Too many problems, in 3 years Hanoi has only completed 4 social housing projects

According to the report of Hanoi People's Committee, from the beginning of 2021 to the end of April 2023, the city has 4 social housing projects fully completed, 1 project partially completed, with about 4,168 apartments.

In addition, there are currently 40 projects under implementation, including 18 projects expected to be completed in the 2021-2025 period with about 2,137 apartments. 22 projects are expected to be completed after 2025 with about 22,400 apartments. Of which, 6 projects are to build workers' housing with nearly 8,000 apartments.

Too many obstacles in 3 years, Hanoi has only 4 completed social housing projects, picture 1 — Hanoi People's Committee said that housing development currently has many difficulties, especially in terms of regulations and legal issues. (Photo: ECH)

According to the Hanoi People's Committee, housing development currently has four main difficulties.

Firstly, planning problems. The Hanoi People's Committee said that the regulations on land allocation for social housing development in Decree 100 have many shortcomings, many commercial housing development projects in suburban areas are not suitable for social housing arrangement, for example Ba Vi, Ung Hoa, My Duc...

In addition, commercial housing projects with a scale of more than 2 hectares but with a small housing construction land area, according to regulations, must still reserve 20% of the total residential land area invested in technical infrastructure construction for social housing construction. Therefore, the arrangement of land fund for social housing construction in the project is inappropriate and fragmented.

Second, the use of money collected from land use fees to replace 20% of land fund in commercial housing projects to develop social housing with a scale of less than 10 hectares, however, current law has not yet regulated, while the city's financial resources to invest in building social housing from the budget are still limited.

Third, regarding investment procedures, to speed up the progress of investment in social housing construction, there should be regulations to shorten the time for selecting investors for housing construction investment projects in general and social housing construction investment projects in particular.

In case of selecting investors through bidding, there should be separate bidding process regulations, such as simplifying and shortening the procedures and implementation time for social housing.

Fourthly, regarding the mechanism and incentives for social housing construction investment projects, the Hanoi People's Committee believes that the 2014 Housing Law and Decree 49/2021/ND-CP stipulate that social housing project investors are supported by the provincial People's Committee with all or part of the investment costs for building technical infrastructure systems within the scope of social housing construction projects.

However, there are no specific regulations on the list of items and technical infrastructure works in the social housing construction investment project supported by the state budget, as a basis for state agencies to carry out investment and support investment to attract investors to participate in social housing development.

On that basis, the Hanoi People's Committee proposed that the Ministry of Construction report to the Government to authorize Hanoi to proactively arrange replacement land funds for social housing construction for these projects in independent (concentrated) social housing areas in the City.

At the same time, the City is authorized to adjust the planning of industrial parks and export processing zones to supplement land funds for building social housing for rent.

Hanoi also recommended that central ministries and branches soon issue guidelines on the management and use of land use fees payable for 20% of land funds in commercial housing and urban area construction investment projects according to regulations.

Regarding difficulties and problems in investment procedures, the Hanoi People's Committee recommends that the Ministry of Construction report to competent authorities to issue regulations to shorten the time for selecting investors for housing construction investment projects in general and social housing construction investment projects in particular.

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