Procedure for enforced transfer of funding for maintenance of shared areas of apartment buildings in Vietnam

Procedure for enforced transfer of funding for maintenance of shared areas of apartment buildings in Vietnam (Internet image)

Regarding this issue, LawNet would like to answer as follows:

1. Procedure for enforced transfer of funding for maintenance of shared areas of apartment buildings in Vietnam

Procedure for enforced transfer of funding for maintenance of shared areas of apartment buildings in Vietnam according to Article 37 of Decree 99/2015/ND-CP (amended in Decree 30/2021/ND-CP) are as follows:

- Procedure for enforced transfer of maintenance funding in case where the project owner fails to transfer funding collected according to regulations in Clause 1 Article 36 of Decree 99/2015/ND-CP is as follows:

+ If the project owner fails to transfer maintenance funding according to regulations in Article 36 of Decree 99/2015/ND-CP, the management board of the apartment building shall request the People’s Committee of the province where the building is located, in writing, to request the project owner to transfer the funding as per regulations;

+ Within 10 days from the date on which the request from the management board is received, the People’s Committee of the province shall request the credit institution managing the funding account to provide information on the account number and deposit amount in writing.

Within 07 days from the date on which the request from the People’s Committee of the province is received, the credit institution shall provide the requested information;

+ Based on information provided by the credit institution, the People's Committee of the province shall issue a decision on enforced collection and transfer of maintenance funding to the management board.

This decision shall be sent to the Department of Construction, project owner, management board and credit institution managing the funding account to have the maintenance funding transferred;

+ Within 05 days from the date of receipt of the enforced collection decision from the People's Committee of the province, the credit institution managing the funding account shall transfer the funding to the account opened by the management board to have the funding managed and used as per housing law;

+ After transferring the maintenance funding to the account of the management board, the credit institution shall send a written notification to the People's Committee of the province, Department of Construction, project owner and management board.

- Procedure for enforced transfer of maintenance funding from the business account of the project owner in case where the project owner has no funding or insufficient funding for the transfer provided for in Clause 1 of Article 37 of Decree 99/2015/ND-CP is as follows:

+ If the funding account has insufficient or no funding for the transfer, the provincial People's Committee shall send a written request to the credit institution for provision of information on the business account of the project owner and the amount available in this account.

Within 07 days from the date of receipt of the request from the provincial People's Committee, the credit institution shall provide relevant information for the provincial People's Committee;

+ Based on information provided by the credit institution, the provincial People's Committee shall issue a decision on enforced collection and transfer of maintenance funding from the business account of the project owner to the management board.

This decision shall be sent to the Department of Construction, project owner, management board and credit institution managing the funding account to have the maintenance funding transferred;

+ Within 05 days from the date of receipt of the enforced collection decision, the credit institution shall transfer the exact amount written in the decision from the business account of the project owner to the account of the management board.

After transferring the money, the credit institution shall send a written notification to the provincial People's Committee, Department of Construction, project owner and management board.

- Procedure for distrainment of property of the project owner in case where the project owner has no funding for the transfer provided for in Clause 2 of Article 37 of Decree 99/2015/ND-CP is as follows:

+ In case the project owner has a business account but there is no money or insufficient money for deduction according to regulations in Clause 2 Article 37 of Decree 99/2015/ND-CP: 

The provincial People's Committee shall direct the Department of Construction to take charge and cooperate with the police and relevant authorities in inspecting and identifying housing and land of the project owner in the project with the apartment building or another project to seize and auction their housing and land to collect maintenance funding.

If the project owner has no housing or land or the housing and/or land seized are/is inadequate for maintenance funding collection, other property of the project owner shall be identified and auctioned to collect and transfer sufficient maintenance funding to the management board.

The provincial People's Committee shall seize housing, land or other property having equal value to the maintenance funding to be transferred to the management board of the apartment building and costs of distrainment and auction of such property;

+ Based on housing, land or other property of the project owner identified according to regulations in Point a of this Clause, within 10 days, the Department of Construction must send a report to the provincial People's Committee to issue a decision on distrainment and auction of property of project owner for collection of maintenance funding of apartment building.

This decision must specify the grounds for its issuance, name and headquarters of the project owner whose property is seized, maintenance funding amount to be collected, type and quantity of property seized and seizing location;

+ Procedures for distrainment, valuation and auction of property for maintenance funding collection shall conform to regulations of law on enforced execution of decisions on administrative penalties, distrainment and property auction and other relevant laws;

+ Transfer of maintenance funding collected from property auction must be recorded in writing with signatures from relevant parties. In case the auction revenue is more than enough to cover the maintenance funding and auction costs, within 30 days from the auction date, the Department of Construction shall cooperate with the auction organization in returning the excessive amount to the project owner.

- During the process of distrainment for collection of maintenance funding for the management board of the apartment building, if the project owner commits any violation against criminal law, the provincial People's Committee shall request the competent authority to investigate and handle the violation as per the law.

2. Prohibited acts in management and use of apartment buildings in Vietnam

Prohibited acts in management and use of apartment buildings in Vietnam under Article 35 of Decree 99/2015/ND-CP are as follows:

- Using the funding for management, operation, and maintenance of shared area against provisions of the Law on Housing, Decree 99/2015/ND-CP, and the Statute on management and use of apartment buildings promulgated by the Ministry of Construction.

- Causing permeation or leakage; make noise beyond the limits specified by law; discharging garbage, wastewater, exhaust gases, toxic substances against regulations of law on environmental protection or internal regulations on management and use of the apartment building.

- Breeding animals in the apartment building.

- Painting, decorating the outer sides of the apartments of apartment building against regulations on its design and architecture.

- Repurpose the share area of the apartment building without permission; repurpose the non-residential area in the apartment building against the designed approved by a competent authority.

- The following business lines are prohibited in the business area of an apartment building:

+ Explosive, combustible materials, and business lines that endanger life and property of users of the apartment building as set out in regulations of law on fire safety;

+ Discotheque business; repair of motor vehicles; slaughtering, provision of services causing pollution as set out in regulations of law on environmental protection.

Restaurant, karaoke, and bar business must ensure noise isolation, fulfillment of fire safety requirement, have emergency exits, and conformity with other business conditions prescribed by law.

- Any other prohibited acts related to management and use of apartment buildings specified in Article 6 of the Law on Housing.

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