Tight management of mini apartments

New regulations on mini apartments

Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) affirmed: The new Housing Law passed by the National Assembly is very positive and consistent with reality. It can be said that the new Housing Law has the best quality in the past 30 years, since the 1991 Housing Ordinance, the 2005 Housing Law and the 2014 Housing Law.

Mr. Chau analyzed: For example, Article 57 of the new Housing Law has very strict regulations on the development of multi-storey houses with many apartments of individuals for sale or rent, also known as mini apartments.

The best quality new housing law in the past 30 years mini apartment management quality picture 1 — The new Housing Law is considered to have many improvements compared to the old law. Illustrative photo.

According to this regulation, investors in mini apartments are individuals who must comply with legal regulations like large investors developing commercial housing projects.

Specifically, individuals must comply with the provisions of the law on fire prevention and fighting; sales, leases, and hire-purchases must comply with the provisions of the law on real estate business.

In addition, home buyers in mini-apartments are granted a Certificate (pink book). Management and operation must comply with the regulations on management and use of apartment buildings and clearly define the responsibility of inspection and supervision by People's Committees at all levels to ensure safety and protect the legitimate rights and interests of residents living here.

“This regulation will increase the responsibility of local authorities in cases of mini apartments,” said Mr. Chau.

No regulations on apartment ownership

In addition to regulations on mini apartments, the new Housing Law does not stipulate a limited-term ownership of apartments, but only stipulates a limited-term use period for apartments that meets the wishes and needs of apartment owners.

At the same time, with the regulations on renovation and reconstruction of apartment buildings, there are still full mechanisms, policies and measures to carry out the "renovation and reconstruction of apartment buildings" when the apartment building has expired its "use period" or is severely degraded and damaged, posing a danger to users.

Article 63 of the new Housing Law stipulates preferential mechanisms for implementing investment projects to renovate and rebuild apartment buildings, including preferential mechanisms for exemption from land use fees and land rent for land areas subject to land use fees and land rent within the scope of investment projects to renovate and rebuild apartment buildings.

Exempted items include: land area for construction of existing apartment buildings, existing individual houses (if any), land area for construction of business, service, commercial, public works, land area with technical infrastructure, traffic, social infrastructure and other works.

Even the land area with public assets within the scope of investment projects to renovate and rebuild apartment buildings is also exempted.

Investors do not have to carry out procedures for determining land prices, calculating land use fees, exempted land rents, and do not have to carry out procedures for requesting exemption of land use fees and land rents" has legalized the preferential mechanism for exemption of land use fees and land rents for land areas subject to land use fees and land rents within the scope of investment projects to renovate and rebuild apartment buildings, although it has been stipulated in Decree 101 and Decree 69 but has not been applied in practice.

“This preferential mechanism of exemption from land use fees and land rent is a very important policy that will create conditions to attract investment and promote the effective implementation of the Program to renovate and rebuild apartment buildings in urban areas, especially Hanoi and Ho Chi Minh City,” said Mr. Chau.

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