What is social housing? What are the principles to ensure in implementing social housing support policies in Vietnam?
What is social housing in Vietnam?
Based on Clause 7, Article 3 of the Law on Housing 2014, social housing refers to housing supported by the State for individuals who are eligible for housing support policies under the provisions of the Law on Housing 2014.
What is social housing? What are the principles to ensure in implementing social housing support policies in Vietnam?
What principles must be ensured in implementing social housing support policies?
According to Clause 1, Article 52 of the Law on Housing 2014, the regulations are as follows:
Principles for implementing social housing support policies
1. The implementation of social housing support policies must ensure the following principles:
a) There must be a combination of the State, the community, clans, and the supported individuals in implementing the policies;
b) Ensure openness, transparency, and strict inspection and supervision by competent state agencies and the community;
c) Ensure the right individuals and sufficient conditions as stipulated by this Law;
d) In cases where an individual is eligible for multiple support policies, the highest level of support policy will be applied. If individuals have the same standards and conditions, priority will be given to disabled persons and females;
dd) For households with multiple eligible individuals for various support policies, only one support policy will be applied to the entire household.
2. Provincial People's Committees are responsible for organizing, inspecting, and auditing the implementation of social housing support policies in their area.
Thus, according to the above regulations, the principles for implementing social housing support policies must be ensured as follows:
- Firstly, there must be a combination of the State, the community, clans, and the supported individuals in implementing the policies.
- Secondly, ensure openness, transparency, and strict inspection and supervision by competent state agencies and the community.
- Thirdly, ensure the right individuals and sufficient conditions as stipulated by the Law on Housing 2014.
- In cases where an individual is eligible for multiple support policies, the highest level of support policy will be applied. If individuals have the same standards and conditions, priority will be given to disabled persons and females.
- For households with multiple eligible individuals for various support policies, only one support policy will be applied to the entire household.
What is the lending term for preferential loans to invest in the construction of social housing?
According to Clause 5, Article 15 of Decree 100/2015/ND-CP, the regulations are as follows:
Preferential loans for the investment in the construction of social housing
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5. Loan term:
a) For the investment in the construction of social housing solely for rental purposes, the minimum loan term is 15 years and the maximum term does not exceed 20 years from the first disbursement date;
b) For the investment in the construction of social housing for lease-purchase purposes, the minimum loan term is 10 years and the maximum term does not exceed 15 years from the first disbursement date;
c) For the investment projects in social housing for sale, the minimum loan term is 05 years and the maximum term does not exceed 10 years from the first disbursement date;
d) In cases where customers wish to borrow for a shorter term than the minimum loan term specified at Points a, b, and c of this Clause, they may negotiate with the bank for a shorter term.
6. Repayment of principal and interest shall be made in accordance with the regulations of the lending credit institution.
7. Loan interest rate:
a) The preferential lending rate of the Bank for Social Policies is determined by the Prime Minister at the proposal of the Board of Directors for each period;
b) The preferential lending rate of other credit institutions is determined and announced by the State Bank of Vietnam, ensuring the principle that it does not exceed 50% of the average lending rate of commercial banks on the market for the same period.
8. Loan disbursement: Loans are disbursed according to the progress of implementation and the proposal of the investor. The amount disbursed each time is based on the completed workload at the technical stopping point.
Thus, according to the above regulations, the lending term for preferential loans to invest in the construction of social housing is as follows:
- For the construction of social housing solely for rental purposes: the minimum loan term is 15 years and the maximum term does not exceed 20 years from the first disbursement date.
- For the construction of social housing for lease-purchase purposes: the minimum loan term is 10 years and the maximum term does not exceed 15 years from the first disbursement date.
- For investment projects in social housing for sale: the minimum loan term is 05 years and the maximum term does not exceed 10 years from the first disbursement date.
Note: Customers wishing to borrow for a shorter term than the minimum loan term mentioned above may negotiate with the bank for a shorter term.
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