From August 1, 2024, what are the procedures for leasing of commercial housing property as official housing in Vietnam?
From August 1, 2024, what are the procedures for leasing of commercial housing property as official housing in Vietnam?
According to Clauses 2, 3, and 4 of Article 33 of Decree 95/2024/ND-CP stipulating the procedures for leasing of commercial housing property as official housing in Vietnam:
(1) Subjects under central agencies:
The procedure for leasing of commercial housing property as official housing to serve the subjects under central agencies, except for the subjects in the people's armed forces stipulated in (2), is specified as follows:
- Step 1: Submit a proposal and seek opinions:
The Ministry of Construction is responsible for submitting a proposal with the contents stipulated in Point d, Clause 4, Article 43 of the Housing Law 2023 and seeking the opinions of relevant agencies, including obtaining the opinion of the financial agency on the cost estimate for renting housing within the regular expenditure budget as regulated by the law on the budget before reporting to the Prime Minister of the Government of Vietnam for consideration and decision;
- Step 2: Finalize and report:
Based on the opinion of the financial agency, the Ministry of Construction finalizes the proposal and reports to the Prime Minister of the Government of Vietnam for consideration and approval;
- Step 3: Sign the contract:
After obtaining the approval of the Prime Minister of the Government of Vietnam, the Ministry of Construction is responsible for signing the rental contract with the owner of the commercial housing; the funding for paying the house rent is carried out based on the approval of the Prime Minister of the Government of Vietnam and the law on the budget;
- Step 4: Receive and manage:
After signing the rental contract for commercial housing, the Ministry of Construction receives the housing, signs the rental contract for the official residence, and collects the rent in accordance with the housing laws.
(2) Subjects of the people’s armed forces:
The procedure for leasing of commercial housing property as official housing to serve the subjects of the people's armed forces is specified as follows:
- Step 1: Submit a proposal and seek opinions:
The Ministry of National Defense and the Ministry of Public Security submit a proposal with the contents stipulated in Point d, Clause 4, Article 43 of the Housing Law 2023 and seek the opinions of the financial agency on the cost estimate for renting housing within the regular expenditure budget as regulated by the law on the budget before reporting to the Prime Minister of the Government of Vietnam for consideration and decision;
- Step 2: Sign the contract:
After obtaining the approval of the Prime Minister of the Government of Vietnam, the Ministry of National Defense and the Ministry of Public Security are responsible for signing the rental contract with the owner of the commercial housing; the funding for paying the house rent is carried out based on the approval of the Prime Minister of the Government of Vietnam and the law on the budget;
- Step 3: Receive and manage:
After signing the rental contract for commercial housing, the Ministry of National Defense and the Ministry of Public Security receive the housing, sign the rental contract for the official residence, and collect the rent in accordance with the housing laws.
(3) Subjects of local authorities:
The procedure for leasing of commercial housing property as official housing to serve the subjects of local authorities is specified as follows:
- Step 1: Submit a proposal and seek opinions:
The provincial housing management agency submits a proposal with the contents stipulated in Point d, Clause 4, Article 43 of the Housing Law 2023 and seeks the opinions of the financial agency on the cost estimate for renting housing within the regular expenditure budget as regulated by the law on the budget before reporting to the provincial People's Committee for consideration and decision;
- Step 2: Sign the contract:
After obtaining the approval of the provincial People's Committee, the provincial housing management agency is responsible for signing the rental contract with the owner of the commercial housing; the funding for paying the house rent is carried out based on the approval of the Prime Minister of the Government of Vietnam and the law on the budget;
- Step 3: Receive and manage:
After signing the rental contract for commercial housing, the provincial housing management agency receives the housing, signs the rental contract for the official residence, and collects the rent in accordance with the housing laws.
From August 1, 2024, what are the procedures for leasing of commercial housing property as official housing in Vietnam? (Internet image)
What types of official housing are specified by the law in Vietnam?
Based on Clause 1, Article 44 of the Housing Law 2023 stipulating the types of housing as follows:
Types and area standards of official housing
1. Official housing include villas, adjacent houses, and condominiums with different area standards suitable to each group of subjects eligible for renting official housing as stipulated by this Law.
Thus, official housing include: villas; adjacent houses; condominiums.
If the rent for commercial housing is higher than the stipulated amount, do the tenants have to pay the difference in Vietnam?
Based on Clause 5, Article 33 of Decree 95/2024/ND-CP stipulating the case of leasing of commercial housing property as official housing where the rent for commercial housing is higher than the rent paid by the tenants of official housing as follows:
Procedures for leasing of commercial housing property as official housing
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5. In the case of leasing of commercial housing property as official housing where the rent for commercial housing is higher than the amount paid by the tenants of official housing as stipulated in Clause 4, Article 31 of this Decree, the tenants of official housing only have to pay a rent that does not exceed 10% of their current salary at the time of renting the official residence (including any allowances if any) to the agency signing the rental contract for the official residence; the central budget covers the difference in rent (if any) for officials under the central agency management, the local budget covers the difference in rent (if any) for officials under the local agency management.
Therefore, in the case where the rent for commercial housing as official housing is higher than the stipulated amount, the tenants of official housing only have to pay a rent that does not exceed 10% of their current salary at the time of renting the official residence (including any allowances if any).
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