Decision No. 105/2002/QĐ-TTg On policies for households in flood-prone areas to purchase land plots and houses on credit in residential clusters and communities in the Mekong Delta provinces

DECISION OF THE PRIME MINISTER

On policies for households in flood-prone areas to purchase land plots and houses on installment in residential clusters

in certain provinces

Đồng bằng sông Cửu Long

PRIME MINISTER

Pursuant to the Law on Organization of the Government dated December 25, 2001;
Pursuant to Resolution No. 15/2000/NQ-CP dated October 6, 2000 of the Government;
Pursuant to Decision No. Decision No. 173/2001/QĐ-TTg dated November 6, 2001 on economic and social development in the Mekong Delta region for the period 2001-2005 and Decision No. 1548/2001/QĐ-TTg dated December 5, 2001 of the Prime Minister on investment in raising land levels to construct residential clusters in the deep-flooded areas of the Mekong Delta in 2002;
At the proposal of the Minister of Finance, the Minister of Construction, and the Governor of the State Bank of Vietnam,

DECISION:

Article 1.||| Households permanently residing in frequently flooded areas in the provinces of An Giang, Dong Thap, Long An, Tien Giang, Kien Giang, Can Tho, and Vinh Long are eligible to purchase land plots and houses on installment in residential clusters according to planning to ensure a safe and stable long-term living environment. Specifically as follows:

1. Households that have been permanently residing in the locality and now move to reside within planned residential clusters, submit an application to purchase a land plot or house and commit to using it for its intended purpose and repaying the debt on time, with confirmation from the commune authority, shall be entitled to:

- Purchase a land plot on installment with a maximum value of up to VND 10 million at zero interest (0%). In cases where the value of the land plot exceeds VND 10 million, the residents must pay the difference themselves.

- Purchase a house on installment with a maximum value of up to VND 7 million at an annual interest rate of 3%. In cases where the value of the house exceeds VND 7 million, the residents must pay the difference themselves.

2. The maximum repayment period is 10 years, with a grace period of 5 years. Repayment begins in the sixth year following the date of purchase, with a minimum annual repayment amount (including principal and interest) equal to 20% of the total debt. The Ministry of Finance will establish incentive policies for households that repay their debts early.

3. Households purchasing land plots and houses as mentioned above may not sell, pledge, or transfer them within 10 years from the date of purchase.

4. For households that previously borrowed funds to raise the level of their land plots and build houses on stilts pursuant to Decision No. 256/TTg dated April 24, 1996 of the Prime Minister regarding loans for households under policy support and poor households in the Mekong Delta region to raise land levels or build floor slabs on stilts, they must commit to repaying the debt within 5 years from the date of purchasing the house on installment under this Decision.

Article 2. Source of investment capital:

1. Capital for raising land levels to sell land plots on installment to residents: The central budget will allocate 50% of the total investment capital; the remaining 50% will be raised by the Development Support Fund. The central budget will subsidize the interest rate and a fee of 0.5% on the outstanding balance for the Development Support Fund's loan.

2. Capital for constructing houses to sell on installment to residents: The central budget will allocate 50% of the total investment capital to the Poverty Service Bank; the remaining 50% will be raised by the Poverty Service Bank.

After receiving the house, households must directly sign a debt contract for purchasing the house on installment with the Poverty Service Bank. The Poverty Service Bank will pay the production unit for the actual number of houses installed for residents. The central budget will subsidize the interest rate differential and a fee of 1% annually on the outstanding balance for the Poverty Service Bank.

Article 3. Implementation

Provincial People's Committees as specified in Article 1 shall be responsible for:

- Specifying and publicly announcing detailed criteria and eligible recipients for purchasing land plots and houses on installment in each area, ensuring fairness and reasonableness. Directing the establishment and review of lists of eligible recipients for purchasing land plots and houses, placing orders with production units, and informing the Development Support Fund and the Poverty Service Bank to implement the sale of land plots and houses on installment to residents.

- Managing the construction of residential clusters and the production of components and materials for houses by enterprises producing houses. Publicly disclosing the investment costs for raising land levels for residents' knowledge. Creating favorable conditions for enterprises to invest in production bases for components and materials for houses.

2. Enterprises producing sufficient components and materials for houses to sell to residents at reasonable cost prices, ensuring that the production enterprise does not incur losses but also does not charge profit when selling houses to residents. Enterprises should produce several models of houses for residents to choose from based on their requirements.

3. The Development Support Fund shall manage the investment capital for raising land levels, lend to provinces, and recover the capital according to the guidelines of the Ministry of Finance.

4. The Governor of the State Bank of Vietnam shall direct the Poverty Service Bank to implement lending and debt recovery for house construction according to the provisions of this Decision.

5. The Ministry of Finance and the Ministry of Planning and Investment shall allocate the central budget portion and subsidize the interest rate for the raised capital and fees stipulated in Clause 1 and Clause 2, Article 2 of this Decision for the Development Support Fund and the Poverty Service Bank.

The Ministry of Finance, the Ministry of Construction, the State Bank of Vietnam, and the Development Support Fund shall provide specific guidance on implementing the contents of this Decision.

Article 4. This Decision takes effect fifteen days after the date of signature.

Article 5. Ministers, heads of ministerial-level agencies, heads of government-affiliated agencies, and Chairmen of People's Committees of the provinces of An Giang, Dong Thap, Long An, Vinh Long, Kien Giang, Tien Giang, and Can Tho are responsible for enforcing this Decision./.