Conditions for Renting and Purchasing Social Housing from August 15, 2016, according to Circular 16/2016/TT-BXD

Circular No. 19/2016/TT-BXD providing guidance on the implementation of certain contents of the Housing Law and Decree No. 99/2015/ND-CP of the Government of Vietnam detailing and providing guidance on the implementation of certain articles of the Housing Law.

Regulations stipulated in Circular 19/2016/TT-BXD for individuals seeking to purchase or rent social housing must satisfy the following:

- Have documentation proving eligibility for purchasing or renting social housing- Satisfy residency conditions and social insurance participation- Provide proof of income (except for certain individuals)

Firstly, individuals renting or leasing-purchasing state-owned social housing who fall under the categories stipulated in Clause 1, Article 49 of the Housing Law must have the following proof documents:

- Individuals with meritorious services to the revolution must have a confirmation certificate as per the sample in Appendix No. 13 attached to this Circular;- Low-income individuals, poor, near-poor households; workers currently employed at enterprises in industrial zones; officials and public employees as defined by the law on officials and public employees must have a confirmation certificate as per the sample in Appendix No. 14 attached to this Circular;- Individuals who have returned their official-duty housing according to regulations must have a confirmation certificate as per the sample in Appendix No. 15 attached to this Circular;- Households or individuals whose land is being reclaimed, and must have their housing demolished must have a confirmation certificate as per the sample in Appendix No. 16 attached to this Circular.

Secondly, individuals renting or purchasing social housing must satisfy the residency conditions and social insurance participation as stipulated.

For individuals with a registered permanent residence in the province or centrally-run city where the social housing for rent or lease purchase is located, a certified copy of the permanent residence booklet or collective household registration at that location is required.

In cases where there is no permanent residence registration as stipulated in point a of this clause, the following documents are required:

- A certified copy of the temporary residence registration, valid for one year or more;- A labor contract with a term of one year or more up to the time of application, accompanied by a confirmation certificate from the insurance agency (or documents proving) social insurance contributions paid in the province or centrally-run city where the social housing is located; if employed by a branch or representative office in the province or centrally-run city where the social housing is located but the insurance contributions are made in the locality where the main office is headquartered, a confirmation certificate from the main office confirming the insurance contributions is required.

Thirdly, requirements for proof of income:

Individuals specified in Clauses 5, 6, and 7 of Article 49 of the Housing Law must provide income verification in conjunction with verification of eligibility and housing conditions as per the sample in Appendix No. 14 attached to this Circular; if these individuals were verified for eligibility and housing conditions to be eligible for social housing support policies before this Circular takes effect, but no income verification has been provided, a confirmation certificate for income conditions must be submitted as per the sample in Appendix No. 17 attached to this Circular.

Individuals specified in Clause 4 of Article 49 of the Housing Law and individuals specified in Clauses 5, 6, and 7 of Article 49 of the Housing Law who have retired, self-declare and take responsibility for their income conditions as per the sample in Appendix No. 18 attached to this Circular (no confirmation is required); if these individuals were verified for eligibility and housing conditions to be eligible for social housing support policies before this Circular takes effect, but no verification or declaration of income conditions has been provided, a self-declared income condition form must be submitted as stipulated in this point.

Individuals specified in Clauses 1, 8, 9, and 10 of Article 49 of the Housing Law are not required to provide documents proving income conditions.

However, the current demand for social housing is increasing mostly due to state planning that necessitates relocation, arranging housing for residents. The social housing fund does not meet the demand; therefore, the state has issued a priority point scale for individuals in need of renting or purchasing social housing (Clause 2, Article 16 of Circular 19).

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It is evident that the process to rent or use social housing is relatively difficult. Hence, there is a possibility that the social housing fund could overlook families in hardship that do not meet the conditions of the aforementioned process. It is advisable to expand the social housing fund to arrange sufficient and surplus housing for individuals affected by planning, rather than overcrowding the narrow process.

Circular 19/2016/TT-BXD is effective from August 15, 2016]

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