| MINISTRY OF CONSTRUCTION OF VIETNAM | SOCIALIST REPUBLIC OF VIETNAM |
| No. 09/VBHN-BXD | Hanoi, August 25, 2023 |
RENOVATION AND RECONSTRUCTION OF APARTMENT BUILDINGS
Government’s Decree No. 69/2021/ND-CP dated July 15, 2021 on renovation and reconstruction of apartment buildings is amended by:
Government’s Decree No. 35/2023/ND-CP dated June 20, 2023 on amendments to some Articles of Decrees in the field of state management of the Ministry of Construction.
Pursuant to the Law on Governmental Organization dated September 16, 2015; Law on amendments to Law on Government Organization and Law on Local Governmental Organization dated November 22, 2019;
Pursuant to the Law on Urban Planning dated June 17, 2009;
Pursuant to the Law on Land dated November 29, 2013;
Pursuant to the Law on Bidding dated November 26, 2013;
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Pursuant to the Law on Housing dated November 25, 2014;
Pursuant to the Law on Investment dated June 17, 2020;
At request of the Minister of Construction 1;
1. This Decree elaborates renovation and reconstruction of apartment buildings specified in Article 110 of Law on Housing, including inspecting quality assessment of apartment buildings, preparing and approving plans for renovation and reconstruction of apartment buildings; planning requirements for areas of renovation and reconstruction of apartment buildings; selecting project investors; compensating, funding, relocating and assigning temporary residence for individuals who relocate; rights, responsibilities of project investors, owners, and inhabitants for apartment buildings for relocating, deconstructing, renovating, reconstructing apartment buildings, and some mechanisms in executing projects for renovating and reconstructing apartment buildings.
2. Enforced deconstruction and land clearance for apartment buildings when the Government appropriates land for national defense and security purposes are not regulated by this Decree.
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2. Regulatory agencies and other organizations/individuals engaged in renovation and reconstruction of apartment buildings.
Article 3. Term interpretation
In this Decree, the terms below are construed as follows:
1. “an apartment building” refers to an independent building with one or multiple blocks defined according to Clause 3 Article 3 of Law on Housing and built on a land plot as per planning.
2. “apartment complex” refers to an area where at least 2 apartment buildings specified under Clause 1 of this Article and other construction works are built, including detached houses (if any) constructed on a land plot as per planning.
3. “apartment renovation and reconstruction project” refers to a relocation project that aims to improve quality, expand, adjust current area components of an apartment building or deconstruct the apartment building for new construction of apartment buildings and other construction works (if any). The apartment renovation and reconstruction project consists of apartment building renovation and reconstruction project, and apartment complex renovation and reconstruction project.
4. “in-situ relocation” refers to allocation of houses and other area (if any) for organizations, households, individuals eligible for relocation at their original locations within the scope of apartment renovation and reconstruction project.
5. “Investor in apartment renovation and reconstruction project” refers to a real estate enterprise selected by one of methods under Article 14 and Article 15 hereof or an organization assigned by the Government according to Article 16 of the Government to implement the project.
6. “apartment owner” refers to owner of an apartment flat, owner of other area in an apartment building.
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7. “apartment inhabitant” refers to an owner who is directly using the apartment building or organization, household, individual legally using flat, other area in the apartment building via rental, lease, accommodation, authorization for management and use, or use according to decisions made by regulatory authorities.
Article 4. Principles of renovation and reconstruction of apartment buildings
1. Renovation and reconstruction of apartment buildings shall be implemented as per the project in association with renovation and improvement of urban areas, and in conformity with construction planning, land use plans and planning, housing development programs and plans for reconstruction and renovation of apartment buildings approved by competent agencies.
In case an apartment building which is not under apartment renovation and construction plan that has been approved shall be immediately deconstructed due to incident, natural disaster or fire, the People’s Committee of province shall immediately relocate households away from the apartment building and include the aforesaid apartment building in the apartment renovation and reconstruction plan of the province.
2. Implementation of apartment renovation and reconstruction project shall comply with construction law, housing law, land law, relevant law provisions and this Decree; project investors shall prioritize deconstruction of apartment buildings under Clause 1, Point a Clause 2 Article 5 of this Decree for reconstruction over other apartment buildings that are required to be deconstructed. Apartment renovation and reconstruction projects are not required to spare land area for construction of social houses as per housing laws.
3. The scope of apartment/apartment complex renovation and reconstruction project is identified under detail planning or in agreement of project investment guidelines approved by competent agencies.
4. With regard to existing apartment complexes specified under Clause 2 Article 110 of Law on Housing, local governments may implement one or multiple renovation and reconstruction projects for these apartment complexes while maintaining connection to technical and social infrastructure, and complying with detail planning of the apartment complexes approved by competent agencies.
In case of implementation of one project, project investors may divide investment into stages as long as they deconstruct apartment buildings under Clause 1, Point a Clause 2 Article 5 hereof for construction first while remaining apartment buildings in the areas are reconstructed according to apartment renovation and reconstruction plan approved by People’s Committees of provinces later. Division of investment for apartment renovation and reconstruction project shall be identified in agreement of investment guidelines approved by competent agencies in compliance with practical conditions, project implementation period of each apartment building, and regulations in this Article.
5. In case of inability to keep up with progress of investment projects according to decisions to approve investment guidelines, competent agencies capable of approving investment guidelines shall decide to extend or terminate implementation of such investment projects. In case of termination of project implementation, People’s Committees of provinces shall be responsible for organizing selection of new project investors according to this Decree; with regard to apartment renovation and reconstruction projects under Clause 1 Article 6 of this Decree, competent agencies capable of deciding investment guidelines shall decide to extend implementation period and the extension of the implementation period shall be the same as that applicable to projects utilizing public investment.
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An apartment building shall be deconstructed for reconstruction or construction of other building(s) as per planning under this Decree in the following cases:
1. The apartment building shall be immediately deconstructed due to incident, natural disaster, or fire as per the law
2. The apartment building runs out of its service life or has not yet run out of its service life but is concluded by the housing authority of the province to be included in the following cases:
a) Having primary load-bearing structures which are facing overall danger or risk of collapse, and/or fail to meet use conditions, thereby requiring immediate relocation of apartment owners and inhabitants;
b) Suffering from severe damage, having primary load-bearing structures facing local damage, and having one of the factors. To be specific: firefighting infrastructure; water supply and drainage infrastructure; waste water processing infrastructure; power supply infrastructure; or internal traffic infrastructure fail to satisfy applicable technical standards and regulations or face risk of causing unsafe situations during operation, thereby requiring deconstruction in order to ensure safety for inhabitants and meet requirements for urban renovation and improvement.
3. The apartment building has one of its primary structural components (foundation, pillars, walls, beams) damaged and not satisfactory to normal use conditions but not required to be deconstructed according to Clause 2 of this Article yet, but the apartment building is situated in area with apartment buildings eligible for deconstruction according to Clause 2 Article 110 of Law on Housing.
1. The Government renovates and reconstructs apartment buildings utilizing funding sources under Clause 3 Article 36 of Law on Housing (amended by Point a Clause 6 Article 99 of 2020 Law on Public-Private Partnership Investment) for the following cases:
a) The apartment building and/or apartment complex whose whole area is state owned is required to be deconstructed according to Article 5 hereof;
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2. On the basis of apartment buildings that must be deconstructed for reconstruction according to Clause 1 of this Article, People’s Committees of provinces shall be responsible for reporting to People’s Councils of the same levels to decide allocation of funding sources for implementation of apartment renovation and construction projects.
3. Decision on investment guidelines for apartment renovation and construction projects under this Article shall be made in a manner which is similar to that applicable to projects utilizing public investment.
4. Deconstruction of apartment buildings and implementation of investment projects on apartment renovation and construction under this Article shall conform to regulations and law on construction, this Decree, and relevant law provisions.
Section 1. INSPECTION AND ASSESSMENT OF QUALITY OF APARTMENT BUILDING
Article 7. Principles of inspection and assessment of quality of apartment building
1. People’s Committees of provinces shall be responsible for directing housing authorities of provinces to take charge and cooperate with local authorities and People’s Committees of districts where apartment buildings are built in organizing inspection and assessment of quality of apartment buildings under Article 110 of Law on Housing according to the construction law and this Decree.
2. Regarding apartment complexes, the overall inspection and assessment shall be conducted before these complexes are included in apartment renovation and reconstruction plans.
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Article 8. Requirements and contents of inspection and assessment of quality of apartment buildings
1. When conducting inspection and assessment of quality of apartment buildings, assigned entities and organizations shall rely on contents and requirements of inspection and quality assessment for current conditions of construction works according to the construction law and this Decree to inspect and assess the quality of apartment buildings and identify apartment buildings without any damage or apartment buildings with damage and required to be deconstructed according to Clause 2 or Clause 3 Article 5 hereof.
2. On the basis of inspection results under Clause 1 of this Article, entities and organizations conducting quality inspection shall submit reports on quality inspection results to housing authorities of provinces. In case of apartment buildings under Clause 2, Clause 3 Article 5 hereof, housing authorities of provinces shall issue inspection conclusions and submit reports on inspection results to People’s Committees of provinces to serve as the basis for project implementation as per the approved planning.
3. As soon as reports of housing authorities of provinces are received, People’s Committees of provinces shall be responsible for informing apartment owners of apartments that must be renovated and/or reconstructed according to Article 5 hereof while posting list of these apartment buildings on websites of the People’s Committees of provinces and housing authorities of provinces.
Section 2. APARTMENT RENOVATION AND RECONSTRUCTION PLAN
Article 9. Requirements for apartment renovation and reconstruction plans
1. Regarding local administrative divisions that have finished overall inspection and assessment of quality of apartment buildings according to Article 7 and Article 8 hereof, within 3 months from the effective date hereof, housing authorities of provinces shall produce apartment renovation and reconstruction plans for apartment buildings specified under Article 5 hereof and request People’s Committees of provinces to make approval.
In case apartments specified under Article 5 hereof are built after apartment renovation and reconstruction plans have been issued, People’s Committees of provinces shall be responsible for revising and adding these apartment buildings to the apartment renovation and reconstruction plans according to Clause 3 hereof to serve as the basis for project implementation.
2. Regarding local administrative divisions that have not finished overall inspection and assessment of quality of apartments according to Article 7 and Article 8 hereof, within 3 months from the effective date hereof, housing authorities of provinces shall produce apartment renovation and reconstruction plans for apartments that have been subject to quality inspection and assessment and specified under Clause 2, Clause 3 Article 5 hereof and request People’s Committees of provinces to approve these plans.
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Article 10. Preparation and approval for apartment renovation and reconstruction plans
1. In case preparation and approval for apartment renovation and reconstruction plans take place at the same time as preparation and approval for housing development plans of local administrative divisions, People’s Committees of provinces may include apartment renovation and reconstruction plans in local housing development plans or prepare apartment renovation and reconstruction plans separately.
2. In case several details of apartment renovation and reconstruction plans shall be changed as a result of revision to housing development program, People’s Committees of provinces shall be responsible for organizing preparation and approval for revision to housing development plans, apartment renovation and reconstruction plans.
3. In case apartment buildings under Clause 2, Clause 3 Article 5 hereof have been included in renovation and reconstruction plans but have not been included in local housing development programs, People's Committees of provinces may implement the apartment renovation and reconstruction projects by integrating these projects in local housing development programs, and then submit reports to People’s Councils of the same level.
Article 11. Contents of apartment renovation and reconstruction plan
1. An apartment renovation and reconstruction plan consists of:
a) List and location of apartment buildings and apartment complexes that need to be renovated and reconstructed, which identify time of deconstruction of apartment buildings specified under Clause 1, Point a Clause 2 Article 5 first and time of deconstruction of apartment buildings under Point b Clause 2, Clause 3 Article 5 and other construction works (if any) later; in case of renovation and reconstruction of an apartment complex, estimate time of deconstruction and reconstruction of the first apartment building of the complex and estimate time of deconstruction and reconstruction of remaining apartment buildings of the complex;
b) Estimates of funding sources mobilized for renovation and reconstruction of local apartment buildings and apartment complexes; as for apartment buildings specified under Clause 1 Article 6 hereof, estimates of funding sources for project implementation and report to People's Councils of the same levels for consideration;
c) Responsibilities of People’s Committees of all levels, Departments of Construction, and agencies related to implementation of apartment renovation and reconstruction plans;
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2. After apartment renovation and reconstruction plans are approved (including revised plans), People’s Committees of provinces shall be responsible for posting the plans on their website, sending to People’s Committees of districts, People’s Committees of communes where apartment buildings that must be renovated and reconstructed are located in order to inform owners and inhabitants of apartment buildings, and sending to the Ministry of Construction for supervision.
Section 3. REQUIREMENTS FOR PLANNING FOR APARTMENT RENOVATION AND RECONSTRUCTION AREA
Preparation of zoning planning and detail planning for apartment/apartment complex renovation and reconstruction area shall satisfy following principles and requirements:
1. Competent authority shall be responsible for preparing, appraising, and approving detail planning of area where apartment building and apartment complexes required to be renovated and reconstructed are built to serve as the basis for developing compensation, support, relocation, and temporary residence assignment solutions (hereinafter referred to as “compensation solution”) according to Article 20, Article 21, Article 22, and Article 23 hereof.
2. When preparing, appraising, and approving zoning planning and detail planning of area where apartment buildings and apartment complexes that must be renovated and reconstructed are built, the competent authority shall identify use quota of land for construction planning, population scale, or identify land area eligible for repurposing to construction of other service, commercial, office, or social infrastructure construction works to guarantee socio-economic and environmental effectiveness in order to encourage investors to participate in project implementation as long as local, regional technical infrastructure and social infrastructure are qualified and connected.
3. Organization for preparation, appraisal, and approval for planning for apartment renovation and reconstruction area can be implemented at the same time with inspection and assessment of quality of apartment buildings, and preparation and approval for apartment renovation and reconstruction plans according to this Decree.
1. Preparation, appraisal, and approval for planning for apartment renovation and reconstruction area shall be implemented according to regulations and law on urban planning and construction. During preparation of planning, apart from consulting the general public and relevant individuals as per the law, competent authority may additionally consult investors who wish to participate in apartment renovation and reconstruction projects to guarantee feasibility and suit actual situation.
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32. In case land area where apartment renovation and reconstruction are conducted is smaller than 2 ha, the competent authority shall formulate, appraise and approve the detailed planning according to a shortened procedure (general ground planning procedure). The formulation, appraisal, approval, adjustment and announcement about the general ground planning shall comply with regulations of the law on construction planning and urban planning.
4. When preparing and approving planning for area of apartment buildings and apartment complexes that must be renovated and reconstructed, depending on specific local conditions, People’s Committees of provinces shall develop planning solutions for the entire apartment complexes and apartment buildings or solutions for grouping apartment buildings in the same communes or districts to serve as the basis for determining implementation of one or many apartment renovation and reconstruction projects to ensure economic, social, environmental effectiveness in association with urban renovation and improvement.
Grouping of apartment buildings under this Clause only applies in case business, service, commercial, and/or public construction works but not houses are built in location of apartment buildings eligible for grouping.
5. In case the approved planning is proposed for revision, it is required to revise as per the law on urban planning and construction.
1. Selection of investors in projects under this Article applies to renovation and reconstruction of apartment buildings under Article 110 of Law on Housing, except for cases under Clause 1 Article 6 hereof.
2. According to approved apartment renovation and reconstruction plans, planning for area where apartment buildings that must be renovated and reconstructed are built, land area, population scale of project area and requirements regarding compensation, time and project progress, People’s Committees of provinces shall be responsible for developing and issuing criteria for selecting project investors (in terms of financial capacity, equity, experience in project implementation, financial solutions for project implementation and other criteria applicable to each project); publicizing these criteria and deadline for submitting application for acting as investor in each apartment renovation and reconstruction project on website of People’s Committees of provinces and People’s Committees of districts where projects take place in order to inform owners and inhabitants.
3. On the basis of criteria and deadline for application announced according to Clause 2 of this Article and detail planning for area where apartment buildings that must be renovated and reconstructed are built, real estate enterprises shall submit application (using Form under Annex I attached hereto) together with capacity dossiers satisfactory to criteria issued by People’s Committees of provinces and compensation solutions prepared according to Article 20, Article 21, Article 22, and Article 23 hereto to agencies assigned by People’s Committees of provinces to receive the application (People’s Committees of districts where apartments that must be renovated and reconstructed are built or provincial housing authorities).
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5. Within 90 days from the date on which deadline under Clause 4 of this Article expires, assigned agencies shall examine the applications (cooperate with provincial housing authorities in case of People’s Committees of districts, or cooperate with People’s Committees of districts in case of provincial housing authorities), and consult apartment owners regarding selection of project investors. Apartment owners shall rely on criteria for selecting project investors that have been publicized according to Clause 2 of this Article, list of enterprises meeting the criteria together with capacity dossiers and compensation solutions proposed by the enterprises to select project investors.
6. When consulting apartment owners to select investors in apartment renovation and reconstruction projects, each household in the apartments equals one vote and at least 70% of total flat owners of the apartments shall participate in the consultation; an enterprise is selected when at least 75% of total participating owners agree; in case of multiple enterprises, an enterprise is selected when they receive the most votes but not equal to or lower than 51% of total votes of flat owners; selection of project investors shall be made into records bearing signatures of representatives of People’s Committees of districts where projects take place, representatives of provincial housing authorities, representatives of flat owners, and selected enterprises.
In case a section of an apartment building or apartment complex is owned by the state, representatives of owners who own the section shall participate in selecting project investors.
As for section other than flats owned by organizations, individuals or by the Government in an apartment building, it is required to divide total usable area of this section by usable area of the largest flat or area of the apartment to determine number of votes of owners, each section area after division which is equivalent to area of the largest flat equals one vote; remaining section area after division which is greater than 1/2 of area of the largest flat equals one vote; remaining section area after division which is less than 1/2 of area of the largest flat does not count towards total vote count.
7. When selecting project investors, apartment owners and real estate enterprises may agree to adjust compensation solutions prepared by real estate enterprises in accordance with the planning approved by competent authority and regulations on compensation under Article 20, Article 21, Article 22, and Article 23 hereof.
8. Within 15 days from the date on which records on selection of project investors specified under Clause 6 of this Article are produced, assigned agencies shall produce written reports, attach records on selection of project investors and compensation solutions of selected project investors, and submit to People’s Committees of provinces for approval; decisions on approving compensation solutions of People’s Committees of provinces shall specify name of selected enterprises.
After compensation solutions have been approved, People’s Committees of provinces shall publicize compensation solutions and name of selected enterprises on website of People’s Committees of provinces, and send to People’s Committees of districts and People’s Committees of communes where apartment buildings are built in order to inform apartment owners.
9. After compensation solutions have been approved, selected real estate enterprises shall be responsible for requesting approval for investment guidelines of the projects according to regulations of law on investment, housing, and this Decree. Under decisions on approving investment guidelines of the projects, competent authorities shall also approve enterprises selected as investors in apartment renovation and reconstruction projects.
Article 15. Selection of investors in apartment renovation and reconstruction projects via bidding
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2. On the basis of list of projects in approved apartment renovation and reconstruction plans or in case of immediate deconstruction according to Clause 1 Article 5 hereof, provincial housing authorities shall be responsible for producing list of apartment renovation and reconstruction projects for bidding for selection of project investors and reporting to People’s Committees of provinces for approval and publishing on website of People’s Committees of provinces.
3. Before organizing bidding, competent authorities shall adopt procedures for approving investment guidelines of the projects according to regulations and law on investment, housing and this Decree. People’s Committees of provinces shall assign provincial housing authorities to act as bid solicitors and assume responsibilities for organizing bidding for selection of project investors according to this Article.
4. Details relating to bidding dossiers, methods and standards of assessing dossiers, determining bidding score, and criteria for selecting project investors are regulated as follows:
a) Methods and standards of bid evaluation, preparation of bidding documents and other details relating to bidding for selection of project investors shall comply with regulations and law on bidding, where assessment regarding investment effectiveness for land area specified under Clause 2 Article 25 hereof is not required, except for cases under Clause 5 of this Article;
b) Bidding scores are determined with total scores of 100 for criteria for project implementation, including the following criteria: financial capacity, implementation experience, project progress, time of transferring houses and construction works, investment in technical infrastructure, social infrastructure, relocation and temporary residence solutions, financial solutions for project implementation, business and commercial solutions of the projects. Bid solicitors shall determine specific score range of each criteria under this Clause to apply on a case-by-case basis;
c) Notice forms relating to bidding shall be applied similar to forms required by the bidding law.
5. In case project scope is expanded beyond land area of existing apartment building or apartment complex, when determining conditions and criteria for soliciting bid for the projects, provincial housing authorities shall specify use quota of approved land planning for expanded area to serve as the basis for determining floor price for submission to state budget in a manner which is similar to that applicable to construction project on commercial houses.
6. Bidding procedures for selection of project investors in apartment renovation and reconstruction projects shall be similar to those for selecting investors according to the bidding law; expenditure on organizing bidding is determined under total investment of the projects; expenditure on bid security shall conform to the bidding law.
7. Investors awarded with bidding contracts according to decisions approving results of contractor selection specified under this Article shall be investors in apartment renovation and reconstruction projects. Project investors shall be responsible for preparing compensation solutions according to bidding results and sending them to provincial housing authorities in order to take charge and cooperate with local authorities in appraising and reporting to People’s Committees of provinces for approval; after compensation solutions have been approved, project investors shall be responsible for adopting subsequent procedures for project investment and construction according to this Decree and relevant law provisions.
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1. The Government makes direct investment by using funding sources under Clause 3 Article 36 of Law on Housing (amended by Point a Clause 6 Article 99 of 2020 Law on Public-Private Partnership Investment) to renovate and reconstruct apartment buildings specified under Clause 1 Article 6 hereof.
2. Selection of project investors under this Article shall conform to Point a Clause 1 Article 114 of Law on Housing. In case the Government decides to select project investors via bidding, it shall conform to Article 15 hereof.
3. Preparation, appraisal, and approval for compensation solutions for apartment renovation and reconstruction projects under this Article shall conform to the land law.
Compensation solutions shall be prepared according to Article 20, Article 21, Article 22, Article 23 hereof, publicized on website of People’s Committees of provinces after being approval, and sent to People’s Committees of districts, communes where apartment buildings are built so that the owners of apartment buildings receive information.
Article 17. Implementation of land clearance and deconstruction of apartment buildings
1. Implementation of land clearance for apartment renovation and reconstruction projects is regulated as follows:
a) Regarding projects under Article 14 hereof, project investors shall cooperate with People’s Committees of districts where projects take place to organize compensation and land clearance for project implementation;
b) Regarding projects under Article 15 or Article 16 hereof, the land clearance shall comply with the land law.
2. Deconstruction of apartment buildings is regulated as follows:
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b) Project investors shall perform deconstruction if they are fully capable according to the construction law or hire competent organizations to perform deconstruction according to approved solutions;
c) In case of immediate deconstruction due to incidents, natural disasters or fire, entities assigned to perform deconstruction shall be responsible for performing deconstruction according to the construction law.
1. Regarding cases under Article 14 and Article 15 hereof, project investors have the rights to:
a) request relevant agencies and organizations to adopt procedures for implementing projects as per the law;
b) lease, lease-purchase, sell houses and commercial service constructions (if any) within the project scope; mobilize funding sources for investment in construction of houses and other construction works in the projects according to regulations and law on housing and real estate trading;
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d) conduct business for service constructions within the project scope according to investment guidelines (if any);
dd) request competent authority to issue certificate for houses and other construction works (if any) in the projects according to regulations and law on land and housing;
e) receive land assigned by the Government, lease land, allow land repurposing for land area used for residential purposes, business, services, commercial purposes, and other land types within the scope of apartment renovation and reconstruction projects as per the law;
g) receive preferential treatment according to this Decree and relevant law provisions during project implementation;
h) Perform other rights as prescribed per the law.
2. Regarding cases under Article 16 hereof, project investors have the rights to:
a) sell, lease, lease-purchase relocation flats and area other than houses as per the law;
b) perform rights under Points a, c, d, e, and h Clause 1 of this Article;
c) Perform other rights as per the law.
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a) exercising responsibilities of project investors specified under Clauses 1, 3, 5, 6, 7, 8, 9, and 10 Article 26 of Law on Housing and the law on real estate trading;
b) allocating temporary residence, compensation, support, and relocation for owners of apartment buildings deconstructed according to approved compensation solutions according to Law on Housing, this Decree, and relevant law provisions;
c) organizing inspection for acceptance, transfer of houses and relocation construction works as per the construction law for owners according to approved compensation solutions; transferring social and technical infrastructure to the government according to investment guidelines and regulations of the law;
d) exercising financial obligations and other obligations according to this Decree and relevant law provisions.
4. Project investors specified under Article 16 hereof shall be responsible for:
a) complying with Clauses 1, 3, 5, 6, 8, 9, and 10 Article 26 of Law on Housing and Points b and c Clause 3 of this Article;
b) performing other obligations as per the law.
1. Apartment owners (except for those under Clause 2 of this Article) have the rights to:
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b) relocate, receive temporary residence, and select form of compensation according to this Decree; request project investors to settle the difference in compensation (if any) according to this Decree;
c) receive certificate issued by competent authority according to regulations and law on housing and land for houses and construction works that compensation and relocation have been implemented;
d) participate in supervision of project implementation as per the law;
dd) purchase temporary residence in case such residence is eligible for sale according to this Decree and apartment owners do not wish to purchase or lease relocation houses according to this Decree;
e) transfer purchase agreements for relocation houses, temporary residence (if allowed to purchase); procedures for transferring purchase agreements shall be similar to procedures for transferring commercial housing purchase agreements according to regulations and law on housing and real estate trading; the final transferees of purchase agreements for relocation houses shall be issued with certificates according to regulations and law on land and housing;
g) receive damages in case of any damage according to signed contracts and regulations and law;
h) receive other rights as per the law.
2. Owners of houses and other construction works owned by the state have rights under Points a, b, d, g, and h Clause 1 of this Article.
3. Responsibilities of apartment owners:
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b) complying and enabling organizations, entities and competent agencies to conduct inspection and assessment of quality of apartment buildings according to regulations and law on constructions and this Decree;
c) enabling project investors and contractors to implement the project as approved by the competent authority;
d) participating in consultation to select project investors according to Article 14 hereof; complying with signed contracts for purchase, rental, lease-purchase of relocation houses; submitting maintenance fees for shared area of apartment buildings when purchasing, leasing relocation houses as per the housing law;
dd) complying with relevant decisions made by the competent authority;
e) exercising other obligations and responsibilities as per the law.
4. Inhabitants of apartments that must be deconstructed for renovation and reconstruction shall be relocated according to this Decree and comply with obligations and responsibilities under agreements with owners, under Points a, b, c, dd, and e Clause 3 of this Article.
1. Development and implementation of compensation solutions applicable to apartment renovation and reconstruction shall comply with principles. To be specific:
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b) including regulations under Clause 2 of this Article and being prepared on the basis of approved detail planning or overall premise drawing and architectural solutions;
c) relocation houses shall be allocated via relocation house purchase, rental, lease-purchase agreements in a manner that guarantees benefits of apartment owners and inhabitants;
d) compensation, support, relocation, and allocation of temporary residence shall be transparent, objective, and compliant with compensation solutions approved by the competent authority. Expenditure on organizing compensation, support, and relocation is determined in total project investment;
dd) in case apartment buildings are required to be deconstructed as per the approved planning for construction of other buildings but not apartment buildings (including cases under Clause 4 Article 13 hereof), apartment owners may choose compensation in form of money or relocation to other locations.
In case of relocation to other locations, the owners may be provided with houses according to construction projects for relocation houses or commercial houses in the same communes or districts if such houses are not available in communes; in case such houses are not available in districts, the owners may be provided with houses according to other projects in adjacent districts or if the owners demand to, they may purchase, lease, or lease-purchase local social houses according to housing laws. Regarding compensation in form of separate houses according to Clause 4 Article 21 of this Decree, the relocation shall not be implemented at original locations while People’s Committees of provinces shall be responsible for planning for other locations according to principles of determining locations under this Point;
e) apartment owners relocated shall be issued with certificates according to regulations and law on land and houses and are not required to submit land levy for land area where they are relocated to (including case where they are relocated to other locations or purchase temporary residence), except when owners own apartments owned by the state.
2. Compensation solution contents:
a) Name and address of apartment owners and inhabitants;
b) Location and area of original houses, area of relocation houses;
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d) Prices for calculation of compensation for houses and other construction works (if any); compensation value of houses and other construction works (if any);
dd) Difference value of project investors or owners to be settled (if any);
e) Project implementation time; completion time of compensation, support, relocation, and assignment of temporary residence; transfer time of relocation houses;
g) Assignment of temporary residence; expenditure on temporary residence;
h) Details under Article 21, Article 22, and Article 23 hereof and other relevant details (if any).
Article 21. Compensation, support, relocation solutions for houses and construction works 3
1. Compensation, support, and relocation solutions in case owners of apartments request in-situ relocation shall conform to following regulations:
a) According to specific conditions of projects in each region, People’s Committees of provinces shall decide compensation coefficient k which ranges from one to two times usable area of original flats specified in certificate issued from time to time or area eligible for issuance of certificate as the basis for project investors to prepare compensation solutions. In case area other than that acknowledged in the certificate or other than area eligible for issuance of certificate is present, compensation solutions shall be adopted according to regulations in the land law. The area of relocation flats calculated according to k coefficient above shall be converted to monetary value and specified under compensation solutions, serving as the basis for determining value of contracts for purchasing, leasing and or purchasing relocation houses and obligations for settling different value of parties (if any).
In case owners of the first floor who spend house area for business before effective date hereof and projects allocate some area for service and commercial businesses as per approved planning, apart from compensation under this Point, if owners wish to, they may purchase or lease part of commercial floor area for business purposes; sale price of such area shall be calculated by adding construction investment costs distributed over 1 m2 of commercial floor area with 10% of norm interest as per the law; the rent for commercial area shall be agreed upon by parties;
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c) Regarding shared area, k = 1 shall be applied; in case of shared area owned by the state, project investors shall pay the state an amount that is determined by (=) current usable area multiplied by (x) standard price for newly constructed houses publicized by People’s Committees of provinces at the time of preparing compensation solutions multiplied by (x) remaining quality percentage of current houses. In case of shared land area whose use right has not yet been transferred by the Government when selling houses as per the law, project investors shall pay the Government an amount that is determined by (=) 100% of land price according to price schedules publicized by People’s Committees of provinces at the time of preparing compensation solutions multiplied by (x) shared land area multiplied by (x) adjustable coefficient k (if any).
2. In case apartment owners do not wish to perform in-situ relocation and project investors have house and land area in other locations for relocation where the owners wish to relocate to, the owners shall be relocated in a manner specified under Clause 1 of this Article.
3. In case apartment owners do not wish to relocate according to Clause 1 and Clause 2 of this Article, they are entitled to receive compensation in form of money based on value of compensation flats after being converted by coefficient k specified under Point a Clause 1 of this Article; in case apartment owners wish to, they may purchase or lease or lease-purchase local social housing according to the housing law.
4. Owners of detached houses shall be relocated according to Point dd Clause 1 Article 20 hereof. To be specific:
a) As for land area, paying compensation that is determined by (=) current land area specified in certificate or area eligible for issuance of certificate multiplied by (x) specific land price as per the land law at the time of preparing compensation solutions; in case of land area other than those specified under this Point, the compensation payment shall comply with the land law.
b) Land area for relocation is determined according to planning approved by competent authority and converted to monetary value, which equals (=) land price under Point a of this Clause multiplied by (x) land area for relocation; any difference to compensation amount shall be incurred by the parties;
c) The compensation for floor area of a house is determined by (=) current usable house area multiplied by (x) price of newly constructed houses publicized by People’s Committees of provinces at the time of preparing compensation solutions multiplied by (x) remaining quality percentage of the current house. In case project investors construct relocation houses, owners shall be responsible for paying construction costs for these houses to project investors;
d) In case an owner does not wish to relocate to the detached house, he/she shall receive compensation in form of money according to Points a and c of this Clause; if he/she wishes to, he/she may purchase an apartment flat in the project with relocation flat sale price determined under approved compensation solutions or may purchase, lease-purchase the local social housing as per the housing law.
5. Regarding head offices and work buildings legally owned by organizations but not specified in Clause 2 Article 22 hereof, if the land area remains eligible for construction of head offices or work buildings according to the approved planning, the owner shall receive compensation that is determined by (=) coefficient k = 1 multiplied by (x) the original land area according to Point a Clause 1 of this Article; regarding the floor area for construction of head offices and work buildings under legal ownership, the compensation payment shall comply with Point c Clause 4 of this Article.
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1. In case a state-owned apartment building must be deconstructed, its tenants shall be relocated as follows:
a) In case of deconstruction for reconstruction of the apartment building, tenants shall be designated to lease flats with the approved design area which is no lower than usable area of original flats, except for case where the tenants do not wish to lease; the rent is similar to that of the social housing owned by the state; if the Government sells these flats, tenants may purchase them according to regulations on sale of state-owned houses;
b) In case the apartment building is no longer built in original location according to the approved planning, tenants shall be designated to other locations according to Point dd Clause 1 Article 20 in a manner under Point a of this Clause; if tenants wish to, they may purchase, lease, lease-purchase the local social housing according to the housing law.
2. Regarding social infrastructures and work buildings owned by the state within the project scope (if any), the following regulations shall be satisfied:
a) In case social infrastructures and work buildings are allocated in projects during implementation of apartment renovation and reconstruction projects, the Government is responsible for investing, constructing or assigning project investors to invest in reconstruction of these structures; in case project investors under Article 14, Article 15 of this Decree are in charge of construction affairs above, after transferring to competent authority, the Government is responsible for paying all investment construction costs of these structures using state budget to project investors;
b) In case social infrastructures and work buildings are not reconstructed according to the approved planning, the regulations in the land law shall be satisfied.
Article 23. Methods of allocating temporary residences to apartment owners and inhabitants
The allocation of temporary residences to apartment owners and inhabitants during implementation period of apartment renovation and reconstruction projects shall be identified in compensation solutions. To be specific:
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2. In case owners cannot manage their residences, People’s Committees of provinces where the projects take place shall be responsible for taking charge and cooperating with project investors in allocating temporary residences for owners in form of: purchasing commercial houses or using relocation housing funds or investing in housing fund with budget funding sources or from Development Investment Fund, Housing Development Fund of local governments (if any).
3. In case inhabitants are leasing houses owned by the state, People’s Committees of provinces shall be responsible for allocating temporary residences or paying the inhabitants to manage their own residences during project implementation period according to the housing law.
4. The allocation of temporary residences shall be convenient for daily activities of owners and inhabitants; in case of investment in the housing fund for allocation of temporary residences, requirements for housing construction standards, regulations and quality shall be met; in case temporary houses are eligible for sale and owners who are living in these temporary houses wish to purchase, these houses may be sold to owners instead of relocation; the sale price of the houses and payment of the difference amount (if any) shall be identified in a manner similar to that applicable to compensation, support, and relocation under compensation solutions.
1. Individuals designated to relocate shall sign contracts for lease, lease-purchase or purchase-sale of relocation houses with project investors or entities assigned to handle relocation
2. In case of purchase or lease-purchase of relocation houses, contracts shall be signed as follows:
a) Parties shall agree to choose to sign contracts for purchase or lease-purchase of relocation houses. Contracts for lease-purchase of relocation houses may only apply in case where the value of relocation houses is greater than value of original houses after being converted by coefficient k according to Point a Clause 1 Article 21 hereof;
b) In case of signing contracts for purchase, lease-purchase of apartment flats, parties shall specify expenditure on maintaining shared sections of the apartment buildings to be submitted by the buyers/tenants in these contracts according to the housing law.
c) Sale contracts shall be prepared using form under Appendix II, lease-purchase contracts shall be prepared using form under Appendix III attached hereto; according to contract forms above, parties may reach additional agreements on a case-by-case basis without contradicting terms and clauses included in the contracts, moral ethics, and regulations and law. These contracts shall be notarized and verified according to Law on Housing.
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4. In case of relocation in form of leasing out state-owned houses, lease contracts shall be signed according to regulations on management and lease of state-owned houses.
5. In case of purchase, lease, lease-purchase of floor area for the purpose of business, contracts shall be signed with project investors or entities assigned to designate relocation according to regulations and law on real estate trading.
6. Contracts under this Article shall be signed when foundation of houses has been completed according to regulations and law on houses, regulations and law on real estate trading or when houses have been inspected for acceptance as per the construction law. Transfer of houses and construction works for relocation shall be included in the contracts and shall only be implemented after houses, other construction works and technical infrastructures, social infrastructure serving residential demands (if any) have been inspected, accepted, and brought into use according to the construction law and relevant laws.
Section 3. POLICIES APPLICABLE TO RENOVATION AND RECONSTRUCTION OF APARTMENT BUILDINGS
1. Decisions on land appropriation and land transfer, land lease, and permission for land repurposing for implementation of apartment renovation and reconstruction projects under this Decree shall be issued as follows:
a) As for cases under Article 14 hereof, such decisions may only be issued after the competent authority approves project investment guidelines;
b) As for cases under Article 15 and Article 16 hereof, such decisions shall be issued according to regulations of the land law;
c) Procedures for appropriating land, transferring land, leasing out land, permitting land repurposing for implementation of projects under this Clause shall comply with the land law. In case owners do not abide by the decision on land appropriation issued by the competent authority, People’s Committees of provinces shall enforce land appropriation to transfer the premises to project investors.
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3. In case the land area of projects under Clause 3 Article 4 hereof is greater than land area under Clause 2 of this Article, project investors shall pay land levy, land rent, land repurposing fees for the difference amount. To be specific:
a) In case of bidding for selection of project investors, project investors shall perform financial obligations for land according to the successful bid according to Article 15 hereof;
b) In case of not bidding for selection of project investors, project investors shall perform financial obligations for land according to the land law.
4. In case project investors who have been selected propose increase in land use coefficient in a manner that conforms to the approved planning and is approved by the competent authority, project investors shall submit additional land levy for the increase amount as per the law.
5. In case apartment buildings must be deconstructed as per the approved planning for construction of other construction works (except for cases under Clause 6 of this Article) or construction of apartment buildings and apartment owners agree not to perform in-situ relocation and project investors have made compensation and arranged relocation for the owners in other locations according to this Decree, project investors shall receive preferential treatment regarding land according to Clause 2 of this Article.
6. In case of implementation of relocation projects in form of grouping according to Clause 4 Article 13 hereof, project investors shall receive preferential treatment regarding land according to Clause 2 of this Article. In case projects do not have balance of financial effectiveness, People’s Committees of provinces shall submit reports to the Prime Minister for consideration and decision to exempt land levy, land rent, land repurposing fees for land where old apartment buildings are grouped to balance financial effectiveness of the projects; with regard to the remaining land area which is not exempted from land levy, project investors shall perform financial obligations regarding land as per the law, except for cases of construction of public works.
Article 26. Capital mobilization policies
1. In case of renovation and reconstruction of apartment buildings without utilization of funding sources under Clause 3 Article 36 of Law on Housing, project investors may mobilize capital from following sources:
a) Funding sources under Article 72 of the Law on Housing, including capital owned by the project investors, capital mobilized via contribution, investment cooperation, business collaboration, joint venture, and connection of organizations, households, individuals; capital from land development fund, compensation, support, relocation in case of land clearance as per the law, and capital mobilized from other legal sources;
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c) Loan capital from credit institutions, financial institutions (if any) that are operating in Vietnam.
2. In case apartment owners who are relocated must pay for the difference in area, they may take loans in credit institutions and financial institutions that are operating in Vietnam, loans from housing development funds and other funding sources of local governments (if any) as per the banking law and relevant law provisions to pay for the difference.
Article 27. Transition clauses
1. Local governments whose apartment renovation and reconstruction projects have been approved before the effective date hereof are not required to prepare and approve the projects again according to this Decree, except for case where the projects must be revised to conform to housing development projects or practical demand of local governments; People’s Committees of provinces shall publicize approved plans before the effective date hereof for apartment owners and inhabitants according to Clause 2 Article 11 hereof.
2. In case investment guidelines of apartment renovation and reconstruction projects have been decided or approved by the competent authority, the decision and approval under this Decree are not required, except for cases where revision to contents of decision and approval for investment guidelines is required.
In case the application for approval for investment guidelines has been submitted but the competent authority has not issued the decision to approve investment guidelines, investment guidelines shall be approved according to this Decree.
3. As for apartment renovation and reconstruction projects whose investors have been selected by competent authority, the selection according to this Decree is not required, except for cases under Clause 5 Article 4 hereof and cases where project investors have not made compensation according to Clause 5 of this Article.
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5. In case compensation solutions have been approved but have not yet been implemented by the effective date hereof, parties shall agree on compensation solutions according to this Decree again, except for cases where parties remain agreeing on approved compensation solutions. In case project investors fail to balance financial effectiveness of projects according to the approved planning after parties have agreed on compensation solutions again, project investors may request the competent authority to consider and adjust the approved planning to balance financial effectiveness of projects.
If project investors and apartment owners fail to agree on compensation solutions according to Clause 6 Article 14 hereof within 12 months for apartment building renovation and reconstruction projects or 24 months for apartment complex renovation and reconstruction projects without taking into account the period of revising planning according to this Clause (if any), People’s Committees of provinces shall terminate project implementation and choose project investors again according to this Decree.
6. As for apartment renovation and reconstruction projects that have been approved for implementation in form of build – transfer (BT), regulations and the law on public-private partnership investment shall be applied.
Article 28. Implementation responsibilities
1. Ministry of Construction:
a) Assist the Government, Prime Minister in providing guidance, directing, and encouraging local governments in implementing provisions on apartment renovation and reconstruction according to this Decree and Law on Housing.
b) Provide specific guidelines on inspection and assessment of quality factors of apartment buildings according to regulations of the construction laws and on apartment buildings under Article 5 hereof;
c) Take charge or cooperate with relevant ministries in conducting inspection of compliance with this Decree; consolidate and submit reports on renovation and reconstruction of apartment buildings nationwide to the Prime Minister on a periodic or adhoc basis;
d) Research and propose policies on deconstruction, renovation, and reconstruction of apartment buildings for issuance within their competence or request the competent authority to consider and issue such policies;
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2. Relevant ministries within their tasks and functions shall be responsible for issuing or requesting the competent authority to amend regulations on renovation and reconstruction of apartment buildings; take charge or cooperate with the Ministry of Construction in implementing this Decree.
3. People’s Committees of provinces and central-affiliated cities:
a) Organize implementation, encourage, and direct renovation and reconstruction of apartment buildings within local administrative divisions in accordance with Law on Housing, this Decree, and relevant law provisions to guarantee human lives and assets for inhabitants of local apartment buildings and apartment complexes;
b) Allocate funding from local government budgets to: inspect and assess quality of apartment; organize preparation and approval for apartment renovation and reconstruction plans; prepare, appraise and approve planning of area where apartment buildings and apartment complexes required to be renovated, reconstructed are built; renovate and reconstruct apartment buildings and apartment complexes specified under Clause 1 Article 6 hereof, and perform tasks under responsibility of local governments;
c) Identify the area of land receiving exemption from land levy, land rent, land repurposing fees within the scope of apartment renovation and reconstruction projects according to Clause 2 Article 25 hereof, thereby preventing loss of state budget;
d) Organize enforcement of land appropriation and relocation according to this Decree and the land law;
dd) Issue specific policies within their competence depending on local conditions to implement local apartment renovation and reconstruction projects;
e) Submit reports on results of local apartment renovation and reconstruction to the Ministry of Construction on a periodic or adhoc basis for consolidation and report to the Government and the Prime Minister.
g) Perform other tasks according to Law on Housing, this Decree and relevant law provisions.
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1. This Decree comes into force from September 01, 2021.
2. This Decree replaces Government’s Decree No. 101/2015/ND-CP dated October 20, 2015 on renovation and reconstruction of apartment buildings.
3. After the effective date hereof, requirements for overall premise drawing and architectural solutions under Clause 4 Article 14 of Decree No. 37/2010/ND-CP dated April 7, 2010 of the Government and Clause 5 Article 10 of Decree No. 44/2015/ND-CP dated May 6, 2015 of the Government shall conform to this Decree.
4. Details relating to relocation, enforcement, deconstruction, renovation, and reconstruction of apartment buildings under Decrees of the Government, Decisions of the Prime Minister, legislative documents of ministries and People’s Committees of provinces issued before the effective date hereof governed by this Decree shall comply with this Decree.
5. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, and Chairpersons of provincial People's Committees shall implement this Decree.
CERTIFIED BY
PP. MINISTER
DEPUTY MINISTER
Nguyen Van Sinh
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1 Government’s Decree No. 35/2023/ND-CP dated June 20, 2023 on amendments to some Articles of Decrees in the field of state management of the Ministry of Construction (hereinafter referred to as “Decree No. 35/2023/ND-CP”) is promulgated pursuant to:
The Law on Government Organization dated June 19, 2015;
The Law on amendments to some Articles of Law on Government Organization and Law on Local Government Organization dated November 22, 2019;
The Law on Promulgation of Legislative Documents dated June 22, 2015; the Law on amendments to the Law on Promulgation of Legislative Documents dated June 18, 2020;
The Law on Urban Planning dated June 17, 2009; the Law on Judicial Expertise dated June 20, 2012; the Law on amendments to the Law on Judicial Expertise dated June 10, 2020;
The Law on Construction dated June 18, 2014; Law on amendments to Law on Construction dated June 28, 2020;
The Law on Housing dated November 25, 2014;
The Law on Real Estate Trading dated November 25, 2014;
The Law on Architecture dated June 13, 2019;
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The Law on Product and Goods Quality dated November, 21 2007;
The Law on Investment dated June 17, 2020;
The Law on Public – Private Partnership Investment dated June 18, 2020;
The Law on amendments to some Articles concerning planning of 37 Laws dated November 20, 2018;
The Law on amendments to certain Articles of the Law on Public Investment, the Law on Public-Private Partnership Investment, the Law on Investment, the Law on Housing, the Law on Procurement, the Law on Electricity, the Law on Enterprises, the Law on Special Excise Duties and the Law on Civil Judgment Enforcement dated January 11, 2022;
At request of the Minister of Construction.
2 This Clause is amended by Clause 1 Article 7 of Decree No. 35/2023/ND-CP, which comes into force from June 20, 2023.
3 The phrase “không thuộc sở hữu nhà nước” (not owned by the state) in the name of Article 21 is annulled by Clause 2 Article 7 of Decree No. 35/2023/ND-CP, which comes into force from June 20, 2023.
4 Decree No. 35/2023/ND-CP, which comes into force from June 20, 2023 stipulates that:
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1. This Decree comes into force from the date on which it is signed.
2. Ministers, Heads of ministerial agencies, Heads of Governmental agencies, Chairpersons of People’s Committees of provinces and central-affiliated cities and relevant authorities, organizations, and individuals shall be responsible for the implementation of this Decree./.
File gốc của Integrated document No. 09/VBHN-BXD dated August 25, 2023 Decree on renovation and reconstruction of apartment buildings đang được cập nhật.
Integrated document No. 09/VBHN-BXD dated August 25, 2023 Decree on renovation and reconstruction of apartment buildings
Tóm tắt
| Cơ quan ban hành | Bộ Xây dựng |
| Số hiệu | 09/VBHN-BXD |
| Loại văn bản | Văn bản hợp nhất |
| Người ký | Nguyễn Văn Sinh |
| Ngày ban hành | 2023-08-25 |
| Ngày hiệu lực | 2023-08-25 |
| Lĩnh vực | Bất động sản |
| Tình trạng | Còn hiệu lực |