by Apra Law

In recent years, along with the strong development of all kinds of real estate projects in general, housing projects in particular. One of the types of housing that develops in both quantity and quality is social housing.

In Vietnam, where the population structure is young, the average income per capita is low, housing is an indispensable need of society with a young population in general, especially affordable housing. In line with the low per capita income of the people, it has not been able to keep up with the needs of the society, therefore, this type of social housing has always attracted the attention of the people, authorities, and investors.

Investors implementing social housing projects are supported by the State with preferential policies in land allocation, land lease, land tax incentives, incentives in access to credit capital, exemption from credit capital, and tax exemptions, tax reduction for businesses and other policies to help reduce the cost of social housing when the test is completed, handed over and put into use. In addition, the law also provides support policies on loan sources for buyers, rent-purchasers of social housing, helping to create opportunities for low-income people to own their houses.

According to the current legislation detailed in Article 49 of the Law on Housing 2014, the beneficiaries of social housing support policies include:

  1. People with meritorious services to the revolution according to the provisions of the law on preferential treatment for people with meritorious services to the revolution;
  2. Poor and near-poor households in rural areas;
  3. Households in rural areas are often affected by natural disasters and climate change;
  4. Low-income people, poor and near-poor households in urban areas;
  5. Employees are working at enterprises inside and outside the industrial zone;
  6. Officers, professional non-commissioned officers, professional and technical non-commissioned officers, professional soldiers, workers in agencies and units of the People’s Police and the People’s Army;
  7. Cadres, civil servants, and public employees by the law on cadres, civil servants and public employees;
  8. Subjects who have returned official residences according to the provisions of Clause 5, Article 81 of the Law on Housing 2014;
  9. Students, students of academies, universities, colleges, and vocational schools; students at a public boarding school for ethnic minorities may use housing during their study period;
  10.  Households and individuals are subject to land recovery and have to clear or demolish their houses by law but have not yet been compensated by the State with houses or residential land.

Forms of implementation of support policies on social housing include support to rent, lease-purchase, and sell social housing for low-income subjects specified in Clauses 1, 4, 5, and 6, 7, 8, and 10 articles 49 of the Housing Law 2014; support for allocation of residential land with land use levy exemption or reduction by land regulations to the subjects specified in Clauses 1, 2, 3, Article 49 above; to support the state’s concessional loans through the Bank for Social Policies, a credit institution designated by the State for the subjects to build new or renovate or repair houses for a living.

For the above subjects, the law also has provisions on conditions to enjoy support policies when buying, renting, and buying social housing to allocate housing products to the right subjects and maximize the benefits. the benefits of policy implementation. According to the provisions of Article 51 of the 2014 Law on Housing, for the cases specified in Clause 1, Article 50 of this Law, the conditions for housing, residence, and income must be satisfied as follows:

  1. Not having a house under their ownership, not being able to buy, rent, or lease-purchase social housing, not yet enjoying the housing support policy, residential land in the form of living, studying, or having a house belonging to them. own, but the average housing area per capita in the household is lower than the minimum housing area prescribed by the Government from time to time and from region to region;
  2. Must have permanent residence registration in the province or centrally run city where the social housing is located; if there is no permanent residence registration, they must have a temporary residence registration for one year or more in this province or city, except for the case specified in Clause 9, Article 49 of the Law on Housing 2014;
  3. For the subjects specified in Clauses 4, 5, 6, 7 Article 49 of the Law on Housing, they must not have to pay regular income tax according to the provisions of the law on personal income tax; in the case of poor or near-poor households, they must be classified as poor or near-poor according to the Prime Minister’s regulations. The subjects specified in Clauses 1, 8, 9, and 10, Article 49 of this Law are not required to satisfy the income conditions specified at this point;
  4. In case of receiving preferential loans from the State for new construction or renovation or repair of residential houses specified in Clauses 4 and 50 of this Law, the housing and residence conditions must be satisfied according to the regulations: Having residential land but not having a house or having a house but the house is damaged or dilapidated; Having registered permanent residence in the locality where the residential land or house needs to be newly built or renovated or repaired.

Along with policies to support low-income workers who can buy or rent-purchase housing, the law also provides general principles in the process of implementing policies in transactions of buying, selling, renting, Leasing-purchase to limit the use of policies for speculation, illegal transactions, etc. In principle, the principle of leasing, leasing-buying, and selling social housing is also stipulated in Article 62 of the Law on Housing 2014 as follows:

  1. For the lease, lease purchase or sale of social housing for the same period, each subject entitled to the social housing policy may only buy, rent, or lease-purchase or rent one social housing.
  2. The minimum term of the social housing rental contract is 5 years; the minimum payment term for rent-purchase of social housing is 05 years from the date of signing the lease-purchase contract;
  3. The lessee or hire-purchaser of social housing may not sell, sub-lease or lend the house during the rental or lease-purchase period; if the lessee or hire-purchase no longer needs to rent or lease-purchase the house, the contract shall be terminated and the house must be returned;
  4. The lessee or the purchaser of a social house may not resell the house for a minimum period of 5 years from the time of full payment of the rent and purchase price; In case, within 5 years from the date on which the purchaser or lessee has fully paid for the purchase or lease-purchase of a house and wishes to sell this house, it may only resell it to such social housing management unit. or sell to subjects eligible to buy social housing if this unit does not buy at the maximum selling price equal to the selling price of social housing of the same type at the same place and time of sale and does not have to pay personal income tax;
  5. Buyers or lease-purchasers of social housing may resell this housing according to the market mechanism to subjects in, payment and the be granted a Certificate but must pay land use levy according to the Government’s regulations and pay income tax by tax laws; In case of selling to subjects eligible to buy social houses as prescribed in the Law on Housing 2014, they may only sell them at a maximum price equal to the selling price of social houses of the same type at the same place and time of sale and are not required to pay personal income tax;
  6. Households and individuals eligible for relocation and rent-purchase or purchase social housing may resell this housing according to the market mechanism to subjects in need after having paid the full purchase price. , rent to buy a house and be granted a Certificate but must pay land use levy to the State according to the Government’s regulations and must pay income tax by tax laws;
  7. In all cases of the lease, lease-purchase, or sale of social houses in contravention of this Law, the contract for lease, hire-purchase, and purchase and sale of the house is invalid and the lessee, hire-purchaser, or purchaser must hand over the housing to the social housing management unit; In case the house is not handed over, the People’s Committee of the province where the house is located shall organize coercion to recover the house.

Above is the article about “CONDITIONS FOR SOCIAL HOUSING SUPPORT POLICY” of Apra Law Firm. If you have questions or comments about the issues mentioned in the article and need to be answered, please contact the hotline for advice and support.


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