Circular No. 15/2009/TT-BXD guides the method for determining rental prices for student housing, worker housing, low-income housing, and sale and purchase prices for low-income housing projects invested in by various economic sectors.

CIRCULAR

Guidelines for determining rental prices for student housing, worker housing, low-income housing, and sale prices for low-income housing purchase rentals in projects funded by various economic sectors.

||| Rental prices for student housing, worker housing, low-income housing, and sale prices for low-income housing purchase rentals.

||| These belong to projects funded by various economic sectors.

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

Pursuant to Resolution No. 18/NQ-CP dated April 20, 2009 of the Government on certain mechanisms and policies to promote the development of housing for students and trainees at educational institutions and workers in concentrated industrial zones and low-income individuals in urban areas;

Pursuant to Decision No. 65/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister on certain mechanisms and policies to develop housing for university, college, vocational, and technical school students on lease;

Pursuant to Decision No. 66/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister on certain mechanisms and policies to develop housing for workers in industrial zones on lease;

Pursuant to Decision No. 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister on certain mechanisms and policies to develop housing for low-income individuals in urban areas;

The Ministry of Construction guides the methods for determining rental prices for student housing, worker housing, low-income housing, and sale prices for low-income housing purchase rentals in projects funded by various economic sectors (excluding state budget funds) that enjoy state incentives under Decisions No. 65/2009/QĐ-TTg, 66/2009/QĐ-TTg, and 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. Scope of Application: This Circular guides the methods for determining rental prices for student housing, worker housing, low-income housing, and sale prices for low-income housing purchase rentals in projects funded by various economic sectors (excluding state budget funds) that enjoy state incentives under Decisions No. 65/2009/QĐ-TTg, 66/2009/QĐ-TTg, and 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister.

Article 2. Applicability: Provincial People's Committees, project investors, management and operation units, students, workers, low-income individuals, and related organizations and individuals.

Article 2. Principles for Determining Rental Prices, Sale Prices, and Purchase Rental Prices for Housing

Clause 1. For rental prices of student housing, worker housing, and low-income housing:

Point a) Accurately calculate all necessary costs to preserve investment capital, ensure recovery of construction investment capital including interest (if applicable), management and operation costs during usage, and maintenance costs for housing;

Point b) Management and operation costs and housing maintenance costs are collected and expended according to the principle of self-collection and self-expenditure, and transparency to ensure good operation of the housing area, managed by the housing management unit;

Point c) Fuel, electricity, water, and other service costs (if applicable) for tenants are not included in the rental price but are directly paid by the tenant to the service provider (if there is a separate contract) or to the housing management unit (if there is no separate contract) based on actual consumption and other management and operation costs, but must comply with the principle of non-commercial purpose. Specifically, electricity and water prices are calculated based on living rates, not commercial rates;

Point d) Service costs included in the rental price include security, environmental sanitation, waste collection, pest control, and other services (if applicable) as specified in the housing lease contract;

Point e) State-subsidized costs (land use fees, land lease fees within the project scope, tax benefits...) shall not be included in the rental price;

Point g) Revenue from operating services within the housing area is used to offset management and operation costs and maintenance costs to reduce rental prices;

Point h) The maximum allowable profit rate is 10% of the construction investment value;

Point i) The minimum capital recovery period is 20 years.

Clause 2. For sale prices of low-income housing:

Point a) Accurately calculate all costs to recover construction investment capital including interest (if applicable), and maintenance costs for common areas;

Point b) State-subsidized costs (land use fees, land lease fees within the project scope, tax benefits...) shall not be included in the sale price;

Point c) The maximum allowable profit rate is 10% of the construction investment value;

Point d) In case of installment sale: the payment term is agreed between the seller and buyer but must be at least 10 years.

Clause 3. For purchase rental prices of low-income housing:

The determination principles are similar to those for sale prices and rental prices for low-income housing. The rental purchase period is agreed between the seller and buyer but must be at least 10 years.

PART II

METHODS FOR DETERMINING RENTAL PRICES FOR STUDENT HOUSING, WORKER HOUSING, LOW-INCOME HOUSING AND SALE PRICES, PURCHASE RENTAL PRICES FOR LOW-INCOME HOUSING IN PROJECTS

FUNDED BY VARIOUS ECONOMIC SECTORS

PART ON PARTICIPATION IN INVESTMENT OF ECONOMIC COMPONENTS

Article 3. Contents of costs constituting rental prices for student housing, worker housing, low-income housing, and purchase prices for low-income housing

1. Construction investment costs: are all lawful costs incurred in implementing construction investments and putting the project into operation according to current regulations on project management (approved by competent authorities upon completion settlement at the time of handover for operation).

2. Management and operation costs include:

a) Wages and allowances, social insurance, health insurance, and other deductions from the salary fund for the staff of the housing management unit;

Wages are determined based on the staffing level of employees and the wage levels, allowances, and other deductions from the salary fund according to current state regulations;

b) Costs for services within the housing area such as security, cleaning, waste collection, garden care, pest control, and other services (if any), determined based on the workload required and the agreed service contract rates;

c) Office supplies, office furniture, tools, and inexpensive consumable items of the housing management unit;

d) Electricity and water costs for the management unit's office operations; public lighting within the housing area; elevator operation (if any);

e) Depreciation costs of fixed assets of the housing management unit such as cars, computers, photocopiers, and other assets;

The management and use of depreciation of fixed assets shall be in accordance with the regulations of the Ministry of Finance.

3. Maintenance costs: are all costs for maintenance, minor repairs, medium repairs, major repairs, and emergency repairs aimed at maintaining the quality of the housing;

Maintenance costs for the construction project are calculated and determined by the investor based on the maintenance procedures established by the contractor and approved by the provincial People's Committee.

Maintenance funds are deposited in commercial banks and managed by the housing management unit to serve maintenance work according to current regulations on construction maintenance.

4. Prescribed profit margin of the project:

The prescribed profit margin is calculated at a maximum of 10% of the value of the construction investment.

Article 4. Contents of costs constituting sale prices for low-income housing

1. Construction investment costs: as Clause 1 of Article 3

2. Common area maintenance costs: are all costs for maintenance, minor repairs, medium repairs, major repairs, and emergency repairs for common areas in the housing complex aimed at maintaining the quality of the housing.

a) Maintenance costs for the project are determined as follows:

For the sold housing area, maintenance costs are calculated at 2% of the selling price. This amount is included in the purchase price that the buyer must pay (Article 54 of Decree 90/2006/NĐ-CP dated September 6, 2006, detailing and guiding the implementation of the Housing Law).

For the area of housing retained by the investor and not sold, which belongs to the investor (used for leasing, business services, offices, etc.), the investor must pay 2% of the value of this area. This value is calculated based on the highest-priced apartment in the housing complex.

b) Maintenance funds are deposited in commercial banks and managed by the housing management unit to serve maintenance work according to current regulations on construction maintenance. These funds are exempt from taxation.

3. Prescribed profit margin of the project

The prescribed profit margin is calculated at a maximum of 10% of the value of the construction investment.

4. In addition to the sale price of the housing, the buyer will also have to pay monthly management and operation fees as agreed in the sales contract and according to current regulations.

Article 5. Method for Determining Rental Prices for Student Housing

The formula for determination:

 Where:

- Gt : is the rental price for 1 square meter of apartment usage per month (VND/m2/month)

- Vđ : is the annual allocation of construction investment costs of the project according to the principle of capital preservation (VND/year)

The formula for determination:

+ Tđ : is the total construction investment cost of the project at the time of handover and commencement of use (based on the approved final settlement value of the investment by the competent authority) (VND).

+ r : is the interest rate for capital preservation investment (annual), dependent on the authorized decision-maker for investment (%/year)

+ n : is the number of years for capital recovery, dependent on specific conditions of each project and the authorized decision-maker for investment, but a minimum of 20 years.

- L : is the profit of the project, maximum being 10% of the construction investment value (VND/year)

- Ql : is the annual management and operation costs (VND/year)

- Bt : is the average annual maintenance cost of the project (VND/year)

- Tdv : is the income from operating services within the housing area in a year such as: parking service, cafeteria service, income from sports activities (if any) (VND/year)

- S : is the total usable area of rented apartments in the project (m2).

- K : is the floor coefficient, determined according to the principle: the total K coefficient of one building block = 1

Note: "10" : is the number of months students rent housing in a year

Article 6. Determination of Rental Prices for Worker Housing and Low-Income Housing

The formula for determination:

12 x S

Where:

- Gt : is the rental price for 1 square meter of apartment usage per month (VND/m2/month)

- Other quantities are determined similarly to Article 5 of this Circular.

Note: "12" : is the number of months renting housing in a year

Article 7. Determination of Sale Prices for Low-Income Housing

1. In case of selling houses with full payment:

The formula for determination:

Where:

- Gb : is the sale price for 1 square meter of apartment usage (VND/m2);

- Tđ : is the total construction investment cost of the project at the time of handover and commencement of use (based on the approved final settlement value of the investment by the competent authority) (VND).

- L : is the profit of the project, maximum being 10% of the construction investment value (VND)

- Bt : is the maintenance cost for common areas (VND)

- S : is the total usable area of apartments in the project: including the area of sold apartments and the area retained by the developer for non-sale purposes (such as leasing for business services, offices...) (m2)

- K : is the floor coefficient, determined according to the principle: the total K coefficient of one building block = 1

2. In case of installment payments: The buyer pays the first installment not exceeding 20% of the house price, except where the buyer and seller have agreed otherwise. The repayment period is agreed between the buyer and seller, but must be at least 10 years.

Article 8. Determination of Purchase Price for Low-Income Housing under Installment Payment Scheme

The formula for determination:

Where:

- Gtm : is the purchase price for 1 square meter of apartment usage calculated monthly (VND/m2/month);

- A : is the coefficient representing the ratio between the remaining value of the apartment (after deducting the initial payment) and the original value of the purchased apartment (A <1)

- Vđ : is the annual allocation of construction investment costs of the project according to the principle of capital preservation (VND/year)

The formula for determination:

+ Tđ : is the total construction investment cost of the project at the time of handover and commencement of use (based on the approved final settlement value of the investment by the competent authority) (VND)

+ r : is the interest rate for capital preservation investment (annual), dependent on the authorized decision-maker for investment (%/year)

+ n : the lease-purchase period depends on the agreement between the seller and the lessee, but a minimum of 10 years.

- Other quantities are determined similarly to Article 5 of this Circular.

Chapter III

IMPLEMENTATION

Article 9. The Ministry of Construction shall be responsible for

taking the lead in coordinating with relevant ministries, sectors, provincial People's Committees to organize inspections and supervision of the implementation of the contents of this Circular.

Article 10. Provincial People's Committees shall be responsible for

1. Reviewing and approving the selling price, rental price, and lease-purchase price of housing as proposed by the project investors;

2. Examining and adjusting the rental price and lease-purchase price of housing to suit actual conditions;

3. Organizing, directing, and supervising the implementation of this Circular within their jurisdiction.

Article 11. Project investors and management units of projects shall be responsible for

1. Developing pricing plans for selling, renting, and lease-purchasing of housing to submit to the approval of the provincial People's Committee;

2. Collecting and disbursing funds from sales, rentals, lease-purchases of housing, and other sources of income in accordance with state regulations and the guidance provided in this Circular.

Article 12. Implementation Provisions

This Circular shall take effect from August 15, 2009.

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