Ho Chi Minh City: Low-Income Housing Projects Without Land Funds Still Eligible for Land Titles

These complications have left thousands of households unable to fully exercise their property ownership rights, enduring disadvantages for nearly two decades, according to HoREA representatives.

HoREA reports that many projects, despite being completed decades ago, fulfilling financial obligations, and handing over technical infrastructure, still have buyers awaiting their land-use right certificates (commonly known as “red books”) due to ambiguous regulations. Developers have sold all low-income housing units within these projects.

A prime example is the Duong Hong Residential Area project (9B4-9B8, Binh Chanh District, Ho Chi Minh City) by Duong Hong Construction and Housing Business Corporation, a member of Van Phuc Group. The project comprises 254 units, with the developer completing 100% of the infrastructure, paying all land-use fees, and issuing red books for 229 units. However, the remaining 25 units (approximately 10% of the project) are still without red books.

“After 20 years, we have sold all units to customers but cannot issue their red books. Our company faces continuous complaints and lawsuits, severely impacting our reputation. We urge city leaders to promptly address these issues, enabling us to operate smoothly in line with the central government’s support for businesses,” stated a Duong Hong representative.

These issues stem from a low-income housing policy implemented by the Ho Chi Minh City People’s Committee over 20 years ago. In 2003, Directive No. 07 mandated that developers allocate 10% of residential land or 20% of housing units for low-income earners, with the city purchasing these units at cost.

However, on November 24, 2005, the committee issued Official Letter No. 7623, abolishing the requirement for developers to set aside 10% of land or 20% of housing units for the city to purchase at cost, as stipulated in Directive No. 07.

To resolve these issues, Task Force 5013 proposed a solution based on the city chairman’s directives. The task force recommended that the Land Registration Office continue issuing red books for commercial units not affected by social housing obligations.

Simultaneously, the Department of Agriculture and Environment, in collaboration with relevant agencies, will review land price schemes and determine any additional financial obligations arising from the city’s decision not to purchase the 10-20% housing fund, allowing developers to fulfill their obligations.

This solution is considered reasonable, safeguarding the legitimate and urgent rights of homebuyers while comprehensively addressing developers’ financial obligations to the state. It aims to resolve a nearly 20-year-long legal bottleneck in Ho Chi Minh City.