What are the regulations on the subjects of, conditions, and criteria for preferential loans for social housing development in Vietnam? - Van Hanh (Thua Thien Hue, Vietnam)
Article table of contents
April 20, 2023, Ministry of Construction of Vietnam issues Official Dispatch 1551/BXD-QLN in 2023 guiding on determining the list of projects, subjects, conditions and criteria for preferential loans for social housing development, worker housing, renovation and reconstruction of apartments.
Subjects eligible for preferential loans for social housing development in Vietnam
(i) For individual subjects
- In case of buying social housing, worker housing (social housing in industrial zones) as prescribed in Clause 1, Article 50 of the Law on Housing 2014, the subjects eligible for loans are those specified in Clauses 1, 4, 5, 6, 7, 8 and 10, Article 49 of the Law on Housing 2014:
+ People with meritorious services to the revolution, according to the provisions of the law on preferential treatment for people with meritorious services to the revolution;
+ Low-income people, poor, and near-poor households in urban areas;
+ Employees are working at enterprises inside and outside the industrial park;
+ Officers, professional non-commissioned officers, professional and technical non-commissioned officers, professional soldiers, and workers in agencies and units of the People's Police and the People's Army;
+ Cadres, civil servants, and public employees in accordance with the law on cadres, civil servants, and public employees.
+ Subjects who have returned official residences as prescribed in Clause 5, Article 81 of the Law on Housing 2014;
+ Households and individuals subject to land recovery and having to clear or demolish their houses in accordance with law but have not yet been compensated by the State with houses or residential land.
- In case of buying houses in apartment building renovation and rebuilding projects, comply with the provisions of Clause 2, Article 26 of Decree 69/2021/ND-CP dated July 15, 2021, specifically: Owners of apartment buildings that are relocated but have to pay more for the difference in area may get loans from credit institutions or financial institutions operating in Vietnam.
(ii) Investors in social housing projects, workers' housing projects (social housing in industrial parks), and apartment renovation and rebuilding projects in accordance with the law on housing.
Subjects of, conditions, and criteria for preferential loans for social housing development in Vietnam (Internet image)
Conditions and criteria for preferential loans for social housing development in Vietnam
In addition to ensuring the conditions and criteria according to the provisions of the law on credit guided by the State Bank, the beneficiaries of the credit program of VND 120,000 billion must also meet the following conditions and criteria:
(i) For individual
- For buyers of social housing for workers (social housing in industrial zones) must have a social housing purchase contract with the investor in accordance with the housing law.
- For subjects eligible for resettlement in an apartment building renovation or rebuilding project, they must have a contract to buy, house, and construct resettlement according to the provisions of the law on housing.
(ii) For Project Investor
Investors in social housing, worker housing, and apartment renovation and reconstruction projects must be included in the list of social housing and worker housing projects (social housing in industrial parks), renovation and reconstruction of apartment buildings announced by the provincial People's Committee and must ensure the following conditions:
- For projects to build social housing and housing for workers:
+ Having been granted the decision on investment policy by a competent authority in accordance with the law on investment and the law on housing;
+ Having had a decision on land allocation or having the right to use land in accordance with the law on land and having completed the compensation and ground clearance; have been granted construction permits or are exempt from construction permits in accordance with the construction law;
- For projects on renovation and reconstruction of apartments; has approved the investment policy of the competent state agency according to the provisions of law; and other information in accordance with relevant laws.
Mai Thanh Loi
