the Ministry of National Defense or Ministry of Public Security shall represent the purchasers to be named in the certificates for houses it has purchased, respectively. In the case specified at Point c, Clause 2 of this Article, provincial-level People’s Committees or Construction Departments (if authorized by provincial-level People’s Committees) shall be named in the certificates.

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

Article 25.Rent of commercial houses for use as official-duty houses

1. In case a locality lacks official-duty houses for lease but has quality commercial houses of suitable types and up to official-duty housing area standards, the competent agency defined in Clause 2, Article 28 of the Housing Law may rent these houses for use as official-duty houses.

2. The rent of commercial houses for use as official-duty houses is as follows:

a/ In case of lease of houses to employees of central agencies (except the subjects specified at Point d, Clause 1, Article 32 of the Housing Law), the Ministry of Construction shall assume the prime responsibility for, and coordinate with the Ministry of Finance in, reporting on the rent to the Prime Minister for consideration and decision;

b/ In case of lease of houses to the subjects specified at Point d, Clause 1, Article 32 of the Housing Law, the Ministry of National Defense or Ministry of Public Security shall reach agreement with the Ministry of Construction and the Ministry of Finance submitting the rent to the Prime Minister for consent. After the Prime Minister gives consent to the rent, the Ministry of National Defense or Ministry of Public Security shall decide on the rent of houses;

c/ In case of lease of houses to local subjects, provincial-level Construction Departments shall assume the prime responsibility for, and coordinate with provincial-level Finance Departments in, reporting on the rent to provincial-level People’s Committees for decision;

d/ Contents of a report proposing the rent of commercial houses for use as official-duty houses include the house location, type and number of, use area of each type of houses, house rent rates, rent term, related expenses, capital source to be allocated for house rent, agency responsible for rental payment, agency signing the rent contract and managing houses after they are rented.

3. Based on the approval of the competent agency specified in Clause 2 of this Article, the agency assigned to manage houses shall sign house rent contracts with house owners, then sign house lease contracts with persons eligible to rent official-duty houses, and manage these houses. The signing of house rent contracts with house owners must comply with regulations on rent of commercial houses. The signing of house lease contracts with persons eligible to rent official-duty houses must comply with relevant guidance of the Ministry of Construction.

Section 4

DEVELOPMENT OF HOUSES FOR RESETTLEMENT

Article 26.Forms of investment in construction of houses for resettlement

Investment in the construction of houses for resettlement shall be made in the following forms:

1. The State directly invests capital from the source specified in Clause 3, Article 36 of the Housing Law in the construction of houses or purchase of commercial houses for use as houses for resettlement.

2. The State invests in the construction of houses in build-transfer (BT) form under Article 14 of this Decree.

3. Owners of commercial housing projects or industrial park infrastructure projects invest in the construction of houses for resettlement under Clause 3 or 4, Article 35 of the Housing Law.

Article 27.Selection of owners of projects on construction of houses for resettlement

1. Owners of projects on construction of houses for resettlement are organizations specified in Clause 2, Article 38 of the Housing Law.

2. The selection of owners for projects on construction of houses for resettlement is as follows:

a/ For housing investment projects using the capital source specified in Clause 3, Article 36 of the Housing Law to serve projects or works of national importance, the Ministry of Construction shall propose project owners and report them to the Prime Minister for decision or authorization of the Minister of Construction to decide on project owner selection;

b/ For housing investment projects using the capital source specified in Clause 3, Article 36 of the Housing Law other than those mentioned at Point a of this Clause, provincial-level Construction Departments shall propose project owners and report them to provincial-level People’s Committees for decision on selection;

c/ For housing investment projects using capital sources other than that specified in Clause 3, Article 36 of the Housing Law but specified in Clause 3, Article 26 of this Decree, owners of commercial housing projects or industrial park infrastructure projects shall act as project owners. For other cases, project owners shall be selected through bidding. In case of investment in house construction in BT form, project owners shall be selected under Article 14 of this Decree.

3. In case real estate business enterprises are selected as owners of projects on construction of houses for resettlement, dossiers for registration to act as project owners are as follows:

a/ For housing investment projects using the capital source specified in Clause 3, Article 36 of the Housing Law, the dossier for registration to act as a project owner is the same as that applicable to the selection of an official-duty housing project owner;

b/ For housing investment projects using capital sources other than that specified in Clause 3, Article 36 of the Housing Law, the dossier for registration to act as a project owner is the same as that applicable to the selection of a commercial housing project owner.

4. The order and procedures for selection of owners of projects on construction of houses for resettlement are as follows:

a/ For the case specified at Point a, Clause 2 of this Article, the Ministry of Construction shall examine dossiers for registration to act as project owners and report them to the Prime Minister for selection decision or authorization of the Ministry of Construction to decide on selection;

b/ For the case specified at Point b, Clause 2 of this Article, the Ministry of Construction shall examine dossiers for registration to act as project owners and report them to provincial-level People’s Committees for selection decision;

c/ For the case specified at Point c, Clause 2 of this Article where investors are selected through bidding, the order and procedures for investor selection must comply with Point b, Clause 1, Article 18 of this Decree. For housing investment in BT form, the order and procedures for investor selection must comply with Article 14 of this Decree;

d/ The time limit for project owner selection mentioned at Points a and b of this Clause is 30 days after a complete and valid dossier is received. For the case specified at Point c of this Clause, the time limit for project owner selection must comply with the bidding law (in case of bidding) or the procedures for BT project owner selection (in case of BT investor selection).

Article 28.Purchase of commercial houses and use of social houses for resettlement

1. The purchase of commercial houses and use of social houses as houses for resettlement must comply with Articles 35 and 39 of the Housing Law and shall be based on approved plans on compensation, support and ground clearance.

2. In areas where commercial houses are used as houses for resettlement under Clauses 1 and 2, Article 35 of the Housing Law, the following provisions must be complied with:

a/ Units assigned by the State to allocate houses for resettlement shall determine locations of investment projects on construction of commercial houses which need to be purchased, and exchange opinions with project owners on house purchase plans. Based on opinions exchanged with project owners, these units shall make house purchase plans, clearly stating legal dossiers of housing investment projects, location, number and area of each type of house, projected price and handover schedule, and report these projects, if any, to provincial-level Construction Departments.

Within 30 days after receiving a written request of a unit assigned to allocate resettlement houses enclosed with a house purchase plan and the legal dossier of the project, the provincial-level Construction Department shall assume the prime responsibility for, and coordinate with local finance and natural resources and environment agencies in, appraising and submitting the project to the provincial-level People’s Committees for approval;

b/ Prices of commercial houses to be purchased for use as houses for resettlement shall be determined based on market prices at the time of purchase and sale and must include land use levy. In case the agency assuming the prime responsibility and coordinating agencies cannot reach agreement on a house price, they may hire an independent valuation unit to calculate the price. Expenses for hiring such valuation unit shall be included in the budget for commercial house purchase prescribed in this Clause;

c/ Within 15 days after the provincial-level People’s Committee approves the house purchase plan, the unit assigned by the State to allocate resettlement houses shall sign a house purchase and sale contract with the commercial housing project owner under Article 41 of the Housing Law;

d/ After signing a house purchase and sale contract, the unit assigned by the State to allocate resettlement houses shall notify such to households and individuals eligible for resettlement to sign house purchase and sale contracts under Article 31 of this Decree.

3. In case of use of social houses for resettlement under Clauses 1 and 2, Article 35 of the Housing Law, the following provisions shall be complied with:

a/ Resettled persons that wish to purchase, rent or rent-purchase social houses shall file applications with the district-level People’s Committee of the locality where they reside, clearly stating their need to purchase, rent or rent-purchase houses;

b/ The district-level People’s Committee shall verify and certify in the applications that these persons have not yet received any houses or land areas as compensation from the State and draw up a list of persons who need to be resettled, and send it together with these persons’ applications to the provincial-level Construction Department for examination;

c/ After examining the list, the provincial-level Construction Department shall draw up a list of households and individuals eligible to purchase, rent or rent-purchase social houses and request in writing the provincial-level People’s Committee to approve the list. Based on the availability of social houses in the locality and demand for social houses of resettled persons, the provincial-level People’s Committee shall decide to approve the list;

d/ The provincial-level Construction Department shall send the approved list of households and individuals to the district-level People’s Committee for notification to the listed households and individuals, and concurrently request in writing the social housing project owner to sign house purchase, rent or rent-purchase contracts with the listed households and individuals according to their needs.

4. The signing of contracts and handover of commercial houses or social houses for resettlement must comply with Article 31 of this Decree.

Article 29.Capital for development of houses for resettlement

1. The capital raising for the development of social houses for resettlement shall be carried out in the forms specified in Article 72 of the Housing Law.

2. In case of development of houses with the capital source specified in Clause 3, Article 36 of the Housing Law, the allocation of capital must comply with the public investment and state budget laws.

3. The development of houses in BT form must comply with Article 14 of this Decree.

4. The raising of capital from compensations and monetary supports for resettlement upon land recovery by the State must comply with the land law. The raising of capital from the land development funds shall be decided by provincial-level People’s Committees.

5. In case of raising capital in the form of capital contribution, investment cooperation, business cooperation, joint venture or association, parties shall enter into capital contribution, investment cooperation or business cooperation contracts. Parties contributing capital under these contracts may only be distributed profits (in cash or stocks) in proportion to their contributed capital amounts agreed upon in such contracts, unless house owners also contribute capital or join investment cooperation or business cooperation for demolition of old houses and investment in the construction of houses for resettlement in accordance with the Housing Law and regulations on renovation and reconstruction of condominiums.

6. In case the State advances capital from the state budget for construction or purchase of houses for resettlement, the following provisions shall be complied with:

a/ Based on the approved plan on compensation, support and resettlement, the provincial-level Construction Department shall make a plan on allocation of resettlement houses and schedule of house supply for each project on construction of houses for resettlement, including also resettlement for projects of national importance, in the locality, and report them to the provincial-level People’s Committee for approval;

b/ Based on the approved resettlement house allocation plan and request of the project owner, the competent agency shall decide to advance capital from the local budget to the project owner for implementing the project;

c/ The owner of the project on construction of houses for resettlement shall refund capital to the local budget with the proceeds from the sale or lease of houses to resettled households and individuals or deductions from compensations and resettlement supports for resettled households and individuals upon land recovery and house demolition by the State within 60 days after the collection of house sale payments or rentals or the allocation of the budget for compensations and resettlement supports.

Chapter IV

MANAGEMENT AND USE OF HOUSES

Section 1

MANAGEMENT AND USE OF HOUSES FOR RESETTLEMENT

Article 30.Subjects entitled to and conditions for rent, rent-purchase or purchase of houses for resettlement

1. Subjects entitled to rent, rent-purchase or purchase houses for resettlement include:

a/ Households and individuals that have lawful houses to be cleared upon land recovery by the State for implementation of projects serving national defense, security, national interests or public interests under approved master plans;

b/ Households and individuals that have house-attached residential land recovered by the State and have to be relocated but are ineligible for residential land-related compensation under the land law while having no other houses;

c/ Households and individuals that are owners of condominium apartments to be demolished for renovation or reconstruction under Article 110 of the Housing Law.

2. Conditions for rent, rent-purchase or purchase of houses for resettlement are prescribed as follows:

a/ If the subjects defined at Points a and b, Clause 1 of this Article wish to purchase commercial houses or rent, rent-purchase or purchase state-invested houses for resettlement, they must be those named in the list of subjects entitled to resettlement under approved compensation, support and resettlement plans and shall make a written request for resettlement house according to the form issued by the Ministry of Construction;

b/ If the subjects defined at Points a and b, Clause 1 of this Article wish to rent, rent-purchase or purchase social houses, they must be those named in the list of subjects entitled to resettlement under approved compensation, support and resettlement plans, and shall make a written request for social house for resettlement according to the form issued by the Ministry of Construction, and must not have received any compensation in house or residential land from the State;

c/ The subjects defined at Point c, Clause 1 of this Article are entitled to resettlement houses under Articles 115 and 116 of the Housing Law and the regulations on renovation and reconstruction of condominiums.

Article 31.Order and procedures for rent, rent-purchase or purchase, and handover, of houses for resettlement

1. In case of purchasing commercial houses under Point a, Clause 1, Article 41 of the Housing Law:

a/ The unit assigned by the State to arrange houses for resettlement shall sign a house purchase and sale contract with the commercial housing project owner in accordance with regulations on purchase and sale of commercial houses;

b/ Within 10 days after signing the contract, the unit assigned by the State to arrange houses for resettlement shall notify such in writing to the households and individuals entitled to resettlement under Article 30 of this Decree and sign house purchase and sale contracts directly with them;

c/ The unit assigned by the State to arrange houses for resettlement shall receive houses from the project owner according to the signed contract and hand them over to the purchasers or authorize the project owner to do so. The handover of houses must comply with contractual agreements when the house handover conditions specified in Clause 4, Article 16 of this Decree are fully met, and with the law on real estate business. A written record shall be made for such handover, enclosed with legal papers related to the purchased house.

2. In case of purchasing commercial houses under Point b, Clause 1, Article 41 of the Housing Law:

a/ The unit assigned by the State to arrange houses for resettlement shall sign a contract ordering the houses with the commercial housing project owner;

b/ Within 10 days after signing the contract, the unit assigned by the State to arrange houses for resettlement shall notify such in writing to the households and individuals entitled to resettlement under Article 30 of this Decree for signing house purchase and sale contracts with the project owner. The signing of house purchase and sale contracts must comply with the guidance of the Ministry of Construction;

c/ The project owner shall hand houses to the house purchasers according to the signed house purchase and sale contracts. The handover of houses must comply with contractual agreements when the house handover conditions specified in Clause 4, Article 16 of this Decree are fully met, and with the law on real estate business. A written record shall be made for such handover, enclosed with legal papers related to the purchased house.

3. In case of using social houses for resettlement, based on notices of district-level People’s Committees as prescribed in Clause 3, Article 28 of this Decree, households and individuals entitled to resettlement shall sign contracts on rent, rent-purchase or purchase and sale of houses directly with the social housing project owner. The handover of houses must comply with contractual agreements, and Clause 4, Article 16 of this Decree. A written record shall be made for such handover and certified by the unit assigned by the State to arrange houses for resettlement, enclosed with legal papers related to the house concerned.

4. In case of purchase, rent or rent-purchase of state-invested houses for resettlement, households and individuals named in the list of subjects entitled to resettlement under approved compensation, support and resettlement plans shall sign contracts on purchase and sale, rent or rent-purchase of houses with the housing project owner. The handover of these houses must comply with contractual agreements when the house handover conditions specified in Clause 4, Article 16 of this Decree are fully met. A written record shall be made for such handover, enclosed with legal papers related to the house concerned.

5. In case of arranging houses for resettlement under Clauses 3 and 4, Article 35 of the Housing Law, based on the approved compensation, support and resettlement plans, households and individuals entitled to resettlement shall sign house purchase and sale contracts with the project owner in accordance with regulations on purchase and sale of commercial houses. The handover of houses must comply with contractual agreements when the house handover conditions specified in Clause 4, Article 16 of this Decree are fully met, and with the law on real estate business. A written record shall be made for such handover, enclosed with legal papers related to the purchased house.

6. Owners of housing projects referred to in Clauses 1 thru 5 of this Article shall request competent agencies to grant certificates to households and individuals that have purchased or rent-purchased houses for resettlement, unless these households and individuals voluntarily do so. The order and procedures for grant of certificates must comply with the land law.

7. The Ministry of Construction shall prescribe the forms of contract on purchase, rent or rent-purchase of houses for resettlement prescribed at Point b, Clause 1, and Clauses 2, 3 and 4, of this Article.

Article 32.Prices of purchase, rent or rent-purchase of houses for resettlement

1. If households and individuals entitled to resettlement wish to purchase houses constructed under resettlement projects or to purchase commercial houses for resettlement, the purchase and sale prices of such houses shall be determined under approved compensation, support and resettlement plans.

2. If households and individuals entitled to resettlement wish to rent or rent-purchase houses for resettlement which are invested by the State or purchased by the State for lease or lease-purchase, the rent or rent-purchase prices of such houses shall be determined under the guidance of the Ministry of Construction.

3. If households and individuals entitled to resettlement wish to use social houses for resettlement, the purchase, rent or rent-purchase prices of such houses shall be determined under Article 60 or 61 of the Housing Law and the regulations on management and use of social houses.

Article 33.Management and use of resettlement houses

1. The management and use of resettlement houses are prescribed as follows:

a/ Owners of resettlement houses shall manage, operate and maintain their own houses in accordance with the Housing Law, this Decree and relevant laws;

b/ For condominium apartments, their owners shall comply with regulations on management and use of condominiums; they shall contribute funds for maintenance of condominiums’ sections under common ownership in accordance with the Housing Law and this Decree, and funds for condominium operation management, and pay service charges as agreed with service providers;

c/ Owners of state-owned houses shall also comply with Chapter V of this Decree; owners of social houses shall also comply with regulations on management and use of social houses;

d/ Owners of rural houses must satisfy sanitation, environment and fire prevention and fighting requirements and comply with regulations on community cultured lifestyle and management, renovation and maintenance of technical infrastructure facilities in areas where the houses are located.

2. Business and service provision activities within condominiums used for resettlement are prescribed as follows:

a/ In case of purchasing a number of apartments or stories in a commercial condominium for use as resettlement houses, households and individuals entitled to resettlement shall be prioritized to rent the areas for business operation and service provision (if any) in such condominium through auction if their bids are equal to those offered by other residents in the condominium;

b/ In case of building a condominium for resettlement, the project owner shall reserve at least one-third of the area for business operation and service provision in the condominium for lease to households and individuals entitled to resettlement (if they so wish) through auction on the principles of publicity and transparency in order to create jobs for them. Provincial-level People’s Committees may use revenues from the commercial operation of the whole area for business operation and service provision, after subtracting reasonable expenses, to partially pay for the maintenance of the sections under common ownership and for the management and operation of houses for resettlement in their localities;

c/ The management and operation of houses specified at Points a and b of this Clause must comply with the Regulation on management and use of condominiums promulgated by the Ministry of Construction.

Section 2

MANAGEMENT AND USE OF VILLAS AND CONDOMINIUMS

Article 34.Classification and management and use of villas

1. Villas shall be classified into the following three groups:

a/ Group 1 consisting of villas ranked as historical and cultural relics under the law on cultural heritages; villas having typical architectural values and old houses identified and listed by the Council defined in Clause 2, Article 79 of the Housing Law and approved by provincial-level People’s Committees;

b/ Group 2 consisting of villas other than those mentioned at Point a of this Clause but having architectural, historical or cultural value identified and listed by the Council defined in Clause 2,  Article 79 of the Housing Law and approved by provincial-level People’s Committees;

c/ Group 3 consisting of villas other than those mentioned at Points a and b of this Clause.

2. The management, use, maintenance and renovation of villas must adhere to the following principles:

a/ Complying with the Housing Law; for state-owned houses, complying with regulations on management and use of state-owned houses; for houses of artistic, historical or cultural value, complying with the law on management of cultural heritages;

b/ For group-1 villas, preserving their exterior architecture, internal structure, construction density, number of stories, and height;

c/ For group-2 villas, preserving their exterior architecture;

d/ For group-3 villas, complying with the laws on planning, architecture and construction.

Article 35.Prohibited acts in management and use of condominiums

1. Using funds for operation management of condominiums or funds for maintenance of condominiums’ sections under common ownership in contravention of the Housing Law, this Decree or the Regulation on management and use of condominiums promulgated by the Ministry of Construction.

2. Causing water leakage; causing noise in excess of law-prescribed limits or discharging garbage, wastewater, gas emissions or hazardous substances in violation of the law on environmental protection or regulations on management and use of condominiums.

3. Grazing cattle or farming free-range poultry on the condominium premises.

4. Painting or decorating the exteriors of condominium apartments or condominiums in violation of regulations on designing and architecture.

5. Arbitrarily changing the function and use purpose of condominiums’ sections under common ownership or common use; arbitrarily changing the function and use purpose of non-residential areas in multi-purpose condominiums against the designs approved by competent agencies.

6. Conducting the following businesses or trading in the following goods in condominiums’ business areas:

a/ Trading in inflammable or explosive materials and businesses dangerous to the life or property of condominium users as prescribed by the law on fire prevention and fighting;

b/ Dance hall business; repair of motor vehicles; cattle slaughtering; or other polluting services as prescribed by the law on environmental protection.

Restaurants, karaoke parlors or bars must have soundproof walls and emergency exits, and must comply with requirements on fire and explosion prevention and fighting and satisfy other business conditions prescribed by law.

7. Other prohibited acts related to management and use of condominiums prescribed in Article 6 of the Housing Law.

Article 36.Handover of funds for maintenance of multi-owner condominiums’ sections under common ownership

1. Purchasers and rent-purchasers or the project owner shall contribute an amount equal to 2% of the apartment value to the fund for maintenance of condominiums’ sections under common ownership as prescribed in Article 108 of the Housing Law; this amount is a pre-tax amount (the State shall not collect tax on this amount). The project owner shall open a payment account at a credit institution operating in Vietnam for receiving this amount from purchasers and lessees of apartments or other areas in a condominium; and clearly indicate that it is a term deposit account for the condominium maintenance fund.

2. The project owner shall write information on the account (including number and name of the account, and name of the credit institution where it is opened) mentioned in Clause 1 of this Article in the contracts on purchase and sale or rent-purchase of apartments or other areas in the condominium to be signed with the customers. Before the handover, the purchasers and lessees shall pay a maintenance amount equal to 2% of the apartment value into the account stated in the contract or pay it to the project owner for transfer to this account; if the project owner does not collect this amount from the purchasers and lessees, it shall pay this amount.

3. For the areas not to be sold or not yet sold or leased by the project owner by the time of pre-acceptance test and putting of the whole condominium into use, for which the maintenance amount equal to 2% of the apartment value shall be handed to the condominium’s management board (below referred to as the management board) under the Housing Law, the project owner shall transfer this amount to the account mentioned in Clause 1 of this Article.

4. After the management board is established and issues a written request for receipt of the maintenance fund temporarily managed by the project owner, the project owner and the management board shall jointly make a dossier for finalization of the maintenance fund figures. Based on the finalization figures, the project owner shall transfer the maintenance fund as prescribed in the housing law to the Management Board for management. The opening of an account for the maintenance fund of the management board and procedures for transfer of the fund for maintenance of the condominium’s sections under common ownership to the management board must comply with the Regulation on management and use of condominiums promulgated by the Ministry of Construction.

After transferring the maintenance fund to the Management Board, the project owner shall report such in writing to the provincial-level Department of Construction of the locality where the condominium is situated, for monitoring.

Article 37.Procedures for coercing handover of funds for maintenance of condominiums’ sections under common ownership

1. If the project owner fails to hand over the maintenance fund under Article 36 of this Decree or fails to fully and timely hand it over:

a/ The management board shall propose in writing the provincial-level People’s Committee of the locality where the condominium is situated to request the project owner to hand over the fund under Article 36 of this Decree;

b/ Within 15 days after receiving the management board’s proposal, the provincial-level People’s Committee shall consider and examine the proposal; if the parties have finalized the maintenance fund figures under Clause 4, Article 36 of this Decree but the project owner still fails to hand over the maintenance fund, the provincial-level People’s Committee shall request in writing the project owner to hand over the fund to the management board. Within 7 days after receiving the request of the provincial-level People’s Committee, the project owner shall hand over the maintenance fund.

If the parties have not yet made a written record of finalization of maintenance fund figures, they shall finalize these figures and the management board shall be handed over the fund within 10 days after the project owner receives the request of the provincial-level People’s Committee.

A written record shall be made for the handover of the fund for maintenance of the condominium’s sections under common ownership and certified by the project owner and a representative of the management board. After completing the handover, the project owner shall notify such in writing to the provincial-level People’s Committee;

c/ Past the time limit specified at Point b of this Clause, if the project owner still fails to hand the maintenance fund, the provincial-level People’s Committee shall issue a decision on coerced recovery of the maintenance fund for handover to the management board and send this decision to the project owner, the management board and the credit institution where the project owner’s account is opened; such decision must specify the fund to be handed by the project owner after subtracting an amount (if any) to be used by the project owner for maintenance of the condominium’s sections under common ownership, handover time limit, coercion measure, and responsibilities of the related parties, for compliance;

d/ The measure coercing the handover of the maintenance fund may include compelling the project owner to transfer the maintenance fund from the account opened under Clause 1, Article 36 of this Decree, transferring the fund from another account of the project owner to the account managed by the management board, or handling assets of the project owner. The coercion of handover of the fund for maintenance of the condominium’s sections under common ownership shall be carried out within 30 days after the issuance of the coercion decision. The to-be-handed fund is the whole maintenance amount (both principal and interest) based on the figures finalized by the parties. If the parties cannot finalize the figures, the handover shall be carried out based on the figures written in the coercion decision of the provincial-level People’s Committee;

dd/ Within 3 days after receiving the coercion decision of the provincial-level People’s Committee, the credit institution managing the deposit account of the condominium maintenance fund or another account of the project owner as stated in the coercion decision shall transfer the fund to the account opened by the management board for management and use in accordance with the housing law and coercion decision; in case of handling assets of the project owner to recover the maintenance fund, the coercion decision of the provincial-level People’s Committee must clearly state the asset handling measure, responsibilities of the asset handling unit, form of handling, and transfer of the recovered fund to the management board.

In the course of coercing the handover of the maintenance fund, if detecting that the project owner commits a criminal offense, the provincial-level People’s Committee shall request a competent agency to investigate and handle the offense in accordance with law.

2. A written record shall be made for the handover of the fund for maintenance of the condominium’s sections under common ownership and certified by the project owner and a representative of the management board; for the case specified in Clause 1 of this Article, the certification by the coercion unit and a representative of the credit institution transferring such fund or a representative of the unit that handles assets of the project owner is also required.

Chapter V

MANAGEMENT AND USE OF STATE-OWNED HOUSES

Section 1

GENERAL PROVISIONS

Article 38.Principles of management and use of state-owned houses

1. Ensuring proper and effective use of houses and avoiding loss and waste; ensuring that the houses are leased or sold to the subjects that fully meet the conditions prescribed in the Housing Law and this Decree.

2. Ensuring unified management, close coordination and clear assignment of management responsibilities among related agencies and units.

3. The managed houses must ensure quality and safety for users; houses for resettlement must comply with Section 1, Chapter IV of this Decree.

4. The exemption from or reduction of amounts for rent or purchase of houses must comply with Articles 59, 66, 67 and 68 of this Decree, except the subjects eligible to rent official-duty houses or student dormitories and the subjects mentioned at Points c and d, Clause 1, Article 61, and Clauses 1 and 3, Article 71, of this Decree.

5. The management, sale and lease of old houses which are built with state budget funds or transformed from another form of ownership into state ownership and are used for residential purpose under law (including self-managed houses) must comply with this Decree.

6. All violations of regulations on management and use of state-owned houses shall be promptly and strictly punished in accordance with law; for houses subject to recovery under Article 84 of the Housing Law and this Decree, after the recovery, the housing management agency shall manage and use these houses for prescribed purposes.

Article 39.Agencies and units managing state-owned houses

1. Owner-representing agencies for houses invested with central budget funds are prescribed as follows:

a/ The Ministry of Construction shall act as the owner’s representative for official-duty houses of the Government; state-owned social houses invested with central budget funds; and student dormitories managed by education institutions under the Ministry of Construction, except state-owned social houses purchased or invested by the Ministry of National Defense or Ministry of Public Security as prescribed at Point b of this Clause;

b/ The Ministry of National Defense and Ministry of Public Security shall act as the owner’s representatives for official-duty houses and state-owned social houses purchased or invested by the Ministry of National Defense or Ministry of Public Security and student dormitories managed by education institutions under these Ministries. Particularly for old houses managed by the Ministry of National Defense, this Ministry shall act as the owner’s representative, except the case specified in Clause 2, Article 64 of this Decree;

c/ Ministries, sectors and other central agencies shall act as the owner’s representatives for official-duty houses and student dormitories managed by education institutions under these ministries, sectors and agencies.

2. Provincial-level People’s Committees shall act as the owner’s representatives for state-owned houses assigned to them for management in their localities.

3. Housing management agencies are agencies assigned by the owner’s representatives defined in Clause 1 or 2 of this Article to manage state-owned houses, including:

a/ Agencies assigned with the housing management function under ministries, sectors and central agencies, for ministries, sectors and central agencies;

b/ Provincial-level Departments of Construction, for localities;

c/ Education institutions, for student dormitories assigned to them for management.

4. Units managing the operation of state-owned houses are organizations or enterprises that have the function and professional capacity for managing the operation of houses as defined in Article 105 of the Housing Law and are assigned by owner-representing agencies to manage the operation of state-owned houses.

Article 40.Rights and responsibilities of representatives of the owner of state-owned houses

1. Agencies representing the owner of state-owned houses defined in Clauses 1 and 2, Article 39 of this Decree have the following rights and responsibilities with regard to houses assigned to them for management:

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

b/ To select units for managing the operation of houses;

c/ To approve house maintenance, renovation, demolition and reconstruction plans;

d/ To issue or decide on prices of lease, lease-purchase and sale of houses;

dd/ To decide on recovery of houses;

e/ Other rights and responsibilities assigned by the Prime Minister under regulations.

2. Agencies representing the owner of state-owned houses defined in Clauses 1 and 2, Article 39 of this Decree may assign housing management agencies defined in Clause 3, Article 39 of this Decree to exercise the rights prescribed at Point b, Clause 1 of this Article and approve house maintenance plans. Particularly, the Ministry of National Defense and Ministry of Public Security may assign housing management agencies to exercise the rights prescribed at Points a, b and dd, Clause 1 of this Article.

Article 41.Rights and responsibilities of agencies managing state-owned houses

Agencies managing state-owned houses defined in Clause 3, Article 39 of this Decree have the following rights and responsibilities:

1. To review, compile statistics of, and classify, houses assigned to them for management; to receive houses (if any) from central agencies for management in accordance with this Decree.

2. To work out plans on maintenance, renovation or reconstruction of houses and submit them to agencies representing the owner of such houses for approval, or to approve maintenance plans if they are assigned to do so.

3. To collect, make and archive house dossiers and hand one set of as-built dossiers (for newly built houses) or re-survey dossiers (for old houses) to house management units; expenses for re-survey shall be covered by the state budget.

4. Provincial-level Departments of Construction shall form councils for determination of sale prices of old houses eligible for sale in their localities (including old houses managed by the Ministry of National Defense); such council shall be composed of representatives of the provincial-level Departments of Construction, Natural Resources and Environment, Finance, Planning and Architecture (if any), Planning and Investment, and Tax, Vietnam Fatherland Front Committee, and Labor Federation. For houses managed the Ministry of National Defense, this council must also have a representative of the Ministry of National Defense.

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

6. To propose units that will manage the houses to owner-representing agencies for decision, or to decide by themselves to select such units if they are assigned to do so; to report to owner-representing agencies for decision the use of revenues from the commercial operation of the areas reserved for service provision activities in houses for resettlement in order to cover part of funds for maintenance of the houses’ areas under common ownership and operation management of the houses.

7. Pursuant to regulations on price brackets for lease, lease-purchase and sale of state-owned houses, to formulate prices of lease, lease-purchase and sale of houses under their management and submit such prices to relevant owner-representing agencies for decision.

8. To report house recovery to owner-representing agencies for decision. Particularly, agencies managing houses of the Ministry of National Defense or Ministry of Public Security may decide to recover these houses if they are assigned to do so.

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

10. To coordinate with finance agencies in guiding and examining revenues and expenditures of house-managing units.

11. To examine, supervise, and handle violations or propose competent agencies to handle violations related to, house management and use.

12. To summarize and report on house management and use in accordance with Article 47 of this Decree.

Article 42.Rights and responsibilities of units managing the operation of state-owned houses

1. To receive the houses assigned by competent agencies defined in Clause 3, Article 39 of this Decree to them for operation management in accordance with this Decree and relevant laws. The operation management of houses must comply with the guidance of the Ministry of Construction; the operation management of state-owned houses is eligible for mechanisms applicable to public services as prescribed by law.

2. To lease, and manage the use of, houses according to their assigned tasks or under operation management service contracts signed with housing management agencies.

3. To formulate and issue the internal Regulation on management and use of houses under the guidance of the Ministry of Construction and inform this Regulation to house lessees, purchasers and users.

4. To closely manage unsold areas in the premises of state-owned houses.

5. To deduct part of the rentals under Article 44 of this Decree for covering expenses for house operation management.

6. To collect and archive dossiers related to house construction, operation, warranty, maintenance and renovation; if the dossiers are incomplete, to supplement or restore them or conduct re-surveys and deliver the supplemented dossiers to housing management agencies for archive in accordance with regulations.

7. To maintain and renovate houses after obtaining approval of competent authorities.

8. To examine, monitor, and timely detect, and propose competent agencies to handle, violations in house management and use; to recover houses under decisions of competent agencies.

9. To coordinate with local functional agencies in ensuring security and order for house lessees, purchasers and users.

10. To summarize, and report on house management and use under Article 47 of this Decree on a regular basis or upon request.

11. To make cost-accounting of and report on revenues from house operation and expenditures for house operation management in accordance with regulations; to exercise other rights and fulfill other obligations in accordance with law.

Article 43.Change of the function of official-duty houses; sale of state-owned social houses or sale of official-duty houses with changed use functions

1. The change of official-duty houses into houses for lease under Clause 4, Article 81 of the Housing Law is prescribed as follows:

a/ Agencies representing the owner of official-duty houses shall formulate a scheme on the change of the function of these houses, which must indicate the actual use of the houses, reason for the change, plan on management or lease of the houses after the change, application of lease prices, eligible lessees, and agencies responsible for managing the houses. The lease prices and eligible lessees of these houses must comply with regulations on lease of state-owned social houses or shall be decided through auction of renting rights;

b/ Owner-representing agencies shall send a report enclosed with the scheme’s dossier to the Ministry of Construction for appraisal and to the Prime Minister for consideration and approval;

c/ If obtaining the Prime Minister’s approval, owner-representing agencies shall approve the scheme and organize the management and lease of houses according to the scheme and such approval, the Housing Law, and the law on management and use of state assets, and annually report thereon to the Ministry of Construction for monitoring and management.

2. If wishing to sell official-duty houses whose function is changed under Clause 1 of this Article for building other official-duty houses, or sell social houses for building other social houses, owner-representing agencies shall:

a/ Work out a scheme on sale of the houses, clearly indicating the addresses and number of houses; reason for the sale; sale prices of the houses; payable land use levy; subjects eligible and conditions for purchase of the houses; order and procedures for the sale; method of payment; implementation duration; projected proceeds; and plan on the use of such proceeds for building other houses.

Social houses shall be sold to the subjects defined in Clause 1, Article 50 of the Housing Law. The sale prices of houses (including the prices and land use levy) must comply with the regulations on sale of social houses. The sale prices of official-duty houses whose function is changed shall be determined based on the current quality of the houses and land use levy shall be collected in accordance with the land law;

b/ Send a report enclosed with the scheme’s dossier to the Ministry of Construction for appraisal and to the Prime Minister for consideration and approval;

c/ If obtaining the Prime Minister’s approval, approve the scheme and organize its implementation according to its contents and such approval;

d/ Use proceeds from the sale of houses for building social houses or official-duty houses; and report on the use of these proceeds to the Ministry of Construction for examination and further reporting to the Prime Minister.

3. For official-duty houses and state-owned social houses assigned to the Ministry of Construction for management, if wishing to change their function or sell them under this Article, the Ministry of Construction shall make a dossier prescribed in Clause 1 or 2 of this Article and submit it to the Prime Minister for consideration and decision.

Article 44.Management of proceeds from lease, lease-purchase or sale of state-owned houses

1. The proceeds from lease, lease-purchase or sale of state-owned houses shall be used for maintenance and development of state-owned houses as follows:

a/ Proceeds from the lease of state-owned houses shall be used for maintenance and operation management of state-owned houses currently on lease;

b/ For proceeds from the lease-purchase and sale of houses, the seller or lessor shall, after subtracting the expenses for such lease-purchase or sale, pay them to the state budget according to the current budget decentralization, except for houses specified in Clause 2 of this Article, for building state-owned social houses or official-duty houses in localities.

2. For old houses managed by the Ministry of National Defense and sold to current lessees, proceeds from their sale shall be paid into an account managed by this Ministry for building social houses for lease or lease-purchase to the subjects defined in Clause 6, Article 49 of the Housing Law. The Ministry of National Defense shall reach agreement with the Ministry of Construction on the use of such proceeds and on the building of houses before building. After completing the building, the Ministry of National Defense shall report such to the Ministry of Construction for summarization and reporting to the Prime Minister.

3. The Ministry of Finance shall assume the prime responsibility for, and coordinate with the Ministry of Construction in, guiding the use of proceeds from the lease of houses for maintenance and operation management of houses on lease; and provide guidance on expenses for the lease-purchase and sale of state-owned houses prescribed in this Article.

Article 45.Order and procedures for recovery of state-owned houses

1. When arises any of the cases subject to house recovery prescribed in Article 84 of the Housing Law or when a state-owned house is illegally appropriated, the unit managing the operation of such house shall send a written notice to the lessee, lessee-purchaser or purchaser or the person appropriating the house (below referred to as the current house user) requesting him/her to hand over the house within 60 days after receiving the notice; past this time limit, if the current house user fails to hand over the house, the unit managing the house operation shall request the housing management agency to recover such house within 5 days after such time limit expires.

2. Within 10 days after receiving the request of the unit managing the house operation, the housing management agency shall conduct examination; if it is necessary to recover the house, this agency shall send a report to the owner-representing agency for consideration and issuance of a house recovery decision. If the housing management agency detects by itself through examination that it is necessary to recover the house, it shall request recovery of the house in accordance with this Article.

3. Within 10 days after receiving the request of the unit managing the house operation, the owner-representing agency shall conduct examination; if it is necessary to recover the house according to the conditions specified in Clause 1 of this Article, this agency shall issue a house recovery decision and send it to the housing management agency, the unit managing the house operation and the current house user for compliance. For houses managed by the Ministry of National Defense or Ministry of Public Security, the housing management agency may issue a house recovery decision (if it is assigned to do so) and send it to the unit managing the house operation and the current house user for compliance, and to the owner-representing agency for reporting.

4. A house recovery decision must contain:

a/ Legal grounds for the recovery;

b/ Address of the house and full name of the current house user;

c/ Reason for the recovery;

d/ Name of the agency or unit to recover the house; and responsibility to hand over the house;

dd/ Time limit for the recovery;

e/ Plan on management and use of the recovered house.

5. Within 5 days after receiving the house recovery decision, the unit managing the house operation shall send a written notice enclosed with a copy of this decision to the current house user for handover of the house; the current house user shall hand over the house to the unit managing the house operation within the time limit stated in the house recovery decision. A written record shall be made for the recovery and handover of the house and signed by the related parties. If the current house user refuses to receive the house recovery notice or sign the house handover record, the unit managing the house operation shall invite a representative of the commune-level People’s Committee of the place where the house is situated to witness the handover and sign the record.

6. Within 5 days after receiving the competent agency’s house recovery decision, the unit managing the house operation or the housing management agency shall terminate the house lease, lease-purchase or purchase contract (if such contract has been signed); if the house must be recovered because it was soldultra viresor in contravention of the Housing Law and this Decree, the purchaser may be refunded the paid amount for the house purchase, except the case in which the purchaser has forged house purchase and sale documents.

7. The time limit for house recovery is 30 days from the date of issuance of the house recovery decision. For student dormitories, the unit managing their operation shall recover them.

8. After recovering a house, the unit managing the house operation shall send a report on completion of the house recovery to the housing management agency. The recovered house shall be used for the purposes prescribed in the Housing Law and this Decree.

Article 46.Order and procedures for coercing recovery of state-owned houses

1. If the current house user refuses to hand over the house under the house recovery decision under Article 45 of this Decree, within 5 days after the expiration of the time limit specified in Clause 7, Article 45 of this Decree, the unit managing the house operation shall send a report to the housing management agency requesting coercion of the house recovery.

2. Within 5 days after receiving the report of the unit managing the house operation, the housing management agency shall conduct examination and send a report enclosed with the draft decision coercing the house recovery to the owner-representing agency for consideration and issuance of such decision.

3. Within 10 days after receiving the report of the housing management agency, the owner-representing agency shall conduct examination and, pursuant to Article 45 of this Decree, issue a decision coercing the house recovery and send it to the housing management agency, the unit managing the house operation and the current house user for compliance; in case the decision coercing the house recovery is issued by a ministry, sector or central agency, the issuer shall send a written request enclosed with this decision to the provincial-level People’s Committee of the place where the house is situated for coercing the recovery.

If the house is not subject to recovery, the owner-representing agency shall send a written notice to the housing management agency and the unit managing the house operation for continued management of the house in accordance with regulations.

For houses managed by the Ministry of National Defense or Ministry of Public Security, the housing management agency under this Ministry may issue a decision coercing the house recovery, if it is assigned to do so.

4. Pursuant to the decision coercing the house recovery, the provincial-level People’s Committee of the locality where the house is situated may itself, or assign the district-level People’s Committee of the place where the house is situated to, coerce the house recovery and hand over the house to the unit managing the house operation for management under regulations. A written record shall be made for the handover and certified by the agencies participating in the coercion.

5. The time limit for coercing the house recovery is 30 days from the date the owner-representing agency issues the decision coercing the house recovery.

6. After recovering the house, the unit managing the house operation shall send a written report on completion of the house recovery to the housing management agency. The recovered house shall be used for the purposes prescribed in the Housing Law and this Decree.

Article 47.Procedures, regime and contents for reporting on management of state-owned houses

1. Procedures for reporting on management of state-owned houses are prescribed as follows:

a/ The unit managing the house operation shall report to the housing management agency;

b/ The housing management agency shall report to the owner-representing agency, for houses assigned to the former for management;

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

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

2. Reported contents and reporting regime are prescribed as follows:

a/ Reported contents include total number, and use area of each type, of state-owned houses (villas, condominium apartments and individual houses); total number of houses currently on lease or lease-purchase and number of houses sold; total proceeds from the lease, lease-purchase and sale of houses by the reporting time; and recovered houses and their management and use;

b/ The agencies defined in Clause 1 of this Article shall report on management and use of houses in December every year or at the request of the Prime Minister or the Ministry of Construction.

Section 2

MANAGEMENT AND USE OF OFFICIAL-DUTY HOUSES

Article 48.Persons eligible to rent official-duty houses

1. The persons defined at Point a, Clause 1, Article 32 of the Housing Law who are entitled to rent official-duty houses to meet security requirements.

2. The persons defined at Point b, Clause 1, Article 32 of the Housing Law who are transferred or rotated to hold the position of deputy minister or equivalent or hold a title with the position-based allowance coefficient of 1.3 or higher in central agencies, including Party and state agencies and socio-political organizations (the Central Committee of the Vietnam Fatherland Front, Ho Chi Minh Communist Youth Union, Vietnam General Confederation of Labor, Vietnam Women’s Union, Vietnam War Veterans’ Association and Vietnam Peasants’ Association).

3. The persons defined at Point b, Clause 1, Article 32 of the Housing Law who are transferred or rotated to hold the position of district-level People’s Committee chairperson, provincial-level Department director or equivalent or hold a title with the position-based allowance coefficient of 0.9 or higher in local agencies, including Party and state agencies and socio-political organizations (the Central Committee of the Vietnam Fatherland Front, Ho Chi Minh Communist Youth Union, Vietnam General Confederation of Labor, Vietnam Women’s Union, Vietnam War Veterans’ Association and Vietnam Peasants’ Association).

4. The persons defined at Points c, d, dd, e and g, Clause 1, Article 32 of the Housing Law.

Article 49.Conditions for rent of official-duty houses

1. The persons defined at Point a, Clause 1, Article 32 of the Housing Law are currently in office.

2. The persons defined at Point b, Clause 1, Article 32 of the Housing Law must meet the following conditions:

a/ Having a decision on transfer or rotation of work and a paper proving their position-based allowance coefficient;

b/ Having no own houses and being not entitled to rent, rent-purchase or purchase social houses in the places where they are transferred or rotated to work, or having their own houses in the places where they are transferred or rotated to work with an average floor area of less than 15 m²per family member.

3. The persons defined at Point d, Clause 1, Article 32 of the Housing Law must meet the following conditions:

a/ Having a decision on transfer or rotation of work and a paper proving that they are officers or professional army men, except the case the transfer or rotation decision has indicated that they are officers or professional army men;

b/ Satisfying the condition specified at Point b, Clause 2 of this Article;

c/ Not being obliged to live in barracks of people’s armed forces under regulations of the Ministry of National Defense or Ministry of Public Security.

4. The persons defined at Points c, dd and e, Clause 1, Article 32 of the Housing Law must meet the following conditions:

a/ Having a decision on transfer, rotation or appointment to work in the regions prescribed in the Housing Law;

b/ Satisfying the condition specified at Point b, Clause 2 of this Article;

c/ If they are appointed to work in rural areas in delta or midland regions, such areas must be outside district-level geographical areas and the distance between residence and workplace must be at least 30 km; if they are appointed to work in rural areas in deep-lying or remote areas with extremely difficult socio-economic conditions, or in border areas or on islands, provincial-level People’s Committees shall set conditions suitable to the practical situation in each area with the distance between residence and workplace being at least 10 km.

5. The persons defined at Point g, Clause 1, Article 32 of the Housing Law must meet the following conditions:

a/ Having a decision assigning them to manage national-level science and technology tasks of special importance as prescribed by the science and technology law;

b/ Satisfying the condition specified at Point b, Clause 2 of this Article.

Article 50.Order and procedures for lease, and operation management, of official-duty houses

1. The persons defined at Point a, Clause 1, Article 32 of the Housing Law are entitled to rent official-duty houses under decisions of competent agencies.

2. For the persons defined at Points b, c, d, dd, e and g, Clause 1, Article 32 of the Housing Law:

a/ They shall send a written request for rent of official-duty house to the agency or organization where they are working; within 10 days after receiving this request, such agency or organization shall examine the request and send a written proposal to a competent agency for consideration and decision on lease of official-duty houses;

b/ Within 20 days after receiving the written proposal of the agency or organization mentioned above, enclosed with the person’s request for rent of official-duty house, the agency competent to decide on lease of official-duty houses shall examine the conditions for lease of official-duty houses and, if these conditions are fully satisfied, issue a decision on lease of official-duty house; if such conditions are not fully satisfied, this agency shall issue a written reply clearly stating the reason.

c/ Within 10 days after receiving the competent agency’s decision on lease of official-duty house, the unit assigned to manage the operation of official-duty houses shall sign a house lease contract with the lessee or with the lessee-managing agency.

3. The operation management of official-duty houses is prescribed as follows:

a/ For official-duty houses of central agencies (except those of the Ministry of National Defense and Ministry of Public Security), the organization or unit with the house operation-managing function and capacity shall manage their operation; for official-duty houses in deep-lying and remote areas, areas with extremely difficult socio-economic conditions, and border areas, and on islands, the unit managing the operation of such houses shall manage their operation;

b/ For official-duty houses of the Ministry of National Defense and Ministry of Public Security, these ministries shall decide on organizations or units to manage their operation;

c/ For local official-duty houses to be arranged for the subjects managed by provincial-level agencies, the organization or unit with the house operation-managing function and capacity shall manage their operation; if this organization or unit is not available in its locality, the provincial-level Department of Construction may form a division to manage the operation of these houses and hire official-duty house operation management services;

d/ For local official-duty houses to be arranged for the subjects managed by district-level agencies, the organization or unit with the house operation-managing function and capacity shall manage their operation (if this organization or unit is available), or the district-level housing management agency shall manage their operation;

dd/ For official-duty houses to be arranged for teachers, medical doctors and health workers which lie within or are adjacent to the premises of schools or health establishments, these schools or health establishments shall manage the operation of such houses.

4. The Ministry of Construction shall specifically guide the forms of request for rent of official-duty house and contract on rent of official-duty house, and the management and use of these houses.

Article 51.Rates and payment of rentals of official-duty houses

1. Rental rates for official-duty houses shall be determined under Article 33 of the Housing Law.

2. The payment of rentals of official-duty houses is prescribed as follows:

a/ The person renting official-duty houses shall pay the house rental under the signed house lease contract and according to the time of payment of his/her salary as prescribed. If the lessee fails to pay the rental for 3 consecutive months, the unit managing the operation of official-duty houses may request his/her managing agency to deduct the rental from his/her salary for payment to the unit managing the operation of official-duty houses;

b/ In case of renting a commercial house for use as official-duty house while the rental of the commercial house is higher than that payable by the lessee, he/she shall pay a rental not higher than 10% of his/her current salary at the time of rent; the rental difference shall be covered by the state budget on the principle that the central budget shall cover the rental difference for officials managed by central agencies while local budgets shall cover the rental difference for officials managed by local agencies.

Procedures for payment of the rental difference mentioned in this Clause must comply with the guidance of the Ministry of Finance;

c/ If the unit managing the operation of official-duty houses signs a house lease contract with the lessee-managing agency, this agency shall deduct the rental from the lessee’s salary for payment to such unit in accordance with this Clause.

3. The Ministry of Finance shall guide the use of proceeds from the lease of official-duty houses for maintenance and operation management of these houses; if these proceeds are insufficient, the deficit shall be covered by the state budget.

4. The Ministry of Construction shall guide methods of determining rental rates for official-duty houses.

Section 3

MANAGEMENT AND USE OF SOCIAL HOUSES

Article 52.Subjects eligible and conditions for rent and rent-purchase of state-owned social houses

1. Persons eligible to rent and rent-purchase state-owned social houses must be those specified in Clause 1, Article 50 of the Housing Law.

Students and pupils specified in Clause 9, Article 49 of the Housing Law (below referred to as students) may only rent houses during their study periods. In case of lack of accommodation to meet students’ demands, houses shall be leased to eligible students in the following order of priority: students being members of families eligible for social policies, poor households or households living just above the poverty line according to the State’s regulations; students from remote and deep-lying areas or from provinces other than localities where their schools are based; students with excellent academic performance; and first-year students.

2. State-owned social house lessees must meet the housing, residence and income conditions prescribed in Clause 1, Article 51 of the Housing Law; for households that currently have their own houses, the average per capita floor area must be less than 10 m².

For the subjects specified in Clause 10, Article 49 of the Housing Law, they are not required to satisfy the income condition but must have not yet received any compensations in houses or residential land from the State.

3. A lessee-purchaser of state-owned social house must meet the conditions prescribed in Clause 2 of this Article and shall immediately pay an amount equaling 20% of the value of the house on lease-purchase, or may make the first-time payment equaling 50% of the value of the house if he/she so agrees.

Article 53.Dossiers of application for rent or rent-purchase of state-owned social houses

1. A dossier of application for rent or rent-purchase of a state-owned social house must comprise:

a/ An application for rent or rent-purchase of a state-owned social house;

b/ Papers proving the eligibility to rent or rent-purchase state-owned social houses and satisfaction of the housing, residence and income conditions prescribed in Article 52 of this Decree;

c/ Papers proving the eligibility for exemption from or reduction of social house rental (if any).

2. The Ministry of Construction shall prescribe the form of application for rent or rent-purchase of state-owned social houses; specifically guide papers certifying the actual housing situation, papers proving satisfaction of the residence and income conditions prescribed at Point b, Clause 1 of this Article, and papers proving the eligibility for exemption from or reduction of house rental specified at Point c, Clause 1 of this Article.

Article 54.Order and procedures for rent or rent-purchase of state-owned social houses

1. Those who wish to rent or rent-purchase a state-owned social house shall submit 2 sets of the dossier specified in Clause 1, Article 53 of this Decree to the unit assigned to manage and operate the house or to the housing management agency of the locality where the house is located. The dossier-receiving agency may not request any additional documents other than the papers specified in Clause 1, Article 53 of this Decree.

2. The dossier-receiving agency shall check and classify all dossiers; if detecting incomplete dossiers, it shall notify the applicants for supplementing the dossiers. For dossiers submitted to the house operation management unit, after checking and classifying the dossiers, the house operation management unit shall submit a list of persons eligible to rent or rent-purchase social houses, enclosed with valid dossiers, to the housing management agency for consideration and inspection.

3. On the basis of the list of persons eligible to rent or rent-purchase social houses, enclosed with valid dossiers, the housing management agency may directly approve dossiers on a case-by-case basis, identify eligible subjects or rank subjects in the order of priority (if any), or form a council to perform these jobs.

The housing management agency shall make and send a report enclosed with a list of subjects eligible or prioritized to rent or rent-purchase social houses and the minutes of dossier approval or scoring to the owner-representing agency for decision; and notify subjects ineligible or disapproved to rent or rent-purchase social houses to the house operation management unit for issuing replies to the applicants.

4. On the basis of the housing management agency’s report, the owner-representing agency shall consider and issue a decision ratifying the list of persons eligible to rent or rent-purchase houses and send such decision to the housing management agency for signing lease-purchase contracts with persons eligible to rent-purchase houses, or send such decision to the house operation management unit for signing lease contracts with persons eligible to rent houses.

5. The time limit for settlement of an application for rent or rent-purchase of a social house is 30 days after the house operation management unit receives a valid dossier; if approval of dossiers or priority scoring is needed, the time limit for dossier processing is 60 days.

6. Rights and obligations of lessees and lessees-purchasers of state-owned social houses must comply with the Housing Law and agreements in the lease or lease-purchase contracts.

7. The Ministry of Construction shall promulgate forms of contracts on lease or lease-purchase of social houses; and specifically guide principles and criteria for approval and scoring of subjects eligible to rent or rent-purchase state-owned social houses, and the management and use of state-owned student dormitories.

Article 55.Rental rates, lease-purchase prices and expenses related to management and use of state-owned social houses

1. Rental rates of state-owned social houses shall be determined according to Clauses 1, 2, 3 and 4, Article 60 of the Housing Law. Lease-purchase prices of state-owned social houses shall be determined according to Clauses 2, 3 and 4, Article 60 of the Housing Law, except house maintenance expenses which shall be paid by lessees-purchasers under Article 108 of the Housing Law.

2. In addition to paying rentals or making lease-purchase payments at the rates or prices determined under Clause 1 of this Article, lessees and lessees-purchasers of social houses shall pay all expenses related to the management and use of such houses, including expenses for house operation and management, expenses for electricity and water use, expenses for use of information, communications, television and other services in accordance with law and agreements with service providers.

3. The Ministry of Construction shall specifically guide price-constituting expenses and methods of determining rental rates or lease-purchase prices of state-owned social houses.

Article 56.Management and use of state-owned social houses

1. The management and use of state-owned social houses must comply with Article 64 and Section 2, Chapter VI of the Housing Law and Article 38 of this Decree.

2. Social house lessees are entitled to exemption from or reduction of house rental like those who rent state-owned old houses prescribed in Article 59 of this Decree. In case households and individuals rent-purchase or purchase social houses for resettlement, after making payment for rent-purchase or purchase of the houses under contracts and being granted certificates, they may exercise the rights and have the obligations of house owners in accordance with the Housing Law.

3. The management and operation of state-owned social houses shall be performed by units or organizations having the house operation management function and capacity. House operation management units shall monitor and report on the management and use of houses according to Article 47 of this Decree.

For localities where exist no house operation management units or organizations that meet the requirements and conditions prescribed in the Housing Law, provincial-level Construction Departments shall organize a section to take charge of house operation management and hire house operation management services. House management and operation expenses shall be paid with house rentals and local state budget supports.

Section 4

LEASE OF STATE-OWNED OLD HOUSES

Article 57.Eligible subjects and conditions for renting state-owned state houses

1. Subjects eligible to rent state-owned old houses under this Decree are those who are currently using such houses and wish to continue to rent such houses, including those who had been arranged to use such houses before November 27, 1992 (the promulgation date of the Prime Minister’s Decision No. 118/TTg on house rental rates and inclusion of housing costs into salaries), and those who are arranged to use such houses under Clause 1, Article 61 of this Decree, except cases of illegal appropriation.

2. Lessees of old houses must fall into one of the following cases:

a/ Those who are actually using old houses, have house rent contracts and are named in such contracts shall not be required to re-sign the rent contracts, except cases in which the rent contracts have expired and the parties are required to re-sign the contracts according to regulations;

b/ Those who are actually using houses and do not have rent contracts but have decisions or documents on house distribution or arrangement and are named in such decisions or documents shall sign rent contracts with house operation management units;

c/ Those who are actually using houses and have rent contracts but are not named in such contracts may sign rent contracts with house operation management units under Article 60 of this Decree, provided their houses are free from any dispute or lawsuit;

d/ Those who are actually using houses and have decisions or documents on house distribution or arrangement but are not named in such decisions or documents may sign rent contracts with house operation management units under Article 60 of this Decree, provided their houses are not free from any disputes or lawsuits.

Houses which are illegally appropriated shall be recovered; the recovery of such houses must comply with Articles 45 and 46 of this Decree.

Article 58.Rental rates of state-owned old houses

1. For houses and non-residential buildings arranged for residential use before July 5, 1994 (the promulgation date of the Government’s Decree No. 61/CP on sale, purchase and trading of houses), the rental rates must comply with the Prime Minister’s decision on rental rates of state-owned houses not yet renovated or reconstructed.

2. For houses specified in Clause 1 of this Article which have been renovated or reconstructed by the State; houses and non-residential buildings arranged for residential use at a time between July 5, 1994, and January 19, 2007 (the promulgation date of the Prime Minister’s Decision No. 09/2007/QD-TTg on re-arrangement and handling of state-owned houses and land), the rental rates must comply with those applicable to state-owned social houses.

Article 59.Exemption from and reduction of rentals of state-owned old houses

1. The exemption from and reduction of rentals for state-owned old houses must abide by the following principles:

a/ Persons eligible for exemption from or reduction of rentals for state-owned old houses must be those who are named in house rent contracts (including the persons undersigning house rent contracts and other members named therein);

b/ Each lessee shall be considered for exemption from or reduction of house rental only once; those who rent more than one state-owned house may enjoy exemption from or reduction of rental for only one house;

c/ A person who is eligible for house rental exemption or reduction according to different policies may only enjoy the highest exemption or reduction level;

d/ A household with two or more members who are eligible for house rental reduction will be exempted from house rental.

2. Subjects eligible for exemption from or reduction of rentals for old houses include:

a/ Persons with meritorious services to the revolution according to the law on preferential treatment toward persons with meritorious services to the revolution;

b/ Poor households and households living just above the poverty line according to the Prime Minister’s regulations on poverty standards;

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

3. House rental exemption and reduction levels for the subjects specified in Clause 2 of this Article must comply with the Prime Minister’s decision.

Particularly, poor households and households living just above the poverty line, people with disabilities, lonely aged people and urban dwellers who meet extreme housing difficulties are entitled to a 60% reduction of the payable rental amount; for poor households and households living just above the poverty line, the reduction shall be calculated for the whole households (not calculated separately for each household member).

Article 60.Dossiers, order and procedures for rent of state-owned old houses

1. A dossier of application for rent of a state-owned old house must comprise:

a/ An application for rent;

b/ Papers proving the use of the house falling into one of the cases prescribed at Point b, c or d, Clause 2, Article 57 of this Decree;

c/ A copy of the people’s identity card or valid passport or military identity card of the applicant; a certified copy of the household status registration book or marriage certificate, if the dossier is submitted by a married couple;

d/ Copies of papers proving the applicant’s eligibility for house rental exemption or reduction (if any).

2. The order and procedures for renting old houses in the case prescribed at Point b, Clause 2 of Article 57 are as follows:

a/ The applicant shall submit 2 sets of the dossier prescribed in Clause 1 of this Article to the house operation management unit or housing management agency (as prescribed by the provincial-level People’s Committee);

b/ The dossier-receiving agency shall check the dossier and issue a receipt; in case the applicant is ineligible to rent old houses, it shall issue a notice clearly stating the reason to the dossier submitter; in case the dossier is incomplete, the dossier-receiving agency shall guide the dossier submitter to supplement the dossier. In case the dossier is submitted to the house operation management unit, the house operation management unit shall immediately report such to the housing management agency for consideration;

c/ In case the dossier is valid, the housing management agency shall check, make and submit a report enclosed with a draft decision approving the lease of old houses to eligible subjects to the owner-representing agency for decision;

d/ Based on the proposal of the housing management agency, the owner-representing agency shall consider and issue a decision approving subjects eligible to rent old houses and send such decision to the housing management agency for informing the house operation management unit to sign rent contracts with the applicants. In case the Ministry of National Defense is managing such houses and assigns a housing management agency to decide on subjects eligible to rent, the housing management agency shall issue a decision approving subjects to rent houses.

After a decision approving subjects to rent old houses is issued, the house operation management unit shall sign contracts with these subjects.

3. The order and procedures for signing rent contracts in the cases prescribed at Points c and d, Clause 2, Article 57 of this Decree are as follows:

a/ In case the right to rent a house was transferred to the person currently using such house before June 6, 2013, the effective date of the Government’s Decree No. 34/2013/ND-CP of April 22, 2013, on management and use of state-owned houses (below referred to as Decree No. 34/2013/ND-CP), the applicant for rent of the house shall submit 2 sets of the dossier prescribed in Clause 1 of this Article to the house operation management unit or the housing management unit (as prescribed by the provincial-level People’s Committee). After receiving the dossier, the dossier-receiving agency shall check the dossier; if the dossier is valid, the dossier-receiving agency shall publish information on the house put on lease on 3 consecutive issues of a local newspaper and on its e-portal; in case the dossier is submitted to the housing management agency, the housing management agency shall forward information to the house operation management unit for publishing.

After 30 days since the last time of publishing information, if no dispute over or lawsuit against the lease of the house emerges, the house operation management unit shall sign a contract with the lessee and report such to the housing management agency for monitoring and management; if a dispute over or lawsuit against the lease of the house emerges, the rent contract may be signed only after such dispute or lawsuit is settled;

b/ In case the right to rent a house was transferred to the person currently using such house after June 6, 2013, the applicant for rent of the house shall submit 2 sets of the dossier prescribed in Clause 1 of this Article to the house operation management unit or housing management agency (as prescribed by the provincial-level People’s Committee).

In case the dossier is submitted to the housing management agency, the housing management agency shall check the dossier and, if the house is free from any dispute or lawsuit, issue a written approval of the transfer, then send such written approval enclosed with a copy of the dossier of application for rent of the house to the house operation management unit for signing a contract with the lessee. In case the dossier is submitted to the house operation management unit, before signing a contract with the house lessee, the house operation management unit shall check the dossier and report to the housing management agency for examination and issuance of a decision approving the transfer; if the housing management agency disapproves the transfer, it shall issue a written reply clearly stating the reason to the lessee.

4. When signing or extending a rent contract, if the actually used area differs from that stated in the document on house distribution or arrangement or the rent contract, before signing the rent contract with the lessee, the house operation management unit shall check and re-determine the lawfully used house area.

5. The time limit for processing an application for rent of an old house is 30 days after the dossier-receiving agency receives a complete dossier.

6. The Ministry of Construction shall promulgate forms of application for rent of houses, rent contracts and papers proving the use of old houses.

Article 61.Continued lease of houses and non-residential buildings arranged for residential use at a time between November 27, 1992, and January 19, 2007

1. The State shall continue leasing houses in accordance with this Decree in the following cases:

a/ Houses had been permitted to be built with state budget funds by competent agencies before November 27, 1992, but were completely built and leased to cadres and workers under the Prime Minister’s Decision No. 118/TTg on house rental rates and inclusion of housing costs in salaries, on or after November 27, 1992;

b/ Those who had started renting houses before November 27, 1992, then were transferred to other jobs and had to return the houses at the request of the State, but were leased other houses by the State after November 27, 1992;

c/ Houses and non-residential buildings arranged for residential use at a time between November 27, 1992, and before July 5, 1994;

d/ Houses and non-residential buildings arranged for residential use at a time between July 5, 1994, and before January 19, 2007.

2. The rental rates for the cases prescribed in Clause 1 of this Article are specified as follows:

a/ For the houses specified at Points a, b and c, Clause 1 of this Article and neither renovated nor reconstructed, the rental rates must comply with the Prime Minister’s decisions applicable to houses not yet renovated or reconstructed;  in case such houses have been renovated or reconstructed, the rental rates must be the same as those for state-owned social houses;

b/ For the houses specified at Point d, Clause 1 of this Article, the rental rates must be the same as those for state-owned social houses.

3. For houses which have been arranged for use since January 1, 2007, their continued lease must comply with regulations on management of state-owned houses and land.

Section 5

SALE OF STATE-OWNED OLD HOUSES

Article 62.Types of state-owned old houses not for sale

1. The following types of state-owned old houses may not be sold:

a/ Houses located in areas planned for construction of official-duty houses, national key works or provincial-level key works;

b/ Houses which are the subject of land or house recovery decisions of competent state agencies;

c/ Non-residential buildings currently arranged for residential use and subject to handling and rearrangement of state-owned houses and land;

d/ Houses attached to historical or cultural relics which have been ranked under competent state agencies’ decisions; houses planned for use as official-duty houses, working offices, schools, hospitals, parks and public works as approved by competent agencies;

dd/ Condominiums which are damaged and at risk of collapse, thus failing to ensure safety for users according to quality assessment conclusions of provincial-level Construction Departments of the localities where such condominiums are located; non-self-contained apartments which have not yet been renovated by the State, except cases in which lessees have renovated their apartments by themselves before the effective date of this Decree and are independently and voluntarily using them with unanimous consent as committed in their written applications for house purchase;

e/ Villas on the list of not-for-sale villas 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 localities report the list of not-for-sale villas to the Prime Minister shall also 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 not-for-sale houses specified in Clause 1 of this Article, current lessees shall be considered for enjoying current housing and land policies on a case-by-case basis.

Article 63.Eligible subjects and conditions for purchase and conditions for sale of state-owned old houses

1. Purchasers of state-owned old houses must be those who are arranged houses under Clause 1, Article 57 of this Decree.

2. Purchasers of a state-owned old house must meet the following conditions:

a/ Having a rent contract signed with the house operation management unit and being named in such contract (the purchasers include the person who undersigns the rent contract and other members aged full 18 years and older who are named therein); in case more than one person undersign the rent contract, these persons shall appoint a representative to sign the house sale and purchase contract with the housing management agency;

b/ Having fully paid house rentals under the rent contract as well as house operation and management expenses by the time of signing the house sale and purchase contract;

c/ Having filed an application for purchase of the rented old house.

3. Conditions for sale of a house or a non-residential building arranged for residential use before July 5, 1994, are specified as follows:

a/ Not falling into the cases prescribed in Article 62 of this Decree;

b/ Being free from any dispute or lawsuit;

c/ For old houses which are subject to establishment of all-people ownership under the National Assembly’s Resolution No. 23/2003/NQ11 of November 26, 2003, on house and land managed and arranged for use by the State 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 settlement of a number of specific housing and land cases arising during the 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 and sign rent contracts according regulations before selling such houses;

d/ In case of selling non-residential buildings arranged for residential use before July 5, 1994, such a building must meet the following conditions: The building has independent premises or can be separated from the premises of the working offices; the building has different passageways and neither blocks the frontage of working offices nor affects surrounding settings and landscape; agencies and units no longer need to use the building and the building conforms with the approved residential land use master plan of the locality. Agencies and units that no longer need to use these buildings shall hand over them to provincial-level People’s Committees of the places where such buildings are located for sale,  except those managed by the Ministry of National Defense.

4. The sale of houses and non-residential buildings arranged for residential use at a time between July 5, 1995, and before January 19, 2007, must comply with Article 70 of this Decree.

5. Non-residential buildings which had been arranged for residential use before July 5, 1994, but fail to meet the conditions prescribed at Point d, Clause 3 of this Article, and non-residential buildings arranged for residential use after January 19, 2007, must comply with the law on management of state-owned houses and land.

Article 64.Agencies in charge of selling state-owned old houses

1. Provincial-level People’s Committees and the Ministry of National Defense shall take responsibility for, and assign housing management agencies to carry out, the sale of state-owned old houses in accordance with this Decree.

2. For old houses which are currently managed by the Ministry of National Defense, if the Ministry of National Defense wishes to hand over them to provincial-level People’s Committees of the places where such houses are located for management and sale, it shall reach agreement with the provincial-level People’s Committees on the handover and receipt of such houses. After receiving such houses from the Ministry of National Defense, provincial-level People’s Committees shall act as the representative of the owner of such houses and manage, lease or sell them in accordance with this Decree.

Article 65.Sale prices of state-owned old houses

The sale price of an old house arranged for use before July 5, 1997 (even in case the house is subject to establishment of all-people ownership under Point c, Clause 3, Article 63 of this Decree) must include the house price and land use levy (regardless of whether the purchaser purchases one or more than one house), and is prescribed as follows:

1. The house price shall be determined based on the residual value of the house and the use value coefficient; the residual value of the house shall be determined according to the percentage of the current quality of the house multiplied (x) by the standard price of a new house issued 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 of the house.

For a villa occupied by more than one household which has a common-use space, the area of such common-use space shall be allocated to each household according to its housing area (m²). For grade-IV houses already demolished and reconstructed by lessees before the effective date of this Decree, their residual value is 0 (zero).

2. Land use levy to be collected upon transfer of land use rights together with sale of an old house shall be calculated based on the land price table promulgated by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract, and on the location of the land parcel and stories of the house as follows:

a/ For a multi-story house occupied by more than one household, land use levy is equal to 10% of the residential land price for transfer of land use rights and allocated to each story according to its corresponding coefficient;

b/ For a single- or multi-story house occupied by one household or a villa occupied by one or more than one household, land use levy is equal to 40% of the residential land price for transfer of land use rights, for the land area within the residential land limit prescribed by the provincial-level People’s Committee for each household, and 100% of the residential land price, for the area exceeding the residential land limit prescribed by the provincial-level People’s Committee for each household;

c/ For a villa occupied by more than one household, the land area used for calculation of the land use levy amount payable by each household includes its undisputed private-use land area; the land area of the villa allocated to the household based on its housing area and story coefficient; and the common-use land area within the premises of the villa allocated to the household (calculated according to the number of households currently using the villa). The land use levy amount payable by each household shall be calculated first of all on the construction area of the villa, then on remaining areas.

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

d/ For highly profitable street-facing individual houses, provincial-level People’s Committees shall decide on coefficient k used to adjust the land price prescribed in the land price tables promulgated by provincial-level People’s Committees to serve the calculation of land use levy upon sale of these houses and transfer of the right to use the land parcels on which these houses are built;

dd/ For an old house constructed partially with contributions of individuals and collectives not originating from the state budget, the payment for purchasing the house shall be calculated according to Clause 1 of this Article but the purchaser(s) will have his/her/their previous contributions to the construction of the house deducted (calculated according to the proportion (%) of the contribution to the finalized construction value of the house). In this case, land use levy shall be calculated according to this Clause.

3. For a single- or multi-story house occupied by many households where a common-use house area or residential land area is available, such common-use house area or land area may be sold to these households only if these households can reach agreement on the allocation of such common-use house or land area to each household. Without such agreement, the housing management agency may not sell this area but shall manage it in accordance with this Decree.

4. The Ministry of Construction shall specifically guide sale prices of houses, method for determining the residual value of houses, coefficients regulating the use value of houses, the use of house story coefficients upon transfer of land use rights for old multi-story houses occupied by more than one household.

Article 66.Principles of exemption from and reduction of payments for purchase of state-owned old houses

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

2. The exemption from and reduction of land use levy upon sale of a house and transfer of the rights to use the land parcel on which such house is built must abide by the following principles:

a/ The exemption from and reduction of land use levy upon sale of a state-owned old house shall be considered and given only once for house purchasers; in case a person is eligible for different reduction policies, only the highest reduction level shall apply. For a household with many members eligible for land use levy reduction, the reductions enjoyed by these members shall be aggregated to calculate the reduced land use levy amount for the household, which, however, must not exceed the land use levy amount payable by the house purchaser.

b/ Land use levy exemption and reduction shall not apply in the cases prescribed at Points c and d, Clause 1, Article 61; Clauses 1 and 3, Article 71, of this Decree;

c/ Those who have enjoyed land use levy exemption or reduction upon purchase of state-owned houses or upon allocation of land for house construction, or have received monetary supports for housing improvement before the effective date of this Decree, will not be entitled to land use levy exemption or reduction upon acquisition of land use rights together with house purchase in accordance with this Decree.

3. House price reduction must abide by the following principles:

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

b/ House price reduction shall not apply to the cases prescribed at Points c and d, Clause 1, Article 61, and in Clause 1, Article 71, of this Decree;

c/ For a household with many members named in the rent contract or having registered permanent residence at the to-be-purchased house and eligible for house price reduction, the house price reductions enjoyed by these members shall be aggregated to calculate the reduced amount for the whole household, which, however, must not exceed the payable amount for the house purchase in the house price (excluding land use levy);

d/ The number of years for calculating house price reduction is the number of years of actually working in an agency or a unit in a state-managed sector by the time of signing the house sale and purchase contract. An odd working period of 6 months or less shall be rounded to a half year while an odd period of over 6 months shall be rounded up to one year.

Article 67.Subjects eligible for exemption from and reduction of payments for purchase of state-owned old houses

1. Subjects eligible for exemption from or reduction of land use levy when purchasing state-owned old houses and acquiring the rights to use the land parcels attached to these houses include:

a/ Persons with meritorious services to the revolution as prescribed by the law on preferential treatment toward persons with meritorious services to the revolution;

b/ Poor households and households living just above the poverty line according to standards promulgated by the Prime Minister;

c/ Persons with disabilities, lonely aged persons and urban dwellers who have extreme housing difficulties.

2. Subjects eligible for reduction of house prices when purchasing state-owned old houses include:

a/ State-salaried cadres, civil servants and public employees in administrative and non-business agencies, Party agencies and mass organizations;

b/ State-salaried people in the armed forces;

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

d/ Commune and ward cadres who are salaried by the State or entitled to cost-of-living allowance prescribed by the State;

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

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

g/ Persons who are on pension, working capacity loss allowance, occupational accident or disease allowance, allowance for rubber workers, one-off social insurance allowance or severance allowance before and after the issuance of Decision No. 111/HDBT of April 12, 1991, of the Council of Ministers (now the Government), or before and after the enactment of the 1994 Labor Code;

h/ Salaried persons in the armed forces who are ineligible for monthly pension or working capacity loss allowance but enjoy demobilization allowance; and persons who were demobilized before 1960;

i/ Persons specified in Clause 1 of this Article.

Article 68.Exemption and reduction levels of payments for purchase of state-owned old houses

1. Exemption and reduction levels for the subjects specified in Clause 1, Article 67 of this Decree must comply with the Prime Minister’s decisions.

Particularly, poor households, households living just above the poverty line, people with disabilities, lonely aged persons and urban dwellers who have extreme housing difficulties are entitled to a 60% reduction of payable land use levy amounts; for a poor household or a household living just above the poverty line, this reduction level shall apply to the whole household (not calculated for each household member).

2. The levels of reduction of house prices for the persons specified in Clause 2, Article 67 of this Decree are specified as follows:

a/ For each year of working, a house purchaser is entitled to a reduction equaling 0.69 time the Government-prescribed minimum wage level applicable to cadres, civil servants, public employees and armed forces personnel. For a house purchaser who once served in the armed forces, for each year of service, he/she is entitled to a reduction equaling 1.24 times the minimum wage level prescribed at this Point;

b/ For a person with meritorious services to the revolution, member of a poor household or a household living just above the poverty line, person with disabilities or lonely aged person who has a working period eligible for house price reduction but the total reduced amount calculated according to his/her working years is smaller than 6.9 times the Government-prescribed minimum wage level, he/she will be entitled to a reduction equaling 6.9 times the minimum wage level; if such person has no working period, he/she will be entitled to a reduction equaling 6.9 times the minimum wage level.

Particularly for members of poor households or households living just above the poverty line, the reduction level shall be calculated for the whole households (not for each household member).

Article 69.Dossiers, order and procedures for sale of state-owned old houses

1. A dossier of application for purchase of a state-owned old house must comprise:

a/ An application for purchase of an old house;

b/ A copy of the people’s identity card or valid passport or military identity card of the applicant. A certified copy of the civil status registration book or marriage certificate, if the dossier is submitted by a married couple;

c/ The lawfully established rent contract; papers proving payment of house rentals and house operation and management expenses by the time of dossier submission.

In case a person named in the rent contract has settled abroad, he/she shall make a document to authorize other persons named in the contract to purchase the house; if a person named in the rent contract has died, a death certificate is required.

In case a person named in the rent contract waives the right to purchase the house and to be named in the certificate, he/she shall make a document to waive the right to purchase the house and to be named in the certificate, and commit that he/she will not file a dispute over or a lawsuit against the sale and purchase of the house;

dd/ Papers proving the applicant’s eligibility for exemption from or reduction of the payment for the house purchase (if any).

2. The order and procedures for sale of a state-owned old house are as follows:

a/ The house purchaser(s) shall submit a dossier of application for house purchase to the unit currently managing and operating the house or the housing management agency (as decided by the provincial-level People’s Committee);

b/ The dossier-receiving agency shall receive the dossier, issue a receipt, check the dossier, and make a list of house purchasers. On the basis of the dossier of application for house purchase, the provincial-level Department of Construction shall hold a meeting of the Council for determination of house sale prices to determine the sale price of the house and land use rights. After the Council determines the sale price of the house and land use rights, the provincial-level Construction Department shall make and submit a list of subjects eligible to purchase the house enclosed with the Council’s document on determination of the sale price of the house to the house owner-representing agency for consideration and decision.

In case the old house is currently managed by the Ministry of National Defense, the dossier-receiving agency shall request the Council for determination of house sale prices to meet to determine the sale price of the house, and propose the Ministry of National Defense to issue a decision on sale of the house;

c/ Based on the report of the housing management agency, the owner-representing agency shall consider and issue a decision on the sale of the house, clearly stating subjects eligible to purchase the house, the address of the to-be-sold house, the sale price of the house and price for transfer of land use rights, and send such decision to the housing management agency and the house operation management unit for coordinating with each other in signing a house sale and purchase contract;

d/ After receiving the decision on the sale of the old house, the house operation management unit shall notify the house purchaser(s) of the time for signing the house sale and purchase contract with the housing management agency;

dd/ The time limit for sale of a house, counted by the time of signing a sale and purchase contract, is 45 days after the house operation management unit receives a valid and complete dossier. This period shall not be included in the time limit for the house purchaser(s) to fulfill financial obligations and the competent agency to grant a certificate.

The grant of certificates to the house purchaser(s) must comply with the land law. The agency competent to grant certificates shall send a list of house purchaser(s) that has/have been granted certificates and one (1) copy of each certificate to the provincial-level Construction Department for preservation and monitoring;

e/ Past 90 days after the house operation management unit makes a notice of the time of signing the sale and purchase contract, if the house purchaser(s) has(ve) not yet signed the contract and there is a change in the land price set by the provincial-level People’s Committee, the housing management agency shall propose the provincial-level People’s Committee to approve the new house price before signing the sale and purchase contract with the house purchaser(s).

3. The Ministry of Construction shall specifically guide the form of application for purchase of old houses, papers proving eligibility for exemption from or reduction of payments for house purchase, house purchase dossiers, order and procedures and form of old-house sale and purchase contracts.

Article 70.Sale of houses and non-residential buildings arranged for residential use at a time between July 5, 1994, and before January 19, 2007

1. The sale of a house or non-residential building arranged for residential use at a time between July 5, 1994, and before January 19, 2007 (including also those subject to establishment of all-people ownership prescribed at Point c, Clause 3, Article 63 of this Decree) is as follows:

a/ The house purchaser(s) must meet the conditions prescribed in Clause 2, Article 63, and the house must meet the conditions prescribed in Clause 3, Article 63 of this Decree;

b/ The payment for the house purchase includes the house price and land use levy;

c/ The house price shall be determined according to the residual value of the house multiplied (x) by the standard price of a new house set by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract and multiplied (x) by the useable area;

d/ The land use levy for transfer of land use rights is equal to 100% of the residential land price according to the land price table promulgated by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract (including also land use levy amount calculated according to coefficient k in case the house falls into the case prescribed at Point d, Clause 2, Article 65 of this Decree), applicable to land areas within and exceeding the prescribed residential land limit.

2. Houses and non-residential buildings arranged for residential use at a time between July 5, 1994, and before January 19, 2007, which do not meet all conditions for sale as prescribed at Point a, Clause 1 of this Article shall be handled according to regulations on management of state-owned houses and land.

Article 71.Sale of house areas under common use and transfer of the rights to use land areas adjacent to state-owned old houses

1. For a house occupied by more than one household, if the State has sold all house areas under private use rights to these households but neither sold the house area under common use nor transferred the rights to use the residential land area under common use within the premises of the house, and the organization, household or individual currently owning the whole area of the house already sold by the State wishes to buy the whole area under common use, this case shall be handled as follows:

a/ The organization, household or individual shall pay the house price and land use levy for the area under common use;

b/ The house price shall be determined based on the residual value of the house multiplied (x) by the standard price of a new house set by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract and multiplied (x) by the useable area;

c/ The land use levy is equal to 100% of the residential land price in the land price table promulgated by the provincial-level People’s Committee and effective at the time of signing the sale and purchase contract (in case the house falls into the case prescribed at Point d, Clause 2, Article 65 of this Decree, the land use levy shall be calculated based on coefficient k);

d/ Before selling the area under common use under this Clause, the agency that sells the house is not required to sign a rent contract for such area.

2. For the land area adjacent to a state-owned house but upon sale of the house under Decree No. 61/CP on house sale and purchase or Decree No. 34/2013/ND-CP,  its use rights not yet transferred by the State, or upon sale of the house under this Decree, such land area shall be handled as follows:

a/ The rights to use the land area adjacent to the state-owned house shall be transferred to the lawful user of such house, if this area is free from any dispute or lawsuit and conforms with residential land use master plans and plans;

b/ The land use levy is equal to 40% of the land price, for the area within the residential land limit, or 100% of the land price, for the area exceeding 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 land use levy for transfer of land use rights shall be based on the land price table promulgated by the provincial-level People’s Committee and effective at the time of transfer of the rights to use the adjacent land area. For the land area outside the premises of the state-owned house, land use levy shall be collected in accordance with the land law.

3. For a house which is constructed on an open land area within the premises of a state-owned house, conforms with house construction master plans and residential land use master plans and plan and is free from any dispute or lawsuit, the State shall recognize the land use rights of the current land user. In this case, land use levy is equal to 100% of the land price in the land price table promulgated by the provincial-level People’s Committee and effective at the time of recognizing the land use rights.

4. Housing management agencies shall assume the prime responsibility for, and coordinate with district-level People’s Committees in, managing house areas under common use not purchased by house owners in accordance with this Decree and the laws on housing and land.

5. Provincial-level People’s Committees shall base themselves on this Decree to promulgate specific regulations on dossiers, order and procedures for handling the cases specified in Clauses 1, 2 and 3 of this Article, arrange funds for drawing maps, making dossiers and managing house areas under common use specified in Clause 4 of this Article.

6. The Ministry of Construction shall detail Clauses 1 and 2 of this Article.

Chapter VI

HOUSING TRANSACTIONS

Article 72.Papers proving satisfaction of conditions for houses to be transacted for cases not required to have certificates

Papers proving the satisfaction of the conditions of houses to be transacted for the cases prescribed in Clause 2, Article 118 of the Housing Law are as follows:

1. For mortgage of future houses, the papers prescribed in Clause 1, Article 148 of the Housing Law are required; for purchase and sale of future commercial houses, the papers prescribed by the real estate business law and the papers prescribed at Point b, Clause 2, Article 19 of this Decree are required.

2. For donation of gratitude houses or compassion houses by an organization, papers proving the donor’s house construction are required.

3. For lease of state-owned old houses, the papers prescribed in Article 60 of this Decree are required; for purchase and sale of state-owned old houses, the papers prescribed in Article 69 of this Decree are required.

4. For purchase and sale and rent-purchase of social houses (including resettled households and individuals that purchase or rent-purchase social houses), the papers proving the satisfaction of the conditions prescribed in Article 63 of the Housing Law are required.

5. For purchase and sale of houses constructed under resettlement projects, the certificate or the land allocation decision and project approval decision of a competent agency and the approved project dossier, the construction permit, if this permit is required, and the written record that houses have been completely built, tested for acceptance and put into use as prescribed by the construction law.

6. For purchase of commercial houses by households or individuals for resettlement, the contract on house purchase and sale or contract on house purchase order signed between the commercial house project owner and the unit assigned by the State to arrange houses for resettlement accompanied by the written record that houses have been completely built, tested for acceptance and put into use as prescribed by the construction law is additionally required; for purchase of future houses, the written record that the house foundation has been completely built and tested for acceptance as prescribed by the construction law is required.

7. For purchase and sale of houses prescribed in Clause 4, Article 62 of the Housing Law, the sale and purchase or rent-purchase contract signed with the social housing investment project owner accompanied by the written record of house handover and document proving the full payment for house purchase or rent-purchase to the project owner are required.

8. For house inheritance, the following papers are required:

a/ For inheritance of a donated house, a lawful document or contract on donation and paper proving the donor’s house ownership (if any).

b/ For inheritance of a purchased or rented-purchased house, a lawful contract on house purchase and sale or rent-purchase and paper proving the house ownership of, or housing investment by, the seller or lessor;

c/ For inheritance of a new house, the construction permit (in case this permit is required) and the paper proving the lawful land use rights of the estate leaver as prescribed by the land law;

d/ For inheritance of a house under the decision of a People’s Court, the legally effective judgment or decision of the People’s Court.

9.  For lease, lending, permission for stay at or authorized management of a house (except lease of state-owned old houses), the lessor, lender, permitter for stay at or authorizer of management of the house must have a house purchase and sale or rent-purchase contract signed with the house construction project owner, for house purchase or rent-purchase from the  project owner, or the construction permit, or another paper proving the house ownership as prescribed by the civil law or the land law, for housing investment.

Article 73.House sale on a definite term

1. A seller may sell a house associated with the transfer of the rights to use or the right to rent residential land on which the house is built to a purchaser on a definite term. During the term of house ownership and residential land use, the seller may not unilaterally terminate the contract, unless otherwise agreed by the two parties. The grant of a certificate to the house purchaser must comply with Clause 1, Article 7 of this Decree.

2. When the house ownership term expires under the contract, the house shall be handled in accordance with Article 8 of this Decree.

3. During the house ownership term, any party that breaches the sale and purchase contract shall be handled for its violation and shall pay damages under the contract. Parties’ disputes over the house sale and purchase contract shall be settled by the People’s Court in accordance with law.

Chapter VII

HOUSE OWNERSHIP IN VIETNAM BY FOREIGN ORGANIZATIONS AND INDIVIDUALS

Article 74.Papers proving eligibility and conditions for house ownership in Vietnam

1. For a foreign individual, he/she must possess a valid passport bearing the entry mark affixed by the Vietnamese immigration agency and is not entitled to diplomatic privileges and immunities prescribed by the Ordinance on Privileges and Immunities for Diplomatic Missions, Consulates and Representative Agencies of International Organizations in Vietnam.

2. For a foreign organization, it must be the one prescribed in Article 159 of the Housing Law and have an investment registration certificate or a permit for operation in Vietnam granted by a competent Vietnamese agency which is still valid at the time of signing housing transactions (below collectively referred to as investment registration certificate).

Article 75.Areas in which foreign organizations and individuals are permitted to own houses

1. Foreign organizations and individuals may only own houses (including condominium apartments and individual houses) under commercial housing investment projects, except those in national defense and security areas as prescribed by Vietnamese law.

2. The Ministry of National Defense and the Ministry of Public Security shall specify national defense and security areas in each locality and notify such in writing to provincial-level People’s Committees as the basis for directing provincial-level Construction Departments to make a specific list of commercial housing investment projects in which foreign organizations and individuals are not permitted to own houses.

Article 76.Allowable numbers of houses to be owned by foreign organizations and individuals

1. On the basis of notices of the Ministry of National Defense and the Ministry of Public Security and direction of the provincial-level People’s Committee as prescribed in Clause 2, Article 75 of this Decree, the provincial-level Construction Department shall publish on its website the following information:

a/ List of local housing investment projects in areas in which foreign organizations and individuals are not permitted to own houses;

b/ Number of houses (including apartments and individual houses) foreign organizations and individuals are permitted to own in each housing investment project other than those prescribed at Point a of this Clause; number of apartments of each condominium and number of individual houses in each project foreign organizations and individuals are permitted to own;

c/ Number of houses purchased and rented-purchased by foreign organizations and individuals which have been granted certificates in each housing investment project;

d/ Allowable number of condominium apartments to be owned by foreign organizations and individuals in an area with a population equivalent to a ward-level administrative unit where there are various condominiums; allowable number of individual houses to be owned by foreign organizations and individuals in an area with a population equivalent to a ward-level administrative unit where there is one or there are more than one project with an aggregate number of 2,500 individual houses or fewer.

2. Foreign organizations and individuals eligible to own houses in Vietnam may purchase or rent-purchase houses of housing investment project owners and purchase houses of foreign organizations and individuals prescribed at Point b, Clause 4, Article 7 of this Decree, and may receive inheritance or donation of houses from households or individuals or receive donation of houses from organizations within the number of houses prescribed in Clauses 3 and 4 of this Article in housing investment projects they are permitted to own. House donation to or inheritance by foreign organizations and individuals ineligible to own houses in Vietnam shall be handled under Article 78 of this Decree.

3. Foreign organizations and individuals may own no more than 30% of the total number of apartments of a condominium. In an area with a population equivalent to a ward-level administrative unit where there are various condominiums for sale or lease-purchase, foreign organizations and individuals may own no more than 30% of the number of apartments of each condominium and of the aggregate number of apartments of all condominiums in the area.

4. In an area with a population equivalent to a ward-level administrative unit where there are investment projects to construct commercial houses, including individual houses, for sale or lease-purchase, foreign organizations and individuals may own individual houses in accordance with the following provisions:

a/ In case in the area there is only one project with under 2,500 individual houses, foreign organizations and individuals may own no more than 10% of the total number of houses of that project;

b/ In case in the area there is only one project with 2,500 individual houses, foreign organizations and individuals may own no more than 250 houses;

c/ In case in the area there are two or more projects with an aggregate number of 2,500 individual houses at most, foreign organizations and individuals may own no more than 10% of the number of houses of each project.

5. The Ministry of Construction shall specifically guide the method of determining the allowable number of houses to be owned by foreign organizations and individuals prescribed in Clauses 3 and 4 of this Article.

Article 77.Extension of term of house ownership in Vietnam by foreign organizations and individuals

1. For a foreigner owning a house prescribed at Point c, Clause 2, Article 161 of the Housing Law, the house ownership term shall be extended as follows:

a/ Three months before the house ownership term expires, the owner wishing to extend this term shall send an application clearly stating the proposed extension duration together with a certified copy of the certificate of the house to the provincial-level People’s Committee of the place where the house is located for consideration and settlement;

b/ Within 30 days after receiving the owner’s application, the provincial-level People’s Committee shall consider and issue a written approval of one-time extension of house ownership term at the request of the owner which must not exceed 50 years from the expiry date of the first ownership term stated in the certificate, except the case prescribed in Clause 3 of this Article;

c/ On the basis of the provincial-level People’s Committee’s written approval of extension, the agency competent to grant the certificate shall write the extension in the certificate; the agency granting the certificate shall make a copy of the certificate and send it to the provincial-level Construction Department for monitoring.

2. For a foreign organization owning a house within a term prescribed at Point d, Clause 2, Article 161 of the Housing Law, the house ownership term shall be extended as follows:

a/ Three months before the house ownership term expires, the owner wishing to extend this term shall send an application clearly stating the proposed extension duration together with certified copies of the certificate of the house and the investment registration certificate showing that its operation duration has been extended by a competent Vietnamese agency, to the provincial-level People’s Committee of the place where the house is located for consideration and settlement;

b/ Within 30 days after receiving the owner’s application, the provincial-level People’s Committee shall consider and issue a written approval of one-time extension of house ownership term at the request of the owner which must not exceed the operation duration already extended by a competent Vietnamese agency;

c/ On the basis of the provincial-level People’s Committee’s written approval of extension, the agency competent to grant the certificate shall write the extension in the certificate; the agency granting the certificate shall make a copy of the certificate and send it to the provincial-level Construction Department for monitoring.

3. Before the expiration of the first ownership term, if a foreign individual or organization is forced to leave, or terminate operation in, Vietnam under a competent agency’s decision, he/she/it may not have the house ownership term extended under Clauses 1 and 2 of this Article. The house of this person or organization shall be handled under Clause 3, Article 8 of this Decree.

Article 78.Cases ineligible for recognition of the right to own houses in Vietnam

1. Foreign organizations or individuals falling into the cases below are not entitled to grant of a certificate for houses and may only sell or donate those houses to persons eligible to own houses in Vietnam:

a/ Foreign organizations or individuals receive as donation or inheritance houses located in areas where they are not permitted to own as prescribed in Article 75 of this Decree or their receipt of such houses will make the number of houses currently owned by foreign organizations and individuals in the area exceed the allowable number prescribed in Clauses 3 and 4, Article 76 of this Decree;

b/ Foreign organizations which do not operate in Vietnam or foreigners who are not permitted to enter Vietnam, are donated or inherit houses in Vietnam.

2. Foreign organizations or individuals prescribed at Point a, Clause 1 of this Article may directly or authorize others to sell or donate houses; foreign organizations or individuals prescribed at Point b, Clause 1 of this Article may authorize other individuals or organizations currently residing or operating in Vietnam to sell or donate houses.

3. Houses may be sold or donated by foreign organizations and individuals prescribed in Clause 2 of this Article when the following papers are available:

a/ House donation contract or house inheritance paper made in accordance with the housing law and civil law of Vietnam;

b/ Papers proving the donor’s or estate leaver’s house ownership as prescribed by the Housing Law and Article 72 of this Decree;

c/ Written authorization of house sale or donation made in accordance with the civil law, in case of authorizing others to sell or donate houses.

4. The order and procedures for sale and donation of houses by foreign organizations and individuals prescribed in Clause 2 of this Article must comply with the Housing Law and this Decree.

5. In case heirs to a house include both those eligible and ineligible to own houses in Vietnam, these heirs shall reach agreement on division of the house in one of the following ways:

a/ Requesting a competent agency to grant a certificate for that house to the party eligible to own houses in Vietnam;

b/ Donating or selling that house to an organization or individual eligible to own houses in Vietnam prescribed in Clauses 2 and 3 of this Article to enjoy its value.

Article 79.Management of houses of foreign organizations and individuals in Vietnam

1. The provincial-level Construction Department shall make a separate section on its website for posting and managing the information prescribed in Clause 1, Article 76 of this Decree.

2. Before signing a contract on house sale, lease-purchase or donation, the project owner or donor shall check information on the website of the provincial-level Construction Department or request the provincial-level Construction Department to provide information in order to determine the allowable number of houses for sale, lease-purchase and donation. The provincial-level Construction Department shall provide information in the day. The owner of a house construction project may only sell or lease-purchase houses or the donor may only donate houses to foreign organizations and individuals within the number prescribed in Article 76 of this Decree.

3. After signing a contract on house sale, lease-purchase or donation, the project owner or donor shall send in the day a notice (via email and in hard copy) of the address of the house sold, leased-purchased or donated to the provincial-level Construction Department of the locality where the house is located for posting on the latter’s website. Upon receiving the information, the provincial-level Construction Department shall check and post it on its website.

4. Before granting a certificate to a foreign organization or individual, the agency competent to grant the certificate shall check information managed by the provincial-level Construction Department. After granting a certificate to a foreign organization or individual, the agency competent to grant the certificate shall notify in the day information on the house being granted a certificate to the provincial-level Construction Department for posting on its website.

5. All transactions of purchase, sale, lease-purchase and donation of houses by foreign organizations and individuals in excess of the allowable number prescribed in Article 76 of this Decree or transactions of purchase, lease-purchase and donation of houses under housing investment projects which foreign organizations and individuals are ineligible to own are legally invalid and shall not be granted a certificate. House sellers or lessors shall pay damages to house purchasers or lessees.

6. Provincial-level Construction Departments, project owners, house donors and agencies competent to grant certificates that fail to promptly notify and publish information as prescribed in Clauses 2, 3 and 4 of this Article shall take responsibility before law and shall compensate for damage (if any) caused by their delayed notification and publication of information to affected parties.

7. The agency competent to grant certificates to foreign organizations and individuals shall send notices together with copies of granted certificates (including cases of extension) to the provincial-level Construction Department of the locality where houses are located, the Ministry of Construction and the Ministry of Natural Resources and Environment for monitoring and management.

8. Foreign organizations and individuals are prohibited from buying houses for re-sale to earn profits.

9. The Ministry of Construction shall guide forms of reports on house purchase, sale, lease-purchase and ownership by foreign organizations and individuals in Vietnam.

Chapter VIII

TRANSITIONAL HANDLING

Article 80.Transitional handling for housing development and management

1. From the effective date of this Decree, housing investment projects prescribed in Clause 2, Article 17 of the Housing Law shall be called uniformly housing investment projects, and their implementation must comply with the Housing Law, this Decree, the construction law and relevant laws.

2. For a dossier of request for approval of, or decision on, investment policy for a housing investment project submitted before the effective date of this Decree, if a competent agency has not issued a written approval of, or a decision on, investment policy according to the competence prescribed in the Housing Law and this Decree, the requesting agency or unit shall only additionally submit documents (if any) that the dossier still lacks as prescribed in this Decree or adds contents of the submitted documents in accordance with the Housing Law and this Decree.

3. In case a competent agency has carried out steps to select the owner for a housing investment project before this Decree takes effect but has not issued a document on project owner selection, it shall continue to select the owner for the housing investment project in accordance with this Decree.

4. For a housing investment project approved before this Decree takes effect which must adjust its contents as prescribed in Clause 1, Article 182 of the Housing Law, the project owner shall adjust the project contents. In case the adjusted contents are required to be approved or decided by a competent agency, the project owner shall send to this agency a written request for adjustment of its written approval or decision in accordance with this Decree before the approval of the project adjustment and implementation.

5. Ready-built and future houses shall be determined as follows:

a/ A ready-built house is the one for which a written record that the house has been completely built, tested for acceptance and put into use as prescribed by the construction law has been made. A house built by the project owner in accordance with the construction law (which is not required to be built by a competent unit) must satisfy requirements on electricity and water supply systems and fire prevention and fighting system (for houses required to have a fire prevention and fighting system);

b/ A future house is the one which fails to satisfy the conditions prescribed at Point a of this Clause.

6. From the effective date of the Housing Law, the naming of housing investment projects and sections in housing investment projects prescribed in Clause 2, Article 17 of the Housing Law must comply with Clause 3, Article 19 of the Housing Law and this Decree; the naming and use of names of housing investment projects and sections in housing investment projects in violation of this Clause shall not be recognized by law. All transactions related to a housing investment project must use its name already approved by a competent agency.

For a commercial housing investment project given a foreign name and its sections giving foreign names by its owner, which were approved before the effective date of the Housing Law, if the owner makes a written request for renaming of the project and its sections as prescribed in Clause 3, Article 19 of the Housing Law, the provincial-level People’s Committee of the locality where the project is located shall consider and issue a written approval of such renaming. All transactions related to a housing investment project must use its name already approved by a competent agency.

7. If currently doing business at a condominium apartment as written in the business registration paper issued by a competent agency before the effective date of the Housing Law, the organization, household or individual possessing this business registration paper shall move business activities to another place other than a condominium apartment within 6 months after the effective date of this Decree. The agency competent to grant the business registration paper shall carry out procedures to change the business place written in the granted business registration paper within the time limit prescribed in this Clause. Past the time limit prescribed in this Clause, the organization, household or individual may not do business at the condominium apartment.

8. A condominium management board established before the effective date of the Housing Law that wishes to reorganize its operation in accordance with the Housing Law shall hold a condominium conference to re-establish the management board in accordance with the Regulation on management and use of condominiums promulgated by the Ministry of Construction.

9. From the effective date of the Housing Law, house warranty shall be provided according to the periods prescribed in Clause 2, Article 85 of the Housing Law. The warranty period shall be counted from the time a house is completely built, tested for acceptance and put into use.

10. From the effective date of the Housing Law, condominiums (including condominiums used for both residence and other purposes) to be built must have a house for community activities according to prescribed standards and regulations.

For a condominium built before the effective date of the Housing Law which is designed to have an area for community activities, the project owner shall arrange the area for building a house for community activities according to the approved design. For a condominium which is not designed to have an area for community activities but is designed to have an area for business, the project owner and owners of the condominium may reach agreement for the latter to purchase or rent part of this area for building a house for community activities.

The house for community activities shall be assigned to the condominium management board or the condominium management and operation unit for management under the decision of the condominium conference. The house for community activities shall be used properly for the purpose of community activities of owners and users of the condominium. It is prohibited to use this house for personal purpose of owners and users of the condominium, for lease, lending or for purposes other than for common activities of condominium owners and users.

Article 81.Transitional handling of regulations on housing transactions

1. In case a competent agency has organized the appraisal of prices of rental and lease-purchase of state-owned social houses before the effective date of this Decree but has not promulgated these prices by the effective date of this Decree, it shall re-appraise prices of house rental and lease-purchase and promulgate them in accordance with this Decree.

2. In case the user of a state-owned house is the signer of the house rent contract and the house rent duration remains unexpired on the effective date of this Decree, parties to the rent contract are not required to re-sign this contract. At the expiration of the house rent duration under the contract, the house management and operation unit shall check and if the lessee still satisfies the rent conditions and wishes to rent the house, parties shall extend the house rent contract. If the lessee no longer wishes to rent the house or fails to satisfy the rent conditions as prescribed by the Housing Law and this Decree, the house management and operation unit shall notify such in writing to the lessee for termination of the rent contract and handover of the house to the lessor for management and lease in accordance with this Decree. In case the lessee fails to hand over the house, the house shall be recovered in accordance with this Decree.

3. Transitional handling of cases of sale of state-owned old houses:

a/ A house for which a house purchase application was submitted before June 6, 2013, and which is eligible for sale according to regulations effective at the time of application submission and according to this Decree shall be sold at the price and under the mechanism of exemption and reduction of house purchase money prescribed in Decree No. 61/CP. A house for which a house purchase application was submitted before June 6, 2013, and which is ineligible for sale according to regulations effective at the time of application submission but is eligible for sale according to this Decree shall be sold in accordance with this Decree;

b/ A house for which a house purchase application was submitted between June 6, 2013, and before the effective date of this Decree which is eligible for sale according to this Decree shall be sold in accordance with Decree No. 34/2013/ND-CP;

c/ A house prescribed at Point d, Clause 2, Article 65 of this Decree whose sale price is approved by a competent agency before the effective date of this Decree shall be sold at the approved price, except the case prescribed at Point e, Clause 2, Article 69 of this Decree. In case the agency representing the house owner has not approved the house sale price by the effective date of this Decree, it shall approve and sell the house at the price as prescribed in this Decree.

4. The purchaser of a commercial house (including households and individuals purchasing commercial houses for use as houses for resettlement) that has received the house from the project owner but has not submitted a certificate application dossier to a competent agency may transfer the house purchase and sale contract under the Ministry of Construction’s guidance.

5. For a house purchased by a foreign organization or individual before the effective date of this Decree, the house ownership term shall be counted from the time the certificate is granted. The house owner may have the house ownership term extend in accordance with this Decree. During, or before the expiration of, the ownership term, the owner has the rights and obligations toward that house as prescribed by the Housing Law and this Decree.

6. For a housing contract signed before the effective date of the Housing Law with contents conformable with relevant laws effective at the time of contract signing, which, however, contains agreements different from provisions of the Housing Law and this Decree, contracting parties may continue to perform this contract unless they agree to revise the contract in accordance with the Housing Law and this Decree.

From the effective date of this Decree, all housing transactions must comply with the Housing Law, this Decree and the Ministry of Construction’s guidance regarding forms of transactions, conditions for participation in transactions and the order and procedures for transactions and contents and form of the housing contract. Transactions that are made not according to regulations are legally invalid. Transactions of purchase, sale, lease and lease-purchase of state-owned houses (including villas, semi-detached houses, condominium apartments) and houses for resettlement, and transactions of purchase and sale of commercial houses used as official-duty houses or houses for resettlement must comply with the forms and contents of contracts promulgated by the Ministry of Construction.

7. For a contract on capital contribution, investment cooperation or business cooperation signed before the effective date of this Decree which contains the agreement on sharing of 20% of house products as prescribed in the Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the implementation of the Housing Law, houses may be shared according to the number agreed under the contract. Parties shall liquidate this contract and sign a house purchase and sale contract when fully satisfying the conditions for sale of this house prescribed by the law on real estate business and this Decree.

8. From the effective date of this Decree, the mortgage of housing investment projects, future houses, property rights arising from contracts on purchase, sale and lease-purchase of houses, project transfer contracts and other property rights related to houses and housing investment projects eligible for mortgage as prescribed by law must comply with the Housing Law and this Decree. All cases of mortgage of housing investment projects, future houses and property rights related to houses and housing investment projects prescribed in this Clause which fail to comply with the Housing Law and this Decree are legally invalid and shall not be recognized by law.

The registration of mortgage of housing investment projects, future houses and property rights related to houses and housing investment projects prescribed in this Clause must comply with the law on registration of security transactions. Mortgaged assets prescribed in this Clause shall be disposed of in accordance with the civil law and relevant laws.

Article 82.Transitional handling for development and management of houses for resettlement

1. If a project owner has carried out procedures for approval of a housing investment project for resettlement by the effective date of this Decree but a competent agency has not approved this project, such project shall be approved in accordance with the Housing Law and this Decree. The project owner is not required to carry out procedures for project appraisal and approval again but shall only add papers (if any) and adjust contents of the project dossier in accordance with the Housing Law and this Decree.

In case a competent agency has approved a plan on compensation, support and resettlement before the effective date of this Decree, the approved plan shall be implemented.

2. For a condominium for resettlement built with capital sources prescribed in Clause 3, Article 36 of the Housing Law, purchasers and lessees-purchasers shall contribute funds for the maintenance of the sections under common ownership as prescribed in Article 108 of the Housing Law.

For a condominium for resettlement which has an area for business under the approved plan, after deducting reasonable business expenses, the provincial-level People’s Committee may use the proceeds from this business activity to fund the maintenance of the area and equipment under common ownership of the condominium for resettlement in the locality (including maintenance of elevators, fire prevention and fighting system, water pumps, generators, lightning protection system and the exterior of the condominium) and part of expenses for the management and operation of this condominium.

Article 83.Transitional handling for housing development funds

1. Housing development funds of provinces and centrally run cities established before the effective date of this Decree may continue their operation under the operation regulations approved by provincial-level People’s Committees. Based on specific local conditions, provincial-level People’s Committees shall propose provincial-level People’s Councils to decide on allocation of local budget funds to housing development funds for providing loans for social housing  development in their localities.

2. Provinces and centrally run cities that have not established a housing development fund and wish to do so shall report such to the Prime Minister for consideration and decision on the establishment of this fund, or entrust local development investment funds to manage housing development funds.

Chapter IX

IMPLEMENTATION PROVISIONS

Article 84.Responsibilities of related ministries and sectors

1. The Ministry of Construction has the following powers and responsibilities:

a/ To perform its assigned tasks prescribed in Article 175 of the Housing Law and this Decree;

b/ To guide and urge the implementation of the Housing Law and this Decree; to provide public information on mechanisms, policies and law on housing;

c/ To permit investment projects to change from construction of commercial houses to construction of social houses or houses for resettlement or decide on the change of the structure of the floor area of commercial or social houses for housing investment projects each with 500 houses or more (including individual houses and condominium apartments) for regulating the real estate market under the Government’s policy, at the request of the Prime Minister or at the proposal of provincial-level People’s Committees; to consider and decide on the change of houses for resettlement or investment projects on construction of houses for resettlement into social or commercial houses at the proposal of provincial-level People’s Committees;

d/ To terminate the implementation of projects on which investment policy has been decided or approved by provincial-level People’s Committees or which are approved by competent agencies when these projects are not yet included in local housing development programs or plans or when approved detailed construction plans are not available yet; to terminate the implementation of projects which fail to meet the requirements stated in a competent state agency’s decision on or written approval of investment policy or which violate regulations on capital raising, conditions for purchase, sale and lease-purchase of houses.

2. The Ministry of Finance has the following powers and responsibilities:

a/ To assume the prime responsibility for, and coordinate with the Ministry of Construction in, specifically guiding the collection and spending of proceeds from the lease, lease-purchase and sale of state-owned houses under Article 44 of this Decree;

b/ To guide the collection of taxes and other financial obligations when owners sell or transfer contracts on purchase and sale, lease-purchase, donation, exchange and contribution as capital of houses;

c/ To guide procedures for payment of official-duty house rental  differences prescribed in Clause 2, Article 51 of this Decree and perform other tasks in accordance with this Decree.

3. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with the Ministry of Construction in, guiding the implementation of Clauses 3 and 4, Article 6, the grant of certificates prescribed in Article 7, the handling of certificates upon expiration of the house ownership term prescribed in Article 8, the writing of extension of certificates prescribed in Clauses 1 and 2, Article 77, of this Decree, and the handling of compensation, support and resettlement upon the State’s land recovery for cases of purchase and sale of houses on a definite term.

4. The State Bank of Vietnam has the following powers and responsibilities:

a/ To assume the prime responsibility for, and coordinate with the Ministry of Construction, the Ministry of Justice and the Ministry of Natural Resources and Environment in, prescribing and specifically guiding the order and procedures for mortgage and release of assets being housing investment projects, future houses, and property rights related to housing investment projects and future houses in accordance with the Housing Law and Clause 8, Article 81 of this Decree;

b/ To specifically guide the payment for purchase, sale and rent-purchase of houses through credit institutions by foreign organizations and individuals and overseas Vietnamese upon purchase and rent-purchase of houses in Vietnam, and the transfer of proceeds from the sale and lease-purchase of houses overseas by foreign organizations and individuals and overseas Vietnamese upon sale and lease-purchase of houses in Vietnam.

5. Related ministries and sectors shall, within the ambit of their assigned functions and tasks, promulgate or amend and supplement regulations on housing under their assigned competence to conform with the Housing Law and this Decree, and coordinate with the Ministry of Construction in implementing the Housing Law and this Decree.

Ministries and sectors that have self-managed old houses shall transfer these houses to provincial-level People’s Committees of localities where these houses are located for receipt, management, lease and sale in accordance with this Decree. For old houses currently under the management of the Ministry of National Defense, the Ministry shall direct the management, lease and sale of these houses in accordance with this Decree, except the case prescribed in Clause 2, Article 64 of this Decree.

Article 85.Localities’ state management responsibility for housing

1. Provincial-level People’s Committees have the following tasks and powers:

a/ To perform the state management of housing in their localities;

b/ To allocate funds for the elaboration of local housing development programs and plans in accordance with this Decree and the Ministry of Construction’s guidance; to direct the elaboration and implementation of these programs and plans after they are approved;

c/ To plan and allocate land areas for development of each type of houses in accordance with the Housing Law and approved local housing development programs and plans, clearly identifying areas for construction of social houses for lease; to decide on coefficient k for land price adjustment for sale of state-owned old houses prescribed at Point d, Clause 2, Article 65 of this Decree;

d/ To direct the announcement of local housing investment projects prescribed in Clause 5, Article 19 of the Housing Law and approved local housing development programs and projects on the websites of provincial-level People’s Committees and provincial-level Construction Departments; to direct provincial-level Construction Departments in posting on their websites information on houses eligible for sale, lease-purchase and capital raising prescribed in Article 19 of this Decree, lists of commercial housing investment projects in their localities in which foreign organizations and individuals are not permitted to own houses as prescribed in Clause 1, Article 76, and the information prescribed in Article 79 of this Decree;

dd/ To promulgate specific regulations on management and use of villas and condominiums; to guide the sale, lease and lease-purchase of state-owned houses and houses for resettlement under their management to suit local situations; to organize coercive recovery of state-owned houses in accordance with Article 84 of the Housing Law and this Decree; to organize coercive transfer of funds for maintenance of condominiums’ sections under common ownership in accordance with this Decree;

e/ To prescribe criteria and procedures for identifying, and make lists of, houses of art, cultural and historical values (including ancient villas and houses); to decide on the formation of councils for making, and issuing decisions approving, these lists for management in accordance with the Housing Law, this Decree and relevant laws;

g/ To arrange, organize and assign sufficient officials and civil servants and re-assign functions and tasks to related local agencies for housing development and management in accordance with the Housing Law and this Decree; to direct, guide, examine and inspect the development and management of houses in their localities; to handle violations, settle housing-related disputes, complaints and denunciations according to their competence, or propose competent agencies to handle and settle them in accordance with law;

h/ To amend and supplement legal documents on housing under their promulgation competence to conform with the Housing Law and this Decree; to organize training in and dissemination of legal documents on housing and mobilize organizations and individuals in their localities to observe the housing law;

i/ To assume the prime responsibility for, or coordinate with related ministries and sectors in, performing their assigned tasks in accordance with the Housing Law, this Decree and relevant laws;

k/ To annually or at request report to competent agencies on the implementation of the Housing Law and this Decree in their localities;

l/ To perform other tasks in accordance with the Housing Law, this Decree and law.

2. Provincial-level Construction Departments shall act as the focal point in assisting provincial-level People’s Committees in state management of housing in localities.

3. District-level People’s Committees shall perform the state management of housing in their localities according to their assigned functions and tasks, the direction of provincial-level People’s Committees, and the housing law.

4. Chairpersons of provincial-level and district-level People’s Committees and heads of related local agencies shall take responsibility before law for delaying the implementation of, failing to implement or improperly implementing, the Housing Law, this Decree and legal documents on housing.

Article 86.Central Steering Committee for Housing Policies and Real Estate Market

1. The Prime Minister shall decide on the establishment of the Central Steering Committee for Housing Policies and Real Estate Market to assist him/her in studying, directing and coordinating the settlement of important and inter-sectoral issues related to policies on management and development of housing and the real estate market nationwide.

2. The Central Steering Committee for Housing Policies and Real Estate Market has the following tasks and powers:

a/ To direct, urge, guide and examine the implementation of housing development programs and lines and policies on housing and the real estate market  in ministries, sectors and localities;

b/ To give comments on major and important policies on housing and the real estate market;

c/ To propose the Prime Minister and competent agencies to consider, amend, supplement, or suspend the implementation of, documents on housing and the real estate market promulgated by ministries, sectors and provincial-level People’s Committees in contravention of the law on housing and the real estate market;

d/ Chairpersons of provincial-level People’s Committees shall decide on the establishment of provincial-level Steering Committees for policies on housing and real estate market to assist them in directing the implementation of policies on housing and the real estate market in their localities;

dd/ The Prime Minister and chairpersons of provincial-level People’s Committees shall define the functions, tasks, powers and operation regulation of the Central Steering Committee and provincial-level Steering Committees respectively. Funds for operation of the Steering Committee shall be provided from the state budget of the same level.

Article 87.Effect

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

2. The following decrees cease to be effective on the effective date of this Decree:

a/ The Government’s Decree No. 51/2009/ND-CP of June 3, 2009, guiding the implementation of a number of articles of the National Assembly’s Resolution No. 19/2008/QH12 of June 3, 2008, on permission for purchase and ownership of houses in Vietnam by foreign organizations and individuals on a pilot basis;

b/ The Government’s Decree No. 71/2010/ND-CP of June 23, 2010, detailing and guiding the implementation of the Housing Law;

c/ The Government’s Decree No. 34/2013/ND-CP of April 22, 2013, on management and use of state-owned houses;

d/ The Government’s Decree No. 84/2013/ND-CP of July 25, 2013, on development and management of houses for resettlement.

3. Contents on housing development (including decision on and approval of investment policy for housing investment projects), and ownership, management, use of houses,  housing transactions and state management of housing prescribed in the Government’s decrees, the Prime Minister’s decisions and legal documents of ministries, sectors and provincial-level People’s Committees promulgated before the effective date of this Decree which are different from provisions of this Decree must comply with this Decree.

Article 88.Implementation responsibilities

Ministers, heads of ministerial-level agencies and 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