Proposed solutions to promote social housing investment

Accordingly, HoREA believes that it is necessary to add back the regulation that social housing project investors can adjust the construction density or land use coefficient up to a maximum of 1.5 times compared to the standard to encourage investment.

Before the Housing Law 2023, Decree No. 100/2015/ND-CP also stipulated that project investors are allowed to adjust the construction density or land use coefficient up to a maximum of 1.5 times compared to current construction standards and regulations. HoREA believes that this is a reasonable mechanism and policy to ensure the feasibility of social housing projects to attract many investors to participate in developing housing types that can balance the current supply and demand.

In case the State conducts a bidding to select an investor to implement a social housing project, and the land plot or land area has a detailed 1/500 planning approved by a competent state agency, the above provisions shall not apply. Because the winning investor is responsible for implementing the social housing project in accordance with the planning and must comply with the construction density and land use coefficient determined according to the detailed 1/500 planning scheme.

Social housing is an important type of housing that is expected to balance supply and demand.

In addition, in the case where the State conducts bidding to select investors to implement social housing projects where the land plots and land areas have a 1/2000 zoning plan, all bidding investors must propose a detailed 1/500 scale planning scheme of the social housing project in the bidding documents that meets the conditions and requirements of the bidding documents and often propose a construction density and land use coefficient of the social housing project higher than the prescribed construction density and land use coefficient.

Because the orientation indicators of the 1/2000 scale zoning plan are only average indicators of construction density and land use coefficient of the entire zoning including construction works, low-rise and high-rise houses.

Currently, competent authorities often approve construction standards and norms for construction works and high-rise apartment buildings with a construction density of about 30-38% and a land use coefficient of about 7.0 depending on the construction density, maximum height of the building and depending on the high-end, mid-range, affordable apartment project or social housing project and depending on the maximum height limit of the building.

The winning investor is allowed to sign a business investment project contract with the investor and then, the winning investor submits for approval the detailed planning at a scale of 1/500 of the social housing project to be approved by the competent state agency in accordance with the provisions of the law on construction.

According to HoREA, while the State does not have available land funds for social housing development, it is necessary to encourage investors to negotiate on their own land use rights or have land use rights to implement social housing projects. Because without this policy mechanism, investors will choose to use the land funds they have to implement commercial housing projects, which are easier and more effective, instead of implementing social housing projects that are bound by many regulations.

Source: https://www.congluan.vn/tp-hcm-kien-nghi-giai-phap-de-thuc-day-dau-tu-nha-o-xa-hoi-post297885.html