Many incentives for investors implementing social housing in the Central region

Recognizing the barriers in building social housing, provinces in the Central region are perfecting preferential policies and supporting land funds... for investors to build social housing.

Recognizing the barriers in building social housing, provinces in the Central region are perfecting preferential policies and supporting land funds... for investors to build social housing.

Housing project for low-income people in Dien Nam - Dien Ngoc Industrial Park (Quang Nam).

Many barriers

Although they are localities with a very large labor force, the provinces and cities in the Central region are still facing many difficulties in developing social housing.

In Quang Ngai, Dung Quat Economic Zone and industrial parks in the province have attracted about 50,000 workers from other localities. Due to the urgent need for accommodation and limited income, most migrant workers are currently living in temporary, spontaneous boarding houses, which pose many potential safety risks.

According to the project to invest in building at least 1 million social housing apartments for low-income people and industrial park workers in the period of 2021-2030, Quang Ngai province will invest in building 6,300 social housing apartments, of which 1,500 apartments will be built in the period of 2022-2025 and 4,800 apartments in the period of 2026-2030. However, by the end of 2024, there has not been any completed social housing project in the province.

Quang Ngai Department of Construction said that in the past, the province has not issued investment support policies for this field, so it is not attractive enough to attract investors to implement social housing projects in the province.

Similarly, in Quang Nam, there are currently 4 projects in progress but they have not met the requirements. According to the Quang Nam Department of Construction, one of the major obstacles is the regulations on land fund ratio and apartment area for rent. The requirement that all commercial housing projects in urban areas of type III or higher must reserve 20% of land fund for social housing is not suitable to reality.

In addition, regulations on selecting investors for social housing construction investment projects are not consistent with the provisions of the law on public investment, investment, construction, bidding, land, real estate business, etc., causing very few projects to be implemented since the 2014 Housing Law took effect.

Quang Nam still has a large land fund with relatively low land prices. Therefore, people often prefer to own land rather than apartments, leading to a low actual demand for social housing.

Develop policies to support investors

To develop social housing in Quang Ngai, Vice Chairman of the Provincial People's Committee Tran Phuoc Hien assigned the Department of Construction to preside over and coordinate with relevant agencies, units and localities to review land funds and locations planned for social housing development, especially land funds with favorable locations and social housing land funds in commercial housing construction projects.

At the same time, the social housing development targets according to the province's plan and reference to the support mechanisms of the provinces (especially neighboring provinces) to rebuild the draft Resolution of the Provincial People's Council stipulating the support mechanism for implementing social housing construction investment projects in the province.

In particular, this locality is expected to support site clearance; support investment costs for construction of technical infrastructure systems; support after construction investment and completion acceptance.

In Quang Nam, the province has also issued a resolution stipulating a support mechanism for implementing social housing construction investment projects in the area until 2030 with a support fund of about 416 billion VND from the provincial budget.

Accordingly, 100% of the funding will be supported to carry out compensation, support and resettlement work in accordance with the provisions of the land law; creating clean land for investors to invest in building social housing. The support funding will be considered after completing the procedures for settling compensation and resettlement support funding in accordance with regulations. 50% of the funding will be supported to invest in building technical infrastructure systems within the project scope, including projects with investment phases approved by competent authorities.

In addition, Quang Nam also supports 100% of fees and charges for investment procedures, including fees for appraisal of tasks, detailed construction planning projects; appraisal of feasibility study reports, etc.

Source: https://baodautu.vn/batdongsan/nhieu-uu-dai-cho-chu-dau-tu-thuc-hien-nha-o-xa-hoi-o-mien-trung-d243045.html