08 Rules in producing compensation and relocation solutions upon renovation and reconstruction of apartment building in Vietnam

Rules in producing compensation and relocation solutions upon renovation and reconstruction of apartment building in Vietnam (Internet image)

08 Rules in producing compensation and relocation solutions upon renovation and reconstruction of apartment building in Vietnam

According to Clause 2, Article 7 of the Law on Housing 2023, in case of clearance, the Government shall compensate, support, and implement relocation policies for house owners as per the law. The rules in producing compensation and relocation solutions prescribed in Article 70 of the Law on Housing 2023 are as follows:

- Production and approval of compensation and relocation solutions for the purpose of executing apartment building renovation, reconstruction investment projects shall only be implemented after approved detail planning is available.

- In case of execution of projects under Clause 1 Article 68 of the Law on Housing 2023, compensation and relocation solutions shall conform to public investment laws; in respect of projects under Clause 3 Article 68 of the Law on Housing 2023, provincial People’s Committees shall assign responsible organizations to produce and submit compensation and relocation solutions to provincial People’s Committees for approval.

- If selection of developers for apartment building renovation, reconstruction investment projects does not fall under Clause 2 of Article 70 of the Law on Housing 2023, real estate trading enterprises registering as developers of apartment building renovation, reconstruction investment projects shall produce compensation and relocation solutions to enable apartment building owners to choose.

- Compensation, assistance, relocation, and arrangement of temporary accommodation shall be public, transparent, objective, and compliant with approved compensation and relocation solutions. Area of dwelling units serving relocation shall not be lower than area of dwelling units according to national technical regulations on apartment buildings. Expenditure on compensation, assistance, relocation, and arrangement of temporary accommodations shall be defined in total project investment.

- In respect of public housing subject to renovation and reconstruction, current tenants shall be eligible for rent as soon as the reconstruction completes unless they no longer wish to rent. In case of apartment buildings under mixed ownership of public housing owners and other owners, ownership representatives of public housing may reach agreement with developers of apartment building renovation, reconstruction investment projects regarding whether compensation is done in form of money or accommodations.

- Allocation of relocation housing shall be done via contracts for sale, lease purchase, rent of relocation housing in accordance with this Law.

- Form of compensation for owners of apartment buildings shall be specified under compensation and relocation solutions as follows:

+ In respect of apartment buildings under Clause 10 Article 2 of the Law on Housing 2023, apartment building owners may choose compensation in form of relocation housing or money equivalent to value of relocation housing;

+ In respect of apartment buildings not mentioned under Clause 10 Article 2 of the Law on Housing 2023 where owners do not contribute funding for apartment building renovation and reconstruction, the owners shall be eligible for compensation equivalent to value of land use right based on percentage of land use right ownership determined in accordance with land laws applicable at the time of producing the compensation and relocation solutions and transfer land use right to developers of apartment building renovation, reconstruction investment projects; in respect of apartment buildings under Point dd Clause 2 Article 59 of the Law on Housing 2023, apartment building owners shall be eligible for compensation equivalent to land use right and remaining value of dwelling units according to regulations of the Government.

- In respect of area other than apartment buildings in apartment complex for renovation and reconstruction, apartment building owners shall be eligible for compensation, assistance, relocation, and arrangement of temporary accommodation according to regulations of the Government.

Tran Trong Tin

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