New impetus to revitalize social housing.

DNVN - The Government's issuance of Decree 100/2024/ND-CP, dated July 29th, detailing some provisions of the Law on Housing regarding the development and management of social housing, is an important step, creating a new impetus to revitalize social housing.

According to Mr. Nguyen Van Dinh, Chairman of the Vietnam Association of Real Estate Brokers (VARS), the Government's issuance of Decree 100/2024/ND-CP, dated July 29th, detailing some provisions of the Law on Housing regarding the development and management of social housing, is an important step, creating a new impetus to revitalize social housing.

Decree 100/2024/ND-CP provides detailed regulations for Clause 2, Article 83 of the 2023 Housing Law, guiding provincial People's Committees to decide whether the investor of a commercial housing construction project must allocate a portion of the land within the project, where the technical infrastructure has already been built, for the construction of social housing. Alternatively, they may allocate social housing land with completed technical infrastructure in a location outside the scope of the commercial housing construction project in that urban area.

The law also stipulates that investors can pay an amount equivalent to the value of the land already used to build technical infrastructure for the construction of social housing in special, type I, type II, and type III cities, based on government regulations to ensure smooth implementation. The procedures for investing in social housing projects have also been significantly streamlined, helping investors save time and costs.

Mr. Nguyen Van Dinh, Chairman of VARS, affirmed that Decree 100/2024/ND-CP is an important step in promoting the development of social housing.

Clause 2 of Article 22 of the Decree specifies the components of the total investment cost for the construction of social housing areas. This serves as the basis for calculating the maximum profit margin of 10% of the total investment cost for the construction of social housing areas, as stipulated in the 2023 Housing Law.

At the same time, the project developer can also earn additional profits from the area allocated for commercial services, services, and residential buildings – up to a maximum of 20% of the total residential land area within the project where the technical infrastructure has already been built.

Regarding the selection of investors for social housing construction projects through bidding, Clause 5 of Article 21 of the Decree clearly stipulates the evaluation criteria for the capacity and experience of investors undertaking social housing construction projects.

Besides regulations encouraging investment in the social housing sector, Decree 100/2024/ND-CP also specifies the conditions for receiving social housing support policies, making it easier for those with legitimate needs to access this type of housing.

Regarding the conditions for eligibility for social housing policies, Clause 1 of Article 29 stipulates that the case of not owning a house is determined when the subject specified in Clause 1 of Article 77 of the Housing Law and their spouse (if any) are not named in the land use right certificate or certificate of ownership of assets attached to the land in the province or centrally-governed city where the social housing project is located at the time of submitting the application for purchase or lease-purchase.

This means that the subjects specified in Clauses 1, 4, 5, 6, 8, 9 and 10 of Article 76 of the Housing Law who do not yet own a house in the province or centrally-governed city where the social housing project is located will be eligible to buy, lease-purchase, and rent.

Thus, those in need of social housing, living with multi-generational families, will not have to spend time separating their household registration to obtain government confirmation that they do not own a house. The state management agency also has a legal basis to implement this and eliminates the reluctance and fear of responsibility among local officials in confirming people's home ownership.

Decree 100/2024/ND-CP is in line with the expectations of businesses and the people, especially those with average incomes who pay taxes to the State.

Furthermore, the Decree also stipulates the timeframe within which competent authorities must verify information regarding home ownership and income conditions of applicants. This answers the question "when will the verification be available to citizens?".

Specifically, within 7 days, the land registration office or branch office must verify that the applicant does not own a house and is not listed in the land title deed in the locality where the social housing project is located. Also within 7 days, the commune-level People's Committee will verify the income requirements for the investor to register for the purchase or lease-purchase of social housing.

Developers of social housing projects are no longer required to allocate 20% of the area for rent, with the option to sell only after 5 years. This is a significant relief because rental rates, currently publicly available on information portals, are still higher than the rates people pay for renting out their properties themselves, not to mention the complex legal procedures involved.

Whether buying or renting should be left to the market to decide, which will help investors feel more confident in developing social housing.

Decree 100/2024/ND-CP also stipulates that for the subjects specified in Clauses 5, 6, and 8 of Article 76 of the Housing Law, income requirements must be met. Accordingly, the income requirements for receiving social housing support policies have been officially "relaxed".

Workers earning no more than 15 million VND will be eligible to buy, rent, or lease-to-own social housing, instead of the previous maximum of 11 million VND. For married couples, the condition for renting or buying this type of housing is that the couple must have a maximum monthly income of 30 million VND.

"We believe that these new regulations are 'reasonable and fair,' in line with the expectations of businesses and the people, especially those with average incomes who pay taxes to the State," the VARS Chairman affirmed.

Ha Anh

Source: https://doanhnghiepvn.vn/kinh-te/bat-dong-san/dong-luc-moi-giup-khoi-thong-nha-o-xa-hoi/20240804110501368