Quyết định 67/2009/QD-TTg

DECISION

PROMULGATING A NUMBER OF MECHANISMS AND POLICIES ON DEVELOPMENT OF HOUSES FOR LOW-INCOME EARNERS IN URBAN CENTERS

THE PRIME MINISTER

Pursuant to the December 25, 2001 Law on Organization of Government;
Pursuant to the Government's Resolution No. 18/NQ-CP of April 20, 2009;
At the proposal of the Minister of Construction,

DECIDES:

Article 1. General provisions

1. The State encourages all economic sectors to invest in the construction of houses for sale (with lump-sum or installment payment), lease or lease-purchase to low-income earners in urban centers (below referred to as low-cost houses) by the mode of socialization.

2. Investors of low-cost housing projects are entitled to land, tax and credit incentives and other incentives under this Decision.

3. Low-cost houses must be built under urban development plannings on the basis of practical demands, national socio-economic conditions and local characteristics; the process of construction investment will be managed in strict accordance with regulations in a public and transparent manner to ensure construction work quality and effective management and use and avoid loss, waste and negative practices. Low-cost housing projects will be developed in harmony with commercial housing projects and projects on new urban centers in order to ensure low-income earners' access to benefits brought about by public welfare and social infrastructure facilities in urban centers.

4. Provincial-level People's Committees shall review and adjust or supplement their general construction plannings. detailed construction plannings and land-use plannings and plans in order to develop land for the construction of low-cost houses and. at the same time, determine the target of development of low-cost houses as one of basic targets in their local socio-economic development plans: this target must be formulated for each year and each period in conformity with local socio­economic conditions and characteristics in parallel with the definition of specific responsibilities for its implementation.

Article 2. Mechanisms for implementation of low-cost housing projects

1. Low-cost houses specified in this Decision are houses invested by enterprises of all economic sectors with capital mobilized by themselves. Investors of low-cost housing projects are entitled to incentives specified in Article 5 of this Decision.

2. Investors of low-cost housing projects are identified as follows:

a/ Investors who register for the implementation of commercial housing projects or projects on new urban centers are required to reserve part of the land area under these projects as prescribed in Clause 2. Article 3 of this Decision for investment in the construction of low-cost houses, at the same time, will act as investors of low-cost housing projects;

b/ Investors who have cleared land (land for which land use rights have been acquired in accordance with law) and register for investment in the construction of low-cost houses shall act as project investors;

c/ Investors who are allocated land by the State for investment in the construction of low-cost houses for lease or lease-purchase shall act as project investors.

3. Investors of low-cost housing projects may do business in the form of sale (with lump-sum or installment payment), lease or lease-purchase of houses to low-income earners facing housing difficulties specified in Article 6 of this Decision.

Article 3. Land funds for construction of low-cost houses

1. Land funds for the construction of low-cost houses will be allocated under plannings on commercial housing projects and new urban center projects or allocated separately under Clause 3, Article 1, of this Decision.

2. Investors of commercial housing projects occupying 10 hectares or more and investors of new urban center projects are required to reserve a land area equal to at least 20% of the residential land under these projects for the construction of low-cost houses (the ratio of the land area for the construction of low-cost houses in each commercial housing project or new urban center project shall be determined in the detailed construction planning approved by competent authorities).

3. For localities where the land fund of 20% of commercial housing projects and new urban center projects reserved for the construction of social houses is still available, this land fund shall be allocated to investors of these projects for the construction of low-cost houses. In case project investors fail to implement low-cost housing projects, provincial-level People's Committees shall assign other investors to invest in the construction of low-cost houses for lease or lease-purchase to low-income earners.

Article 4. Designing norms and sale prices, rent rates and lease-purchase prices of low-cost houses

1. Low-cost houses are apartment buildings with the area of each apartment not exceeding 70 m2 with technical and social infrastructure norms compliant with current construction standards. Low-cost housing projects are permitted to increase the construction density and land-use coefficient to 1.5 times those prescribed in the current construction planning standards, are not limited in the number of stories but must comply with construction plannings approved by competent authorities.

2. Sale prices of low-cost houses shall be set by project investors on the principle of fully covering expenses so as to ensure the recovery of construction investment capital, including loan interests (if any), and a maximum profit of 10% of investment expenses; incentive amounts provided by the State must not be included in sale prices of houses.

3. Rent rates and lease-purchase prices of low-cost houses shall be set by project investors on the principle of fully covering all expenses so as to ensure the recovery of construction investment capital, including loan interests (if any), management and operation expenses, and a maximum profit of 10% of investment expenses. Incentive amounts provided by the State must not be included in lease or lease-purchase rates. The minimum time limit for capital recovery is 20 years.

4. In case of purchase with installment payment and lease-purchase of low-cost houses, the first installment must not exceed 20% of the sale price, unless otherwise agreed upon by the purchaser and the seller. The time limit for installment payment and lease-purchase shall be agreed upon by the seller and the purchaser or lease-purchaser but must not be shorter than 10 years.

5. Provincial-level People's Committees shall appraise sale prices, rent rates and lease-purchase prices and closely examine the sale, lease and lease-purchase of low-cost houses in their localities.

Article 5. Investment incentives for investors of low-cost housing projects

1. Investors who wish to invest in the construction of low-cost houses shall make registration with provincial-level People's Committees for enjoying investment incentives prescribed in Clause 2 of this Article.

2. Investors of low-cost housing projects are entitled to the following incentives:

a/ Exemption from land use levy and land rent for the land area under the project;

b/ Preferential value-added tax rate at the highest incentive level (the tax rate of 0%);

c/ Exemption from enterprise income tax for four years after the generation of taxable income, a reduction of 50% of enterprise income tax in the subsequent five years and the enterprise income tax rate of 10% during their operation;

d/ Receipt of investment credit supports from the following sources:

- Preferential credit loans or interest rate supports as prescribed;

- Loans from the local housing development fund and other preferential capital sources (if any);

- Partial or whole loan interest rate supports from provincial-level People's Committees (depending on local budget capacity).

e/ Receipt of free model and typical designs and scientific and technical advances on construction and installation in order to reduce construction costs; implementation of projects if fully capable under law or designation of construction for construction and installation consultancy and equipment procurement contracts;

f/ Receipt of state supports in investment in outside-fence technical infrastructure (transport, electricity supply and water supply and drainage).

Article 6. Subjects and conditions for purchase, lease and lease-purchase of low-cost houses

1. Eligible for purchase, lease and lease-purchase of low-cost houses are cadres, civil servants, employees and men of armed forces' units salaried with the state budget and low-income earners in urban centers.

2. Conditions for purchase, lease and lease-purchase of low-cost houses

Persons eligible for purchase, lease and lease-purchase of low-cost houses must satisfy the following conditions:

a/ Having no houses or having houses with an average area below 5 m2/person;

b/ Not yet receiving state supports in housing or residential land in any forms:

c/ Having permanent residence or long-term temporary residence registration in the province or centrally run city where the project is implemented, for purchase or lease-purchase of low-cost houses;

d/ Earning low incomes and being incapable of improving their housing conditions by themselves.

3. Purchasers and lease-purchasers of low-cost houses may borrow loans from commercial banks with interest rate supports provided by the State to make lump-sum or installment payment for the purchase or lease-purchase of houses.

Article 7. Order of and procedures for identification of eligible subjects and for the purchase, lease or lease-purchase of low-cost, houses

The order of and procedures for the identification of eligible subjects and for the purchase, lease or lease-purchase of low-cost houses are as follows

1. Those who wish to purchase, lease or lease-purchase low-cost houses shall make and submit to the investor of the low-cost housing project an application with the certification by the agency or unit where they are working of their identity and income level and the certification by the People's Committee of the ward where they reside of their housing conditions and status.

2. The project investor shall consider and compare the identity and housing conditions of applicants for the purchase, lease or lease-purchase of low-cost houses against regulations in Article 6 of this Decision before signing contracts.

3. After signing contracts on the purchase, lease or lease-purchase of low-cost houses, the project owner shall make and send a list of approved applicants to the provincial-level Construction Service of the locality where the project is implemented for examination (post-examination).

4. In case project investors effect the sale, lease or lease-purchase of low-cost houses in contravention of regulations, provincial-level People's Committees shall force them to refund received incentive amounts and disallow them to implement other real estate business projects for 2 years after the date of project or business registration revocation. Project investors commit serious violations shall be handled in accordance with law.

4. Provincial-level People's Committees shall specify the order of and procedures for approval of. and the order of priority in approving, applicants for the purchase, lease or lease-purchase of low-cost houses in their localities in conformity with local socio-economic situations and conditions.

Article 8. Management of construction work quality of investment projects on construction of low-cost houses

1. Construction work quality of investment projects on construction of low-cost houses shall be managed in accordance with laws on management of construction work quality (the Government's Decree No. 209/2004/ND-CP of December 16, 2004. on management of construction work quality; Decree No. 49/2008/ND-CP of April 18, 2008, amending and supplementing a number of articles of the Government's Decree No. 209/2004/ND-CP of December 16. 2004. on management of construction work quality, and guiding documents promulgated by the Ministry of Construction).

2. Low-cost housing projects must be evaluated by an independent assessment consultancy organization in terms of construction work quality conformity before they are put into use.

Article 9. Modes and measures for management of low-cost houses

1. Abuse in any forms of state incentives for development of low-cost houses for self-seeking purposes is strictly prohibited.

2. Project investors shall manage the use, operation and exploitation of low-cost houses in accordance with the housing law and refrain from changing the use purpose of low-cost housing projects.

3. Persons who purchase, lease or lease-purchase low-cost houses may not lease, sub-lease, mortgage or transfer these houses in any form. Persons who purchase or lease-purchase low-cost houses may sell or lease these houses only after making full payment to project investors, being granted house ownership certificates and 10 years from the time of signing house sale and purchase or lease-purchase contracts with project investors.

4. Within 10 years after the signing of contracts, if persons who purchase or lease-purchase low-cost houses wish to transfer their houses, they may transfer their houses only to the State, project investors or other persons eligible for purchase or lease-purchase of low-cost houses as prescribed by local administrations. The transfer prices must not be higher than the prices of low-cost houses of the similar type at the time of transfer.

5. Transactions in low-cost houses in contravention of Clauses 3 and 4 of this Article shall, depending on each specific case, be subject to recovery of state supports already provided, cancellation of purchase, lease or lease-purchase contracts or withdrawal of house ownership certificates or handled in accordance with law.

Article 10. Organization of implementation

1. Ministries, concerned branches and provincial-level People's Committees shall perform tasks assigned in the Government's Decree No. 18/NQ-CP of April 20, 2009.

2. The Ministry of Construction shall:

a/ Directly instruct key localities (Hanoi. Ho Chi Minh City and some other localities) and a number of state corporations to invest in low-cost housing projects under this Decision during 2009-2010;

b/ Promulgate according to its competence model designs and typical designs of low-cost houses; a Regulation on the use and exploitation of land areas for construction of low-cost houses; and the model contract on the lease of low-cost houses;

c/ Supervise, urge and sum up the implementation of this Decision; propose amendments and supplementations to suit practical situations and submit them to the Prime Minister for consideration and decision.

3. The Ministry of Planning and Investment shall add low-cost housing projects to the list of projects eligible for preferential credit or post-investment supports of the Government.

4. The Ministry of Finance shall:

a/ Guide the provision of incentives related to financial and tax policies specified in this Decision;

b/ Study the provision of the highest tax incentives to low-cost housing projects for reporting to the Government before submitting them to the National Assembly at its 2009 year-end session.

5. The Ministry of Natural Resources and Environment shall assume the prime responsibility for, and coordinate with localities in, reviewing land-use plannings and plans in order to supplement land funds for low-cost housing projects and guide the provision of land incentives to low-cost housing projects under this Decision.

6. The State Bank of Vietnam shall guide the order of and procedures and conditions for subjects eligible for purchase, lease and lease-purchase of low-cost houses to borrow loans for the purchase or lease-purchase of houses under this Decision.

7. Provincial-level People's Committees shall:

a/ Organize and direct the survey and sum up of needs for low-cost houses and elaborate annual programs and plans on investment in the construction of low-cost houses during 2009-2015 in their localities;

b/ Review, adjust or supplement the land funds for development of low-cost houses in general and detailed construction plannings of localities, recover land areas under commercial housing projects or new urban center projects already allocated to project investors which are not yet implemented or implemented behind the approved schedule and the land funds of 20% of commercial housing projects and new urban center projects reserved for the construction of social houses for allocation to investors wishing to invest in the construction of low-cost houses.

c/ Specify and publicize criteria, subjects and conditions for purchase, lease and lease-purchase of low-cost houses in their localities; manage and supervise the sale, lease and lease-purchase of low-cost houses in order to restrict self-seeking acts.

d/ Specify incentive mechanisms to encourage all economic sectors to invest in the development of low-cost houses in their localities; and promulgate a Regulation on the management of the use, exploitation and commission of low-cost houses in their localities;

e/ Examine, inspect, supervise and handle violations in the purchase, lease and lease-purchase of low-cost houses in their localities according to their competence;

f/ Organize biannual and annual brief meetings and preliminary reviews of implementation results and make annual reports to the Ministry of Construction for summing up and reporting to the Prime Minister.

Article 11. This Decision takes effect on June 10, 2009.

Article 12. Ministers, heads of ministerial-level agencies, heads of Government-attached agencies and presidents of provincial-level People's Committees shall implement this Decision.