Decision No. 10/2003/QD-BXD Issuing the Regulation on Management and Use of Apartment Buildings

Pursuant to …;

Issuing the Regulation on Management and Use of Apartment Buildings

___________________

THE MINISTER OF CONSTRUCTION

Pursuant to Decree No. 15/CP dated March 4, 1994 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 71/2001/NĐ-CP dated October 5, 2001 of the Government on incentives for investment in housing construction for sale and lease;

At the proposal of the Director of the Housing Management Department.

Pursuant to …;

Article 1. The accompanying this Decision is the Regulation on Management and Use of Apartment Buildings.

Article 2. The Standard Measurement Quality Control Department shall be responsible for organizing and guiding the implementation of the Regulations adopted herein.

Article 3. Ministries, ministerial-level agencies, agencies under the Government, People's Committees of provinces and centrally governed cities, and organizations and individuals related thereto shall be responsible for implementing this Decision.

  REGULATIONS

MANAGEMENT AND USE OF APARTMENT BUILDINGS
(Issued together with Decision No. 10/2003/QĐ-BXD dated April 3, 2003 of the Minister of Construction)

Chapter 1:

GENERAL PROVISIONS

Article 1. The purpose of issuing the Regulation on Management and Use of Apartment Buildings:

1. To maintain the quality, architecture, landscape, hygiene-environment, public order-society, and safety of apartment buildings, contributing to improving living conditions in apartment building areas;

2. To define the rights and responsibilities of organizations and individuals in managing and using apartment buildings;

3. To establish a model of apartment building management based on socialization combined with the role of state management at all levels of government.

Article 2. This Regulation applies to various types of apartment buildings with multiple owners, including newly constructed or reconstructed apartment buildings according to projects and those built previously.

Article 3. Livestock for slaughter includes: cattle, buffalo, goats, sheep, pigs, horses, donkeys, camels, and other livestock used for food;

In this Regulation, the following terms shall be understood as follows:

1. "Apartment Building" means a multi-story building with multiple households; having a closed-apartment structure; common corridors, staircases, and shared infrastructure systems;

2. "Cluster of Apartment Buildings" means a residential area with two or more apartment buildings constructed in the same location by the same developer or a previously constructed apartment building;

3. "Developer" means the owner or the person entrusted with managing and utilizing capital, raising capital to implement investment in constructing apartment buildings in accordance with the provisions of the law;

4"Exclusive Ownership Part" in an apartment building includes the interior area of the apartment (including balconies and terraces attached to the apartment); other areas such as shops, kiosks, supermarkets, offices, and other parts recognized as exclusive ownership under the law;

5. "Common Ownership Part" in an apartment building includes the remaining area (excluding the exclusive ownership part mentioned in Clause 4 of this Article); space and load-bearing structures, shared technical equipment within the apartment building (columns, walls, floors, roofs, rooftops, corridors, staircases, elevators, escape routes, garbage chutes, technical cabinets, parking areas; electrical, water, gas, communication, broadcasting, television, drainage, septic tanks, lightning protection, firefighting systems...); infrastructure technical systems outside the building connected to the apartment building;

6. "Periodic Maintenance" of an apartment building means maintenance carried out according to prescribed cycles to ensure that structural components, technical equipment, and finishing parts do not fail before their expected lifespan;

7. "Emergency Repair" of an apartment building means repair work not carried out according to prescribed cycles to address sudden failures;

8. "Owner of Exclusive Ownership Part" in an apartment building means an organization or individual legally owning the exclusive ownership part mentioned in Clause 4 of this Article under the law (hereinafter referred to collectively as the owner);

9"User of the Apartment Building" means the owner or an organization or individual legally using the exclusive ownership part in the apartment building;

10. "Apartment Building Meeting" means the meeting of apartment building users;

11"Management Board of the Apartment Building"means the board established to represent apartment building users in supervising activities related to the management and use of apartment buildings (hereinafter referred to collectively as the Management Board);

12. "Apartment Building Management Enterprise" means an enterprise established and operating in accordance with the law to carry out apartment building management and provide apartment building services.

Article 4. Contents of management and use of apartment buildings include:

1. Management and use of common ownership parts;

2. Management and use of exclusive ownership parts;

3. Organization of apartment building management;

4. Funding for apartment building management operations;

5. Resolution of disputes and handling of violations;

6. Responsibilities of People's Committees at all levels in apartment building management and use operations.

Chapter 2:

MANAGEMENT AND USE OF APARTMENT BUILDINGS

PART I:

MANAGEMENT AND USE OF COMMON OWNERSHIP PARTS

Article 5. Legal users of apartment buildings have equal rights in using common ownership parts and are obligated to comply with regulations on management and use of apartment buildings, contribute fully to funding for management operations and provision of apartment building services as stipulated in this Regulation.

Article 6. Users of apartment buildings are obligated to:

1. Comply with usage rules, regulations on maintaining and preserving assets belonging to common ownership parts; strictly adhere to fire prevention, firefighting, public sanitation, public order regulations; promptly detect and prevent acts violating common ownership parts in apartment buildings;

2. Individuals causing damage to assets belonging to common ownership parts must restore them to their original condition or compensate for losses;

3. Facilitate the work of those responsible for maintaining and repairing common ownership parts. Those who obstruct and cause damage to common interests must compensate and be dealt with according to the law;

4. Contribute fully and on time to the funds required by regulations to manage, operate, maintain, and repair the shared technical equipment and assets belonging to common ownership parts.

Article 7. Apartment building maintenance shall be carried out in accordance with Circular No. 05/2001/TT-BXD dated August 30, 2001 of the Ministry of Construction and other relevant legal documents.

Article 8. The use, exploitation, maintenance, and repair of shared infrastructure engineering systems and equipment must comply with the instructions of the designer, manufacturer, and procedures and norms issued by competent state authorities.

Article 9. Management and exploitation of commercial and service parts within apartment buildings must comply with this Regulation and other regulations of competent state authorities.

ADMINISTRATIVE VIOLATIONS IN COMPETITIONS - PERFORMANCES, FORMS AND AMOUNTS OF FINES

MANAGEMENT AND USE OF EXCLUSIVE OWNERSHIP PARTS

Article 10. The State shall protect the private ownership portion of the owner in the apartment building in accordance with the provisions of the law and this Regulation.

Article 11. The user of the apartment building has the responsibility to maintain, preserve, and use the private ownership portion in accordance with its intended purpose, design functionality, and the provisions of this Regulation.

Article 12. Maintenance and repair of the private ownership portion:

1. The owner shall be responsible for maintaining and repairing their private ownership portion. The owner may perform these tasks themselves or hire others to do so, but must not affect the safety, appearance, and architecture of the apartment building. In cases where the user is not the owner and wishes to carry out repairs on the private ownership portion, they must obtain the owner's written consent.

2. Maintenance and repair activities must comply with the following regulations:

2.1. Must notify the Management Board five days in advance about the content and progress of the work. If maintenance or repair affects nearby apartments, appropriate time must be arranged and the schedule and time of the work must be notified to adjacent households. If hiring others to perform the work, the specific list of individuals hired for maintenance and repair must be reported to the Management Board.

2.2. Users of the apartment building and those hired for maintenance and repair must maintain common cleanliness; if damage occurs to the common ownership portion or another person's private ownership portion, they must restore it to its original condition or compensate accordingly.

2.3. Maintenance and repair of the private ownership portion must ensure the overall unity and consistency of the entire apartment building.

SECTION 3:

PROHIBITED ACTS

Article 13. It is strictly prohibited for users of the apartment building to engage in the following acts:

1. Expanding, occupying areas, or space belonging to the common ownership portion in any form; damaging, altering, dismantling, or changing the load-bearing structure, technical infrastructure system, shared equipment, or exterior architecture of the apartment building; damaging assets belonging to the common ownership portion.

2. Causing excessive noise beyond the prescribed limits; affecting the order and security of the apartment building.

3. Dumping waste, sewage, exhaust gases, or harmful substances indiscriminately; causing seepage, leakage, environmental pollution; raising livestock or poultry in areas belonging to the common ownership portion.

4. Advertising, writing, or drawing in violation of regulations or engaging in other acts not permitted by law. Changing the structure or design of the private ownership portion (building walls on the floor surface, moving equipment and technical systems attached to the common ownership portion, damaging or expanding the area in any form).

5. Using or allowing others to use the private ownership portion contrary to the designated purpose.

6. Raising livestock or poultry in areas belonging to the private ownership portion that affects the order, aesthetics, and living environment of other households and public areas (if keeping ornamental animals, it must comply with relevant legal regulations).

7. Operating businesses or selling goods that easily cause fires or explosions (welding, gas, explosives, and other dangerous businesses).

8. Operating services that cause loud noise or environmental pollution (karaoke restaurants, dance clubs, motorcycle and car repair shops, slaughterhouses, and other polluting services).

Chapter 3:

ORGANIZATION AND IMPLEMENTATION OF APARTMENT BUILDING MANAGEMENT

Article 14. Responsibilities of the Project Proponent:

1. Inform and guide potential buyers or renters of apartment buildings to understand the management and usage regulations stipulated in this Regulation before selling or renting out the apartment building.

2. After selling and renting more than 80% of the total number of apartments in the apartment building, the developer is responsible for organizing and coordinating with local authorities, police stations, and users to hold a meeting of apartment building residents to elect the Management Board. The developer is responsible for preparing related contents for review and decision-making at the meeting (draft usage regulations for the apartment building; proposed personnel for the Management Board, and contributions required).

3. When the Management Board has not been established, the developer is responsible for assuming the functions of the Management Board as stipulated in Article 16 of this Regulation.

4. Develop plans and organize (or hire a legal entity) to implement maintenance of the common ownership portion in the apartment building (except for routine maintenance and upkeep specified in Points 1.1 and 1.2, Clause 1, Article 19 of this Regulation, which is carried out by the apartment building management company).

The content of maintenance work and funds for common ownership portion maintenance in the apartment building shall be implemented in accordance with Circular No. 05/2001/TT-BXD dated August 30, 2001, issued by the Ministry of Construction guiding maintenance work for construction projects.

Guide the use of facilities in the apartment building and organize professional training and instruction on apartment building management and usage for members of the Management Board and related organizations and individuals.

Article 15. Apartment Building Management Organization:

1. The apartment building management company assumes the responsibility for managing and providing apartment building services through contracts signed with the Management Board.

2. In cases where there is no apartment building management company in the locality, the developer is responsible for managing and providing apartment building services.

Article 16. Management Board:

1. The Management Board represents the users of the apartment building to protect the legitimate rights and interests of the users within the apartment building.

2. Each integrated residential area with distinct boundaries; each cluster of apartment buildings or independent apartment building shall establish one Management Board.

3. Members of the Management Board include representatives from users, developers, management companies, and local police stations. Each Management Board must have at least three (3) representatives elected by the majority of users. Each apartment building within a residential complex or cluster must have at least one (1) representative of the user participating in the Management Board. Local police stations, developers, and management companies appoint one (1) representative to participate in the Management Board. Members of the Management Board elect a chairperson to oversee activities during their term. The term of the Management Board is a maximum of three years (36 months).

4. The Management Board has the following responsibilities:

4.1. Monitor and supervise the implementation of warranty and maintenance services for apartment buildings in accordance with regulations;

4.2. Develop internal rules for using apartment buildings that are suitable to the specific circumstances and conditions of the apartment building and the provisions of this Regulation, to be submitted to the Apartment Building Meeting for consideration and approval. Coordinate with the management company to organize regular and extraordinary Apartment Building Meetings;

4.3. Collect and compile opinions and recommendations from users related to the management and provision of apartment building services, to coordinate with relevant organizations and individuals to consider and resolve them;

4.4. Sign contracts with the management company to manage and provide services; monitor the activities of the management company according to the contents of the signed contract;

4.5. Coordinate with local administrative authorities and neighborhood associations to effectively implement the construction of civilized living habits and maintain social order and safety within the managed apartment building;

4.6. Perform other tasks assigned by the Apartment Building Meeting;

5. The Management Board has the right:

5.1 To select the management company; sign contracts with the management company; terminate contracts if the company fails to fulfill its commitments;

5.2 Members of the Management Board shall receive responsibility allowances as stipulated by the Apartment Building Meeting;

Article 17. Apartment Building Meeting:

1. The Apartment Building Meeting must have at least 70% representation of users in the apartment building present; simultaneously, representatives of the developer (or the management company) and representatives of local authorities and police stations must participate. The Apartment Building Meeting is organized once a year. In case of necessity, the Management Board may convene an extraordinary Apartment Building Meeting;

2. The Apartment Building Meeting is organized for the purpose of:

2.1 Electing new members, supplementing, and changing members of the Management Board;

2.2 Approving usage rules and related regulations concerning the management and use of apartment buildings;

2.3 Reviewing and evaluating the results of implementing the Management and Usage Regulations of apartment buildings;

2.4 Deciding on other necessary issues related thereto;

Article 18. Management Company:

1. The management company is established and operates in accordance with the provisions of the law;

2. The developer is permitted to establish a management company to undertake the management and provision of services for apartment buildings as prescribed in this Regulation;

3. The management company can accept contracts to manage and provide service activities for multiple apartment buildings in one or more different areas; cooperate with the Management Board in reviewing and deciding to stop providing service activities for households that fail to contribute income as required or intentionally violate management and usage regulations; work together with the Management Board to resolve emerging issues in the management and provision of apartment building services (if any);

4. The management company implements the management and usage tasks for apartment buildings as stipulated in Article 19 of this Regulation according to the contract signed with the Management Board;

Article 19. Contents of management and usage tasks for apartment buildings include:

1. Management and Usage:

1.1. Managing and maintaining common facilities and equipment in apartment buildings (elevators, water pumping stations, generators, water supply and drainage systems, and other equipment);

1.2. Managing and maintaining common areas and spaces in apartment buildings (corridors, staircases, walls, ceilings, roofs, and other parts);

1.3. Managing and preserving property documents and files;

1.4. Inspecting and urging relevant parties to comply with internal rules and regulations;

1.5. Other related management tasks;

2. Service Tasks:

2.1. Security and order protection; bicycle, motorcycle, and car parking; public cleaning and waste collection;

2.2. Operating common facility systems (water pumps, elevators, generators, and other equipment);

2.3. Maintaining gardens and lawns around the apartment building (if any);

2.4. Other related services (if any);

Chapter 4:

EXPENSES FOR MANAGING AND UTILIZING APARTMENT BUILDINGS

Article 20. Expenses for managing and utilizing apartment buildings are necessary costs to carry out management and operation of the system of facilities to ensure security, order, hygiene, and effective use of common assets in apartment buildings;

Article 21. Obligatory contributors:

Individuals directly using apartments (or other private assets) in apartment buildings are responsible for contributing expenses for managing and utilizing the apartment building;

Article 22. Amounts of expenses to be contributed:

1. Expenses for performing management and usage tasks for apartment buildings as specified in Clause 1, Article 19 and service tasks as specified in Points 2.2, 2.3, and 2.4, Clause 2, Article 19 of this Regulation shall be determined by the Management Board in coordination with the management company, to be submitted to the Apartment Building Meeting for consideration and approval;

2. Security and order fees; bicycle, motorcycle, and car parking fees; sanitation fees as specified in Point 2.1, Clause 2, Article 19 of this Regulation shall be implemented in accordance with Government Decree No. 57/2002/NĐ-CP dated June 3, 2002 detailing the implementation of the Law on Fees and Charges (the levels of these fees are set by the Provincial People's Council);

3. Non-recurring service fees such as public telephone usage fees, asset storage rental fees, and other fees (if any) shall be agreed upon between the service provider and the user;

4. Allowances for Management Board members (excluding those appointed by the developer and the management company) shall be implemented in accordance with the provisions of the Apartment Building Meeting;

Article 23. Management and utilization of contributed expenses:

1. Users of apartment buildings are responsible for paying monthly contributions as stipulated in Clause 1 and 2, Article 22 of this Regulation to the management company; pay the amount stipulated in Clause 4, Article 22 of this Regulation to the Management Board;

2. The enterprise managing condominiums may use financial resources contributed by condominium users in accordance with the provisions of the law on finance.

3. The management board shall be responsible for monitoring and supervising the collection and expenditure of funds serving the management and use of condominiums.

Chapter 5:

SETTLEMENT OF DISPUTES AND HANDLING OF VIOLATIONS

Article 24. Settlement of disputes:

1. Disputes related to ownership rights within condominiums shall be resolved by the court;

2. Disputes regarding usage rights within condominiums shall be resolved through mediation (households mediate themselves or the management board, People's Committee of wards, communes, towns organize mediation). If mediation fails, the case shall be referred to the court for resolution;

3. Disputes related to the management, use, operation, exploitation, renovation, and repair of condominiums shall be resolved through mediation. If mediation fails, the management board shall be responsible for examining and resolving the dispute according to its authority as stipulated in this Regulation or report to the competent administrative authority for examination and resolution;

4. Disputes concerning economic contracts during the implementation of management, use, and provision of services in condominiums as prescribed in this Regulation shall be handled in accordance with the provisions of the law on economic contracts.

Article 25. Handling Violations:

1. Persons violating the regulations on the management and use of condominiums as prescribed in this Regulation shall be subject to administrative penalties or criminal responsibility, depending on the severity, in accordance with the provisions of the law;

2. Persons who cover up or facilitate others to violate the regulations on the management and use of condominiums contrary to the provisions of this Regulation shall be subject to disciplinary action or criminal responsibility, depending on the severity, in accordance with the provisions of the law. In cases causing material damage, compensation shall be required.

Chapter 6:

RESPONSIBILITIES OF PEOPLE'S COMMITTEES AT DIFFERENT LEVELS FOR THE MANAGEMENT AND USE OF CONDOMINIUMS

Article 26. Responsibilities of provincial and centrally-run city People's Committees:

1. To create conditions and support maintenance funds for condominiums to maintain their quality, architecture, and landscape in accordance with the actual situation of each locality;

2. To direct relevant agencies to implement the acceptance and management, exploitation, and operation of infrastructure systems (outside condominiums) in housing projects and new urban areas in accordance with the approved content by the competent authority;

3. To examine and decide on the allocation of administrative management responsibilities for condominiums in specific areas;

4. To issue mechanisms to encourage the development of condominium management enterprises to meet the needs of condominium management, use, and service provision in the area; to summarize and evaluate the implementation of condominium management and use in the area to determine effective management models and promptly commend and reward them within their authority;

5. To handle violations within their authority.

Article 27. Responsibilities of municipal and town People's Committees under provinces and districts:

1. To monitor, inspect, and identify issues arising in the management and use of condominiums to resolve them within their authority or report to the provincial or centrally-run city People's Committee for consideration and resolution;

2. To recommend the provincial or centrally-run city People's Committee to approve the allocation of administrative management responsibilities for condominiums and implement the management, exploitation, and operation of infrastructure systems in housing projects or new urban areas in the area according to the allocation by the provincial People's Committee;

3. To commend and penalize violations within their authority.

Article 28. Responsibilities of ward, commune, and town People's Committees:

1. To monitor, inspect, and resolve issues arising in the management and use of condominiums within their authority or report to higher competent authorities for consideration and resolution;

2. To cooperate with condominium management boards in the area to resolve issues arising during the implementation of condominium management and use;

3. To create favorable conditions to support condominium management enterprises in effectively performing management tasks and providing condominium service activities in the area;

4. To commend and penalize violations within their authority.

Chapter 7:

IMPLEMENTING PROVISIONS

Article 29. This Regulation shall take effect fifteen days from the date of publication in the Official Gazette.

Previous regulations on the management and use of housing that apply to condominiums contrary to the provisions of this Regulation shall be abolished.

For projects with various types of housing, having integrated infrastructure systems and separate boundary fences, the developer may base on the content of this Regulation to specifically define the management and use of housing and infrastructure systems in the project in accordance with the actual situation.

During the implementation of this Regulation, if difficulties and obstacles arise, they should be reported promptly to the Ministry of Construction for review, amendment, and supplementation.

Article 30. The Housing Management Department shall take the lead and coordinate with relevant agencies to guide and implement this Regulation; to compile and summarize feedback from relevant agencies on arising issues and study proposals for amending and supplementing the Regulation appropriately; to coordinate with local functional agencies and developers to organize training sessions for management boards and related units and individuals on condominium management and use nationwide.