Housing Law 2023 will officially come into effect in Vietnam on August 1, 2024

Housing Law 2023 will officially come into effect in Vietnam on August 1, 2024 (Image from the internet)

On June 29, 2024, the National Assembly passed the Amended Law on Land Law 2024, Housing Law 2023, Real Estate Business Law 2023, and Credit Institution Law 2024.

Housing Law 2023 will officially come into effect in Vietnam on August 1, 2024

According to Article 2 of the Law amending Land Law 2024, Housing Law 2023, Real Estate Business Law 2023, and Credit Institution Law 2024 which amended and supplemented Clause 1, Article 197 of the Housing Law 2023.

The Housing Law 2023 officially becomes effective from August 1, 2024.

New points of the Housing Law 2023 applicable as of August 1, 2024

(1) Mini apartments will be issued pink books

Based on Article 57 of the Housing Law 2023, individuals with the right to use homestead land according to Clause 3, Article 54 of the Housing Law 2023, constructing houses in the following cases must meet the conditions to be the project investor in housing construction, and the investment in construction shall comply with the provisions of construction law and other related laws for housing construction projects:

- Housing having 02 or more floors, with each floor designed and constructed with apartments for sale, lease-purchase, or combined sale, lease-purchase, and lease;

- Housing having 02 or more floors and containing 20 or more apartments for lease.

The apartments specified above (commonly known as mini apartments) will be issued Certificates of house ownership (or pink books) according to land law, sold, lease-purchased, or leased under the Housing Law 2023 and real estate business law.

Thus, it's determined that mini apartments will be considered for pink book issuance from August 1, 2024, when meeting the legal conditions (currently not regulated).

(2) No more regulation on the ownership term of apartments

Specifically, according to Article 58 of the Housing Law 2023, the usage duration of the apartment is regulated as follows:

- The usage duration of the apartment is determined according to the design dossier and the actual usage time based on the assessment conclusion of the competent authority. The usage duration per the design dossier must be clearly stated in the approval document by the competent authority per construction law.

- The usage duration of the apartment is calculated from the acceptance of the apartment into use according to construction law.

- When the apartment reaches the usage limit per the design dossier in Clause 1, Article 58 of the Housing Law 2023, or is damaged, at risk of collapse, unsafe for occupants, the provincial People's Committee must conduct an inspection and evaluate the quality of the apartment building per Article 61 of the Housing Law 2023.

Thus, it can be seen that the Housing Law 2023 does not regulate the ownership term, but only the usage term of apartments. When the apartment's usage term expires or is unsafe due to potential collapse, the building value no longer exists, but the land use value remains stable and long-term, serving as the basis for compensation. This regulation gains wide support, reassuring citizens as the number of apartment users is increasing.

(3) Regulations on compulsory relocation from apartments subject to demolition

Based on Article 74 of the Housing Law 2023, in cases where the relocation period has expired according to the provincial People's Committee's relocation decision, but the apartment owner and occupants have not relocated, the provincial People's Committee shall issue a compulsory relocation decision.

The compulsory relocation decision includes the following main contents:

- Name and address of the apartment owner and occupants subject to compulsory relocation;

- Time for implementing compulsory relocation;

- Temporary accommodation arrangement location;

- Method of enforcing compulsory relocation;

- Cost of enforcing compulsory relocation;

- Responsibilities of involved agencies, organizations, and individuals in implementing the compulsory relocation.

The district People's Committee where the apartment is located shall organize the compulsory relocation according to the provincial People's Committee’s decision.

(4) Expanding the subjects eligible to purchase social housing

According to Article 76 of the Housing Law 2023, two more groups are added to those eligible for social housing support policies compared to current regulations:

- Poor and near-poor households in urban areas.

- Enterprises, cooperatives, cooperative alliances within industrial zones.

More details can be found in the Housing Law 2023 which comes into force in Vietnam from August 1, 2024.

Le Nguyen Anh Hao

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE