Residents have been upset with many developers “delaying” the handover of the maintenance fund.
The draft Decree regulating forced handover of the maintenance fund for the joint ownership of apartment buildings is as follows: In case the investor sets up a separate account to collect the maintenance fees for the joint ownership of the apartment buildings as regulated by the housing laws before the effective date of this Decree but fails to hand over, the forced handover of the maintenance fund shall be enforced according to the provisions of Article 79 of this Decree.
In case the maintenance fund account is no longer available or has insufficient funds, the forced handover shall be made from the investor’s business account as regulated by Article 80 of this Decree.
In case the investor’s business account is no longer available or has insufficient funds, the forced encumbrance of the investor’s assets shall be enforced as regulated by Article 81 of this Decree.
In the case where the investor does not pay the maintenance fees for the joint ownership of the unsold or non-leased retained area, the district-level People’s Committee where the apartment building is located shall be responsible for issuing a decision on forced recovery of the maintenance fees for the joint ownership of the apartment building from the investor’s business account and handing it over to the Administration Board as regulated by Article 80 of this Decree.
In case the investor’s business account is no longer available or has insufficient funds, the forced encumbrance and auction of the investor’s assets shall be enforced as regulated by Article 81 of this Decree.
Forced handover from the maintenance fund account
In terms of sequence and procedure for the forced handover from the maintenance fund account for the joint ownership of the apartment building (Article 79), the Apartment Building Administration Board shall submit a written request to the provincial-level People’s Committee where the apartment building is located, urging the investor to hand over the maintenance fund as regulated.
Within 10 days from the receipt of the written request from the Apartment Building Administration Board, the provincial-level People’s Committee shall request the credit institution where the investor opens the maintenance fund deposit account to provide information on the account number and the amount of money in the account. Within 7 days from the receipt of the written request from the provincial-level People’s Committee, the credit institution shall be responsible for providing information to the provincial-level People’s Committee.
Based on the information provided by the credit institution, the provincial-level People’s Committee shall issue a decision on forced recovery of the maintenance fund for handing over to the Apartment Building Administration Board. This decision shall be sent to the Construction Department, the investor, the Apartment Building Administration Board, and the credit institution where the investor opens the account to carry out the fund transfer as regulated by the housing laws.
Within 5 days from the receipt of the decision on forced recovery from the provincial-level People’s Committee, the credit institution managing the maintenance fund account shall be responsible for transferring this fund to the account established by the Apartment Building Administration Board for management and use in compliance with the housing laws. After completing the fund transfer, the credit institution must notify the provincial-level People’s Committee, the Construction Department, the investor, and the Apartment Building Administration Board.
The Ministry of Construction proposed regulations on forced handover of the maintenance fund for the joint ownership of apartment buildings.
Forced handover from the investor’s business account
In terms of sequence and procedure for the forced handover from the investor’s business account (Article 80), the district-level People’s Committee shall request the credit institution to provide information on the investor’s business account and the amount of money in this account. Within 7 days from the receipt of the written request from the district-level People’s Committee, the credit institution shall be responsible for providing the relevant information to the district-level People’s Committee.
Based on the information provided by the credit institution, the district-level People’s Committee shall issue a decision on forced recovery of the fund from the investor’s business account for transfer to the Apartment Building Administration Board. This decision shall be sent to the Construction Department, the investor, the Apartment Building Administration Board, and the credit institution where the investor opens the account to carry out the fund transfer. The Apartment Building Administration Board shall be responsible for publicly announcing the decision on forced recovery on the notice board of the apartment building.
Within 5 days from the receipt of the decision on forced recovery, the credit institution managing the investor’s business account shall transfer the money from the investor’s business account to the account of the Apartment Building Administration Board according to the amount stated in the decision. After completing the fund transfer, the credit institution must notify the district-level People’s Committee, the Construction Department, the investor, and the Apartment Building Administration Board.
Forced encumbrance and auction of the investor’s assets
In terms of sequence and procedure for the forced encumbrance and auction of the investor’s assets (Article 81), the district-level People’s Committee shall coordinate with the Construction Department, the police, and relevant agencies to inspect and determine the specific area of the investor’s house, land at the project where the apartment building is located or at another project for the encumbrance and organization of the auction to recover the maintenance fund. In case the investor does not have any house, land, or has insufficient value to recover the maintenance fund, other assets of the investor shall be determined for auction to recover enough funds for transfer to the Apartment Building Administration Board.
The district-level People’s Committee shall only encumber the area of the house, land, or other assets with a value equivalent to the amount of the maintenance fund to be recovered for handover to the Apartment Building Administration Board and the expenses for the implementation of the forced encumbrance and auction of these assets.
Based on the area of the house, land, or other assets of the investor determined according to the provisions of this Article, within 10 days, the Construction Department must send a written request to the district-level People’s Committee, proposing the issuance of a decision on the forced encumbrance of the investor’s assets for auction to recover the maintenance fund for the apartment building. The decision on the forced encumbrance of the assets must clearly state the basis for its issuance, the name and headquarters of the investor responsible for the encumbrance of the assets, the amount of the maintenance fund to be recovered, the type and quantity of assets to be encumbered, and the location where the assets will be encumbered.
The handover of the maintenance fund after the auction of the assets must be recorded in a minutes with the confirmed signatures of the relevant parties. In case the amount from the auction of the assets exceeds the amount of the maintenance fund to be handed over and the expenses for the implementation of the forced encumbrance and auction of the assets, within 30 days from the date of the auction, the Construction Department shall be responsible for coordinating with the auctioneer to refund the surplus to the investor with encumbered assets…
