Recognize the project investor through an agreement to transfer land use rights to implement the project
Recently, the Ho Chi Minh City Real Estate Association (HoREA) has just sent a written comment on the draft Decree on renovating and rebuilding apartment buildings (draft Decree) sent to the Prime Minister and the Ministry of Construction. build.
It is necessary to supplement the regulation "recognizing the project investor through an agreement to transfer land use rights to implement the project" in this case, only then will the investor be approved for investment policy according to the provisions of the Law on Investment. housing law.
According to HoREA Chairman, Mr. Le Hoang Chau, in Article 15 of the draft Decree, it only stipulates "selecting the project investor through an agreement on transfer of land use rights to implement the project" but does not stipulate determines the recognition of project investors through an agreement on transfer of land use rights to implement the project for investors who "have purchased or received transfer of all apartments and other areas in the apartment building." associated with land use rights to build apartment buildings" should be added to Article 15 of the draft Decree.
Mr. Chau cited the case where Company P agreed to buy back all 52 apartments in the old 4-story apartment building at 239 Cach Mang Thang Tam, District 3, Ho Chi Minh City. After that, Company P demolished the apartment complex to carry out an investment project to build and sell real estate and high-end commercial housing at this location.
According to Mr. Chau, it is necessary to supplement the regulation "recognizing the project investor through an agreement to transfer land use rights to implement the project" in this case for the investor to have the investment policy approved. according to the provisions of housing law.
Therefore, HoREA proposes to add Clause 6 (new) to Article 15 of the Draft Decree, which stipulates: "In case the investor has purchased or received the transfer of the entire apartment or other area in the apartment building associated with the right to use Using land to build apartment buildings to carry out real estate and housing investment projects in accordance with land use planning, construction and urban planning, and housing development programs and plans of the locality. The local government shall have its investment policy approved for the investment project to renovate and rebuild the apartment building in accordance with the provisions of the law on housing."
In addition, HoREA also proposed to amend and supplement Clause 2, Article 6 of the draft Decree stipulating the time to collect comments from owners, users of apartment buildings and relevant agencies and organizations. Regarding the content of the apartment renovation and reconstruction plan, 50 working days is more reasonable because the 30-day regulation including Sundays and holidays is not enough time for competent State agencies to carry out consultation.
In addition, regarding working time, HoREA proposed to amend and supplement Clause 3, Article 16 of the draft Decree due to the regulation "Time limit for receiving applications to register as an investor according to regulations under Clause 1, Article "This is 30 days" is not reasonable, but should be 35 working days to have enough time to study the documents and decide to participate in the project to renovate and rebuild the apartment building.
Proposing that buyers of old apartment renovation projects can borrow a package of 125.000 billion VND
Notably, referring to credit issues, HoREA proposed to add Article 27b to the draft Decree stipulating preferential credit policies in accordance with the law on credit.
According to Mr. Chau's assessment, the VND 125.000 billion credit package is quite suitable for investors and home buyers in apartment renovation and reconstruction projects who are borrowing at very high interest rates, around 10%/year. .
According to Mr. Chau, currently, the State Bank has not issued a Circular detailing and guiding the implementation of preferential credit policies for investors and home buyers in renovation and construction projects. apartment buildings according to the above regulations but have just implemented a loan program for social housing, worker housing, renovating and rebuilding old apartments according to Resolution 33/NQ-CP according to Official Dispatch No. 2380/NHNN -TD April 01, 04, often called the 2023 billion VND credit package.
In this credit package, investors and home buyers in apartment renovation and reconstruction projects can borrow at interest rates 1,5-2% lower than normal commercial loan interest rates and interest rates. This rate is adjusted every 6 months; Investors of apartment renovation and reconstruction projects receive preferential loans for a period of 3 years, while home buyers in apartment renovation and reconstruction projects receive preferential loans for a period of 5 years, then must borrow at an agreed, "floating" interest rate.
According to Mr. Chau's assessment, the VND 125.000 billion credit package is quite suitable for investors and home buyers in apartment renovation and reconstruction projects who are borrowing at very high interest rates, around 10%/year. .
But currently, due to "legal problems", there are no projects to renovate or rebuild (new) apartments or many projects cannot be implemented, leading to no housing products at the projects. renovating and rebuilding (new) apartments, so up to now, no investor or home buyer in the apartment renovation and reconstruction project has received a credit package of VND 125.000 billion.
Therefore, if the National Assembly Standing Committee and the National Assembly can arrange medium-term state budget capital to implement preferential credit policies for investors and home buyers in renovation projects, rebuilding apartment buildings according to the provisions of Point dd, Clause 1, Article 63 of the Housing Law 2023, the State Bank will have budget capital to support refinancing and interest rate compensation for credit institutions. this preferential credit policy.
“Recommend that the State Bank stipulate that investors and home buyers in apartment renovation and reconstruction projects can borrow a credit package of VND 125.000 billion for a maximum period of 5 years with a fixed, low interest rate. more than 1,5-2% of normal commercial loan interest rates," Mr. Chau proposed.
