Newest regulation on compensation for other areas of houses and land belonging to public property that is not apartment dwelling unit in Vietnam

Newest regulation on compensation for other areas of houses and land belonging to public property that is not apartment dwelling unit in Vietnam (Internet image)

On July 25, 2024, the Government of Vietnam issued Decree 98/2024/ND-CP detailing certain provisions of the Housing Law 2023 on renovation and reconstruction of apartment buildings in Vietnam.

Newest regulation on compensation for other areas of houses and land belonging to public property that is not apartment dwelling unit in Vietnam

According to Article 34 of Decree 98/2024/ND-CP on compensation for other areas of houses and land belonging to public property that is not apartment dwelling unit in Vietnam:

- For the area of houses used in common that belong to public property within the scope of a project to renovate and rebuild apartment buildings, the investor must pay the State in cash according to the principle of current used area (square meters) multiplied by the price of newly constructed housing issued by the Provincial People's Committee currently in effect at the time of compensation planning, multiplied by the remaining quality ratio of the current housing.

The remaining quality ratio of housing belonging to public property is determined according to housing laws when selling old public housing.

For Class I, II, III housing that has been demolished before Decree 98/2024/ND-CP takes effect, the remaining value is determined based on the current state at the time of allocation as recorded in the documentation proving the allocation for the use of this housing according to housing laws. In cases where the documentation specified in Clause 1, Article 34 of Decree 98/2024/ND-CP states the housing class without recording the remaining quality, the remaining quality ratio is determined to be 50% of the value of that housing class; if the documentation does not state the housing class, the remaining quality ratio is determined to be 50% of the value of Class III housing.

- For the area of land under common use in existing apartment buildings managed by the State, the investor is exempt from compensation for the land.

- For the area of land used in common that doesn't fall under the provisions of Clause 2, Article 34 of Decree 98/2024/ND-CP but is within the scope of a project for the renovation and reconstruction of apartment buildings or residential complexes, including the land area for constructing technical infrastructure, transportation, social infrastructure, and other works outside the premises of the existing apartment buildings or residential complexes, and not subject to resolution under Clause 4, Article 34 of Decree 98/2024/ND-CP, the project investor is assigned this land area for investment construction as per the planning and is exempt from compensation for the land.

- For the area of land used in common as prescribed in Clause 3, Article 34 of Decree 98/2024/ND-CP that is managed by a state agency or organization as prescribed in Clause 1, Article 217 of Land Law 2024, the resolution is as follows:

+ If the land area specified in Clause 4, Article 34 of Decree 98/2024/ND-CP is not eligible to be separated into an independent project per land laws, the Provincial People's Committee decides to assign this land area to the investor to implement the renovation and reconstruction of apartment buildings according to the approved planning; the investor is exempt from compensation for the land and is exempt from land levy and land rent for this area.

+ If the land area specified in Clause 4, Article 34, Decree 98/2024/ND-CP meets the conditions for area and can be separated into an independent project according to land laws, the land assignment or lease is carried out according to land laws to implement an independent project as per the approved planning.

See more at Decree 98/2024/ND-CP, which comes into force in Vietnam from August 1, 2024.

Decree 69/2021/ND-CP on the renovation and reconstruction of apartment buildings 'in Vietnam ceases to be effective as of the effective date of Decree 98/2024/ND-CP.

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