Requiring commercial housing projects to reserve 20% of land for social housing is unreasonable.
According to the Department of Planning and Architecture of Ho Chi Minh City, through reviewing the implementation process of social housing projects in the period of 2016 - 2021, most of the zoning plans in Ho Chi Minh City that have been approved so far have not determined the location and area of social housing land or have not updated social housing projects.
Requiring all commercial housing construction investment projects in urban areas of type III or higher to reserve 20% of land fund for social housing construction is not suitable for reality.
The reason is that requiring all projects to reserve land for social housing without basing on local housing development programs and plans; land use planning and plans; urban planning; economic and geographical conditions of each locality... can lead to this land not being invested, being wasted and increasing housing prices.
In addition, for commercial housing projects with land use scale of less than 2 hectares in special and type I urban areas, the regulation of reserving 20% of land fund for social housing construction is not feasible. Because this land fund does not have enough minimum area to invest in an independent social housing block.
This land area is also not feasible if converted into low-rise social housing because special and type I urban areas do not encourage the development of this type of housing. On the other hand, if social housing is built in the form of townhouses in commercial housing projects in urban areas (usually in "golden land" locations), it can potentially contain negative and unfair aspects.
In the case of low-income people living in social housing apartments in high-end and super high-end commercial housing projects, the cost of building management and operation alone and other essential services in these projects are not suitable for their income.
Social housing development in Ho Chi Minh City has not yet met expectations.
The reason for the above shortcomings is that most of the zoning plans in Ho Chi Minh City have not determined the location and scale of land area for social housing (or have not been updated with social housing projects) for many reasons. Firstly, most of the 1/2000 planning plans were approved before the Housing Law and Decree No. 100 took effect in 2015 on the development and management of social housing.
New social housing projects approved after the approval of adjustments to 1/2000 scale zoning plans in 2013 have not been updated in the zoning plans.
Some projects have not yet been implemented with compensation for site clearance, zoning plans (1/2000 scale planning) have not been approved, there are no solutions for connecting technical infrastructure and wastewater treatment, and there are no plans for investing in social infrastructure. Social housing has not attracted investors. Some projects invested by enterprises to build commercial housing have converted 20% of the land fund for social housing by paying money into the state budget. However, the annual investment capital from the state budget is still limited, not enough to implement housing development projects and programs.
Allow investors to swap to build concentrated social housing
From the above shortcomings, the Department of Planning and Architecture of Ho Chi Minh City recommends that the Ministry of Construction promptly review, amend and supplement documents guiding the implementation of laws related to planning in accordance with the provisions of the Law on Planning.
Regarding the existing laws, decrees, circulars guiding the implementation, standards, and new planning regulations, the Department of Planning and Architecture of Ho Chi Minh City proposed that the Ministry of Construction make specific regulations for Ho Chi Minh City as a special urban area with different management requirements compared to many provinces and cities with low urbanization density.
The Department of Planning and Architecture also proposed that the Ministry of Construction study and build a national information system and database on planning to provide synchronous, unified, complete, accurate and timely information for the work of planning establishment, appraisal, approval, adjustment and implementation...
Allow an investor with many projects being implemented in the same district to exchange land area to build social housing concentrated in one project to create favorable conditions for investors to do business, exploit and operate or have other regulations and solutions on policies and mechanisms to attract investment in social housing to serve workers and low-income people.
The Department of Planning and Architecture also recommended that the Ho Chi Minh City People's Committee assign the People's Committees of districts and Thu Duc City, based on the actual conditions, needs and progress of reviewing and adjusting the 1/2000 planning projects in the locality, prepare documents to adjust the 1/2000 planning projects to update social housing projects and commercial housing development projects with social housing arrangements that have been approved by competent authorities for detailed planning into the zoning planning projects and arrange land funds for building social housing appropriately.
It is known that from 2014 to 2020, the Ho Chi Minh City People's Committee has approved investment in 243 projects with a total land area of about 537 hectares, with a scale of 155,202 houses. Notably, the investors of these commercial housing projects all fulfill their social housing obligations in the form of cash payments.
This amount is paid by the investor at the same time as the financial obligation for land use fees of the entire project to the budget. The Ho Chi Minh City People's Committee assigned the Ho Chi Minh City Department of Finance to advise and supplement the amount that the investor has paid to fulfill social housing obligations to the city's housing development fund to invest in social housing development.
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