Circular No. 10/2009/TT-BXD guiding the management of projects for student housing, industrial zone worker housing, and low-income housing

CIRCULAR

Guidelines for managing projects to invest in constructing student housing, industrial worker housing in industrial zones, and low-income housing

workers in industrial zones and low-income housing

 __________________________

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;

Pursuant to Decree No. 209/2004/NĐ-CP dated December 16, 2004 of the Government on construction project quality management; and Decree No. 49/2008/NĐ-CP dated April 18, 2008 of the Government amending and supplementing certain articles of Decree No. 209/2004/NĐ-CP dated December 16, 2004 of the Government on construction project quality management;

Pursuant to Decree No. 90/2006/NĐ-CP dated September 6, 2006 of the Government detailing and guiding the implementation of the Law on Housing;

Pursuant to Decree No. 99/2007/NĐ-CP dated June 13, 2007 of the Government on construction project investment cost management;

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

Pursuant to Decision Nos. 65/2009/QĐ-TTg, 66/2009/QĐ-TTg, and 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister promulgating some mechanisms and policies for developing housing for students at universities, colleges, vocational high schools, and technical training centers, for workers in industrial zones under lease, and for low-income individuals in urban areas;

The Ministry of Construction hereby provides detailed guidelines on managing projects to invest in constructing student housing, industrial worker housing in industrial zones, and low-income housing as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

b) In cases where funds from organizations and individuals within and outside Vietnam are used for victim support work and victim support benefits, such activities shall be carried out in accordance with the regulations of the Ministry of Finance and the donor; in cases where there is no agreement between the donor or their authorized representative and the Ministry of Finance regarding the expenditure level, the expenditure level prescribed in this Circular shall apply.

This Circular guides the management of projects to invest in constructing the following:

a) Projects to invest in constructing housing for students and pupils (collectively referred to as student housing) at universities, colleges, vocational high schools, and technical training centers, regardless of whether they are public or private institutions (hereinafter collectively referred to as educational institutions) according to Decision No. 65/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister promulgating some mechanisms and policies for developing housing for students at universities, colleges, vocational high schools, and technical training centers under lease.

b) Projects to invest in constructing housing for workers in concentrated industrial zones (including industrial clusters), export processing zones, and economic zones (collectively referred to as industrial worker housing in industrial zones) according to Decision No. 66/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister promulgating some mechanisms and policies for developing housing for workers in industrial zones under lease.

c) Projects to invest in constructing housing for low-income individuals in urban areas (collectively referred to as low-income housing) according to Decision No. 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister promulgating some mechanisms and policies for developing housing for low-income individuals in urban areas.

Thông tư này áp dụng đối với tổ chức, cá nhân có liên quan đến hoạt động kinh doanh đối tượng thủy sản nuôi chủ lực trên lãnh thổ Việt Nam.

This Circular applies to organizations and individuals investing in constructing housing and participating in construction activities of housing projects within the scope regulated in Clause 1 of this Article.

Article 2. Determination of Project Investors

1. For student housing projects:

a) Projects using state budget funds:

- Based on the characteristics of the project and the specific circumstances of the locality, the People's Committee of the province shall assign the following agencies to be the investors of student housing projects funded by state budget funds:

+ The Department of Construction or other competent agencies for investment and construction management for concentrated housing projects (including student housing projects for clusters of educational institutions within their campuses).

+ Educational institutions for housing projects within their own campuses.

- The investor of student housing projects of educational institutions under military forces shall be determined by the management agencies of these educational institutions.

b) Projects using other funds:

The owner of the investment capital for student housing projects is the investor of those projects.

2. For industrial worker housing projects in industrial zones:

a) Investor of infrastructure for industrial worker housing (primary investor):

The investor of the project to operate industrial zone infrastructure may be:

- The local industrial zone management board or

- An enterprise operating industrial zone infrastructure.

b) Investor of the housing project (secondary investor):

The investor of the industrial worker housing project in industrial zones may be:

- The local industrial zone management board;

- An enterprise operating industrial zone infrastructure;

- An enterprise producing in the industrial zone;

- An enterprise with the function of operating housing.

3. For low-income housing projects:

The owner of the investment capital for low-income housing projects is the investor of those projects.

Article 3. Authority to review and approve investment projects

1. For student housing projects:

a) Projects using state budget funds:

- The People's Committee of the province shall decide on the investment of concentrated student housing projects and housing projects within the premises of training institutions using state budget funds included in the list of projects compiled and submitted for approval by the Prime Minister of the Government by the Ministry of Construction. The Department of Planning and Investment shall be the lead unit organizing the review of these projects.

- The management agency of training institutions under the armed forces shall entrust the specialized units or agencies directly subordinate to organize the review before deciding to invest in student housing projects of those training institutions.

b) Projects using other sources of capital:

The investing enterprise shall organize the review and approve the project.

2. Housing projects for workers and low-income housing:

The investing enterprise shall organize the review and approve the project.

Article 4. Procedures for implementing projects

The implementation of student housing, worker housing, and low-income housing projects shall be carried out according to the following procedures:

1. Investment preparation stage:

a) The investor decision-maker identifies and assigns the project investors for housing projects in accordance with Article 2 of this Circular.

b) The project investor prepares a proposal requesting the provincial People's Committee to approve the investment orientation (except for student housing projects funded by the state budget). The proposal and model for approving the investment orientation follow the template at Appendix No. 1 of this Circular.

c) The project investor organizes the preparation of the investment construction project to submit for approval by the investor decision-maker.

d) The investor decision-maker organizes the review and approves the project.

2. Implementation stage:

a) The project investor carries out procedures to request land allocation or lease for project implementation.

b) Compensation and clearance of land (if applicable):

- For student housing projects and worker housing projects in established industrial zones, the provincial People's Committee shall organize compensation and clearance of land.

- For worker housing projects in industrial zones currently being developed, the first-level project investor shall organize compensation and clearance of land.

- For low-income housing projects, the first-level project investor of new urban areas and housing complexes shall organize compensation and clearance of land.

c) The project investor organizes the selection of contractors and signing contracts for construction survey and design.

d) The contractor conducts the construction survey, and the project investor organizes the acceptance of the construction survey report.

đ) The contractor prepares the construction drawings and estimate for submission to the project investor for review and approval.

e) The project investor organizes the selection of contractors and signing construction contracts.

g) The contractor implements the construction of the project.

3. Completion and operation of the project:

a) The project investor organizes the acceptance and handover of the project for operation.

b) The project investor organizes the final account of the investment capital for submission to the investor decision-maker for approval.

c) The project investor establishes the rental plan and price for student housing (for projects not using state budget funds), and the rental price for worker housing in industrial zones for submission to the provincial People's Committee for approval. The rental price for student housing in projects funded by the state budget shall be determined by the provincial People's Committee.

For low-income housing projects, the project investor establishes the sales and rental pricing plan and reviews prices for sale, rent, and rent-to-own after obtaining approval from the provincial People's Committee.

d) The contractor performs warranty services; the management and operation units perform maintenance of the project.

Chapter II

INVESTMENT PROJECTS FOR HOUSING CONSTRUCTION: PREPARATION, REVIEW, AND APPROVAL

Article 5. Establishing housing investment projects

1. Basis for establishing projects:

The investor shall organize the establishment of housing investment projects. If the investor does not have sufficient capacity conditions, they shall hire consultants with sufficient capacity conditions to establish housing construction projects in accordance with the guidelines set out in this Article.

a) Classification and grouping of projects:

Housing projects for students, housing for industrial zone workers, and housing projects for low-income individuals are classified and grouped according to the provisions stipulated in Decree No. 12/2009/NĐ-CP dated February 12, 2009, of the Government on managing investment construction projects.

b) For student housing:

Student housing projects are established based on the following factors:

- For projects using state budget funds: based on the project list included in the student housing development plan that has been compiled and submitted to the Prime Minister for approval by the Ministry of Construction.

- Urban planning and student housing development plans of localities, ministries, sectors, educational institutions, etc.

- Approval documents for investment orientation from the provincial People's Committee where the project is located (except for student housing projects using state budget funds).

c) For industrial zone worker housing:

Industrial zone worker housing projects are established based on:

- Industrial zone development plans, urban planning, and local housing development programs.

- Urban planning and infrastructure development plans for industrial zones.

- Approval documents for investment orientation from the provincial People's Committee.

d) For low-income housing:

Low-income housing projects are established based on:

- Urban planning and local housing development programs.

- Actual needs and conditions and characteristics of the locality.

- Approval documents for investment orientation from the provincial People's Committee.

đ) In addition to the bases specified in points a, b, c, and d of this clause, when establishing student housing, industrial zone worker housing, and low-income housing projects, they must also be based on standards, regulations stipulated in this Circular, and other relevant current regulations.

2. Content of the project:

a) Explanatory section:

The explanatory section of the project must include the following main contents:

- Basis for establishing the project: clearly stating the bases according to the guidelines set out in Clause 1 of this Article.

- Construction location: clearly stating the location and position of the project.

- Land use requirements: based on investment and construction needs, construction standards, and the guidance of this Circular to determine land use requirements for the project.

- Description of the scale, area of construction works, and components of the project.

- Implementation solutions:

+ Land clearance plan (if the project area has not yet been cleared).

+ Infrastructure support plan (if applicable): including support for technical infrastructure and social infrastructure.

+ Architectural plan: stating its compliance with urban planning, architectural design, and the landscape of the construction site.

+ Management, operation, and exploitation plan: clearly stating sales, rental, and lease-purchase methods.

+ Project implementation schedule: clearly dividing investment phases, timeframes, and progress for each phase.

+ Project management form: applying direct management by the investor or hiring consultants to manage the project.

+ Total investment amount: determined according to current regulations on investment cost management (currently Decree No. 99/2007/NĐ-CP dated June 13, 2007, on managing investment costs for construction projects) and other related regulations on design, building material usage standards, guidance on investment capital per unit, etc.

- Sources of funding: clearly stating central and local state budget funds, preferential loans, investor funds, etc.

- Other supports and incentives.

b) Basic design section:

- Explanatory section:

The explanatory section of the basic design must include the following main contents:

+ Summary of location; position, scale of construction projects; connection with technical infrastructure within the project area and outside the project area.

+ Design plan; overall layout: applying a building density and land use coefficient equal to 1.5 times the construction standard (depending on the locality and construction area to determine appropriately for specific conditions).

+ Living space standards (including ancillary areas):

* For student housing: minimum 4m²/student; maximum 8 students/room.

* For worker housing: minimum 5m²/person; maximum 8 people/apartment.

* For low-income housing: maximum not exceeding 70m²/apartment.

+ Utilization coefficient (usable area: including living area + other functional areas/floor area of construction): from 0.7 to 0.8 for various types of housing.

+ List of main design standards and specifications: primarily applying national standards.

+ Applying average domestic production construction material standards.

- Drawing section:

Includes the following main drawings:

- Overall layout drawing of the project.

- Architectural design drawings of major constructions.

- Technical infrastructure connection drawings within and outside the project area.

Article 6. Review of Housing Construction Investment Projects

1. The investor submits the project dossier to the authority with investment decision-making power for review and approval. The dossier for review and approval includes:

a) Project review application form according to Appendix No. 2 of this Circular;

b) Housing construction investment project;

c) Approval document for the investment orientation issued by the provincial People's Committee.

2. The lead unit entrusted by the investment decision-maker to review the project as stipulated in Article 3 of this Circular shall be responsible for organizing the project review to submit to the investment decision-maker for approval.

3. During the project review process, the lead unit shall organize meetings to seek opinions from the Department of Construction regarding the basic design (if the Department of Construction is the investor, then there is no need to seek opinions on the basic design) and opinions from other relevant agencies concerning electricity supply; water supply and drainage; fire prevention and fighting, etc. The lead unit must send the project dossier to relevant agencies at least 10 working days before organizing the meeting. Opinions from agencies during the meeting are formal opinions on the project and are recorded in minutes.

Article 7. Contents of the Review of Housing Construction Investment Projects

The contents of the project review by the lead unit include:

1. Examining factors ensuring feasibility in terms of:

a) Capital sources and ability to mobilize capital for the project implementation.

b) Land clearance capability (if land has not yet been cleared).

c) Capability to provide electricity, water supply, etc.

2. Examining the economic efficiency of the project (except for student housing funded by state budget).

3. Examining the basic design:

a) Compliance of the project with the construction planning, architectural, and landscape standards of the project area;

b) Rationality of technical infrastructure connections;

c) Application of design standards and specifications;

d) Consultant capacity for project preparation and basic design.

In case of using model designs, there is no need to examine the basic design.

Article 8. Approval of Housing Construction Investment Projects

The lead unit submits the project dossier to the authority with investment decision-making power for approval of the housing construction investment project.

1. The dossier for project approval includes:

a) Project approval application form according to Appendix No. 3 of this Circular;

b) Dossier for project review and additional documents submitted by the investor as stipulated in Article 6 of this Circular;

c) Minutes of the project review meeting as stipulated in Clause 3, Article 6 of this Circular;

2. The project approval decision is prepared according to the form specified in Appendix No. 4 of this Circular.

Article 9. Time for preparation, examination, and approval of housing investment projects

1. The time for preparing housing investment projects using state budget funds shall not exceed twenty working days.

2. The time for examining and approving various types of housing projects shall not exceed twenty working days from the date of receiving valid files.

Article 10. Preparation, Examination, and Approval of Economic-Technical Reports for Housing Construction Projects

1. For construction projects of housing with a total investment amount under fifteen billion VND (excluding land use fees), there is no need to prepare an investment project but only an Economic-Technical Report needs to be prepared.

2. The procedures, contents of preparation, examination, and authority for approving Economic-Technical Reports for housing construction projects shall be carried out according to the provisions of Circular No. 03/2009/TT-BXD dated March 26, 2009, issued by the Ministry of Construction, and the provisions of this Circular.

Chapter III

IMPLEMENTATION OF HOUSING INVESTMENT PROJECTS

Article 11. Design of Housing Construction Projects

1. For student housing, worker housing, and low-income housing projects, the design process consists of two steps: basic design and construction drawing design.

2. In cases where student housing projects using state budget funds apply model designs or projects that only require the preparation of an Economic-Technical Report, the design process will consist of one step: construction drawing design.

3. The investor shall organize the preparation, examination, and approval of construction drawings in accordance with the provisions of Government Decree No. 12/2009/NĐ-CP dated February 12, 2009, on the management of construction investment projects.

4. The time for preparing construction drawings for student housing projects using state budget funds shall not exceed thirty working days.

5. The time for examining and approving construction drawings shall not exceed ten working days from the date of receiving valid files.

Article 12. Building Permit

For housing projects within the scope regulated by this Circular, after approving the construction drawings, the investor may commence construction without needing a building permit. At least seven days before starting construction, the investor must notify the local construction management agency.

Article 13. Selection of Consulting and Construction Contractors

1. For student housing projects using state budget funds, if the investor has sufficient capacity conditions, they can implement the project themselves, or designate an organization with sufficient capacity conditions to prepare the project, design, supervise construction, supply materials and equipment, and undertake construction work directly through negotiations and signing contracts.

If tendering by designation is applied, the value of the consulting contract may be reduced by a maximum of five percent; the supply of equipment, goods, and construction contracts may be determined to be reduced by a maximum of two percent compared to the approved estimate.

2. For projects using other sources of funding, if the investor has sufficient capacity conditions, they can implement the project themselves or decide on the form to select contractors with sufficient capacity conditions to carry out the project.

3. Encouragement is given to the application of the form of designating contractors with sufficient capacity conditions to implement EPC general contracting.

4. Contract Execution: The form of executing project tasks through contracts is decided by the investor based on agreement with the contractor.

5. For projects using state budget funds and applying tendering by designation, the time for completing procedures and negotiating contract execution shall not exceed twenty working days.

Article 14. Construction Management

1. During the construction process, subjects shall implement quality management, quantity, progress, safety, and environmental hygiene in accordance with the provisions of the Construction Law, Decree 12/2009/NĐ-CP, Decree 209/2004/NĐ-CP, Decree 49/2008/NĐ-CP, and related guiding documents.

2. Housing investment projects must be inspected and certified for compliance with quality standards by independent consulting organizations and construction contractors with sufficient capacity as stipulated before the project is put into use.

Article 15. Management of Investment Costs for Housing Construction

1. The establishment and management of investment costs for housing projects shall be determined in accordance with the provisions of Government Decree 99/2007/NĐ-CP dated June 13, 2007 on the management of construction project investment costs and related guiding documents.

In cases where contractors are designated to undertake EPC general contracting for student housing projects funded by state budget, when negotiating contracts, the contract price may temporarily be based on the approved total investment value. The formal EPC general contract price will be determined based on the estimated values of works within the project but not exceeding the approved total investment value.

2. Advance payments and settlements shall be carried out in accordance with the provisions of the law and the terms agreed upon in the contract.

3. Final account settlement of investment capital shall be conducted in accordance with current regulations.

Article 16. Forms of Project Management

1. The form of project management shall be decided by the investor at the time of approving the project based on the scale, nature of the project, and the project management capacity of the investor.

2. Models of project management, functions, and tasks of the project management board or project management consultants shall be implemented in accordance with the provisions of Government Decree 12/2009/NĐ-CP dated February 12, 2009 on the management of construction project investments and guidance provided by Circular 03/2009/TT-BXD dated March 26, 2009 of the Ministry of Construction.

Chapter IV

IMPLEMENTATION

Article 17. The Ministry of Construction shall have the responsibility to:

1. Compile a list of student housing projects funded by the state budget according to reports from ministries, sectors, and provincial People's Committees, and submit it to the Prime Minister for approval.

2. Lead and coordinate with ministries, sectors, and provincial People's Committees to develop plans for constructing student housing, industrial worker housing, and low-income housing for the period 2009-2015, and submit them to the Prime Minister for approval.

3. Guide, urge, and inspect the implementation of student housing, industrial worker housing, and low-income housing projects, compile implementation status, and propose mechanisms to resolve issues arising during implementation, reporting to the Prime Minister.

Article 18. Provincial People's Committees shall have the responsibility to:

1. Develop and approve plans to implement student housing projects for educational institutions regardless of their managing bodies, industrial worker housing, and low-income housing within their jurisdictional areas.

2. Direct the implementation of housing construction programs within their jurisdiction as regulated by this Circular.

3. Report periodically every three months, six months, and annually on the implementation status, difficulties encountered, and timely suggestions to the Ministry of Construction for consideration and resolution, or for the Ministry of Construction to compile and report to the Prime Minister for consideration and resolution.

Article 19. The relevant Ministries and sectors shall be responsible for:

1. Building and approving plans to implement student housing projects of educational institutions within their investment decision-making authority.

2. Coordinating with provincial People's Committees to direct the implementation of student housing projects of educational institutions under their management in accordance with this Circular and other related legal documents.

3. Reporting periodically every six months and annually on the implementation status, difficulties encountered, and timely recommendations to the Ministry of Construction for consideration and resolution, or for the Ministry of Construction to compile and report to the Prime Minister for consideration and resolution.

Article 20. Implementation Provisions

1. This Circular takes effect from August 1, 2009.

2. In case of difficulties during implementation, please send comments to the Ministry of Construction for consideration and resolution./.