The procedure for investing in social housing is "more difficult" than commercial housing
According to Mr. Le Hoang Chau, Chairman of Ho Chi Minh City Real Estate Association (HoREA), the demand for social housing is very large in urban areas, first of all in cities directly under the Central Government. The central government and provinces have high rates of industrialization, but careful research is needed to develop types of social housing suitable to the needs of people in each locality, avoiding the situation where social housing is "sold out" as happened in Vietnam. some localities.
The investment procedures for construction of commercial housing projects are "difficult" but for social housing projects it is "twice as difficult".
If the investment procedures for building commercial housing projects are "1st difficult", then for social housing projects it is "twice as difficult", which has led to the results of implementing the social housing development plan for the period 2016- 2020 of the whole country only reached about 41%.
In particular, Ho Chi Minh City has reached 75% of the plan, but the actual number is only 15.000 social housing units (average 3.000 units/year), which does not meet the huge social housing needs.
“In the period 2021 - 2023, the whole country has only completed 72 social housing projects with 38.128 apartments, only reaching nearly 9% of the 5-year plan for 2021-2025 of 446.000 apartments.
In particular, Ho Chi Minh City has only completed and put into use 2 social housing projects with 623 apartments (transitioned from the period 2016 - 2020) and has started 7 social housing projects with 4.996 apartments, but "got stuck". Due to legal problems, it is almost impossible to start construction," Mr. Chau said.
9 solutions to overcome difficulties and increase the supply of social housing
To "remove difficulties and promote the implementation of social housing projects" to increase the supply of social housing, HoREA proposes a number of solutions.
HoREA has just proposed a number of solutions to overcome difficulties and promote the implementation of social housing projects to increase the supply of social housing apartments.
Firstly, it is recommended to immediately remove the procedure for "investment policy approval concurrent with investor approval" for all social housing projects and commercial housing projects nationwide, the Association said. Request the Ministry of Planning and Investment to consider submitting to the Government amendments and supplements to Point c, Clause 7, Article 31 of Decree 31/2021/ND-CP.
Second, based on the amendment and supplement of Point c, Clause 7, Article 31 of Decree 31/2021/ND-CP and Clause 3, Article 1 of Decree 30/2021/ND-CP (mentioned above), the Association requests the Ministry of Construction Direct the Department of Construction (Department of Planning and Architecture) of localities to appraise and approve detailed planning at a scale of 1/500 for social housing projects (and also commercial housing projects) that have had "policy approval". investment concurrently with investor approval" applies according to the provisions of Point b, Clause 3, Article 6 of Resolution No. 98/2023/QH15 of the National Assembly stipulating "Subdivision planning and detailed planning must be approved or approve adjustments according to the provisions of law before preparing the Construction Investment Feasibility Study Report and implementing the next steps of the project", which the Association has proposed to add to Point c, Clause 7 of Article 31 Decree 31/2021/ND-CP and Clause 3, Article 1, Decree 30/2021/ND-CP.
Third, regarding land funds for social housing development, the Association recommends that localities deploy "bidding to select investors to implement projects using land" for social housing projects according to the provisions of the Law. Bidding 2023, to select capable investors and effectively exploit and use the "public land fund (clean land)" planned to develop social housing, overcoming the situation of "waste" of land resources belt as happened before.
Fourth, regarding preferential credit capital sources to implement social housing policies, the Association recommends that the National Assembly Standing Committee consider allocating medium-term state budget expenditure sources to implement social housing policies, to arrange "refinancing" for the Social Policy Bank or "interest rate compensation" for 4 commercial banks (Vietinbank, Vietcombank, Agribank, BIDV) designated by the State Bank to implement preferential policies Social housing credit. Because in the period 2015-2020, due to the lack of capital allocation from the medium-term state budget to implement social housing policy, project investors and buyers and lease-purchasers of social housing are almost unable to Enjoy preferential social housing credit policies according to the provisions of the 2014 Housing Law.
Fifth, the Association recommends adding or increasing preferential policies for investors of social housing projects to encourage and attract more investors to participate in implementing social housing projects.
Sixth, "inadequacies and problems" regarding "transitional handling" of the obligation of commercial housing project investors to reserve a part of the project's land fund (20% land fund) for social housing development, because Perhaps Decree 100/2015/ND-CP stipulates that projects of 10 hectares or more must build social housing in the project; For projects under 10 hectares, the investor can build social housing within the project or exchange social housing funds of equivalent value or pay in cash.
Seventh, the Association requested the Ministry of Construction to consider and propose to the Government and competent authorities to consider adding "innkeepers" to enjoy "housing support policies when self-building or renovating, housing repair" in accordance with the reality of each locality, because this object has contributed very importantly to providing increasingly better quality accommodation for workers, laborers, and immigrants. At the same time, the Association requested the Ministry of Finance to consider and propose to the Government and competent authorities to consider setting a "flat tax" personal income tax rate of 5%/revenue for inn owners, which is reasonable. more rational.
Eighth, the Association proposed that the Ministry of Construction consider amending Decision No. 510/QD-BXD dated May 19, 05 "announcement of project construction investment capital and general construction price of public structural parts". 2023 program" for the "investment rate of construction of social housing projects" in the direction of ensuring equivalent to the "investment rate of construction of commercial housing projects", because "investment rate of construction of works" "Social housing according to Decision 2022/QD-BXD is only equal to 510% of the "investment capital for construction" of commercial housing of the same type, which is not reasonable and does not ensure the implementation of the goal of improving the quality of social housing projects to People feel secure and confident in the State's social housing policy.
Ninth, the Association requests the Ministry of Construction to coordinate with ministries, branches and competent agencies to "research and promulgate credit policies for loans to repair and build new houses for poor and near-poor households across the country." rural areas" to implement Resolution 01/NQ-CP dated January 05, 01 of the Government and guide and support provinces and centrally run cities to successfully implement development plan targets. Local social housing development in 2024.
