18/04/2024 08:22

Principles for sale and lease of social housing in Vietnam under the Housing Law 2023

Principles for sale and lease of social housing in Vietnam under the Housing Law 2023

What are the new points specified in the Housing Law 2023 regarding regulations on the sale, lease purchase, and lease of social housing compared to the current regulations? Mr. Ngoc Hoan (Son La).

Regarding this matter, LawNet would like to answer as follows:

Principles for sale, and lease of social housing in Vietnam under the Housing Law 2023 compared to the current regulations

Pursuant to Point d and Point dd, Clause 1, Article 89 of the Housing Law 2023, regulations on the principles of sale, lease purchase, lease of social housing are as follows:

- Buyers of social housing are not allowed to resell the social housing in at least the first 5 years from the date on which the purchase payment is settled;

- However, within 5 years from the date on which buyers of social housing that have settled social housing payments wish to resell the social housing, they can only resell the social housing to developers of social housing investment and construction projects or entities eligible for the purchase of social housing at a maximum price equal to the sale price of the social housing under sale contracts signed with developers of social housing investment and construction projects. Payment of personal income tax shall conform to tax laws;

Compared with the content in Clause 4, Article 62 of the Housing Law 2014, it is stipulated as follows:

...

4. The buyer under the agreement on social housing lease purchase or sale may not resell the house within at least 05 years, from the date on which the total amount is paid off, except for the management unit of that social housing or entities entitled to buy that social housing if the management unit does not buy the house at the selling price of the same social housing in the same location, at the same time. Income from this transaction is exempt from personal income tax.

...

Thus, compared to current regulations, from January 1, 2015, within 5 years from the date on which buyers of social housing that have settled social housing payments wish to resell the social housing, they can only resell the social housing to developers of social housing investment and construction projects or entities eligible for the purchase of social housing at a maximum price equal to the sale price of the social housing under sale contracts signed with developers of social housing investment and construction projects. Payment of personal income tax shall conform to tax laws;

What are the regulations on the sale price and rent price of social housing invested and built by private enterprises in Vietnam?

Pursuant to Article 87 of the Housing Law 2023, the sale price and rent price of social housing invested and built by private enterprises are regulated as follows:

(1) Sale price of social housing shall be determined as follows:

a) Calculate adequate recoverable costs of housing investment, including: 

+ Social housing investment and construction costs;

+ Compensation, assistance, and relocation costs

+ Costs for technical infrastructure and social infrastructure investment and construction implemented by developers of social housing investment and construction projects (if any) within the project scope, unless these structures are built for business purposes or in order to be handed over to the Government according to approved project details; 

+ Loan interests (if any); 

+ Reasonable and legitimate costs of enterprises, including costs for organizing sales, enterprise management, and expenditures accompanied by adequate invoices and instruments and directly related to investment and construction projects as per the law; 

+ Maximum profit of 10% of total investment in regard to the area on which social housing is built;

(2) Do not include amounts mentioned under Points a, b, dd, g, and h of Clause 2 of Article 85 of the Housing Law 2023 and maintenance costs incurred by buyers in accordance with Article 152 of the Housing Law 2023.

- Rent of social housing, including maintenance costs, shall be agreed upon by developers of social housing investment and construction projects with tenants according to the price range stipulated by provincial People's Committees.

Best regards!

Do Minh Hieu
57


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