If investors delay in building houses in urban areas, Ho Chi Minh City will "confiscate" 20% of land fund.

Decree 49 of the Government , issued in 2021, clearly states that commercial housing projects with large land funds will have to reserve 20% of their land funds to build social housing.

Specifically, commercial housing projects in special urban areas with land funds of 2 hectares or more will have to comply with this regulation. For smaller urban areas, urban area projects with land funds of over 5 hectares must apply.

Investors who do not build social housing in urban areas of Ho Chi Minh City will confiscate 20 plots of land. Image 1 — Illustration photo.

In the case of urban areas with land funds below regulations, investors do not need to reserve 20% of land funds to build social housing, but instead will be obliged to pay land use fees for the entire land area of the project according to regulations of the law on land.

The regulations are clear, however, it is currently very difficult to find a social housing project in large urban areas. Especially in big cities like Hanoi and Ho Chi Minh City, there are almost none.

Regarding this issue, the Ho Chi Minh City People's Committee said: In the city, there are many urban area and commercial housing projects with large land funds of over 2 hectares, even projects of over 10 hectares. These projects have identified 20% of the land fund for social housing construction, but the project investors are slow to implement compensation and site clearance or have not invested in building technical infrastructure, so they have not yet invested in building social housing.

Faced with this situation, the Ho Chi Minh City People's Committee will review and strictly implement the regulation on reserving 20% of residential land fund invested in technical infrastructure in commercial housing projects and urban areas to invest in developing social housing according to the law on housing.

The Ho Chi Minh City People's Committee will strengthen inspection, examination, supervision, and handling of violations of the law in the development of social housing and workers' housing in the area, including the allocation of social housing land funds in commercial housing projects and urban areas.

At the same time, urge investors of commercial housing projects and urban areas to invest in building social housing on 20% of the land fund of these projects according to the approved schedule.

“In case the Investor does not implement, the Ho Chi Minh City People's Committee will consider reclaiming 20% of the land fund to select and assign to other Investors,” the city leader emphasized.

In addition, the city will direct project investors in the area to improve the quality of social housing, ensuring quality equivalent to commercial housing, product structure, reasonable prices to meet the needs of low-income people and workers to have the opportunity to access and improve housing; ensure essential technical infrastructure conditions, social infrastructure in terms of transportation, health care,education , and culture of the projects.

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