The following summary briefly provides the main information of Decree 98/2024/ND-CP (effective from 01/08/2024) detailing a number of articles of the Law on Housing 2023 on renovation and reconstruction of apartment buildings, including four parts: (1) Terminology, (2) Scope of adjustment and subjects of application, (3) Some main contents of the Decree, and (4) Comparison between Decree 98/2024/ND-CP and Decree 69/2021/ND-CP.
1. Terminology
1.1. Investment projects on renovation and reconstruction of apartment buildings[1]: Demolition of an independent apartment building block or many blocks of buildings with the same construction structure/technical system on a land subject to demolition for reconstruction.
1.2. Consolidating apartment buildings for renovation and reconstruction[2]: Relocate owners and users of apartment buildings of 02 or more independent apartment buildings in the same district-level area or below to build new apartment buildings in 01 or 02 locations where apartment buildings are collected.
1.3. Apartment user[3]: Persons who are renting houses under contracts or according to written arrangements for use or according to papers proving the use of houses belonging to public property.
1.4. Investors of the apartment renovation and reconstruction projects[4] an organization that is selected and determined in one of the following forms:
- Investors of apartment renovation and reconstruction projects are determined in cases where the State directly invests in construction with public investment capital (Article 15)
- Selection of investors through transfer agreements between investors and apartment owners (Article 16).
- Selection of investors through an agreement between the apartment building owner and the real estate business enterprise at the Apartment Conference (Article 17).
- Selection of project investors through bidding organization (Article 18).
2. Scope of regulation and subjects of application
- Scope of regulation: Detailing and guiding the implementation of a number of articles of the Law on Housing on renovation and reconstruction of apartment buildings.
- Subjects of application: Domestic organizations, households and individuals; overseas Vietnamese; foreign organizations and individuals and state management agencies related to the renovation and reconstruction of apartment buildings in Vietnam.
3. Some main contents of Decree 98/2024/ND-CP
3.1. The process of implementing the project of renovation and reconstruction of apartment buildings
3.1.1. Project preparation stage
- Competent authorities[5] shall be responsible for determining the detailed planning of the apartment building renovation and reconstruction project as a basis for project implementation. In case it is not possible to invest in rebuilding the apartment building or it is possible but does not ensure the socio-economic efficiency of the project, the Provincial People's Committee shall decide on the solution of consolidating the apartment buildings.
- On the basis of inspection conclusions[6], detailed planning, the Provincial People's Committees shall draft plans for renovation and reconstruction of apartment buildings for each project.
- After completing the draft, the provincial housing management agency shall report to the Provincial People's Committee for consideration and comments before publicly posting it for comments on the content of the plan.
- After the end of the process of collecting opinions on the content of the plan, the provincial housing management agency is responsible for completing the content of the plan and submitting it to the Provincial People's Committee. Next, the Provincial People's Committee shall publicly post the contents of the plan, except for certain cases[7].
- When there is a plan to renovate and rebuild the apartment building, depending on the type of project, the next procedure shall be carried out as follows:
- Projects with public investment capital: The investor will be decided by the housing management agency, the competent authorities will decide on the investment policy in accordance with the law on public investment.
- Projects without public investment:
Content | Selection of investors through transfer agreements between investors and apartment owners | Selection of investors through an agreement between apartment building owners and real estate businesses at the Apartment Conference | Selection of project investors through bidding organization | |
Approval of investment policy | The investor will carry out the procedures for applying for approval of the initial policy at the same time as the procedures for approving the investor for the provincial-level Housing Management Agency to submit to the Provincial People's Committee for approval[8]. | Provincial housing management agencies[9]. | ||
Approval of the investor | The provincial housing management agency proposes and the Provincial People's Committee approves[10]. | |||
Land Acquisition | No | The investor shall carry out procedures to request a competent state agency in accordance with the land law to recover land, allocate land, lease land or change the land use purpose[11]. | ||
- At the end of the preparation stage, the investor shall make a report on the feasibility of renovation and reconstruction of the apartment building to submit it to the competent authority for appraisal and then based on the appraisal results to approve the project in accordance with the construction law[12].
3.1.2. Project implementation and project completion stage
The investor shall implement the project including the following tasks: preparing, appraising, and approving construction designs, obtaining a construction permit, executing the construction, operating the construction works, performing the final inspection and acceptance of the completed construction and meeting the requirements for the design and installation of telecommunications and information infrastructure systems. The handover is conducted after the final inspection of the apartment building and the technical infrastructure of the area has been completed, in accordance with the project timeline outlined in the investment policy approval.
3.2. Compensation and resettlement for houses and construction works
3.2.1. Compensation and resettlement for houses and construction works not belonging to public property13
- Compensation and resettlement for apartments: Compensation according to the coefficient k (x) 1-1.5 or 1-2 times the area of the demolished apartment depending on the type of apartment. Resettlement in another location owned by the investor or an agreement on monetary compensation according to the selling price of the relocation apartment proposed by the investor.
- Compensation and resettlement for areas other than apartments in apartment buildings: To be compensated for the coefficient k = 1 time of the old used area depending on whether the service and commercial business area is rebuilt or not.
- Compensation and resettlement for houses and other areas that are not apartment buildings but belong to apartment building renovation and reconstruction projects: Depending on the area being a detached house or a headquarter, working house, or other construction work belonging to the project of renovation and construction of apartment buildings, the compensation method will correspond to each type of work.
3.2.2. Compensation and resettlement for houses and construction works belonging to public property14
- Compensation and resettlement for apartments belonging to public property: Based on whether public property is a mixed property with an apartment owned by an organization or individual in an apartment building, the compensation issue will be carried out differently.
- Compensation for other areas of houses and land belonging to public property other than apartments: Except for the area of common-use houses belonging to public property, land areas under other common-use rights managed by the State will be exempt from land compensation.
3.3. Incentive mechanism for investors of apartment building renovation and reconstruction projects15
- Preferential mechanisms on land use levies and land rents: Exemption from land use levies and land rents in case of land allocation or lease or exemption from land compensation.
- Incentive mechanism for apartment business, service and commercial business area: To sell apartments at commercial business prices without having to pay land use levy to the State and not having to convert the function into commercial housing.
4. Comparison between Decree 98/2024/ND-CP and Decree 69/2021/ND-CP
Basically, Decree 98/2024/ND-CP also inherits the important contents of the Decree 69/2021/ND-CP. However, Decree 98/2024/ND-CP has been supplemented with new regulations, leading to the differences between the 2 decrees as follows:
This article is intended solely for informational purposes and should not be used as legal advice for specific cases. Should you have any inquiries or feedback regarding the content of this article, please do not hesitate to contact us via email: enquiry@dptlaw.vn or via phone number: 0336662099. We always welcome comments and suggestions from our esteemed readers.
[1] Clause 1 Article 3 Decree 98/2024/ND-CP.
[2] Clause 3 Article 3 Decree 98/2024/ND-CP.
[3] Clause 6 Article 3 Decree 98/2024/ND-CP.
[4] Clause 7 Article 3 Decree 98/2024/ND-CP.
[5] According to Point c Clause 1 Article 46 Decree 98/2024/ND-CP, the Provincial People's Committee is responsible for implementing the detailed planning of the apartment building renovation and reconstruction project.
[6] According to Clause 2 Article 5 Decree 98/2024/ND-CP, housing management agencies shall review, inspect and assess the quality of apartment buildings every 6 months as a basis for developing plans for renovation and reconstruction of apartment buildings.
[7] Apartment buildings subject to demolition using local budget capital for demolition and construction investment: The Provincial People's Committee must report to the People's Council of the same level for opinions.
Apartment buildings under the management of central agencies: The Provincial People's Committee must assume the prime responsibility for, and coordinate with the representative agency of the owner of this apartment building to report to the competent agency for decision.
[8] Clause 4 Article 16 Decree 98/2024/ND-CP.
[9] Clause 2 Article 18 Decree 98/2024/ND-CP.
[10] Clause 5 Article 18 Decree 98/2024/ND-CP.
[11] Clause 2 Article 19 Decree 98/2024/ND-CP.
[12] Article 20 Decree 98/2024/ND-CP.
13 Article 28, 29 and 30 Decree 98/2024/ND-CP.
14 Articles 33 and 34 Decree 98/2024/ND-CP.
15 Article 40 Decree 98/2024/ND-CP.
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