MoC makes suggestions on social housing

Blocks of social housing in Kim Chung commune of Hanoi's Dong Anh district. Photo: VNA

The ministry is proposing a draft law of the National Assembly to pilot a variety of policies to construct social housing and lodging for employees in industrial zones (IZs), in which it is recommended that buyers and lessees meet two housing and income requirements. Tenants in social housing are exempt from meeting housing and income restrictions.

In accordance with the 2014 Law on Housing, those who want to buy, rent, or lease-purchase social housing must fulfil three housing, residency, and income requirements. These individuals must have permanent resident registration in the area where the social housing is situated; otherwise, they must have a one-year or longer temporary stay.

The Ministry of Construction (MoC) said that restrictions on living conditions, such as the present statute, "are no longer acceptable in light of the changed circumstances and generate superfluous processes."

Due to regulations on the three requirements of housing, residency, and income, low-income individuals who want to rent a social dwelling (but not purchase, sell, or transfer ownership) must also complete the necessary processes and paperwork.

At the same time, businesses in IZs have an urgent need for social housing to care for their employees. Unfortunately, present legislation does not specify that this population is eligible for the social housing leasing scheme.

According to the institution responsible for the plan, it will increase the supply and demand for social housing, particularly rental housing, while decreasing the fiscal burden on the government, enterprises, and individuals. This collection of policies also contributes to social security and administrative process reform.

Also in this draft, the MoC has proposed numerous initiatives on rights and incentives for investors in social housing construction projects, such as manoeuvring regulations that permit investors in social housing construction initiatives to exchange products under an independent business plan, and not being required to retain 20 per cent of the social housing floor area in the social housing construction project for lease.

In addition, the drafting agency proposes that investors in social housing construction projects receive exemptions and reductions in land use fees and land rents, a 10 per cent profit for the area of social housing construction, and preferential treatment for doing business, providing services, and engaging in commerce in the area.

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