The Ministry of Construction is drafting a Decree on administrative penalties for construction violations. The draft proposes penalties for breaches in the management of social housing transactions.
Specifically, fines ranging from VND 80 million to VND 120 million are suggested for tenants or buyers of social housing who fail to use the property for their own residence or that of their family members. This also applies to those who resell social housing units in violation of regulations or collect advance payments improperly.
For developers who do not allocate sufficient land for social housing projects, fines range from VND 260 million to VND 280 million. Additionally, they may be required to either dedicate a portion of their land for social housing or contribute an equivalent amount to the social housing fund.
Fines between VND 120 million and VND 160 million are proposed for unauthorized sales, leases, or rentals of public housing assets, as well as for transactions involving social housing that do not comply with eligibility criteria or conditions.
Misuse of social housing can result in fines of up to VND 120 million. (Illustrative image)
Developers of social housing projects who transfer land use rights to individuals for self-construction face fines between VND 200 million and VND 260 million.
The most severe penalty in the draft is for selling, leasing, or gifting residential properties to ineligible foreign individuals or organizations, or exceeding the allowed quantity. Violators may face fines ranging from VND 280 million to VND 300 million.
The draft also penalizes developers who delay submitting applications for land use certificates (red books) on behalf of buyers or lease-purchasers. Penalties increase with the duration of the delay and the number of affected units.
For delays of 50 days to 6 months, fines range from VND 30 million to VND 50 million for fewer than 50 units, VND 50 million to VND 80 million for 50 to 200 units, and VND 80 million to VND 160 million for over 200 units.
Delays of 6 to 12 months incur fines of VND 160 million to VND 200 million for fewer than 50 units, VND 200 million to VND 300 million for 50 to 200 units, and VND 300 million to VND 500 million for over 200 units.
Delays exceeding 12 months result in fines of VND 200 million to VND 300 million for fewer than 50 units, VND 300 million to VND 500 million for 50 to 200 units, and VND 500 million to VND 1 billion for over 200 units.
The violation period is calculated from the date of handover by the developer or the date of full payment by the lease-purchaser, until the administrative violation report is filed.
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