Individuals who want to build mini apartments for sale or rent must meet the conditions to be investors in housing construction projects, according to the draft Law on Housing (amended).
On the afternoon of November 16, the National Assembly Standing Committee gave opinions on a number of issues explaining and accepting the draft Law on Housing (amended).
Housing development, including mini-apartment management, was discussed by National Assembly deputies at the parliament on November 1. Presenting a report on acceptance and explanation this afternoon, Chairman of the Law Committee Hoang Thanh Tung said that regulations on multi-storey houses and individual apartments (mini-apartments) have been adjusted to be more suitable and feasible.
Mr. Hoang Thanh Tung - Chairman of the National Assembly's Law Committee. Photo: National Assembly Media
Accordingly, Article 57 of the draft law is adjusted in the direction that individuals who want to build mini apartments (houses with 2 floors or more, each floor has an apartment design, or 2 floors and a scale of 20 apartments or more) for sale or rent will have to meet the conditions to be the investor of a housing construction project. Apartments that are eligible for a certificate according to the land law will be sold, rented, or leased in accordance with the provisions of the Housing Law and the Law on Real Estate Business.
Investment in the construction of mini apartments for rent must meet the construction requirements issued by the Minister of Construction. The building must be designed, approved for fire prevention and fighting, and implement fire safety management measures according to regulations. The Provincial People's Committee is authorized to regulate traffic routes, ensuring that fire fighting equipment can fight fires at the location of mini apartments.
Management and operation of mini apartments must comply with the regulations on management and use of apartment buildings issued by the Minister of Construction.
"This is to overcome the shortcomings and limitations of the past, and increase management of this type of housing, but still ensure the needs of a part of the population," said Mr. Tung.
The "mini apartment" model has flourished in big cities like Hanoi and Ho Chi Minh City, but it has not been officially mentioned in legal documents on housing and real estate business. The current Housing Law also does not have a definition of mini apartments, only mentioning individual houses, apartment buildings, and social housing. Therefore, the management of mini apartments currently still has a legal gap. However, according to many experts in the industry, with mini apartments solving the housing needs of millions of people, we should find ways to manage them instead of banning them.
Regarding social housing, Mr. Hoang Thanh Tung said that the draft will include the addition of the Vietnam General Confederation of Labor as the governing body for investment in the construction of social housing. These projects will be rented to workers and laborers.
Incentives for investors building social housing are also inherited from the provisions of current law. Accordingly, investors are allowed to reserve 20% of social housing project land for commercial housing. Investors pay land use fees for this area according to land regulations.
This is to attract investment and tightly manage budget revenue, according to the Chairman of the Law Committee.
Deputy Prime Minister Tran Hong Ha said that it is necessary to continue studying and considering the regulation of 20% of social housing project land for commercial housing. According to him, the regulation as drafted aims to attract socialized investment resources, but also leads to the risk of some unreasonable issues in implementation.
Regarding the effective date of the regulations on social housing, according to Chairman Hoang Thanh Tung, the Standing Committee of the Law Committee proposed that the Standing Committee of the National Assembly consider and agree on the effective date of the Housing Law from January 1, 2025. Determining the effective date is also consistent with the Land Law (expected to be passed by the National Assembly at the latest at the 7th session in May 2024).
Speaking afterwards, Minister of Construction Nguyen Thanh Nghi expressed his wish that the contents related to social housing would take effect sooner, to speed up the development of this type of housing in conditions where the supply is very lacking.
According to the program, the National Assembly will vote to pass the Housing Law (amended) on November 27.
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