Relaxing conditions for social housing buyers

photo-behind(1).jpg — Implementing a social housing project in An Duong ( Hai Phong ). Photo: Hoang Phuoc.

Draft Decree stipulating conditions for enjoying social housing support policies.

Specifically, regarding housing conditions: The case of not having a house of one's own is determined when the subject specified in Clause 1, Article 77 of the Housing Law and that person's spouse are not yet named in the Certificate of land use rights, house ownership rights and other assets attached to land in the province or centrally-run city where the social housing project is located.

In case of owning a house, the average housing area of those registered as permanent residents in that house is less than 15m2 of floor space/person.

Thus, the important change of the Decree is to remove the criteria on place of residence. According to current regulations, beneficiaries of social housing support policies must have permanent residence registration in the province or centrally-run city where social housing is located; in case of no permanent residence registration, they must have temporary residence registration for one year or more in this province or city.

In addition, the current standard for average housing area is under 10m2, but according to the draft Decree, it has been increased to under 15m2.

Regarding income conditions, the draft Decree stipulates: For subjects specified in the Housing Law, the average monthly income of the applicant and his/her spouse must not exceed 15 million VND/month calculated according to the Salary and Wage Table confirmed by the agency or unit where the subject works; The period for determining income conditions is within 3 years immediately preceding the year of consideration for purchase or lease-purchase of social housing.

According to current regulations, social housing buyers must not be subject to regular income tax according to the provisions of the law on personal income tax (currently the personal income tax threshold is 11 million VND/month, the family deduction for 1 dependent is 4.4 million VND/month)...

In addition to the notable changes mentioned above, the draft Decree also proposes a series of changes in land funds for social housing construction in commercial housing investment projects; incentives for investors in social housing construction investment projects; types of houses and area standards for social housing; determination of selling prices, lease-purchase prices, and social housing rental prices; procedures for selling, lease-purchasing, and leasing social housing, etc.

According to the Ministry of Construction , after nearly 9 years of implementing the 2014 Housing Law and related Decrees, there are still many shortcomings such as: Lack of land fund for developing social housing; The selection of investors for social housing construction projects in localities is delayed and prolonged...

This reduces the participation of enterprises in social housing investment; Selling prices, rental prices, and lease-purchase prices of social housing do not take into account valid and reasonable costs; Administrative procedures are prolonged, leading to increased costs for enterprises and people as well as pressure on the local government system...

On April 3, 2023, the Prime Minister approved the "Project to invest in building at least 1 million social housing units for low-income earners and industrial park workers in the 2021-2030 period" of the Ministry of Construction, in which the total number of apartments completed by localities by 2030 is expected to be about 1,062,200 units. Of which, about 428,000 units will be completed in the 2021-2025 period; about 634,200 units will be completed in the 2025-2030 period.

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