From June 6, social housing projects (social housing) are not allowed to spend 2023% of the floor area or residential land for commercial business. This regulation means that incentives for investors of social housing projects are reduced, discouraging them from participating in this market.
Inside the worker housing area in H. Trang Bom. Photo: H.Loc |
Regarding the above content, the Provincial People's Committee has made a written recommendation to the Ministry of Construction.
* No more commercial housing in social housing
Previously, investors of social housing projects (including independent social housing projects and investment projects to build social houses from the land fund of 20% of commercial housing projects) were allowed to spend 20% of the total residential land area or floor for construction. commercial housing construction. This regulation aims to offset investment costs, contribute to reducing the selling price, rental price, hire purchase of social housing and reduce the cost of management and operation services of social housing after investment. However, this provision is no longer in effect.
Specifically, in Decree No. 35/2023/ND-CP amending and supplementing a number of articles of decrees in the field of state management of the Ministry of Construction (Decree No. 35) issued by the Government in June. -6 and the official letter correcting this Decree issued in July 2023 both removed the content that 7% of the residential land area is reserved for commercial business in the project of social housing.
According to the explanation of the Ministry of Construction, this regulation aims to increase the housing fund for low-income people who are lacking and concretize the Government's project to build at least 1 million social housing apartments in the 2021-2030 period. However, from a local perspective, the removal of this incentive will reduce the attractiveness and discourage investors from participating in the construction of social housing, especially social housing for rent.
Mr. Ho Van Ha, Director of the Department of Construction, said that the removal of the incentive to reserve 20% of residential land for commercial business in the social housing project will directly affect the attraction of investment in this field, affecting the investment. to implement the goal of housing development for low-income people. In addition, the regulation that independent social housing projects must have a number of public service and utility works to serve residents also reduces the attractiveness to investors.
Sharing about this issue, Mr. Nguyen Huu Nguyen, Director of the Department of Planning and Investment, said that, in the past time, although social housing projects have enjoyed land incentives, investors have not been interested for several reasons. in which there are many and complicated procedures, 10% interest rate control and investors lack capital...
In fact, the regulation to remove the preferential 20% of residential floor area for commercial business has been stated in Decree 49/2021/ND-CP amending Decree 100/2015/ND-CP on development and management of residential buildings. Social housing management promulgated in 2021 by the Government. However, in 2021 and 2022, the Covid-19 epidemic did not have many new projects, so when Decree No. 35 reiterated this content, localities and investors had many opinions.
* Dong Nai proposes to amend regulations
Currently, both investors and local people believe that, in the condition that the project is controlled by interest rates, adding incentives will make social housing that is already difficult even more difficult.
According to the Director of the Department of Planning and Investment NGUYEN HUU NGUYEN, applying the additional regulation to remove 20% of the floor for commercial business, investors will have their benefits reduced, not continue to work or even turn their backs on social housing. Localities will find it very difficult to call for investment in social housing. |
Director of the Department of Construction Ho Van Ha said that on this issue, the Provincial People's Committee has sent a document to the Ministry of Construction to propose the Ministry of Construction to advise the Ministry to supplement policies on preferential commercial floor areas in the project of social housing; include the content of this preferential policy in the draft Housing Law (amended) and allow it to be applied as soon as this law is passed at the end of 2023. At the same time, there is a transition clause allowing the application of preferential policies. This incentive applies to projects that have been decided on investment policies before the Law on Housing (amended) takes effect.
Regarding bidding procedures for social housing projects, the province has issued a shortened process for social housing projects, but the bidding procedure for investor selection still takes a long time. Therefore, the province recommends the Ministry of Construction to issue according to its competence or report to the Government to issue separate regulations on bidding to select investors for social housing projects in the direction of appointing investors in some cases or shortening time to organize bidding for investor selection in order to create conditions to accelerate the implementation of social housing projects and worker housing.
Ms. Dang Thi Kim Oanh, Chairman and General Director of Kim Oanh Real Estate Group Joint Stock Company (HCMC) said that giving up the 20% discount on the floor for commercial business will definitely affect the attraction. investment, implementation progress of social housing projects. The Group will propose to the Ministry of Construction to amend the regulations by continuing to give incentives; At the same time, it is recommended to amend regulations on subjects and conditions for buying social housing.
Currently, real estate investors tend to switch to social housing because commercial housing faces difficulties in policies, capital sources and low demand. If social housing is really open in terms of procedures and attractive incentives, surely the balance of supply and demand for social housing will gradually balance and the national goal of building at least 1 million social housing units in the period to 2023 will soon come true. than.
Hoang Loc
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