Circular No. 19/2005/TT-BXD guides certain contents of Decree No. 127/2005/NĐ-CP dated October 10, 2005, issued by the Government to implement Resolution No. 23/2003/QH11 dated November 26, 2003, of the National Assembly and Resolution No. 755/2005/NQ-UBTVQH11 dated April 2, 2005, of the Standing Committee of the National Assembly regarding the handling of specific cases concerning real estate during the implementation of policies on real estate management and socialist transformation before July 1, 1991.

CIRCULAR

Guidelines for certain contents of Decree No. 127/2005/NĐ-CP

dated October 10, 2005 of the Government guiding the implementation

of Resolution No. 23/2003/QH11 dated November 26, 2003 of the National Assembly

and Resolution No. 755/2005/NQ-UBTVQH11 dated April 2, 2005

of the Standing Committee of the National Assembly regarding the handling of specific cases concerning real estate during the process of implementing policies

on real estate management and socialist transformation policies

before July 1, 1991

trước ngày 01 tháng 7 năm 1991

Pursuant to Decree No. 36/2003/NĐ-CP dated April 4, 2003 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

Pursuant to Decree No. 127/2005/NĐ-CP dated October 10, 2005 of the Government guiding the implementation of Resolution No. 23/2003/QH11 dated November 26, 2003 of the National Assembly (hereinafter referred to collectively as Resolution No. 23/2003/QH11) and Resolution No. 755/2005/NQ-UBTVQH11 dated April 2, 2005 of the Standing Committee of the National Assembly regarding the handling of specific cases concerning real estate during the process of implementing policies on real estate management and socialist transformation policies before July 1, 1991 (hereinafter referred to collectively as Resolution No. 755/2005/NQ-UBTVQH11);

The Ministry of Construction guides the implementation of certain contents of Decree No. 127/2005/NĐ-CP dated October 10, 2005 of the Government (hereinafter referred to collectively as Decree No. 127/2005/NĐ-CP) guiding the implementation of Resolution No. 23/2003/QH11 and Resolution No. 755/2005/NQ-UBTVQH11 as follows:

I. REGARDING LEGAL PROCEDURES FOR ESTABLISHING FULL NATIONAL OWNERSHIP RIGHTS OVER REAL ESTATE THAT THE STATE HAS MANAGED AND ARRANGED FOR USE IN ACCORDANCE WITH ARTICLE 3 OF DECREE NO. 127/2005/NĐ-CP

1. Based on Resolution No. 23/2003/QH11 and Resolution No. 755/2005/NQ-UBTVQH11, the Chairman of the People's Committee of provinces and centrally governed cities (hereinafter collectively referred to as the Chairman of the Provincial People's Committee) shall direct the People's Committees of districts, towns, and cities under provincial jurisdiction (hereinafter collectively referred to as the District People's Committee) to review and compile lists of real estate (houses, buildings) that the State has managed and arranged for use according to the policy stipulated in Resolution No. 23/2003/QH11 but which have not completed legal procedures for establishing full national ownership rights (no decision from the Provincial People's Committee) for the Department of Construction or other competent agencies managing real estate at the provincial level (hereinafter collectively referred to as the Provincial Real Estate Management Agency) to compile and submit to the Chairman of the Provincial People's Committee for issuance of a decision establishing full national ownership rights.

A summary form of real estate requiring establishment of full national ownership rights in accordance with the guidance provided in Appendix 1 of this Circular and a model decision for establishing full national ownership rights in accordance with the guidance provided in Appendix 2 of this Circular.

2. The organization and management of the real estate fund where the Provincial People's Committee has completed legal procedures for establishing full national ownership rights (real estate already having a decision from the Provincial People's Committee) shall be carried out as follows:

a) For real estate currently being used for residential purposes but where the current user has not signed a housing lease contract with the State, state enterprises with the function of managing the public housing fund of the locality must establish procedures to sign housing lease contracts in accordance with current regulations and implement the sale of housing to tenants in accordance with Decree No. 61/CP dated July 5, 1994 of the Government on the purchase and sale of housing. For housing not eligible for sale or where tenants do not wish to buy, it shall be handled in accordance with Directive No. 43/2004/CT-TTg dated December 3, 2004 of the Prime Minister on transferring housing owned by the State to the People's Committees of provinces and centrally governed cities;

b) For real estate currently being used by state agencies, political organizations, social-political organizations, and social-political-professional organizations, the management and use of such real estate by these organizations must comply with current regulations governing the management of state-owned real estate assets;

c) For real estate currently being managed and used by state enterprises without the function of managing the public housing fund of the locality, the Provincial People's Committee shall direct the valuation of the real estate to implement capital transfer to the enterprises in accordance with current regulations on capital transfer;

d) In cases where state agencies, organizations, enterprises, or individuals are using real estate for purposes other than those assigned or leasing to other state agencies or organizations, the Provincial People's Committee must issue a decision to recover the real estate and transfer it to state enterprises with the function of managing the public housing fund of the locality for management and use in accordance with current regulations on the management of state-owned real estate assets.

II. REGARDING PAYMENT OF MONEY FOR REAL ESTATE THAT THE STATE HAS ACQUIRED PURSUANT TO ARTICLE 6 OF DECREE NO. 127/2005/NĐ-CP

1. Individuals eligible for payment (regardless of their place of residence) are responsible for preparing and submitting a payment request application to the Provincial Real Estate Management Agency where the real estate was previously acquired by the State but for which payment has not been made or only partially paid.

2. Based on the payment request application, the Provincial Real Estate Management Agency shall coordinate with the Department of Finance and relevant departments to compare the payment request application with the original records of real estate previously acquired by the State to prepare a payment plan. If the payment request application lacks the required documents as stipulated in Article 12 of Resolution No. 755/2005/NQ-UBTVQH11, the Provincial Real Estate Management Agency shall guide the applicant to supplement the application. After supplementation, if the conditions for payment are still not met, the Provincial Real Estate Management Agency shall notify the applicant in writing of the reasons for non-payment.

Cases where sufficient documentation and eligibility for payment are established shall be compiled into a list by the Provincial Real Estate Management Agency and submitted to the Chairman of the Provincial People's Committee for decision.

3. The determination of the value of the house as the basis for payment shall be carried out as follows:

a) In the case where the State has requisitioned but not yet paid for the property, the provincial management agency shall cooperate with the Department of Finance to determine the amount to be paid, which shall be submitted to the Chairman of the Provincial People's Committee for decision. The determination of the payment amount must take the new construction price of a second-grade house, if it is a villa, then the price of a second-grade villa issued by the Provincial People's Committee at the time of payment multiplied by the area of the house that the State had previously requisitioned.

Example: In 1978, the State requisitioned a third-grade house from Mr. Nguyen Van A in Province B with an area of 120 square meters but had not yet paid Mr. A. In June 2006, when Mr. A submitted a payment request, the payment amount was determined as follows:

The standard price for newly constructed second-grade houses, as stipulated by the People's Committee of Province B and applied at the time of payment (in 2006), is 1.3 million dong per square meter. Therefore, the payment amount will be: 1,300,000 dong x 120 square meters = 156,000,000 dong.

Thus, the amount that the People's Committee of Province B must pay to Mr. A is 156,000,000 dong (one hundred fifty-six million dong).

b) In the case where the State has partially paid for the requisitioned property, the provincial management agency shall cooperate with the Department of Finance to determine the remaining amount to be paid based on the house price as specified in paragraph a of this point, minus the percentage of the amount already paid by the State to the owner.

Example: Assuming that at the time of requisition, the house of Mr. A was priced at 100,000 dong, Mr. A had been paid 40,000 dong (40%). Now, the remaining amount that the State must pay to Mr. A is 60%, calculated as: (1,300,000 dong x 120 square meters) x 60% = 93,600,000 dong (ninety-three million six hundred thousand dong).

The classification of housing used as the basis for determining the house price is prescribed in Circular No. 5-BXD/DT dated February 9, 1993, issued by the Ministry of Construction, guiding the method for determining usable area and classifying housing.

Based on the payment amount proposed by the provincial housing management agency and the Department of Finance, the Provincial People's Committee is responsible for allocating funds to make payments according to the provisions of Resolution No. 755/2005/NQ-UBTVQH11 and Decree No. 127/2005/NĐ-CP.

In cases where localities do not have sufficient funds to make payments, the Provincial People's Committee must prepare a detailed report along with a consolidated list according to the form prescribed in Appendix 3 of this Circular to be sent to the Ministry of Construction and the Ministry of Finance for consolidation and reporting to the Prime Minister for decision.

III. REGARDING THE HANDOVER OF HOUSING THAT THE STATE HAS REQUISITIONED WITH A TIME LIMIT FOR HOUSEHOLDS AND INDIVIDUALS AS PROVIDED IN ARTICLE 7 OF DECREE NO. 127/2005/NĐ-CP

1. Individuals eligible for the handover of housing (regardless of their current place of residence) are responsible for preparing and submitting an application for the handover of housing to the provincial housing management agency where the land was previously requisitioned by the State.

2. Based on the application for the handover of housing, the provincial housing management agency shall cooperate with the People's Committee of the commune, ward, town (hereinafter referred to as the People's Committee of the commune level) or the agency, organization managing and using the land to inspect, verify the current status and purpose of use of the housing eligible for handover, compare the original records of the housing requisitioned by the State with the conditions for handing over housing as stipulated in Article 7 of Resolution No. 755/2005/NQ-UBTVQH11 and Article 7 of Decree No. 127/2005/NĐ-CP. If the conditions are met, the provincial housing management agency shall submit a proposal to the Chairman of the Provincial People's Committee to issue a decision to hand over the housing to the owner.

3. In cases where housing cannot be handed over as provided in Clause 3 of Article 7 of Decree No. 127/2005/NĐ-CP, the Provincial People's Committee shall direct the preparation of a compensation plan according to current regulations to compensate individuals eligible for the handover of housing.

In cases where compensation must be made in cash from the State budget and the locality does not have sufficient funds to make the payment, the Provincial People's Committee must prepare a detailed report along with a consolidated list according to the form prescribed in Appendix 4 of this Circular to be sent to the Ministry of Construction and the Ministry of Finance for consolidation and reporting to the Prime Minister for decision.

4. Individuals who receive the handover of housing or compensation in housing and land must complete the necessary procedures to obtain certificates of ownership of housing and certificates of land use rights according to the law.

IV. REGARDING THE IMPLEMENTATION OF SUPPORT FOR IMPROVEMENT OF HOUSING AS PROVIDED IN ARTICLE 9 OF DECREE NO. 127/2005/NĐ-CP

1. Individuals eligible for support to improve housing must meet all the conditions stipulated in Article 9 of Decree No. 127/2005/NĐ-CP.

2. Individuals eligible for support to improve housing must submit an application for housing support to the District People's Committee. The application includes the following documents:

a) An application for housing improvement support, confirmed by the People's Committee of the commune where the applicant resides regarding the actual living conditions according to Clause 3 of Article 9 of Decree No. 127/2005/NĐ-CP;

b) Documents proving that the State has managed and arranged the use of its own land according to the land management policies and land renovation policies stipulated in Article 2 of Resolution No. 23/2003/QH11.

3. After receiving the application for housing improvement support, the District People's Committee is responsible for checking and verifying the application and compiling a list of cases meeting the conditions to transfer to the provincial housing management agency.

4. Based on the application and list of requests for housing improvement support transferred by the District People's Committee, the provincial housing management agency is responsible for compiling and developing a support plan and proposal to submit to the Chairman of the Provincial People's Committee for decision. Depending on the specific conditions of the locality, the Chairman of the Provincial People's Committee decides to lease state-owned housing or sell housing on installment to those being resettled or low-income individuals according to the regulations on selling housing to those being resettled or low-income individuals.

In cases where there is no housing available for support, the provincial housing management agency must issue a notice clearly stating the reasons for the knowledge of individuals eligible for support.

V. EFFECTIVE DATE

This Circular shall take effect fifteen days after its publication in the Official Gazette.

During implementation, if there are any difficulties, the Ministries, People's Committees of the provinces and centrally governed cities shall promptly reflect them to the Ministry of Construction for guidance on implementation or report to the Prime Minister for consideration and resolution./.