"Running around" to complete the Project to build at least 1 million social housing apartments
Recently, the Government has approved the Project to build at least 1 million social housing apartments for low-income people and industrial park workers in the 2021-2030 period.
The project is divided into two phases, phase 1 from 2021 - 2025 will complete about 428,000 units. Meanwhile, phase 2 from 2025 - 2030 aims to complete about 634,200 social housing units.
However, a report from the Ministry of Construction shows that from 2021 to mid-May 2023, the country has completed 41 social housing projects in urban areas, with an estimated handover of more than 19,500 apartments. It is expected that from now until 2025, the end of phase 1 of the Project, there will be about 294 completed projects, with nearly 288,500 apartments handed over.
If these projects are completed on schedule, in phase 1 of the Project, the total supply of social housing will be about 308,000 apartments, equivalent to 30.8%. This number does not meet the Government's spending in phase 1.
Thus, in phase 2, from 2015 to 2030, localities will have to "rush their feet" to implement the remaining 69.2% of the apartments, equivalent to 692,000 apartments. That is not to mention the cases of projects being behind schedule, intentionally not implementing the project according to regulations, making the implementation of the tasks in the Project increasingly difficult.
Many problems in building social housing in urban areas
According to the explanation of the Ministry of Construction, there are many difficulties and challenges in implementing this Project, such as limited capital sources; land fund has not been arranged; mechanisms and policies to encourage the development of social housing are not really attractive,...
However, there are certain difficulties in Decree 49 of the Government, issued in 2021, related to the issue of requiring investors building commercial housing and urban areas to reserve 20% of land fund to invest in building social housing.
Specifically, Decree 49 stipulates that commercial housing projects in special urban areas with land funds of 2 hectares or more must reserve 20% of their land funds for social housing construction. For smaller urban areas, urban area projects with land funds of over 5 hectares must apply.
According to the Hanoi People's Committee, the city currently has many commercial housing projects with an area of over 2 hectares in suburban areas, in remote areas such as Ba Vi, Ung Hoa, My Duc,... Therefore, developing social housing on over 20% of the land fund in these projects is not appropriate.
In addition, commercial housing projects with a scale of more than 2 hectares but with a small housing construction land area, according to regulations, must still reserve 20% of the total residential land area invested in technical infrastructure construction to build social housing.
Therefore, the arrangement of land fund for social housing construction in the project is inappropriate and fragmented. However, according to regulations, it is required to report to the Prime Minister about the failure to arrange land fund for social housing construction in these projects.
Meanwhile, according to the People's Committee of Dong Nai province, there is a case where an investor has completed a commercial housing project (level I project), and now that investor wishes to continue investing in social housing on the 20% land fund of that commercial housing project (level II project). However, the investor is not allowed to separate the 20% land fund into an independent social housing project, but must adjust the investment policy and extend the progress.
However, in many cases, consideration for allowing extension of the progress of level I projects cannot be implemented because some level I projects have expired their investment period of more than 24 months.
Slow implementation of social housing construction on over 20% of land fund in urban areas
Currently, many investors are deliberately delaying the construction of social housing on more than 20% of urban land fund, with the purpose of waiting for the mechanism to change and "avoid" the regulations. Especially in special urban areas such as Hanoi or Ho Chi Minh City, where land prices are very high, few investors comply with this regulation.
Previously, at the end of 2022, the Ministry of Construction proposed to remove the regulation requiring investors building commercial housing and urban areas to reserve 20% of land funds for investment in building social housing. Instead, the Ministry of Construction requested to add regulations stating that the allocation of land funds for social housing development is the responsibility of the provincial People's Committee.
Talking to reporters of the Journalist & Public Opinion Newspaper, Mr. Nguyen Trung Tuan - a real estate expert said: Because of this proposal, there is a phenomenon of investors deliberately "stalling" to wait for policy changes.
“In special urban areas, 20% of the land fund of 2 hectares is very valuable. Therefore, for some investors, building social housing on this land is a waste. Because social housing projects have limited profits. Meanwhile, when the mechanism changes and this regulation is removed, they can build other commercial housing projects with higher profits,” said Mr. Tuan.
Also having this opinion, the Ho Chi Minh City People's Committee stated: In the city, there are many urban area and commercial housing projects with large land funds of over 2 hectares, even projects of over 10 hectares. These projects have identified 20% of the land fund for social housing construction, but the project investors are slow to implement compensation and site clearance or have not invested in building technical infrastructure, so they have not yet invested in building social housing.
Faced with this situation, the Ho Chi Minh City People's Committee will review and strictly implement the regulation on reserving 20% of residential land fund invested in technical infrastructure in commercial housing projects and urban areas to invest in developing social housing according to the law on housing.
The Ho Chi Minh City People's Committee will strengthen inspection, examination, supervision, and handling of violations of the law in the development of social housing and workers' housing in the area, including the allocation of social housing land funds in commercial housing projects and urban areas.
At the same time, urge investors of commercial housing projects and urban areas to invest in building social housing on 20% of the land fund of these projects according to the approved schedule.
"In case the Investor does not implement, the Ho Chi Minh City People's Committee will consider reclaiming 20% of the land fund to select and assign to other Investors," the city leader emphasized.
Mr. Nguyen Thanh Nghi - Minister of Construction recently also spoke up to request that large real estate businesses and corporations, in addition to developing urban and housing projects, need to pay more attention to investing in developing social housing for low-income people and industrial park workers in localities to ensure social security and achieve the goals set out in the Project.
In addition, the Ministry of Construction requested that enterprises strictly implement their responsibility to invest in social housing on 20% of the land fund in commercial housing projects and urban areas invested by enterprises.
In the coming time, the Ministry of Construction and localities will strengthen inspection, examination, supervision and handling of violations of the law in the development of social housing and workers' housing in the area.
In particular, it will review and strictly implement regulations on reserving 20% of residential land fund invested in technical infrastructure in commercial housing projects and urban areas to invest in developing social housing according to the law on housing.
"Request investors of commercial housing projects to invest in building social housing on this land fund according to the approved schedule," the Minister of Construction emphasized.
Dinh Tran
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