Regulations on the arrangement and use of of public apartments after reconstruction in Vietnam from August 1, 2024

Regulations on the arrangement and use of of public apartments after reconstruction in Vietnam from August 1, 2024 (Image from the Internet)

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

Regulations on the arrangement and use of of public apartments after reconstruction from August 1, 2024

Article 35 of Decree 98/2024/ND-CP stipulates the arrangement and use of of public apartments as follows:

- Persons renting public apartments that have been demolished are entitled to continue renting apartments after reconstruction, unless they no longer wish to continue renting.

The area of the apartment arranged for rent depends on the provisions of Clause 1 or Clause 2, Article 33 of Decree 98/2024/ND-CP to be determined in the housing lease contract.

- If the person renting the apartment as stipulated in Clause 1, Article 35 of Decree 98/2024/ND-CP no longer wishes to continue renting housing after reconstruction or has been arranged to rent at another location, the Provincial People's Committee is authorized to use these apartments to arrange resettlement for other subjects in the district where the apartment building is located, in accordance with the local resettlement policy; if there is no demand for resettlement apartments in the district, the investor shall compensate in cash as stipulated at Point c, Clause 1, Article 33 of Decree 98/2024/ND-CP.

- The rental price for public apartments after reconstruction for the subjects outlined in Clause 1, Article 35 of Decree 98/2024/ND-CP shall be applied as per the rental rates for social housing as public property in accordance with the law on management and development of social housing; if the State sells these apartments to the subjects described in Clause 1 of Article 35 Decree 98/2024/ND-CP, the renters are entitled to purchase under the regulations governing the sale of old public property housing.

For other resettlement subjects not being former renters as specified in Clause 1, Article 35 Decree 98/2024/ND-CP, the leasing and sale of housing shall be carried out in accordance with the local compensation and resettlement policy.

- Based on the actual conditions of the locality, the Provincial People's Committee may decide on additional financial support for the categories specified in Clause 1, Article 35 Decree 98/2024/ND-CP, including people with meritorious services to the revolution under the law on preferences for those who have rendered meritorious services to the revolution, people with disabilities, poor and near-poor households, to pay for rental housing or additional support to purchase public property housing if these subjects wish to purchase and qualify to buy this housing according to housing law.

- Additional financial support as stipulated in Clauses 3 and 4, Article 35 of Decree 98/2024/ND-CP must be determined in the compensation and resettlement plan.

More details can be found in 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 will be invalidated as of the effective date of Decree 98/2024/ND-CP.

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