Nghị định 84/2013/ND-CP

DECREE

ON DEVELOPMENT AND MANAGEMENT OF RELOCATION HOUSING

Pursuant to the Law on Government organization dated December 25, 2001;

Pursuant to the Law on Land dated November 26, 2003;

Pursuant to the Law on Housing dated November 29, 2005;

Pursuant to the Law on Real estate trading dated June 29, 2006;

At the request of the Minister of Construction;

The Government promulgates a Decree on development and management of relocation housing,

Chapter 1.

GENERAL PROVISIONS

Article 1. Scope of regulation

1. This Decree deals with the development and management of relocation housing serving provision of compensation and land clearance when the State withdraw land to execute construction projects serving national defense and security, national interests and public interests.

2. The development of relocation housing serving projects is invested by capital loans taken from international organizations with which Socialist Republic of Vietnam has reach agreements.

3. The relocation housing serving relocation of households and individuals that must leave the areas at risk of landslide or areas that regularly suffers from natural disasters is not regulated by this Decree.

Article 2. Subjects of application

This Decree is applicable to:

1. The households and individuals that must move when the state withdraw land to execute construction projects serving national defense and security, national interests and public interests in accordance with the planning and plans approved by competent authorities.

2. The organizations and individuals related to the development and management of relocation housing.

3. The state management authorities related to housing.

Article 3. Interpretation of terms

In this Decree, the terms below are construed as follows:

1. “Relocation housing” is a kind of housing that are built or bought serving the relocation of households and individuals mentioned in Clause 1 Article 2 of this Decree.

2. “Relocation zone projects” are housing projects that have uniform technical infrastructure and social infrastructure (if any) to serve relocation.

3. “Relocation housing projects” are projects of investment in apartment buildings and detached houses serving relocation.

4. “Relocated households and individuals” are the households and individuals defined in Clause 1 Article 2 of this Decree that are allowed to buy or lease relocation housing in accordance with legislation on land and this Decree.

5. “Construction projects funded by the state budget that require relocation” are construction projects serving national defense and security, national interests, and public interests which are funded by the state budget that demand relocation housing to serve compensation provision and land clearance when withdrawing land.

6. “Construction projects funded by capital derived from the state budget that demand relocation” are Build - Transfer projects (BT projects), Build - Operate - Transfer projects (BOT projects), Build - Transfer - Operate projects (BTO projects) that demand relocation provision and land clearance when withdrawing land.

7. “Construction projects that are not funded by the state budget serving relocation housing” are projects invested by economic sectors from other capital other than the state budget, the land of which is withdrawn by the State.

Chapter 2.

DEVELOPMENT RELOCATION HOUSING

Article 4. Relocation housing development principles

1. Relocation housing development must comply with the construction planning approved by competent authorities, ensure the uniformity of technical infrastructure and social infrastructure, comply with legislation on housing, legislation on land, legislation on investments, construction, and this Decree.

2. Relocation housing development must ensure equivalent of better life relocated households and individuals.

3. Relocation housing must comply with construction standards, ensure construction quality, safety, and be appropriate for local traditions and cultures.

4. Avoid investing in separated relocation projects in urban areas. Focus on developing social housing projects or buying apartments in commercial housing development projects and new urban areas to provide relocation housing.

Article 5. Making construction planning for relocation zones

1. When making, assessing and approving construction planning, urban planning, land use plan, plans for development of economic zones, industrial parks, export processing zones, hi-tech zones (hereinafter referred to as industrial parks), and rural residential areas, People’s Committees shall provide land to meet the demand for relocation locally. If those plans have not provided land for relocation housing, Services of Natural Resources and Environment shall cooperate with Services of Constructions and Services of Planning and Architecture to request provincial People’s Committees to adjust the land planning and construction planning in order to provide sufficient land for relocation housing.

2. For projects of new urban areas and new residential areas that require relocation, the land for relocation housing should be provided within such new urban areas or residential areas.

3. For infrastructure projects of industrial parks that require relocation, relocation housing shall be located within the workers' residence areas, or in other places in the same locality which suit the conditions of the relocated households.

Article 6. Making plans for relocation housing development

1. Investors of the projects mentioned in Clause 4, Clause 6 and Clause 7 Article 3 of this Decree shall survey the demand for compensation of relocated households and individuals (such as locations, infrastructure of the  relocation zone, types of housing, area, quantity of housing, time or relocation) and send reports to People’s Committees of districts for summarization.

2. People’s Committees of districts shall send reports to Services of Construction on the demand for relocation housing, funded by all sources of capital, including the central budget (total quantity of relocation housing, housing area, total capital and capital sources). Based on that, Services of Construction shall make and send plans for relocation housing development every year and every 5 years to provincial People’s Committees. The plans for relocation housing development may made separately or be integrated into Local Housing Development Programs in accordance with legislation on housing, depending the conditions of each locality.

3. Based on the local socio-economic development plans, land planning, construction planning, and housing development programs, which have been approved, People’s Committees shall consider approving the plans for relocation housing development every year and every 5 years, announce the plans for relocation housing development, and send reports to the Ministry of Construction before October 31.

4. The plans for relocation housing development in urban areas must be consistent with local social housing development plans.

Article 7. Standards of relocation housing area

The area of relocation housing shall comply with current construction standards and the regulations below:

1. In urban areas:

a) The area of relocation housing being apartment buildings and detached houses in projects must be suitable for the planning approved by competent authorities;

b) The area of relocation housing being apartments must be conformable with legislation on housing;

c) When designing relocation housing being apartment buildings, part of the building area may be used for business, depending on the condition of each projects (provided the area for living and community activities is sufficient, including parking lots);

d) Technical infrastructure and minimum area of relocation housing must conformable with the requirements of infrastructure and minimum area prescribed by provincial People’s Committees.

2. In rural areas

The area of relocation housing and ancillary constructions serving production, which are attached to relocation housing (if any), must be conformable with minimum area prescribed by provincial People’s Committees.

Article 8. Forms of relocation housing development

Relocation housing shall be developed in the forms of:

1. Direct investments;

2. Investments under BT contracts;

3. Buying commercial housing for relocation.

Article 9. Sources of capital for relocation housing development

1. The state budget, construction bonds, Government bonds;

2. ODA and concessional loans provided by sponsors;

3. Capital derived from the state budget (converted from the right to use land);

4. Lad Development Fund and Housing Development Fund;

5. Corporate capital and other capital legally raised.

Article 10. Investors in relocation zone projects and relocation housing projects

The legal status and financial capacity of investors in relocation zone projects and relocation housing projects must be adequate according to legislation on construction investment, housing, real estate trading. In particular:

1. For relocation zone projects and relocation housing projects funded by the state budget, the investors are:

a) The local project management board;

b) The land development organization;

c) State-owned enterprises according to legislation on enterprises licensed to trade in real estate.

2. For relocation zone projects and relocation housing projects that are invested under BT contracts, the selection of investors shall comply with Article 12 of this Decree.

3. The investors mentioned in Clause 7 Article 3 of this Decree are investors in relocation zones and relocation housing serving the relocation at the projects in which they are the investors.

4. The power to select investors

a) For relocation zone projects and relocation housing projects serving the projects of national importance, the investors in the projects of national importance shall request provincial People’s Committees to request the Prime Minister to select the investors in relocation zone projects and relocation housing projects.

b) For relocation zone projects and relocation housing projects funded by the central budget and local budget, except for the cases in Point a of this Clause, the President of the provincial People’s Committee shall select the investors. Depending on the condition of the province, the provincial People’s Committee may authorize the Service of Construction to select investors in projects in B class and C class.

Article 11. Management of investment in relocation zones and relocation housing in the form of direct investment

1. Based on the approved relocation housing development plan, the capital for building relocation housing may be allocated by separate projects to make investment in relocation housing, serving one or some projects that require relocation.

2. The making, assessment, and approval of projects and investment in relocation zone projects and relocation housing projects shall comply with legislation on housing, legislation on construction investment, relevant laws, and the regulations below:

a) Based on the annual and 5-year plans for relocation housing development that are approved by competent authorities, and the selection of investors according to Article 10 of this Decree, investors in relocation zone projects and relocation housing projects shall start to make projects.

b) Provincial People’s Committees to request the Prime Minister to approve the relocation zone projects and relocation housing projects serving the projects of national importance after a written agreement is reached with the Ministry of Construction.

c) Services of Construction shall cooperate with relevant agencies in assessing the relocation zone projects and relocation housing projects serving the projects mentioned in Clause 5 and Clause 6 Article 3 of this Decree (except for the cases in Point b of this construction), and submit them to provincial People’s Committees for approval.

d) For the relocation zone projects and relocation housing projects mentioned in Clause 7 Article 3 of this Decree, Services of Construction shall cooperate with relevant agencies in assessing and requesting provincial People’s Committees to accept the investment, for the investors to approve the projects in accordance with legislation on construction investment and legislation on housing.

3. Advance provision and withdrawal of capital for building relocation housing:

a) Services of Construction shall summarize the demand for relocation housing, consider the plan for compensation, support, and relocation approved by competent authorities, plan the allocation of housing to each relocation housing projects, including relocation housing projects serving the local projects of national importance, and request provincial People’s Committees to approve.

b) Based on the approve plan for relocation housing allocation, provincial People’s Committees may provide advance capital from local budget for the investors in relocation zone projects and relocation housing projects. If the local investors in the project that require relocation, including investors in projects of national importance, already have approved plans for compensation, support, and relocation, such investors shall request provincial People’s Committees to make advance capital provision executing relocation zone projects and relocation housing projects in accordance with this Decree.

c) Investors in relocation zone projects and relocation housing projects are responsible for recouping capital by selling or leasing housing to the relocated households and individuals, or deducting the compensation or support provided for them when moving, and return the investment to local budget in accordance with legislation on land and this Decree.

4. Management of investment and construction of relocation housing being detached houses;

a) In rural areas, provincial People’s Committees shall provide guidance on the construction for housing for relocation, or specify the areas, in which the right to use land have been transferred and infrastructure is already invested, for people to build their houses in accordance with the planning approved by competent authorities.

b) In urban areas, provincial People’s Committees shall specify the areas, in which the right to use land have been transferred and infrastructure is already invested, for people to build their houses in accordance with the planning and legislation on management, investment, and development of urban areas.

Article 12. Management of investment in building relocation zones and relocation housing under BT contracts

The management of investment in building relocation zones and relocation housing under BT contracts shall comply with legislation on housing, legislation on construction investment, and the regulations below:

1. The state agencies authorized to conclude and execute BT contracts:

a) For relocation zones and relocation housing invested by central budget and local budget, provincial People’s Committees are authorized to conclude and execute BT contracts.

b) The competent authorities mentioned in Point a of this Clause is a party to the BT contract, and shall exercise the rights, fulfill the obligations in accordance with the agreements with investors in relocation zone projects and relocation housing projects in the BT contracts.

2. Making a list of BT contracts for relocation housing development

Based on the plan for relocation housing development, the land for relocation housing development, and the land for swapping with investors that participate in the execution of BT contracts (hereinafter referred to as BT investors), the Service of Construction shall make a list of BT projects and request the provincial People’s Committees to approve it and announce it for investors to participate.

3. BT investors

BT investors are the organizations and individuals defined by the Law on Investment and:

a) Are licensed to trade in real estate;

b) Have adequate financial capacity for executing projects in accordance with legislation on housing and legislation on real estate trading.

4. The selection of BT investors must comply with legislation on investment under BT contracts and the regulations below:

a) Provincial People’s Committees to request the Prime Minister to select BT investors in relocation zone projects and relocation housing projects serving projects of national importance, after a written agreement is reached with the Ministry of Construction.

b) The President of the provincial People’s Committee shall select the investor in relocation zone projects and relocation housing projects funded by the central budget and local budget, except for the cases in Point a of this Clause.

5. Obligations and interests of BT investors

a) After signing the BT contract, the BT investor shall pay for the compensation, land clearance, execution of relocation zone projects or relocation housing projects in accordance with the contents approved by competent authorities and the BT contract. Investors shall hand over the area of land, in which infrastructure or housing for relocation has been invested, to the competent authority that signs the BT contract.

b) The BT investor shall receive a refund in the form of money from the state budget, or the right to use land when executing the project, and other lawful assets corresponding to the investment in the area of land, in which infrastructure or housing for relocation has been invested, which is transferred to the competent authority mentioned in Point a of this Clause.

Article 13. Buying commercial housing for relocation

1. Based on the approved plan for allocating relocation housing, the investor in the relocation zone or relocation housing that is selected by competent authorities, according to Clause 1 Article 10 of this Decree, may buy commercial housing from projects of new urban areas or residential areas to serve relocation. In particular:

a) The investor in the relocation zone or relocation housing shall prepare the relocation housing, make a plan for buying commercial housing for relocation, specifying the location, quantity of housing, the intended purchase prices, handover schedule, and submit it to the provincial People’s Committee for approval.

b) The purchase prices of commercial houses for relocation shall be suggested by the sellers as follows:

- For the building land under the management of the State or for which compensation is provided by the State, the prices shall include the cost of building, loan interest (if any), other legitimate expenses, and a profit up to 15%.

- For the building land for which compensation is provided by the investor, the purchase price shall include the cost of compensation and land clearance, the cost of building, loan interest (if any), other legitimate expenses, and a profit up to 10%. If the investor has to pay land levy to the State, the purchase price shall also include the land levy.

c) Services of Construction shall cooperate with relevant agencies in assessing the plans for buying commercial housing for relocation, the house prices stipulated in Point a and Point b of this Clause, and submit them to provincial People’s Committees for approval.

2. The investors in the projects that require relocation, according to Clause 5 and Clause 6 Article 3 of this Decree, who directly buys commercial housing for relocation, shall also follow the order and principles stipulated in Clause 1 of this Article.

3. The Ministry of Construction shall provide guidance on the order and procedure for buying commercial housing for relocation.

Article 14. Relocation housing quality control

1. The organizations and individuals below are responsible for the relocation housing quality control during the execution of projects based on the characteristics and scales of constructions, capital sources, methods of investment, methods of project management, and the forms of construction contracts.

a) Investors, for relocation housing that are directly invested;

b) The competent authorities that sign and execute BT contracts, for relocation housing invested under BT contracts;

c) Investors in building commercial housing for relocation.

2. The person that decides the investment shall assess and approve relocation zone projects and relocation housing projects, inspect the execution of the projects in accordance with legislation on management of construction projects.

3. The organizations and individuals that participate in the construction of relocation housing must prove their capacity for their tasks, have internal quality control systems, and take responsibility for the quality of the works they do before the organizations and individuals mentioned in Clause 1 of this Article and before the law.

4. The survey, design, construction, inspection, and handover of buildings must comply with legislation on construction quality control.

5. A construction shall only be put into operation after it meets the requirements of the design, technical regulations, and technical standards applicable to relocation housing, and other requirements of the organizations and individuals mentioned in Clause 1 of this Article.

6. Where households and individuals build their own relocation housing, according to Clause 4 Article 11 of this Decree, the investor in the relocation zone project shall provide guidance on the planning, design, construction standards, and construction regulations for them to organize the construction, and carry out supervision to ensure the quality and progress of building.

7. The state agencies in charge of construction shall provide guidance and inspect the quality control of the organizations and individuals participating in building relocation housing, and penalize the violations against the legislation of relocation housing quality.

Chapter 3.

SELLING, LEASING, AND MANAGING RELOCATION HOUSING

Article 15. Buyers, sale prices, and methods of selling relocation housing

1. The subjects allowed to buy relocation housing and sale prices of relocation housing:

a) The households and individuals mentioned in Clause 1 Article 2 of this Decree may buy relocation housing if they wish to.

b) Sale prices of relocation housing must be conformable with the compensation, support, and relocation of each project, legislation on compensation, land clearance, and the regulations below:

- The sale price of an apartment must include the cost of maintenance of the common parts that makes up 2% of the sale price of an apartment according to legislation on housing.

- The households and individuals provided with land, on which technical infrastructure is built, to build houses, must pay land levies as prescribed.

2. Methods of selling relocation housing

Relocation housing shall be sold under contracts in accordance with the contents and forms of contracts to sell commercial housing provided by the Ministry of Construction.

3. Provincial People’s Committees shall announce the list of relocation housing, sale prices, and rents of local relocation housing and social housing.

4. The sale of relocation housing to the households and individuals to in this Decree may not be made through real estate companies.

5. Where the households and individuals mentioned in Clause 1 Article 2 of this Decree are encouraged and shall be enabled to buy, rent, or hire-purchase social housing instead of relocation housing if they wish to.

Article 16. Procedure for selling and handing over relocation housing

1. Based on the decision to approve the plan for compensation, support, and relocation (including the list of relocated households and individuals, locations of relocation housing), People’s Committees of communes shall post such plan at the People’s Committees of communes of the residential areas where land is withdrawn.

2. Based on the plan for allocating relocation housing approved by competent authorities according to Point a Clause 3 Article 11 of this Decree, the lists of relocated households and individuals sent by People’s Committees of districts, investors in relocation housing shall request the relocated households and individuals to sign contracts to buy, sell houses, transfer the right to use land, and send reports to Services of Construction in accordance with legislation on housing, legislation on land and this Decree.

3. Investors in relocation housing are responsible for handing houses over to relocated households and individuals in accordance with contracts to sell houses.

Article 17. Legal lessees, rents, and methods of renting relocation housing

1. The households and individuals mentioned in Clause 1 Article 2 of this Decree may rent relocation housing if they wish to.

2. Rents for relocation housing:

a) The rents for the relocation housing invested by the state budget shall be set provincial housing management agencies, in accordance with the method of setting rents for relocation housing of the Ministry of Construction, and request the provincial People’s Committees to decide and officially impose the rents for relocation housing;

b) The rents for the relocation housing that is not invested by the state budget shall be set or adjusted by investors in such relocation housing based on the method of setting rents for relocation housing of the Ministry of Construction;

c) The Ministry of Construction shall provide guidance on the method of setting rents for relocation housing.

3. Methods of leasing out relocation housing

The lease of relocation housing must be made into contracts in accordance with the forms provided by the Ministry of Construction.

Article 18. Procedure for leasing out and handing over relocation housing

1. Based on the decision to approve the plan for compensation, support, and relocation, the plan for allocating relocation housing approved by competent authorities, according to Clause 1 and Clause 2 Article 16 of this Decree, investors in relocation housing shall notify the persons in Clause 1 Article 17 of this Decree of the conclusion of lease contracts.

2. Investors in relocation housing, or the enterprises authorized to manage and operate relocation housing shall sign lease contracts with relocated households and individuals. The validity period of lease contracts is at least 03 years.  A Regulation on management of leased housing issued by the investor, in accordance with instructions of the Ministry of Construction, shall be enclosed with the lease contract.

3. Lessees must pay must pay rents agreed in the lease contract for the lessor. Rents shall be paid every month or as frequently as agreed by both parties, but not less frequently than once per year.

4. 3 months before the contract expiration, the lessee may sign a new lease contract or have the current lease contract expended if the lessee does not violate the contract.

5. The lessor shall only sign the lease contract after the construction is finished, the house is put into operation, and the safety, fire safety are certified by competent authorities, according to legislation on construction quality control. Be lessor shall hand over the house to the lessee in accordance with the lease contract. The handover of housing shall be recorded in writing. The handover note shall be signed by both parties.

Article 19. Management of relocation housing

1. The management of relocation housing must comply with legislation on management of apartment buildings, legislation on housing, this Decree, and relevant laws.

2. Relocation housing being apartment buildings shall be managed as follows:

a) The investors in apartment buildings are responsible for before the law for the management of such apartment buildings (via their affiliated departments or a hired enterprise licensed to manage apartment buildings). When buying commercial housing for relocation, the enterprise that manages such commercial housing shall manage the relocation housing.

b) Provision of services in apartment buildings:

- Where some apartments of floors in a commercial apartment building is bought for relocation, the investor in such apartment building is recommended to give priority to the relocated households and individuals that bid for the business area if the bid put in by the relocated households and individuals is equal to the bid put in by other households in the same commercial apartment buildings.

- If relocation housing is invested directly, the investor in that housing shall lease out no more than 2/3 of the business area to the relocated households and individuals via open bidding (if they wish to) in order to create jobs for relocated households and individuals.

3. The management of relocation housing in rural areas shall ensure environmental safety, fire safety, civilized lifestyles, maintenance of fundamental infrastructures, gradually improve the life of relocated households and individuals in rural areas.

Chapter 4.

IMPLEMENTATION

Article 20. Responsibilities of the Ministry of Construction

1. Assist the Government to unify the state management of relocation housing nationwide;

2. Provide guidance or request competent authorities to provide guidance on this Decree;

3. Provide guidance on the making of construction planning, plans for relocation housing development, standards of area of relocation housing; provide guidance on the policies on relocation housing (management of investment, construction, sale, lease, use of relocation housing);

4. Summarize and reports plans for annual and 5-year relocation housing development of Ministers and local governments to the Prime Minister.

5. Inspect and supervise the development and management of relocation housing in accordance with this Decree.

6. Send annual and unscheduled reports to the Government and the Prime Minister on the implementation of this Decree nationwide.

Article 21. Responsibilities of relevant Ministries and agencies

1. The Ministry of Planning and Investment shall:

a) Carry out assessment and issue certificates of investments to relocation zone projects and relocation housing projects under BT contracts;

b) Cooperate with relevant agencies in providing guidance on incentives for investment in relocation housing.

2. The Ministry of Finance shall:

a) Provide guidance on the cost of project preparation and the use of budget of competent authorities during the project management; the expenditures, conditions and methods of payment to investors that execute BT contracts for building relocation zones and relocation housing;

b) Cooperate with relevant agencies in providing guidance on incentives related to financial policies, taxation, and other incentives for relocation housing.

3. The Ministry of Natural Resources and Environment shall:

Carry out inspections and instruct local governments to review, adjust, and supplement the land planning and preparation of land for relocation.

4. Relevant Ministries and agencies shall:

a) Relevant Ministries shall report the demand for relocation housing annually and every 5 years to provincial People’s Committees and the Ministry of Construction;

b) Cooperate with provincial People’s Committees in reviewing, adjusting, and supplementing land planning and preparation of land for relocation funded by local budgets.

Article 22. Responsibilities of provincial People’s Committees

1. Provide guidance on surveying demand for relocation housing, the making and assessment of annual and 5-year plans for development of local housing, and send report to the Ministry of Construction.

2. Cooperate with the Ministry of Natural Resources and Environment, the Ministry of Construction, and other Ministries in reviewing, adjusting, and supplementing land planning for relocation funded by the central budget.

3. Select investors or delegate the power to select investors, select BT investors and decide the conclusion of BT contracts; provide guidance on the making, assessment, and approval of local relocation zone projects and relocation housing projects funded by the state budget,

4. Specify the procedure for selling, buying and leasing relocation housing; provide guidance on the management, inspect the trading and lease of relocation housing.

5. Elaborate the mechanism for encouraging economic sectors to make investment in relocation housing development; stipulate the management and use of local relocation housing.

6. Provide guidance on inspection and penalties for violations related to relocation housing development, trading, lease, management and use of local relocation housing.

7. Make summaries, carry out assessment, and send reports to the Ministry of Construction annually.

Article 23. Implementation

1. Transitional handling:

For the projects of relocation housing that are made or submitted before this Decree takes effect, but have not been approved, or have been approved but the investors change the contents of the projects, the making, assessment, approval of projects, investment, and the next steps shall comply with this Decree to ensure the uniformity, efficiency of the projects and legitimate interests of relevant parties.

2. This Decree takes effect on September 30, 2013.

3. The ministers, Heads of ministerial agencies, Heads of Governmental agencies, Presidents of provincial People’s Committees are responsible for the implementation of this Decree./.