Circular No. 02/2013/TT-BXD guiding the adjustment of the structure of residential units in commercial housing projects and urban development projects, and the conversion of commercial housing to social housing or service facilities.

CIRCULAR

Guidelines for adjusting the structure of residential units in commercial housing projects, urban development investment construction projects, and converting commercial housing to social housing or service facilities

Pursuant to Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulating the functions, tasks, and powers of the Ministry of Construction;

The Minister of Construction issues this Circular guiding the adjustment of the structure of residential units in commercial housing projects, urban development investment construction projects, and the conversion of commercial housing to social housing or service facilities as follows:

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Article 1. Cases where the structure of residential units can be adjusted and the purpose of use of commercial housing can be converted to social housing or service facilities

Pursuant to the Government Decree No. 71/2010/NĐ-CP dated June 23, 2010 detailing and guiding the implementation of the Housing Law;

Pursuant to Decree No. 12/2009/NĐ-CP dated February 12, 2009 of the Government on project management for construction works

The Minister of Construction hereby issues this Circular to regulate the issuance of real estate brokerage practice certificates; guide the operation of real estate trading floors.

1. Cases where the structure of residential units can be adjusted and the purpose of use of commercial housing can be converted to social housing are those commercial housing projects and urban development investment construction projects that have been approved by competent authorities but have not yet commenced construction or have commenced construction but the structure of residential units or the purpose of use of commercial housing does not meet market demand.

2. Investors of commercial housing development projects and urban development investment construction projects may adjust the scale of large commercial residential units to smaller ones or convert multi-story apartment buildings and low-rise commercial housing to social housing or service facilities (hospitals, health centers, schools, hotels, commercial facilities...) provided that they comply with the principles set forth in Articles 2 and 3 of this Circular and the decision approving the adjustment of the structure of residential units or the conversion of the purpose of use of commercial housing issued by the People's Committee of provinces and centrally-run cities (hereinafter referred to as provincial-level People's Committees).

3. The adjustment of the structure of residential units and the conversion of the purpose of use of commercial housing to social housing or service facilities shall only be implemented for construction items and residential units (including high-rise and low-rise) that the investor has not signed joint venture contribution contracts or purchase contracts with customers. In cases where joint venture contribution contracts or purchase contracts have been signed with customers, the consent in writing of all customers who have signed contracts must be obtained before implementing the adjustment of the structure of residential units or the conversion of the purpose of use.

4. For commercial housing development projects and urban development investment construction projects with a scale of 500 residential units or more, the provincial-level People's Committee must obtain the agreement of the Ministry of Construction before issuing a decision allowing the adjustment of the structure of residential units or the conversion of the purpose of use.

Article 2. Principles for adjusting the structure of large commercial residential units to smaller ones

The adjustment of the structure of commercial housing from large to smaller residential units must comply with the following principles:

1. Ensuring safety and convenience for users;

2. Smaller residential units after adjustment must have sufficient minimum living space such as kitchen, sanitary facilities, bathroom...;

3. The area of smaller residential units after adjustment must not be lower than the minimum design standard for commercial housing as prescribed by laws on housing;

4. In cases where the project only adjusts the structure of residential units without changing the total floor area of housing according to the planning already approved by competent authorities, it is not necessary to review and approve again the population index and detailed planning at a scale of 1/500 or overall layout planning of the project; the provisions on the area and structure of residential units at points 6.2.4.9 and 6.2.4.10 of the Standard for High-Rise Housing Design TCXDVN 323:2004 shall not be applied.

5. In cases where the project adjusts the structure of residential units and the total floor area of housing changes compared to the planning already approved by competent authorities, the detailed planning at a scale of 1/500 or overall layout planning of the project must be adjusted. During the adjustment process, the provisions on the area and structure of residential units at points 6.2.4.9 and 6.2.4.10 of the Standard for High-Rise Housing Design TCXDVN 323:2004 shall not be applied, but adjustments shall be made according to the Planning Standards (issued by Decision No. 04/2008/QĐ-BXD dated April 3, 2008 of the Minister of Construction) to review and adjust the detailed planning at a scale of 1/500 or overall layout planning of the project.

4. In cases where the project only adjusts the apartment structure without changing the total floor area of residential buildings as approved by the competent authority, it is not necessary to review and reapprove the population criteria and detailed planning at a scale of 1/500 or the overall layout of the project; the provisions on apartment area and structure at points 6.2.4.9 and 6.2.4.10 of the High-rise Residential Building Design Standard TCXDVN 323:2004 shall not be applied.

5. In cases where adjusting the apartment structure results in a change in the total floor area of residential buildings compared to the planning already approved by the competent authority, the detailed planning at a scale of 1/500 or the overall layout of the project must be adjusted accordingly. During the adjustment process, the provisions on apartment area and structure at points 6.2.4.9 and 6.2.4.10 of the High-rise Residential Building Design Standard TCXDVN 323:2004 shall not be applied, but adjustments should be made according to the Planning and Construction Standards (issued pursuant to Decision No. 04/2008/QĐ-BXD dated April 3, 2008 of the Minister of Construction) to review and adjust the detailed planning at a scale of 1/500 or the overall layout of the project.

Article 3. Principles for Converting Commercial Housing Projects to Social Housing or Service Facilities and Adjusting the Structure of Commercial Housing Units

1. The conversion of commercial housing to social housing shall be regulated to increase building density, land use coefficient, and enjoy current incentives, but must ensure compliance with social housing design standards and sell, lease, or lease-purchase to eligible recipients as prescribed by housing laws.

2. The conversion of commercial housing units to service facilities must comply with minimum standards and regulations and manage, operate, and utilize such facilities according to post-construction regulations issued by competent authorities.

3. Projects that have paid land use fees shall be refunded the amount paid or offset against the financial obligations that the project's investor must pay to the State based on recalculated land use fees after adjustment.

Article 4. Procedures, Formalities, and Documentation for Conversion and Adjustment Requests

1. Documentation for adjusting the structure of housing units and converting the purpose of commercial housing includes:

a) An application for adjustment and conversion (according to Appendix No. 1 attached hereto);

b) Copies approved and issued by competent authorities, including: recognition documents for investors; investment approval documents; investment certificates; project approval decisions; detailed planning files at a scale of 1/500 or overall site plans of the project; project basic design files;

c) Proposals for adjusting the structure of housing units or converting commercial housing to social housing or service facilities (accompanied by explanatory drawings).

2. Provincial Construction Departments are responsible for receiving and processing conversion and adjustment requests from investors before submitting them for review by provincial People's Committees.

3. During the review process, the Construction Department organizes meetings to gather opinions from relevant agencies, including: the Architecture and Planning Department (if applicable); the Natural Resources and Environment Department; the Finance Department; the Planning and Investment Department; District or County People's Committees where the project is located (hereinafter referred to collectively as County-level People's Committees). The lead unit must send the documentation to relevant agencies prior to the meeting. The opinions of representatives at the review meeting are formal opinions on the project and are recorded in minutes.

4. After organizing the review meeting, the Construction Department is responsible for sending the meeting minutes regarding the request for adjustment or conversion along with a draft Decision allowing adjustment or conversion (according to Appendix No. 02 attached hereto). In cases where the project is not approved for adjustment or conversion, in addition to the meeting minutes, a draft reply document clearly stating the reasons for non-approval must also be sent to the provincial People's Committee for consideration and decision. Within a maximum period of seven working days from the date of receipt of the meeting minutes and draft decision allowing adjustment or conversion (or draft document not approving adjustment or conversion), the provincial People's Committee is responsible for signing and issuing the decision within its authority. If the project requires the agreement of the Ministry of Construction as stipulated in Clause 4, Article 1 of this Circular, the Construction Department is responsible for drafting documents to submit to the provincial People's Committee for consideration and forwarding to the Ministry of Construction for comments. Within a maximum period of fifteen working days from the date of receipt of the request for comments, the Ministry of Construction is responsible for replying in writing.

5. The time limit for reviewing and deciding on the adjustment or conversion of project purposes is a maximum of thirty working days from the date of receipt of valid documentation. For projects requiring the agreement of the Ministry of Construction as stipulated in Clause 4, Article 1 of this Circular, within a maximum period of ten days from the date of receipt of the Ministry of Construction's agreement, the provincial People's Committee is responsible for signing the decision allowing the adjustment or conversion of project purposes or issuing a reply to the investor regarding the rejection of the adjustment or conversion of project purposes.

Article 5. Responsibilities for Implementation

1. Provincial People's Committees are responsible for directing relevant functional agencies to organize the conversion of commercial housing projects and urban development projects into social housing or service facilities; adjust the structure of commercial housing units and urban development projects within their jurisdiction.

2. The Construction Department is responsible for leading and coordinating with local functional agencies to review commercial housing projects and urban development projects converted into social housing or service facilities and commercial housing projects and urban development projects where investors require adjustments to the structure of housing units for submission to the provincial People's Committee for consideration and decision.

3. The Real Estate Management and Market Department is responsible for leading and coordinating with subordinate agencies under the Ministry of Construction to provide guidance and resolve difficulties and issues during implementation; advise the Minister of Construction to monitor, urge, and inspect the adjustment of housing structures and conversion of commercial housing projects into social housing or service facilities to contribute to resolving difficulties for production and business operations, supporting the market, and addressing bad debts as prescribed by this Circular.

Article 6. Implementation Provisions

2. During implementation, if difficulties arise, please send opinions to the Ministry of Construction for joint resolution or submission to the competent authority for consideration and decision.