What are regulations on preparation of planning of apartment renovation and reconstruction area in Vietnam?

1. What are regulations on preparation of planning of apartment renovation and reconstruction area in Vietnam?

Pursuant to Article 13 of Decree 69/2021/ND-CP stipulating regulations on preparation, appraisal, and approval of planning of apartment renovation and reconstruction area as follows:

1. Preparation, appraisal, and approval of planning of apartment renovation and reconstruction area shall be implemented according to regulations and law on urban planning and construction. During preparation of planning, apart from consulting the general public and relevant individuals as per the law, competent authority may additionally consult investors who wish to participate in apartment renovation and reconstruction projects to guarantee feasibility.

2. After approving planning, competent agencies must publicize planning information as per the law on planning and post openly in residential areas where apartment renovation and reconstruction projects take place.  

3. In case land area where apartment renovation and reconstruction are conducted is smaller than 2 ha, competent authority are not required to prepare detail planning but prepare and approve premise drawing and structural solutions according to procedures for preparing, appraising, and approving detail planning.  Overall premise drawing and structural solutions approved by competent authority shall serve as the basis for implementing subsequent steps of the project according to construction laws and other relevant laws.

4. When preparing and approving planning of area where apartment buildings and apartment complexes that must be renovated and reconstructed, depending on specific local conditions, People’s Committees of provinces must develop planning solutions for the entire apartment complexes and apartment buildings or solutions for grouping apartment buildings in the same communes or districts to serve as the basis for determining implementation of one or many apartment renovation and reconstruction projects to ensure economic, social, environmental effectiveness, and urban renovation and improvement.

Grouping of apartment buildings under this Clause only applies in case business, service, commercial, and/or public constructions but not houses are built in location of apartment buildings eligible for grouping.  

5. In case approved planning is proposed for revision, revise as per the law on urban planning and construction.

2. What is selection of project developers for apartment renovation in case owners agree with real estate enterprises in Vietnam?

Pursuant to Article 14 of Decree 69/2021/ND-CP stipulating selection of project developers for apartment renovation and reconstruction projects in case owners agree with real estate enterprises as follows: :

1. Selection of project developers for projects under this Article applies to renovation and reconstruction of apartment buildings under Article 110 of Law on Housing, except for cases under Clause 1 Article 6 hereof.

2. Based on approved apartment renovation and reconstruction plans, planning of area where apartment buildings that must be renovated and reconstructed are built, land area, population scale of project area and requirements regarding compensation, time and project progress, People’s Committees of provinces are responsible for developing and issuing criteria for selecting project developers (in terms of financial capacity, equity, experience in project implementation, financial solutions for project implementation and other criteria applying to each project); publicizing these criteria and deadline for submitting application for acting project developers of each apartment renovation and reconstruction project on website of People’s Committees of provinces and People’s Committees of districts where projects take place.

3. On the basis of criteria and deadline for application announced according to Clause 2 of this Article and detail planning area where apartment buildings that must be renovated and reconstructed are built, real estate enterprises shall submit application (using Form under Annex I attached hereto) together with capacity dossiers satisfactory to criteria issued by People’s Committees of provinces and compensation solutions prepared according to Article 20, Article 21, Article 22, and Article 23 hereto to agencies assigned by People’s Committees of provinces to receive application (People’s Committees of districts where apartments that must be renovated and reconstructed are built or provincial housing authority).

4. Within 15 days from the date on which deadline for application under Clause 2 of this Article expires, agencies assigned to receive applications are responsible for taking charge and cooperating with local authorities in inspecting capacity dossiers based on publicized criteria and attached compensation solutions of applicants; if applications are adequate, assigned agencies shall produce list of applicants to select project developers.  

5. Within 90 days from the date on which deadline under Clause 4 of this Article expires, assigned agencies shall examine the applications (cooperate with provincial housing authority in case of People’s Committees of districts, or cooperate with People’s Committees of districts in case of provincial housing authority), and consult apartment owners regarding selection of project developers.  Apartment owners shall rely on criteria for selecting project developers that have been publicized according to Clause 2 of this Article, list of enterprises meeting the criteria together with capacity dossiers and compensation solutions proposed by the enterprises to select project developers.

6. When consulting apartment owners to select project developers for apartment renovation and reconstruction projects, each household in the apartments equals one vote and at least 70% of total flat owners of the apartments must participate in the consultation; an enterprise is selected when at least 75% of total participating owners agree; in case of multiple enterprises, an enterprise is selected when they receive the most votes but not equal to or lower than 51% of total votes of flat owners; selection of project developers must be made into records bearing signatures of representatives of People’s Committees of districts where projects take place, representatives of provincial housing authority, representatives of flat owners, and selected enterprises.  

In case a section of an apartment building or apartment complex is owned by the state, representative of owners who own the section shall participate in selecting project developers.

For section other than flats owned by organizations, individuals or by the Government in an apartment building, divide total usable area of this section by usable area of the largest flat or area of the apartment to determine number of votes of owners, each section area after division which is equivalent to area of the largest flat equals one vote; remaining section area after division which is greater than 1/2 of area of the largest flat equals one vote; remaining section area after division which is less than 1/2 of area of the largest flat does not count towards total vote count. 

7. When selecting project developers, participant apartment owners and real estate enterprises may agree to adjust compensation solutions prepared by real estate enterprises while adhering to planning approved by competent authority and regulations on compensation under Article 20, Article 21, Article 22, and Article 23 hereof.

8. Within 15 days from the date on which records on selection of project developers specified under Clause 6 of this Article are produced, assigned agencies must produce written reports, attach records on selection of project developers and compensation solutions of selected project developers, and submit to People’s Committees of provinces for approval; decisions on approving compensation solutions of People’s Committees of provinces must specify name of selected enterprises.

Once compensation solutions have been approved, People’s Committees of provinces must publicize compensation solutions and name of selected enterprises on website of People’s Committees of provinces, and send to People’s Committees of districts and People’s Committees of communes where apartment buildings are built.

9. Once compensation solutions have been approved, selected real estate enterprises are responsible for requesting approval of investment guidelines of the projects according to regulations of law on investment, housing, and this Decree. Under decisions on approving investment guidelines of the guidelines, competent authority must also approve enterprises selected as project developers for apartment renovation and reconstruction projects.

Best Regards!