Deploying a social housing project in An Duong (Hai Phong). Photo: Hoang Phuoc.
The draft decree regulates the conditions for enjoying policies support for social housing (SOHO).
Specifically, regarding housing conditions: In cases where there is no home owned by the person defined in Clause 1, Article 77 of the Housing Law and his/her spouse’s name is not yet listed on the Land Use Right Certificate, the home ownership right certificate, and assets attached to the land of the province, centrally-run city where the SOHO project is located.
In cases where a person owns a home, the average area of the home for registered permanent residents in that housing is less than 15m2 per person.
Thus, an important change of the Decree is that it has abandoned the criteria of residence. According to current regulations, people eligible for SOHO support must have permanent residence registration in the province, centrally-run city where the SOHO is located; In case of no permanent residence registration, it must have temporary residence registration for one year or more in this province, centrally-run city.
In addition, the standard for average housing area according to the current regulations is less than 10m2, then according to the draft Decree, it has been increased to below 15m2.
Regarding income conditions, the draft decree provides the following: For subjects specified in the Housing Law, they must ensure the average monthly income conditions of the applicant and his/her spouse not exceeding 15 million VND per month as calculated in the Wage and Salary Table confirmed by the unit where the subject works; The time limit for determining income conditions in the three years before the year to be considered for purchase, lease-purchase of SOHO.
According to current regulations, homebuyers must not be subject to regular personal income tax according to the regulations of the law on personal income tax (currently, the income tax threshold is 11 million VND per month, the dependents reduction level for a person is 4.4 million VND per month)…
Additionally, the draft Decree also proposes a series of changes regarding land funds for commercial housing projects; incentives for investors in SOHO construction projects; types of houses and SOHO area standards; determination of selling prices, lease-purchase prices, rent prices for SOHO; order, procedures for sale, lease-purchase of SOHO…
According to the Ministry of Construction, after nearly 9 years of organizing the implementation of the 2014 Housing Law and related Decrees, there are still many shortcomings such as: Lack of land fund for SOHO development; The selection of investors for SOHO construction projects in localities is delayed, prolonged…
This reduces the participation of businesses in SOHO investment; Prices for sale, rent, lease-purchase of SOHO do not take into account legitimate and reasonable costs; Administrative procedures are prolonged, leading to increased costs for businesses, residents as well as putting pressure on the local government…
On 3rd April 2023, the Prime Minister approved the “Investment Plan for Building at least 1 million SOHO units for low-income, industrial zone workers in the period of 2021-2030” by the Ministry of Construction, aiming to complete about 1,062,200 housing units in localities by 2030. In which, from 2021 to 2025, about 428,000 units will be completed; from 2025 to 2030, about 634,200 units will be completed.
