Removing bottlenecks in demolition, renovation and reconstruction of old apartment buildings

The Law Committee of the National Assembly believes that the provisions of the draft Law on Housing (amended) need to remove bottlenecks in the order and procedures for relocating residents out of dangerous apartment buildings at risk of collapse; selecting investors to renovate and rebuild apartment buildings; agreeing on compensation and resettlement plans after selecting investors...

Chairman of the National Assembly's Law Committee Hoang Thanh Tung reports on the review of the draft Law on Housing (amended). (Photo: DUY LINH).

Avoid overlap and conflict with the draft Land Law (amended)

On the morning of June 5, presenting the review report on the draft Law on Housing (amended), Chairman of the National Assembly's Law Committee Hoang Thanh Tung stated that one of the major problems that need to be overcome when amending the Law on Housing is the difficulty in demolishing, renovating, and rebuilding old, degraded, and damaged apartment buildings.

Incorporating the opinions of the National Assembly Standing Committee at the March 2023 session, the draft Law submitted to the National Assembly has removed the option on the term of ownership of apartment buildings. However, the Law Committee found that the additional contents in the draft Law do not meet the requirements on specificity and feasibility regarding authority, order and procedures for relocating residents, demolishing, renovating and rebuilding unsafe apartment buildings, and need to be further reviewed and studied for completion.

Based on research, survey and supervision of the implementation of the law on renovation and reconstruction of apartment buildings in practice in large cities, the Law Committee believes that the provisions of the draft Law on this issue need to remove bottlenecks in: procedures for relocating residents out of dangerous apartment buildings at risk of collapse; selecting investors to renovate and rebuild apartment buildings; agreeing on compensation and resettlement plans after selecting investors; complicated and lengthy investment procedures for projects to renovate and rebuild apartment buildings.

Delegates attending the meeting on the morning of June 5. (Photo: DUY LINH).

Specifically, the forced relocation of residents from dangerous apartment buildings at risk of collapse directly affects constitutional rights (the right to legal residence, the inviolability of housing, the right to home ownership, etc.) and therefore needs to be regulated in the Law.

Therefore, it is recommended that the Government study and specify the authority, order, procedures for relocation, and appropriate enforcement measures when necessary to ensure effective implementation of the policy of renovating and rebuilding apartment buildings.

At the same time, the Law determines the voting rate for choosing compensation and resettlement options of apartment owners; supplementing the regulation that after a certain period of time as prescribed by the Government, if no agreement is reached on the option, compensation and resettlement will be implemented according to the option decided by the Provincial People's Committee on the basis of compensation and resettlement principles prescribed in the Housing Law.

Inheriting the provisions of the current Housing Law, Point a, Clause 1, Article 72 of the draft Law stipulates that in the case of an apartment building that must be demolished but is rebuilt according to the planning, the owners will be arranged to resettle on the spot and must contribute funds to rebuild the apartment building.

The Law Committee approved this provision because it is suitable for practice and ensures the legal land use rights of owners of demolished apartment buildings. However, regarding this issue, Point a, Clause 3, Article 79 of the draft Land Law (amended) stipulates that projects to renovate and rebuild apartment buildings under the provisions of the Housing Law are cases of land recovery for socio-economic development for national and public interests, leading to overlap and conflict between the two laws.

Therefore, it is recommended that the Government direct the Ministry of Construction and the Ministry of Natural Resources and Environment to coordinate in reviewing and proposing a unified solution to handle the above content in the two draft Laws, ensuring the legitimate and legal rights and interests of apartment owners with stable and long-term residential land.

The Law Committee also proposed to continue researching and clarifying the specific nature of apartment building renovation and reconstruction projects to develop regulations on appropriate investment procedures and processes, avoiding overlaps and duplications, increasing compliance costs and prolonging the time for reviewing, approving and approving investment policies.

It is necessary to regulate the minimum percentage of land use fees and land rent for social housing development.

Regarding the social housing development policy, Clause 1, Article 80 of the draft Law stipulates that the allocation of land funds for social housing development is the responsibility of the provincial People's Committee; Clause 3, Article 80 supplements the provision that the provincial People's Committee is responsible for reporting to the People's Council of the same level on allocating a certain proportion of the funds collected from land use fees and land rents of commercial housing and urban area investment projects in the area to carry out compensation, site clearance (if any) and investment in the construction of technical infrastructure systems for social housing investment projects or investment in the construction of social housing projects.

The majority of opinions in the Law Committee agreed with the provisions of the draft Law. However, to ensure transparency, feasibility and enhance the responsibility of local authorities in implementation, it is proposed to supplement the regulation on the minimum percentage of land use fees and land rents of commercial housing projects and urban areas that the local budget receives must be spent on social housing development.

In addition, the Law Committee found that, according to the provisions of the current Housing Law, in addition to allocating 20% of the land fund, investors building commercial housing projects and urban areas must also invest in synchronous technical infrastructure for the land used to build social housing. If only the land use fee and land rent are deducted, in fact, it is still taken from the state budget.

Minister of Construction Nguyen Thanh Nghi presented the Government's proposal on the draft Law on Housing (amended). (Photo: DUY LINH).

Therefore, it is recommended to study additional regulations on the responsibility of contributing funds to build social housing for investors in commercial housing and urban area construction projects.

Regarding incentives for investors of social housing for sale, lease-purchase, or lease, Article 82 of the draft Law stipulates that investors of social housing construction projects not funded by state budget, national bonds, bonds, official development assistance capital, preferential loans from sponsors, etc. are exempted from land use fees and land rent for the entire land area of the project and do not have to carry out procedures for determining land prices, calculating land use fees, and exempted land rent according to regulations of the law on land.

In addition, preferential value added tax and corporate income tax according to tax laws.

The majority of opinions in the Law Committee agreed with the provisions of the draft Law; at the same time, it was proposed that Clause 2, Article 82, supplement the regulation on the maximum proportion of private land fund for the construction of business, service and commercial facilities in social housing projects to ensure strictness and avoid loopholes that can be abused in proposing investment projects to build social housing, but the main goal is to have land to build business, service and commercial facilities.

Regarding the determination of selling prices, rental prices, and hire-purchase prices of social housing not invested in and built by the State, the majority of opinions in the Law Committee agree with the provisions of the draft Law on costs being fully included in the selling price to recover the investment capital of enterprises, ensuring the legitimate rights and interests of investors.

However, to ensure transparency and strictness, it is recommended to study and clarify "other reasonable costs" included in the selling price or stipulate principles and conditions for costs to be considered reasonable when included in the selling price.

According to: nhandan.vn

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