Proposed Reasons for Price Ceilings on Social Housing:
The Ministry of Construction is seeking opinions on a draft resolution proposing several mechanisms and special policies for social housing development. This draft will be submitted to the National Assembly for approval at the 9th session.
In the assessment report of the draft resolution, the Ministry of Justice has requested the Ministry of Construction to consider adding price ceiling regulations for social housing sales and rentals. This suggestion aims to ensure affordable access to housing for citizens.
The Ministry of Justice proposes adding price ceiling regulations for social housing. Photo: Ninh Phan.
The Ministry of Justice also emphasizes the need for post-inspection regulations to prevent the misuse of social housing policies.
According to current regulations, the selling price of social housing is determined by the investor, covering all costs for capital recovery, interest (if any), and a profit margin of up to 10%. This price is subject to provincial People’s Committee approval and does not include any state incentives.
In response to the Ministry of Justice’s proposal, the Ministry of Construction stated that, according to the 2023 Housing Law, the rental price of social housing includes maintenance costs. The investor agrees with the tenant based on the price framework set by the provincial People’s Committee.
Therefore, the Ministry of Construction suggested refraining from adding price ceiling regulations for social housing to the draft resolution. However, they accepted and incorporated the proposal for post-inspection regulations for social housing projects.
In the assessment report, the Ministry of Justice also recommended that state agencies review the information and dossiers of social housing buyers instead of businesses to ensure transparency.
The Ministry of Justice believes that there should be sanctions for investors who fail to meet the implementation progress of social housing projects. They suggest a mechanism to force the transfer of projects to other investors to prevent time waste and ensure citizens’ access to housing.
Regarding this proposal, the Ministry of Construction shared that they are developing a housing and real estate market information system. This system will integrate data on individuals who have purchased social housing for monitoring and management. Additionally, regulations holding enterprises accountable for progress, preventing policy abuse, and combating corruption have been included in the draft resolution.
Proposed Addition of a Fund for Selling Social Housing to Government Officials
The Ho Chi Minh City Real Estate Association (HoREA) has also provided feedback on the draft resolution. They proposed adding regulations for the National Housing Fund to invest in constructing and establishing a fund for social housing sales to government officials, civil servants, public employees, and laborers, in addition to the current rent-to-own and rental options.
Mr. Le Hoang Chau, Chairman of HoREA, stated that Article 103 of the Housing Law regulates the development of housing for the people’s armed forces. According to this article, the State invests in constructing housing for the people’s armed forces using public investment capital for leasing to the subjects specified in Clause 7, Article 76 of the Law.
The State invests in constructing housing for the people’s armed forces using the capital source specified in Point b, Clause 1, Article 113 of this Law for the subjects specified in Clause 7, Article 76 of the Law to buy, rent-to-own, or lease.
Real estate businesses invest in constructing housing for the people’s armed forces, allowing the subjects specified in Clause 7, Article 76 of the Law to buy, rent-to-own, or lease.
HoREA proposes applying similar regulations to supplement and perfect Clause 3, Article 4 of the draft resolution. According to Clause 2, Article 4 of the draft resolution, the National Housing Fund is a state financial fund outside the budget. Its capital sources include allocations from the state budget and various other sources, such as voluntary support, contributions from organizations and individuals at home and abroad, revenues from selling state-owned housing assets, and other legitimate mobilizations excluding state budget funds.
Therefore, HoREA proposes adding regulations for the National Housing Fund to invest in constructing and establishing a fund for social housing sales to government officials, civil servants, public employees, and laborers. This addition would provide these groups with the option to buy or rent-to-own, ensuring consistency with the government’s social housing policies.
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