Work items of apartment buildings eligible for use of expenditures on maintenance of shared portions for maintenance in Vietnam

Work items of apartment buildings eligible for use of expenditures on maintenance of shared portions for maintenance in Vietnam (Internet image)

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

1. Work items of apartment buildings eligible for use of expenditures on maintenance of shared portions for maintenance in Vietnam

According to Article 34 of the Regulations issued together with Circular 02/2016/TT-BXD, work items of apartment buildings eligible for use of expenditures on maintenance of shared portions for maintenance in Vietnam include:

- Maintenance of items and areas under common ownership are:

+ Remaining area of apartment buildings less private area; community house of apartment buildings;

+ Load-bearing space and structures, equipment for common use in apartment buildings including: load-bearing frames, pillars, walls, exterior walls, walls separating flats, floors, ceilings, roofs, rooftops, corridors, staircases, elevators, means of egress, garbage chutes, utility boxes, exterior walls of utility boxes (if any), power supply system, water supply system, gas supply system, communication system, radio system, television system, water drainage system, septic tanks, lightning protection, fire

- Equipment systems that belong to shared portions of apartment buildings including lifts, power generators, water pumps, ventilation system, power system for lighting, domestic activities, electrical equipment used in common, water supply, drainage system, gas supply system, central heating, communications, fire control, lightning rod and other equipment;

- Outside infrastructure connected to apartment buildings; public structures in apartment building vicinity not for business purposes or not to be handed over to the Government in accordance with approved projects including: common yards, flower gardens, parks, and other structures defined in approved projects.

- Handling wastewater stagnation and septic tank emptying; injecting microorganisms to apartment building’s wastewater treatment system;

- Other work items that belong to shared portions of apartment buildings as agreed in the purchase and lease purchase contract or according to the Law on Housing;

2. What are regulations on the use of expenditures on maintenance of shared portions of multi-owner apartment buildings in Vietnam? 

Use of funds for maintenance of common ownership areas of multi-owner apartment buildings is specified in Article 37 of the Regulations issued together with Circular 02/2016/TT-BXD (amended in Circular 06 /2019/TT-BXD) as follows:

(1)  Expenditures on maintenance of shared portions of apartment block is used only for the maintenance of shared portions of such apartment building. Management board shall use such expenditures on the maintenance of items as prescribed in Article 34 of the Regulations issued together with Circular 02/2016/TT-BXD; expenditures that are not used up in case an apartment building is demolished shall be used to support relocation or added to funds for maintenance of shared portions of new apartment buildings (if re-constructed).

(2) The management board of the apartment building shall publish information about the opened deposit account for management of maintenance fees at the apartment building convention and shall not change this account, and post the use of such fees (if any) on the apartment building’s bulletin board. Fees for maintenance of the shared area of the apartment building shall be used in accordance with the Law on Housing 2014 and this Regulation. Books, invoices and records should be available.

(3) In case of establishment of accounts for management of expenditures as prescribed in Point a, Clause 3, Article 36 of the Regulations issued together with Circular 02/2016/TT-BXD, both management board and the investor shall be unanimous in dividing the expenditures into two proportions, expenditures on maintenance of shared portions of entire apartment building and expenditures on maintenance of shared portions of apartment area.

Proportion of expenditures used for maintenance of shared portions of apartment area shall be used for maintenance of shared portions of apartment area only; Proportion of expenditures used for maintenance of shared portions of entire apartment building shall be used for maintenance of shared portions of entire apartment building only; The investor and management board may be unanimous in the establishment of two different accounts for management of two proportions of expenditures as prescribed in this Clause.

(4) The credit institution that is managing the deposit account for expenditures on maintenance of shared portions of apartment buildings shall be responsible for transferring money to the maintenance unit’s account within three working days since receipt of written request from management board. The written request for transfer of money comprises:

- Request form specifying reasons for transfer of money and the amount to be transferred;

- The minutes of management board meeting on withdrawal of expenditures on maintenance;

- Maintenance plan passed by apartment building meeting except in cases of irregular maintenance;

- The contract for maintenance signed with individuals, units that have capacity for maintenance performance as prescribed;

(5) In case value of the contract for maintenance is within permissible limits as stated in the management board's regulations on receipts and expenditures of management board, after receipt of written request as prescribed in (4), the credit institution shall carry out procedures on transfer of cash to management board for direct payment to maintenance units.

(6) In case of irregular maintenance works with expenditures within permissible limits as stated in management board's regulations on receipts and expenditures, the management board shall issue a written request accompanied by the minutes of management board meeting on money withdrawal and the signed maintenance contract to the credit institution; within three working days since receipt of such written request, the credit institution shall transfer the money; transfers through accounts or in cash are instructed in (4) and (5)

(7) Expenditures used for the maintenance of shared portions of apartment buildings in an apartment complex are instructed as follows:

- In case of irregular maintenance of shared portions of entire apartment complex, expenditures on the maintenance shall be deducted equally from expenditures on maintenance of shared portions of each apartment building;

- In case of irregular maintenance of shared portions of a number of apartment buildings in the apartment complex, expenditures on the maintenance shall be deducted equally from expenditures on maintenance of shared portions of each related apartment building;

- Withdrawal of expenditures on maintenance of shared portions as prescribed above is instructed in (4), (5) and (6).

Nguyen Ngoc Que Anh

>> CLICK HERE TO READ THIS ARTICLE IN VIETNAMESE