Regulations on operation, revenue and expenditure of apartment building administration boards in Vietnam

Regulations on operation, revenue and expenditure of apartment building administration boards in Vietnam (Image from the Internet)

1. Regulations on operation, revenue and expenditure of apartment building administration boards in Vietnam

The regulations on operation, revenue and expenditure of apartment building administration boards in Vietnam according to Article 24 of the regulations issued together with Circular 05/2024/TT-BXD are as follows:

- The activity regulations and financial collection and expenditure regulations of the apartment building or Building Complex Management Board, passed by the apartment building Conference, ensure openness, transparency, and compliance with the regulations issued together with Circular 05/2024/TT-BXD, the laws on housing, and related laws.

- The activity regulations of the apartment building or Building Complex Management Board cover the following contents:

+ The management board operates under a self-governing model for apartment buildings with a single owner; for apartment buildings with multiple owners, it operates under the board of directors model of a joint-stock company or cooperative. Coordination among management board members, between the management board and the local commune People's Committee, and other relevant agencies and organizations during the management and use of the apartment building;

+ The principles for organizing management board meetings, including regulations on the person convening the meeting, meeting conditions, meeting chairperson, meeting minutes, voting methods, decision-making on issues within the management board's authority and responsibility, the effectiveness of the management board's decisions, and the working methods of the management board;

+ Rights and responsibilities of the management board and specific responsibilities of each management board member, including the responsibility to sign management board documents, prepare the invitation documents for the operational management unit, maintenance unit, monitor maintenance activities (if any), sign contracts with the operational management unit, maintenance unit for shared ownership areas, plan for apartment building maintenance, manage tasks and sign documents in the absence of the board chairperson or deputy chairperson, manage the management board's seal (if present), sign contracts for exploiting utilities in shared ownership areas;

+ Rights to information provision and responsibilities for providing information among management board members, between the management board and apartment building owners, users, and state housing management agencies at the locality;

+ The process of receiving, responding to owners' and users' proposals, handling cases related to dismissal and exemption of management board members, and compensatory responsibilities for violations;

+ Reporting mechanisms, decision-making on management board expenses, and the responsible person for managing the management board's documents and records;

+ Handling the rights and responsibilities of management board members in case of dismissal or exemption without a replacement;

+ Handling in case the management board is dismissed or exempted without electing a new management board to hand over the apartment building files and management board operating account;

+ The operating budget of the management board;

+ Other contents depending on the specific characteristics of each building or complex.

- The financial collection and expenditure regulations of the apartment building or Building Complex Management Board include the following contents:

+ Regulations on revenue sources managed by the management board, the account holder, the account managing shared ownership maintenance funds managed by the management board, and the deposit maturity regulations for shared ownership maintenance funds;

+ Stipulations on the remuneration for each management board member and the operational costs of the management board;

+ Delegating responsibilities in fundraising, approving management board operational expenses, signing documents for withdrawing shared ownership maintenance funds, and settling financial accounts with the maintenance and operational management units;

+ Regulations on the withdrawal process and specific document requirements for withdrawing funds from accounts managed by the management board;

+ Assigning responsibility for recording and managing the management board's financial records and invoices;

+ Regulations on the maximum cash amount that the management board can withdraw directly to pay the maintenance unit for shared ownership areas, and the fund amount the management board can use for urgent maintenance work without needing to convene a apartment building conference or seek the opinion of apartment building owners;

+ Regulations on handling violations when there is misuse of funds, fund appropriation managed by the management board, or issues in financial record-keeping;

+ Regulations on other related contents.

2. Regulations on voting for decisions of the apartment building administration boards in Vietnam

Regulations on voting for decisions of the apartment building administration boards as stated in Article 25 of the regulations issued together with Circular 05/2024/TT-BXD are as follows:

- Decisions by the apartment building or Building Complex Management Board are approved by voting or balloting as outlined in the management board's operational regulations. A written record, signed by the meeting secretary, attending management board members, and stamped by the management board (if a seal is available), is required. If the approval voting rate reaches 50% of the management board members, the final result is determined by the vote of the board chairperson or the deputy chairperson who presides over the meeting in the chairperson's absence, except as stated in Clauses 2 and 3, Article 25 of the regulations issued together with Circular 05/2024/TT-BXD.

- For apartment buildings with multiple owners, the following proposals are approved only with at least 50% of the apartment building or Building Complex Management Board members' approval:

+ Proposals to change the operational management unit;

+ Proposals on the form of maintenance unit selection, except for urgent maintenance that arises outside the period of organizing the annual apartment building conference or without organizing an extraordinary apartment building conference;

+ Proposals to change the apartment building management service prices;

+ Proposals and requirements from the management board to the investor during the management and use of the apartment building;

+ Other cases as decided by the apartment building conference.

- For decisions on spending the shared ownership maintenance funds of a apartment building with multiple owners, voting shall follow the following regulations:

+ If the apartment building administration boards decides on the maintenance of shared ownership areas of the apartment building, it must be approved by 75% of the management board members;

+ If the Building Complex Management Board decides on the maintenance of shared ownership areas of the entire complex, it must be approved by 75% of the complex management board members; if only maintaining shared ownership areas of one or several buildings within the complex, it must be approved by the board chairperson and 75% of the management board members representing those specific buildings.

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