Procedures for renting commercial housing properties as official housing in Vietnam

Procedure for renting commercial housing properties as official housing in Vietnam (Image from the Internet)

1. Procedures for renting commercial housing properties as official housing in Vietnam

The procedures for renting commercial housing properties as official housing in Vietnam in accordance with Article 33 of Decree 95/2024/ND-CP are as follows:

- In the event that the locality does not have official housing or there is not enough stock of official housing to lease, but commercial housing is available that meets quality standards and is suitable with the area standards and interior furniture norms of official housing, the competent agencies as stipulated in points a, b, and c of clause 4, Article 43 of the Housing Law 2023 can lease this commercial housing for use as official residence.

- Leasing commercial housing for use as official residence for parties under central agencies, except those stipulated in clause 3, Article 33 of Decree 95/2024/ND-CP, is regulated as follows:

+ The Ministry of Construction of Vietnam is responsible for preparing a proposal containing the content as regulated in point d, clause 4, Article 43 of the Housing Law 2023 and sending it for consultation to relevant agencies, particularly the financial agency regarding the cost estimate for leasing residential property within the regular expenditure budget according to legal regulations on budget before reporting to the Prime Minister of Vietnam for consideration and decision;

+ Based on the feedback from the financial agency, the Ministry of Construction of Vietnam finalizes the proposal and reports to the Prime Minister of Vietnam for approval;

+ Once approved by the Prime Minister of Vietnam, the Ministry of Construction of Vietnam is responsible for signing a lease contract with the commercial housing owner; the funding allocation for paying the rent is carried out according to the Prime Minister of Vietnam's approval and legal regulations on budget;

+ After signing the lease contract for commercial housing, the Ministry of Construction of Vietnam receives the housing, signs lease contracts for official residence, and collects rent for the official residence in accordance with the legal regulations on housing.

- Leasing commercial housing for use as official residence for people's armed forces entities is regulated as follows:

+ The Ministry of Defense, the Ministry of Public Security prepares a proposal containing the content as regulated in point d, clause 4, Article 43 of the Housing Law 2023 and consults the financial agency regarding the cost estimate for leasing residential property within the regular expenditure budget according to legal regulations on budget before reporting to the Prime Minister of Vietnam for consideration and decision;

+ Once approved by the Prime Minister of Vietnam, the Ministry of Defense, the Ministry of Public Security is responsible for signing a lease contract with the commercial housing owner; the funding allocation for paying the rent is carried out according to the Prime Minister of Vietnam's approval and legal regulations on budget;

+ After signing the lease contract for commercial housing, the Ministry of Defense, the Ministry of Public Security receives the housing, signs lease contracts for official residence, and collects rent for the official residence in accordance with the legal regulations on housing.

- Leasing commercial housing for use as official residence for local entities is regulated as follows:

+ The provincial housing management agency prepares a proposal containing the content as regulated in point d, clause 4, Article 43 of the Housing Law 2023 and consults the financial agency regarding the cost estimate for leasing residential property within the regular expenditure budget according to legal regulations on budget before reporting to the Provincial People's Committee for consideration and decision;

+ Once approved by the Provincial People's Committee, the provincial housing management agency is responsible for signing a lease contract with the commercial housing owner; the funding allocation for paying the rent is carried out according to the Prime Minister of Vietnam's approval and legal regulations on budget;

+ After signing the lease contract for commercial housing, the provincial housing management agency receives the housing, signs lease contracts for official residence, and collects rent for the official residence in accordance with the legal regulations on housing.

- In the case where leasing commercial housing to use as an official residence results in a rent higher than that stipulated for the lessee of official residence under clause 4, Article 31 of Decree 95/2024/ND-CP, the lessee of the official residence only has to pay rent not exceeding 10% of their current salary at the time of leasing the official residence (including allowances, if any) to the agency signing the lease of the official residence; the central budget covers the remaining rental difference (if any) for officers under the management of central agencies, and the local budget covers the remaining rental difference (if any) for officers under the management of local agencies.

2. Regulation on management and operation units for official housing in Vietnam

According to Article 32 of Decree 95/2024/ND-CP, the regulation on management and operation units for official housing is as follows:

- For official housing managed by the Ministry of Construction of Vietnam, the Ministry assigns a housing management unit to carry out management and operation.

- For official housing of the Ministry of Defense and the Ministry of Public Security, the Ministry of Defense and the Ministry of Public Security assign or choose a housing management and operation unit according to the provisions in clause 5, Article 125 of the Housing Law 2023; in cases where the official residence is not an apartment building in remote, isolated areas, or areas with especially difficult socio-economic conditions, border areas, islands, the management and operation of the official residence is assigned to the residential management unit.

- For official housing under the management of other ministries, governmental bodies, and other central agencies (if any), these agencies delegate a housing management unit to execute management and operation.

- For official housing under local management, the provincial People's Committee decides to delegate a housing management unit to carry out management and operation; for official housing that are not apartment buildings in remote, isolated areas, or areas with especially difficult socio-economic conditions, border areas, islands, the management and operation of the official residence are assigned to the residential management and operation unit.

- In cases where the residences stipulated in clauses 1, 2, 3, and 4 of Article 32 of Decree 95/2024/ND-CP do not have a management and operation unit, the housing owner representative organizes bidding to select a management and operation contractor according to the legal regulations on bidding.

For official residence that is an apartment building where the current management and operation unit does not meet the requirements or capability according to housing regulations, the housing owner representative organizes bidding according to legal regulations on bidding to select a qualified management and operation unit.

- For official housing intended for teachers, doctors, medical staff located within or adjacent to the premises of schools or medical facilities, the management and operation of the official residence is assigned to that school or medical facility.

- In the case of purchasing a commercial apartment for use as an official residence, the management and operation of this official residence are carried out in accordance with the apartment usage management regulations issued by the Minister of Construction.

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