Specific Regulations on Land Allocation for Social Housing Development
The new regulations have introduced several measures to “remove obstacles” and encourage enterprises to develop social housing projects.
Specifically, the 2023 Housing Law, in Article 83, provides regulations on land allocation for social housing development, addressing the lack of land funds for this segment in the past. The 2023 Housing Law has added a provision requiring the People’s Committee at the provincial level to allocate land funds for social housing development according to the provincial housing development programs and plans that have been approved.
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Decree 100 details Clause 2 of Article 83 of the 2023 Housing Law, guiding the People’s Committee at the provincial level to decide on the allocation of land funds for social housing development. It instructs that the investor of a commercial housing construction project must allocate a portion of the land area within the project, where the technical infrastructure system has been built, for social housing construction. Alternatively, they can allocate a social housing land fund with a built technical infrastructure system located outside the scope of the commercial housing construction project in that same city or town. A third option is to contribute money equivalent to the value of the land with a built technical infrastructure system for social housing construction in special, first, second, and third-class cities, based on the Government’s regulations to ensure convenience in implementation.
The procedures for investing in social housing projects have also been significantly streamlined, helping investors save time and project implementation costs. According to the new Housing Law, which took effect on August 1, investors are exempt from the procedure for determining land prices, calculating land use fees, and land rent exemption. They are also not required to go through the procedure for requesting land use fee or land rent exemption.
In addition, Clause 2, Article 22 of Decree 100 details the components that make up the total investment cost for the construction of the social housing area. This serves as the basis for calculating the maximum profit of 10% of the total investment cost for the construction of the social housing area, as stipulated in the 2023 Housing Law. At the same time, the project investor can also profit from the business-service-trade area and commercial housing area, which can occupy up to 20% of the total land area within the project where the technical infrastructure system has been built.
Regarding the selection of investors for social housing construction projects through bidding, Clause 5, Article 21 of Decree 100 also clearly defines the criteria for evaluating the capacity and experience of investors in implementing social housing construction projects.
Relaxed Policies on Social Housing Support
Decree 100 also stipulates that for the subjects specified in Clauses 5, 6, and 8 of Article 76 of the Housing Law, the following income conditions must be met:
In the case of an unmarried applicant, their monthly income must not exceed VND 15 million, as indicated in the payroll confirmed by the agency, unit, or enterprise where the applicant is working.
Relaxed Policies on Social Housing Support
If the applicant is married according to the law, the total monthly income of the applicant and their spouse must not exceed VND 30 million, as indicated in the payroll confirmed by the agency, unit, or enterprise where the applicant is working.
The income condition is determined based on the one-year period immediately preceding the time the subject specified in this Clause submits a valid dossier to the investor to register for purchasing or renting social housing.
For subjects specified in Clause 5, Article 76 of the Housing Law who do not have a labor contract, if unmarried, their monthly income must not exceed VND 15 million. If married, the total monthly income of the applicant and their spouse must not exceed VND 30 million. This means that, from August 1, the income condition to enjoy social housing support policies will be “relaxed.”
