Circular No. 17/2009/TT-BXD guiding the method for determining rental prices for student housing funded by state budget

CIRCULAR

Guidelines on the method for determining rental prices for student housing funded by state budget

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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 workers in concentrated industrial zones and low-income residents in urban areas;

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

The Ministry of Construction hereby provides guidelines on the method for determining rental prices for student housing funded by state budget as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation and Applicability

Article 1. Scope of Application: This Circular guides the method for determining rental prices for student housing within projects funded by state budget and benefiting from state incentives under Decision No. 65/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister;

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

Article 2. Principles of Determination

Clause 1. Rental prices for student housing in projects funded by state budget shall be determined based on the principle of accurately and fully covering management, operation, and maintenance costs (excluding depreciation costs);

Clause 2. Management, operation, and maintenance costs for student housing shall be collected and expended according to the principle of self-collection, self-expenditure, and transparency to ensure the effective operation of student housing, with the management and operation unit bearing responsibility for management;

Clause 3. Costs for fuel, electricity, water, and other services (if applicable) used by students renting housing shall not be included in the rental price but shall be directly paid by students to service providers (if there is a separate contract) or to the management and operation unit (if there is no separate contract) based on actual consumption, while ensuring that such costs do not serve commercial purposes. Specifically, electricity and water prices shall be calculated based on living rates, not commercial rates;

Clause 4. Service costs included in the rental price for housing include: security, environmental sanitation, waste collection, pest control, and other services (if applicable), which are specified in the housing lease contract;

Clause 5. Revenue from rental fees for student housing and business services within the student housing area shall be accounted for and expended in accordance with financial regulations set forth by the Ministry of Finance, aimed at offsetting management, operation, and maintenance costs to reduce rental prices.

Chapter II

METHOD FOR DETERMINING RENTAL PRICES FOR STUDENT HOUSING

Article 3. Contents of Costs Constituting Rental Prices for Student Housing

Clause 1. Management and Operation Costs Include:

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

Wages are determined based on staffing levels and current national regulations on wages, allowances, and other deductions from the wage fund;

Point b) Costs for services within the student housing area such as security, cleaning, waste collection, garden care, pest control, and other services (if applicable), which are determined based on the volume of work required and agreed upon in the service contract;

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

Point d) Electricity and water costs for the management and operation unit's office; public lighting in the housing area; elevator operation (if available);

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

Management and use of depreciation costs of fixed assets shall comply with regulations of the Ministry of Finance.

Clause 2. Maintenance Costs: These are all costs for minor repairs, medium repairs, major repairs, and emergency repairs to maintain the quality of housing;

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

Maintenance funds are deposited in a commercial bank and managed by the housing management and operation unit to serve maintenance activities in accordance with current regulations on maintenance of construction works.

Article 4. Determining the rental price for student housing

The formula for determining:

Where:

- Gt : is the rental price for student housing per student per month (VND/student/month)

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

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

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

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

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

Note:

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

+ "4" : is the standard living space for one student (4 sqm/SV)

Chapter III

IMPLEMENTATION

Article 5. The Ministry of Construction shall be responsible

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

Article 6. Provincial People's Committees shall be responsible

1. Approving the rental prices for student housing at projects funded by state budget within their jurisdiction;

2. Reviewing and adjusting rental prices for student housing as appropriate to actual conditions;

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

Article 7. Project investors and management units of projects shall be responsible

1. Developing rental pricing plans for student housing to be submitted to the provincial People's Committee for approval;

2. Organizing the collection and disbursement of rental fees for student housing and other sources of income in accordance with state regulations and the guidance provided in this Circular.

Article 8. Implementation clause

This Circular takes effect from August 15, 2009.

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