Principles of rent exemption and reduction for public social housing in Vietnam from August 1, 2024

Principles of rent exemption and reduction for public social housing in Vietnam from August 1, 2024 (Image from the internet)

On July 26, 2024, the Government of Vietnam issued Decree 100/2024/ND-CP detailing certain provisions of the Housing Law 2023 on the development and management of social housing in Vietnam.

Principles of rent exemption and reduction for public social housing in Vietnam from August 1, 2024

According to Clause 1, Article 36 of Decree 100/2024/ND-CP, the principles for rent exemption and reduction for public social housing in Vietnam are as follows:

- The person entitled to rent exemption or reduction must be named in the rental contract (including the representative named in the contract and other members named in the rental contract);

- Rent exemption or reduction is considered only once for the tenant;

- In case an individual is eligible for multiple rent exemption or reduction policies, only the highest rate applies;

- In a household where two or more people are renting a house eligible for rent reduction, they are entitled to full rent exemption.

Subjects eligible for rent exemption and reduction for public social housing in Vietnam

Subjects eligible for rent exemption and reduction for public social housing in Vietnam include:

(1) People who have rendered great service to the revolution, relatives of martyrs entitled to housing improvement support under the ordinance on preferential treatment for people with meritorious services to the revolution;

(2) Poor and near-poverty households as defined by poverty and near-poverty standards according to legal regulations;

(3) Social protection beneficiaries receiving monthly social allowances as defined by law and eligible for social housing support policies.

(Clause 2, Article 36 of Decree 100/2024/ND-CP)

Rates of rent exemption and reduction for public social housing in Vietnam

- Subjects specified in point (1) above are entitled to rent reduction according to the rates specified in the guiding documents for implementing the ordinance on preferential treatment for people with meritorious services to the revolution;

- Subjects specified in points (2) and (3) above are entitled to a 60% reduction in rent payable; for poor and near-poverty households, this reduction applies to the entire household (not calculated per individual member).

(Clause 3, Article 36 of Decree 100/2024/ND-CP)

Procedures for renting social housing invested by the State using public investment in Vietnam

The procedures for renting social housing invested by the State using public investment in Vietnam are as follows:

- Those wishing to rent social housing invested by the State using public investment shall submit one set of documents directly to the provincial housing management agency or the housing operation management unit as allocated by the local authorities.

The documents include an application form for renting social housing according to Form No. 01 in Appendix II of Decree 100/2024/ND-CP, documents proving the eligibility of the applicant according to the guidance from the Minister of Construction, Minister of Defense, Minister of Public Security, and documents proving the eligibility for rent exemption or reduction (if any).

If the subject specified in Clause 5, Article 76 of the Housing Law 2023 does not have a labor contract, they must have a confirmation of their eligibility from the People’s Committee of the commune according to the form guided by the Minister of Construction. Individuals specified in Clause 10, Article 76 of the Housing Law 2023 must have confirmation of eligibility from the People’s Committee of the district where their land is acquired and their house must be dismantled according to the form guided by the Minister of Construction.

- The receiving agency is responsible for checking and categorizing the documents; if the documents are incomplete, they must immediately inform the applicant to supplement them. If the housing operation management unit receives the documents, after checking and categorizing them, the unit must report the List of eligible tenants along with valid documents to the housing management agency for review and inspection;

- Based on the List of eligible tenants and valid documents, the housing management agency organizes the preparation of the List of tenants for social housing and submits it along with the List to the representative owner authority for a decision.

If the total number of valid applications is equal to or less than the total number of social housing units for rent, the List of eligible tenants becomes the List of tenants.

If the total number of valid applications exceeds the total number of social housing units for rent, the selection of tenants will be conducted through a lottery (direct or online) organized by the provincial housing management agency or the housing operation management unit as allocated by the local authorities, with the provincial housing management agency supervising the lottery. The lottery must have a record of results.

For projects with prioritized subjects as defined in point d, Clause 1, Article 79 of the Housing Law 2023, those subjects are entitled to social housing without a lottery to a certain extent. The number of social housing units reserved for these prioritized subjects (without lottery) is determined by the ratio of the total applications from the five prioritized groups to the total applications multiplied by the total social housing units for rent. The List of prioritized subjects is arranged in order of application submission. Social housing units for rent reserved for prioritized subjects are allocated according to the order in the List of priorities until depleted, and the remaining subjects continue to participate in the lottery;

- Based on the report of the housing management agency, the representative owner authority considers and issues the decision approving the List of tenants and sends it to the housing operation management unit to sign rental contracts with the approved tenants;

- The time to resolve social housing rental applications is no more than 30 days from the date the receiving unit gets complete and valid documents;

- Depending on the local conditions, the Provincial People’s Committee may regulate the prioritization of subjects for renting social housing invested by the State using public investment in the locality.

(Clause 1, Article 37 of Decree 100/2024/ND-CP)

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE