Conclusion of the Chairman of the City People's Committee at the working session with representatives of households living in apartment buildings invested and built by the city

Also attending were representatives of central agencies: Ministry of Construction , Central Citizen Reception Committee, Government Inspectorate; leaders of city agencies, departments, branches and sectors: City Party Committee's Internal Affairs Committee, City Party Committee's Propaganda and Mass Mobilization Committee, City Party Committee Office; Construction, Justice, City Police, City Inspectorate, City People's Committee Office, City People's Court, City People's Procuracy, City Bar Association, Chairman of Ngo Quyen District People's Committee, City Citizen Reception Committee, Chairman of Hai Phong Housing Management and Trading One Member Co., Ltd.

The Chairman of the City People's Committee responded to citizens' petitions.

After listening to the City Citizen Reception Committee summarize citizens' petitions, additional comments from citizens; responses from departments, branches, localities, units; comments from agencies of the City Party Committee, representatives of the Ministry of Construction and Head of the Central Citizen Reception Committee, the Chairman of the City People's Committee responded to citizens' petitions as follows:

The city invested in building 12 new apartment buildings: HH1-HH2, HH3-HH4 Dong Quoc Binh; U19 Lam Son; N1-N2 Le Loi; Dong Khe, D2 Dong Quoc Binh; Cat Bi; Do Son; Lot 27 Le Hong Phong, Khuc Thua Du, Vinh Niem, Kenh Duong, with a total investment of about 3,400 billion VND, uses the state budget, so when calculating the apartment rental price, it must be done according to the principle of correct calculation and full calculation to recover the state investment funds according to the provisions of the Housing Law 2023, the Price Law 2023, Decree No. 95/2024/ND-CP dated July 24, 2024, Decree No. 98/2024/ND-CP dated July 25, 2024, Decree No. 100/2024/ND-CP dated July 26, 2024 of the Government (excluding capital gains and interest).

When moving people from old apartment buildings to new apartments, after consulting and receiving approval from the Standing Committee of the City Party Committee in Document No. 1198-TB/TU dated June 25, 2020 of the City Party Committee Office on the arrangement of households to newly built state-owned apartment buildings in the city, the City People's Committee issued Document No. 4366/UBND-XD dated July 8, 2020 directing that during the period when the rental price has not been calculated according to regulations, the apartment rental price will be temporarily collected according to the rental price of state-owned housing when it has not been built or renovated multiplied by the adjustment coefficient K = 1.25, corresponding to about 10,000 VND/m2/month.

Based on the above regulations, after calculating the rental price, on November 4, 2022, the City People's Committee issued Decision No. 63/2022/QD-UBND promulgating the Price List for renting state-owned houses in new apartment buildings after renovation and reconstruction in Hai Phong city with prices from . After that, people suggested that this price was too high compared to the circumstances and income of the households living here, to stabilize the situation, the City People's Committee canceled the above Decision for re-study.

Then, on March 14, 2023, the Party Committee of the City People's Committee issued Document No. 114-CV/BCSĐ to the Standing Committee of the City Party Committee on the development of a Resolution of the City People's Council on the mechanism and support policies for state-owned housing in newly built apartment buildings in Hai Phong city, with a support level of 55 - 70% of the rental price for households, but it was not approved because the implementation of the policy to support rental prices for public property housing was not for the right subjects and was not in accordance with the state budget expenditure task.

Then, on March 5, 2024, the Party Committee of the City People's Committee issued Document No. 102-CV/BCSĐ to the Standing Committee of the City Party Committee on supporting the cost of site clearance and investment costs for construction of shared technical infrastructure for State-owned apartments to reduce rental prices for households. However, in comparison with the provisions of the Law on Housing, the rental price must be determined according to the principle of correctly and fully calculating all reasonable costs for construction of the project and ensuring the principle of capital preservation, so it is not possible to support rental prices according to the above plan.

Recently, after consulting with the Central Ministries and branches, the City People's Committee has applied the provisions of law to develop a Project on collecting and paying rent for public housing in apartment buildings in Hai Phong city, submitting it to the Standing Committee of the City Party Committee for approval in principle and submitting it to the City People's Council for approval in Resolution No. 88/NQ-HDND dated December 6, 2024. According to the content of the Project, the city only calculates the cost of site clearance on the construction area of the base of the apartment buildings (not including the cost of site clearance for the garden area and internal traffic roads around the apartment building), so the rental price has decreased, and at the same time, the rental price and the schedule for collecting and paying rent for housing in the apartment buildings have been determined in stages, in accordance with the payment capacity of households, in order to create conditions for social security and ensure the principle of preserving state capital.

On that basis, the City People's Committee has issued Decisions on rental prices at the end of 2024 with rental prices at the above-mentioned apartments in the first phase (currently) from 16,204 - 31,635 VND/m2/month (depending on the investment level of each apartment building), if the apartment has an area of 50m2, the monthly rental price is from 810,000 - 1,581,000 VND/apartment.

Comparing the above rental prices shows:

- Similar to the rental price of public property in the following localities: Hanoi, Ho Chi Minh City, Da Nang, Bac Ninh.

- Equal to the rental price of a level 4 boarding house in Hai Phong inner city area.

- 69% to 73% lower than the rental price of social housing invested with non-budgetary capital in Hai Phong (rental price from 59,000 - 105,000 VND/m2/month).

- 78% to 86% lower than the rental price of commercial apartments in Hai Phong (rental price from 115,000 - 145,000 VND/m2/month).

In addition, the city has submitted to the City People's Council for consideration and approval of Resolution No. 25/2024/NQ-HDND dated December 6, 2024, stipulating policies to support emergency relocation for households and individuals using houses in old, dangerous apartment buildings and support for rent in public apartment buildings. In particular, people with meritorious services to the revolution, poor households, near-poor households and social protection beneficiaries who are renting houses and actually using houses in apartment buildings, depending on the level, will be supported by the city from 65% to 100% of the rent.

With such low rental prices, many households have rented their houses to others at higher prices to benefit from the difference.

So:

- Hai Phong City has spent a long time considering research in the direction of minimizing rental prices for people, it cannot be reduced any further.

- The request of households to continue reducing rents by the city is not a basis for consideration.

In the rental price calculation method, it is calculated based on the construction level of each building, the number of depreciation years, and the life of the building according to the provisions of law, so it is not possible to extend the depreciation year to reduce the rental price.

In particular, in the rental price calculation plan approved by the City People's Committee, the rental price adjustment roadmap has been determined according to the principle: the first years of the rental price are low, gradually increasing each year and stabilizing from the 11th year to ensure that it is suitable for the current income level and future income increase of the people.

If the rental collection schedule is extended further, it will be more inconvenient. The first years may have lower prices, but after the 11th year, the rental price will increase much higher than the first year, while the house is older.

Therefore, the proposal to extend the roadmap for adjusting rental prices has no basis for consideration.

According to the provisions of Point b, Clause 1, Article 21 of Decree No. 69/2021/ND-CP dated July 15, 2021 of the Government on renovation and reconstruction of apartment buildings, when the State reclaims old apartment buildings, it will pay compensation, support and resettlement arrangements for households. In case the value of the resettlement apartment is greater than the value of the old apartment, the households must pay the difference in value. If the owner does not buy a new apartment, they will be paid in cash for the value of the old apartment, according to the compensation and support plan as prescribed.

Pursuant to Clause 9, Article 47 of Decree No. 98/2024/ND-CP dated July 25, 2024 of the Government detailing a number of articles of the Housing Law on renovation and reconstruction of apartment buildings, for apartment building renovation and reconstruction projects that have had compensation and support plans approved before the effective date of this Decree, the parties shall continue to implement according to the approved plan, except in cases where the parties agree to change the compensation and support plan according to the provisions of this Decree.

So:

- The proposal of households with ownership rights to old apartment buildings regarding compensation calculation according to the formula: (Area of new apartment building - Area of old apartment building) x Purchase price of new apartment building = Amount of money people have to pay or vice versa is not a basis for consideration and resolution.

- Compensation calculation according to the formula: Value of new apartment (according to the final settlement value of the project) - Compensation value to support old apartment = Amount of money people have to pay or vice versa.

Assign the Department of Construction to direct Hai Phong Housing Management and Trading Company Limited to synthesize cases, review, and propose reports to the City People's Committee for consideration.

The objective of investing in the construction of new apartments is to arrange resettlement and temporary accommodation for resettled people when the state renovates and rebuilds old apartments in the city, ensuring the safety of people's lives and social security, specifically stated in the Decisions approving the Feasibility Study Report, the Decision approving the Project to renovate old, degraded and dangerous apartment buildings in the city and Decision No. 53/2022/QD-UBND dated September 22, 2022 of the City People's Committee promulgating the Regulations on relocation, temporary accommodation arrangement, compensation, support and resettlement when the state renovates and rebuilds old apartments in Hai Phong city (replacing Decisions No. 02/2018/QD-UBND dated January 9, 2018, No. 27/2019/QD-UBND dated August 7, 2019).

In the near future, the city is preparing to demolish the remaining old apartment buildings, so many households living in old, degraded, and dangerous apartment buildings need to move and have a need to rent the above-mentioned apartment buildings invested in and built by the city.

Therefore, the city does not resolve the request to allow households who arbitrarily accept apartment transfers to continue renting the apartment.

The City will carry out the procedure of canceling the Decisions on house rental for households transferring apartments (due to no need to use and taking advantage of the policy) and repossessing the apartments.

With the goal of building the above new apartment buildings, the city is renting apartments to households from 16,204 - 31,635 VND/m2/month (depending on the investment level of each apartment building). If the apartment has an area of 50m2, the monthly rent is from 810,000 - 1,581,000 VND/apartment.

However, some households were rented but did not have the need to live there and arbitrarily rented out at higher prices (about 4-7 million/apartment). This is an act of taking advantage of the policy.

Therefore, the city does not resolve the request to allow households who arbitrarily rent apartments to continue renting apartments.

The City will carry out the procedure of canceling the House Rental Decisions for households renting apartments (due to no need to use and taking advantage of the policy) and repossessing the apartments.

The city has directed households not to arbitrarily accept illegal transfers of new apartments and has widely informed the media to avoid people being scammed and taking advantage of policies (in Documents: No. 3757/UBND-XD dated June 8, 2020 of the City People's Committee; No. 2742/SXD-QLN dated June 12, 2020 of the Department of Construction). However, there are still cases where people intentionally buy, sell, and transfer houses belonging to public property, which is illegal.

This is a civil contract, the parties are requested to resolve it themselves. In case the two parties cannot resolve it themselves, they can file a lawsuit with the People's Court according to regulations.

After studying some transfer documents, we found that: The transferor did not comply with the law because he did not have the right to own the house; he had the right to rent the house but when transferring the right to rent the house, he did not have the consent of the City People's Committee.

When people file a lawsuit in court, request the City People's Court and the City People's Procuracy to resolve the case quickly; request the City Civil Judgment Enforcement Department to resolve the case quickly when there is a judgment from a competent People's Court.

1. In case of not signing a rental contract or not paying rent:

People who have decided to rent a house but do not sign a rental contract or do not pay rent, are understood to be denying their right to rent a house and have no desire to rent a house.

The City People's Committee will consider, cancel the Decision and reclaim the rented apartment.

In case citizens do not hand over their houses, the City People's Committee will forcibly reclaim the houses to rent to households living in other old, degraded and dangerous apartment buildings in the city.

2. The decision on rental price is an administrative decision. If households are still concerned about the high rental price, they can file a lawsuit with the competent People's Court. The People's Committee of Hai Phong City will implement the Court's decision.

3. Request that petition handling agencies at all levels not process petitions with the 7 above-mentioned recommendations.

4. Assign the Department of Construction to direct Hai Phong Housing Management and Trading Company Limited:

- Send this Conclusion Notice to each household living in the above mentioned apartment buildings.

- Sign a house rental contract before handing over the house to the households that the city has decided to rent the house and send the instructions of the City People's Committee on not subletting or transferring the apartment, Conclusion Notice No. 284/TB-VP dated May 21, 2025 and this Conclusion Notice of the Chairman of the City People's Committee to each household when signing the house rental contract.

5. Assign to the City People's Committee Office:

- Monitor and urge the above units and individuals to implement; synthesize and report to the City People's Committee.

- Arrange a schedule for the Chairman of the City People's Committee to hear about the procedures for compulsory house recovery in cases of violations.

By order of the Chairman of the City People's Committee, the Office of the City People's Committee hereby notifies relevant Departments, branches, localities, units and households for implementation./.

Source: https://haiphong.gov.vn/tin-tuc-su-kien/ket-luan-cua-chu-cich-ubnd-thanh-pho-tai-buoi-lam-viec-voi-dai-dien-cac-ho-dan-dang-o-chung-cu-d-749704