Circular No. 20/2016/TT-BXD guiding the implementation of certain contents of Decree No. 100/2015/NĐ-CP dated October 20, 2015 of the Government on the development and management of social housing

CIRCULAR

Guidelines for Implementing Certain Provisions of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the Development and Management of Social Housing

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Based on the Law on Housing dated November 25, 2014;

Pursuant to Decree No. 100/2015/NĐ-CP dated October 20, 2015 of the Government on social housing development and management;

Pursuant to Decree No. 62/2013/NĐ-CP dated June 25, 2013 of the Government stipulating the functions, tasks, powers, and organizational structure of the Ministry of Construction;

At the proposal of the Director of the Department of Housing and Real Estate Market Management;

The Minister of Construction issues this Circular guiding the implementation of certain provisions of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the Development and Management of Social Housing.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

1. This Circular guides the implementation of certain provisions of Decree No. 100/2015/ND-CP dated October 20, 2015 of the Government on the Development and Management of Social Housing (hereinafter referred to as Decree No. 100/2015/ND-CP) regarding: Minimum standards for social housing invested in and constructed by households and individuals; methods for determining the selling price, rental price, and lease-purchase price of social housing; models of certificates proving eligibility and conditions for receiving support policies on social housing, and models of contracts for the sale, lease, and lease-purchase of social housing.
2. The leasing, lease-purchase, and management of social housing developed through the form prescribed in Clause 1, Article 53 of the Law on Housing shall be implemented in accordance with Decree No. 99/2015/ND-CP dated October 20, 2015 of the Government detailing and guiding the implementation of certain provisions of the Law on Housing and related guiding documents.

Article 2. Applicability

This Circular applies to organizations, households, individuals, and state agencies involved in the development and management of social housing as stipulated in Article 2 of Decree No. 100/2015/ND-CP.

Chapter II

MINIMUM STANDARDS FOR SOCIAL HOUSING INVESTED IN AND BUILT BY HOUSEHOLDS AND INDIVIDUALS

Article 3. Minimum Standards for Living Rooms

Each living room of social housing invested in and built by households and individuals for sale, lease, or lease-purchase must meet construction quality requirements under the laws on construction and the following minimum standards:

1. The usable area of each living room must not be less than 10 square meters;²the clear width must not be less than 2.40 meters; the lowest clear height must not be less than 2.70 meters.
2. Living rooms must have doors and windows that ensure ventilation and natural lighting.
3. Enclosing walls and partition walls between rooms must be made of materials meeting fire prevention and waterproofing requirements.
4. The roof must not be covered with flammable materials and must prevent leakage.
5. The floor must be tiled or cement plastered and must be higher than the entrance road, courtyard, or sidewalk.
6. There must be sufficient lighting (at least one 40-watt light bulb for every 10 square meters), and if it is a collective living space, there must be at least one electrical outlet per person.²If the living room is built as a self-contained unit, then the bathroom must be separated from the sleeping area.
7. Ensure the provision of hygienic water according to industry regulations and standards.
8. Install fire prevention and explosion protection equipment as required.
9. The average usable area must not be less than 5 square meters.
10. In cases where low-rise adjacent social housing is built for sale or lease-purchase, each living room must be built as a self-contained unit (with a bathroom). For rental purposes, a shared bathroom may be used for multiple living rooms, but separate bathrooms for men and women must be provided.² for one person.
11. In the case where social housing units adjacent to low-rise buildings are constructed for sale or lease purchase, each living room must be built as a separate unit (with a bathroom). If they are for lease, a common bathroom may be used for multiple rooms, but separate bathrooms for men and women must be provided.

Article 4. Minimum Standards for Apartments and Houses

Each apartment or house of social housing invested in and built by households and individuals for sale, lease, or lease-purchase must meet construction quality requirements under the laws on construction and the following minimum standards:

1. For apartments in residential buildings, they must meet the standards of self-contained apartments as prescribed by the laws on construction and housing, with a minimum usable area of 25 square meters² (including the bathroom).
2. For houses (not apartments in residential buildings), they must meet the living room standards prescribed in Article 3 of this Circular and must be built as self-contained units (with separate living rooms and bathrooms), with a minimum usable area of 25 square meters² (including the bathroom); they must also meet the construction quality requirements of level 4 or higher as prescribed by the laws on construction.

Article 5. Minimum Requirements for Land for Social Housing Construction

1. The land for social housing construction invested in by households or individuals for sale, lease, or lease-purchase must comply with the urban planning; not be located in prohibited construction areas; not violate the protective zones of transportation, water conservancy, dike, energy, historical-cultural relic sites, and other protected areas as prescribed by law; not be in areas at risk of landslides, flash floods, flooding, industrial waste pollution, garbage dumps, or cemeteries; not encroach on public land, and not be subject to land disputes.
2. The construction of essential infrastructure projects within the land (transportation, lighting, water supply and drainage, fire prevention, environmental sanitation) must ensure compliance with industry-specific standards and regulations.
3. Each residential area must have a Usage Regulation Notice displayed in easily observable locations.

Chapter III

METHODS FOR DETERMINING THE SALE PRICE, RENTAL PRICE, AND LEASE PURCHASE PRICE OF SOCIAL HOUSING

Article 6. Principles for Determining Sale Prices, Rental Prices, and Lease-Purchase Prices for Social Housing

1. For social housing constructed under a project:

a) The sale price, rental price, and lease-purchase price for social housing shall be determined by the project investor based on ensuring the principles stipulated in Clause 1, 2, and 3 of Article 21 of Decree No. 100/2015/NĐ-CP, and these prices shall be for completed apartments or houses.

2. The sale price, rental price, and lease-purchase price for social housing in apartment buildings shall be determined based on the usable area of the apartment (net floor area).
3. For the commercial business portion within the social housing project as specified in Point b and c of Clause 1 of Article 9 of Decree No. 100/2015/NĐ-CP (specifically defined in the approved social housing construction project), the investor may sell, lease, or lease-purchase according to commercial business prices (including land use fees) to those with demand to offset investment costs for social housing, thereby reducing the sale price, rental price, and lease-purchase price of social housing and lowering management and operation costs for the social housing project.

The accounting of profits from the commercial business portion to offset costs for social housing must clearly state the portion allocated to reduce the sale price, rental price, and lease-purchase price, and the portion allocated for management and operation of social housing, and must be clearly reflected in the financial balance plan of the entire project as stipulated in this point. The Department of Construction has the responsibility to inspect the accounting of the project investor.

4. Profits from selling, leasing, or lease-purchasing commercial business facilities in the social housing project shall be accounted for specifically as follows:

• In cases where the investor sells, leases, or lease-purchases commercial business facilities (including housing), the profit portion shall be calculated based on actual figures (if actual figures cannot be calculated, then estimated profit portions must be allocated) but must not be lower than the land use fee or land lease fee waived for the construction area of the commercial business facilities or the land use fee or land lease fee allocated for the commercial business housing floor area (in cases where 20% of the housing floor area is sold, leased, or lease-purchased at commercial business prices).
• Based on the actual situation regarding the sale price, rental price, and lease-purchase price of commercial business facilities (including housing) in the locality, the project investor is responsible for allocating the profit portion to determine the sale price, rental price, and lease-purchase price of social housing, prioritizing allocation of the profit portion to the rental price of social housing to align with the income of households and individuals benefiting from social housing support policies in the locality.

d) Based on the pricing determination principles stipulated in Points a, b, c, and d of this clause, the investor shall establish the sale price, rental price, and lease-purchase price for social housing they invest in and submit it for review by the People's Committee of the province where the project is located. If the investor has completed the construction of social housing and received an audit report on project costs as required, the People's Committee of the province may base its review of the sale price, rental price, and lease-purchase price of the social housing project on the audit report. The People's Committee of the province shall assign the Department of Construction or another competent agency to conduct the review of the sale price, rental price, and lease-purchase price proposed by the investor. The assigned agency shall be responsible to the People's Committee of the province for the results and time frame of the review.

Within thirty days from the date of receiving a valid application for price review from the investor, the assigned agency shall organize the review and issue a notification of the review results to the investor, specifying the agreed contents and any necessary revisions. Based on the notification of the review results, the investor shall set the sale price, rental price, and lease-purchase price for the social housing project without exceeding the reviewed price.

If the assigned agency does not issue a notification of the review results beyond the aforementioned period, the investor may set the price according to the submitted pricing proposal and sign contracts for the sale, lease, or lease-purchase of social housing with customers, but before signing the contract, the investor must send the price list to the local Department of Construction for monitoring. When the review result notification indicates a higher price than the one already contracted by the investor, the investor shall not collect additional amounts; if the price is lower, the investor must re-sign the contract or amend the supplementary contract and refund the difference to the buyer, lessee, or lease-purchaser of the social housing.

2. For social housing constructed by households or individuals for sale, lease, or lease-purchase, the households or individuals shall independently determine the price but it must not exceed the price range established by the People's Committee of the province. Before signing a contract for the sale, lease, or lease-purchase of social housing with customers, the households or individuals must send the price list to the local Department of Construction for monitoring.

The provincial People's Committee is responsible for directing competent agencies to refer to the pricing determination methods prescribed in Articles 7, 8, and 9 of this Circular and the market price level in the locality to establish a framework for the sale price, rental price, and lease-purchase price of social housing built by households and individuals to issue according to their authority, ensuring suitability with the actual conditions of the locality.

Article 7. Pricing Determination Method for Sale Price of Social Housing

1. The sale price of social housing is determined based on sufficient reasonable costs to recover investment capital for building housing, interest (if any), standard profit margin, and value-added tax; excluding maintenance costs.
2. The formula for determining the sale price: 

Where:

• Gi^B: is the sale price of lm² using a completed social housing apartment (or house) at position i (VND/m²).²).
• T_đ : is the total investment cost for the usable area of social housing for sale (VND).
• T_dv : is the portion of profit from commercial business within the project allocated to the usable area of social housing for sale (VND).
• L : is the standard profit margin of the project, maximum being 10% of the investment value for the saleable area of social housing (VND).
• Provincial People's Committees set specific prices^B : is the total usable area of social housing for sale in the project, including the area of apartments or houses retained by the developer without selling (m²).²).
• Ki : is the floor factor (if applicable) adjusting the sale price for apartment or house i (determined according to the weighted average principle, the factor K of a block of houses = 1).

3. In cases where the sale price determined according to the formula prescribed in Clause 2 of this Article is higher than or equal to the market price of equivalent commercial housing, the developer must re-determine the sale price to be consistent with the actual situation, ensuring it is lower than the market price of equivalent commercial housing.
4. When social housing for rent is permitted to be sold according to regulations, the sale price must be reduced by the corresponding depreciation cost of the rented housing.

Article 8. Pricing Determination Method for Rental Price of Social Housing

1. The rental price of social housing is determined based on sufficient reasonable costs to recover investment capital for building housing, interest (if any), standard profit margin, value-added tax, and maintenance costs.
2. The formula is as follows:

Where:

• Gi^T : is the rental price of 1m² using a completed social housing apartment (or house) at position i for one month (VND/m²).²- Total annual management and operation costs of the official housing area (VND/year).
• V_đ : is the total annual investment cost for social housing of the project allocated to the usable area for rental, distributed annually according to the principle of capital preservation (VND/year), calculated by the following formula:

+ T_đ: is the total investment cost for the usable area of social housing for rental (VND).

+ r : is the capital preservation interest rate (annual) decided by the investor (%/year).

+ n : is the number of years to recover the investment capital of the project decided by the investor but not less than 15 years; for social housing solely for rental, the minimum period is 20 years.

• 12: is the number of months of renting in one year.
• L: is the standard profit margin of the project calculated annually, maximum being 15% of the total investment cost for the rental area of social housing (VND/year).
• B_{organize credit institutions, foreign bank branches are responsible for organizing the implementation of this Circular.}: is the average annual maintenance cost allocated to the rental area of social housing (VND/year).
• T_dv : is the portion of profit from commercial business (including commercial housing) within the project allocated to the rental area of social housing (VND/year).
• Provincial People's Committees set specific prices^Ti : is the usable area of a social housing apartment (or house) for rental at position i (m²).²).
• Ki : is the floor factor (if applicable) adjusting the rental price for apartment or house i for rental (determined according to the weighted average principle, the factor K of a block of houses = 1).

3. In cases where the rental price determined according to the formula prescribed in Clause 2 of this Article is higher than or equal to the market rental price of equivalent commercial housing, the developer must re-determine the rental price to be consistent with the actual situation, ensuring it is lower than the market rental price of equivalent commercial housing.

Article 9. Method for Determining the Rental Purchase Price for Social Housing

1. The rental purchase price for social housing shall be determined based on covering all reasonable costs to recover the investment capital for constructing housing, interest on loans (if applicable), a fixed profit margin, and value-added tax, excluding maintenance costs.
2. The formula is as follows:

Where:

• Gi™: là giá thuê mua 1m² using a completed social housing apartment (or house) at position i for one month (VND/m²).²- Total annual management and operation costs of the official housing area (VND/year).
• Ai : là tỉ lệ giữa giá trị còn lại của căn hộ (hoặc căn nhà) nhà ở xã hội tại vị trí thứ i (sau khi đã trừ đi tiền thanh toán lần đầu) so với giá trị ban đầu của căn hộ hoặc căn nhà thuê mua thứ i (A <1) tính theo hợp đồng thuê mua.
• Vđ: là tổng chi phí đầu tư xây dựng nhà ở xã hội của dự án phân bổ cho phần diện tích sử dụng nhà ở xã hội để cho thuê mua được phân bổ hàng năm theo nguyên tắc bảo toàn vốn (đồng/năm), xác định theo công thức sau:

+ T_đ : là chi phí đầu tư xây dựng phần diện tích sử dụng nhà ở xã hội để cho thuê mua (đồng).

+ r : là lãi suất bảo toàn vốn đầu tư (tính theo năm) do người có thẩm quyền quyết định đầu tư quyết định (%/năm).

+ n: is the leasing purchase period agreed upon between the seller and the buyer, but not less than five years.

• L: là lợi nhuận định mức của dự án được tính theo năm, tối đa là 15% tổng chi phí đầu tư xây dựng phần diện tích nhà ở xã hội để cho thuê mua (đồng/năm).
• T_dv : là phần lợi nhuận thu được từ phần kinh doanh thương mại (kể cả nhà ở thương mại) trong dự án được phân bổ cho phần diện tích nhà ở xã hội để cho thuê mua (đồng/năm).
• Si™ : là diện tích sử dụng căn hộ (hoặc căn nhà) nhà ở xã hội để cho thuê mua tại vị trí thứ i (m²).
• Ki : là hệ số tầng (nếu có) điều chỉnh giá cho thuê mua đối với căn hộ hoặc căn nhà để cho thuê mua thứ i (được xác định theo nguyên tắc bình quân gia quyền, hệ số K của một khối nhà = 1).

3. Trường hợp mức giá cho thuê mua xác định theo công thức quy định tại khoản 2 Điều này cao hơn hoặc bằng mức giá cho thuê mua nhà ở thương mại tương đương trên thị trường thì chủ đầu tư phải xác định lại giá cho thuê mua cho phù hợp với tình hình thực tế, bảo đảm thấp hơn giá cho thuê mua nhà ở thương mại tương đương trên thị trường.

Chapter IV

MẪU GIẮY TỜ CHỨNG MINH ĐỐI TƯỢNG, ĐIỀU KIỆN ĐỂ ĐƯỢC HƯỞNG CHÍNH SÁCH HỖ TRỢ VÀ MẪU HỢP ĐỒNG MUA BÁN, THUÊ, THUÊ MUA NHÀ Ở XÃ HỘI

Article 10. Model documents proving the subject and conditions for eligibility to benefit from social housing support policies

1. For households and individuals purchasing, renting, or leasing social housing:

1. Application form for purchasing, renting, or leasing social housing according to Model No. 01 attached in Appendix I of this Circular.

In cases where social housing has been resold according to Clause 5, Article 19 of Decree No. 100/2015/NĐ-CP, the application form for purchasing social housing by the buyer must be confirmed by the local Construction Department regarding the fact that the buyer has not yet benefited from social housing support policies.

2. Model certificate regarding the subject and current housing status:

- The subject specified in Point a, Clause 1, Article 22 of Decree No. 100/2015/NĐ-CP shall apply according to Model No. 02 attached in Appendix I of this Circular.

- The subject specified in Point b, Clause 1, Article 22 of Decree No. 100/2015/NĐ-CP shall apply according to Model No. 03 attached in Appendix I of this Circular.

- The subject specified in Point c, Clause 1, Article 22 of Decree No. 100/2015/NĐ-CP shall apply according to Model No. 04 attached in Appendix I of this Circular.

- The subject specified in Point d, Clause 1, Article 22 of Decree No. 100/2015/NĐ-CP shall apply according to Model No. 05 attached in Appendix I of this Circular.

3. Documents proving residential condition and social insurance contributions shall be implemented according to Clause 2, Article 22 of Decree No. 100/2015/NĐ-CP.
4. Model certificate regarding income conditions:

- For the subject specified in Point a, Clause 3, Article 22 of Decree No. 100/2015/NĐ-CP, the confirmation of income conditions shall be conducted simultaneously with the confirmation of the subject and current housing status according to Model No. 03 attached in Appendix I of this Circular.

- For the subject specified in Point a, Clause 3, Article 22 of Decree No. 100/2015/NĐ-CP who have retired or left their job according to the law, and the subject specified in Point b, Clause 3, Article 22, they shall self-declare and bear responsibility for their own income level according to Model No. 06 attached in Appendix I of this Circular (no confirmation required).

- For the subject specified in Point a, Clause 3, Article 22 of Decree No. 100/2015/NĐ-CP who have been confirmed as eligible for social housing support policies before the effective date of this Circular but without income condition confirmation, they must provide additional confirmation of income conditions according to Model No. 07 attached in Appendix I of this Circular.

2. For the subject specified in Point d, Clause 1, Article 22 of Decree No. 100/2015/NĐ-CP, it shall apply according to Model No. 08 attached in Appendix I of this Circular.
3. For households and individuals borrowing capital to construct new or renovate and repair houses for residence:

a) Loan application form according to the guidelines of the lending bank;

b) Model certificate regarding the subject, current housing status, and income conditions shall be implemented according to Points b and d, Clause 1 of this Article.

c) Documents proving residential condition: Certified copy of permanent household registration at the province or centrally administered city where the land for constructing new or renovating and repairing houses is located.

4. Documents stipulated in Clauses 1, 2, and 3 of this Article which require confirmation shall only be confirmed once and remain valid for two years. After this period, if the subjects have not yet benefited from social housing support policies and wish to continue applying for purchasing, renting, or leasing social housing or borrowing capital to construct new or renovate and repair houses, they must be reconfirmed.
5. The model documents stipulated in this Article are for reference purposes. Provincial People's Committees may modify or supplement these model documents as necessary, but they must ensure that they contain complete information about the applicant, the competent authority confirming, and the contents to be confirmed.

Article 11. Contracts for the sale, lease, or lease-purchase of social housing

1. Contracts for the sale, lease, or lease-purchase of social housing must include the following main contents:

a) Name and address of the parties;

b) Information about the traded housing unit;

c) Purchase price, rental price, lease-purchase price;

d) Payment methods and deadlines; 

đ) Handover period for the housing unit;

e) Warranty for the housing unit;

g) Rights and obligations of the parties;

h) Commitments of the parties;

i) Termination of the contract;

k) Other agreements;

l) Dispute resolution;

m) Effectiveness of the contract;

2. For social housing units that are condominiums, contracts for the sale, lease, or lease-purchase must comply with the provisions of Clause 1 of this Article, while clearly stating the separate ownership, common ownership, separate usage rights, and common usage rights of the developer and the buyer, lessee, or lease-purchaser; the floor area of the condominium; the usable floor area of the condominium (wet area) to calculate the purchase, rental, or lease-purchase price; maintenance fund; management and operation fee levels and principles for adjusting such fees during the period before the establishment of the Condominium Management Board.
3. Contracts for the sale, lease, or lease-purchase of social housing shall be applied according to Model Nos. 9, 10, and 11 attached in Appendix II issued together with this Circular.
4. The contract models prescribed in this Article are for reference by the parties during the negotiation and signing of the contract. The parties may agree to modify or supplement the terms of the model contract as appropriate, but the contract signed by the parties must ensure that it contains all the main contents stipulated in Clause 1 and Clause 2 of this Article and must not contravene the provisions of civil law and laws on housing.

Chapter V

EFFECTIVE IMPLEMENTATION AND IMPLEMENTATION PROVISIONS

Article 12. Responsibilities of Provincial People's Committees

1. Implement the assigned tasks related to the development and management of social housing within the jurisdiction in accordance with the provisions of the Law on Housing, Clause 30 of Decree No. 100/2015/NĐ-CP, and Clauses 2, 3, 4, 5, and 6 of this Article.
2. Specify detailed criteria for prioritizing eligible recipients for the purchase, lease, or lease-purchase of social housing within the jurisdiction in accordance with Clause 3 of Article 23 of Decree No. 100/2015/NĐ-CP.
3. Direct and implement support for part or all of the investment costs for technical infrastructure systems within the scope of social housing projects to reduce the selling price, rental price, or lease-purchase price of social housing to match local conditions; direct the appraisal of the selling price, rental price, or lease-purchase price of social housing for social housing construction projects within the jurisdiction in accordance with the specified timeframes; issue a framework for the selling price, rental price, or lease-purchase price of social housing built by households or individuals in accordance with the guidance provided in Clause 2 of Article 6 of this Circular.
4. Direct the Department of Construction, People's Committees at district and commune levels, and relevant agencies within the jurisdiction to organize certification for households or individuals who request certification regarding their eligibility, housing status, income, social insurance contributions, and non-receipt of state compensation for housing or land when land is reclaimed to benefit from social housing support policies as prescribed.
5. Direct the implementation of laws on social housing; direct the organization of inspections and checks on compliance with laws on social housing and handle violations within the authority or refer to competent authorities for handling violations concerning social housing within the jurisdiction.
6. Direct functional agencies to compile reports on the development and management of social housing within the jurisdiction to report to the Ministry of Construction periodically every six months or annually, or as required urgently.

Article 13. Responsibilities of the Construction Department

1. Implement tasks related to the development and management of social housing on its jurisdiction as prescribed by the Law on Housing, Decree No. 100/2015/NĐ-CP, tasks assigned by the provincial People's Committee, and Clauses 2, 3, and 4 of this Article.
2. Take the lead and coordinate with local functional agencies to establish specific criteria for prioritizing eligible individuals for purchasing, renting, or leasing social housing, to be submitted to the provincial People's Committee for approval in accordance with Clause 2 and Clause 3 of Article 23 of Decree No. 100/2015/NĐ-CP; guide economic sectors, households, and individuals participating in the construction, sale, rental, or lease of social housing to ensure compliance with legal regulations and suitability to local conditions.
3. Inspect, monitor, and handle violations related to the development and management of social housing within its jurisdiction according to its authority, or report to competent authorities for handling as prescribed.
4. Regularly report every six months, annually, or upon urgent request to the provincial People's Committee and the Ministry of Construction on social housing within its jurisdiction using Form No. 12 attached as Appendix III of this Circular.

Article 14. Transitional Provisions

Individuals who have registered to purchase, rent, or lease social housing and are required to provide proof of income as stipulated in Clause 3 of Article 22 of Decree No. 100/2015/NĐ-CP but have not yet signed a contract for such purposes by the effective date of this Circular must supplement proof of income according to Forms No. 06 and 07 attached as Appendix I of this Circular.

Article 15. Effective Date

1. This Circular takes effect from August 15, 2016.
2. Circular No. 08/2014/TT-BXD dated May 23, 2014, issued by the Ministry of Construction guiding the implementation of certain provisions of Decree No. 188/2013/NĐ-CP dated November 20, 2013, of the Government on the development and management of social housing ceases to be effective from the date this Circular takes effect.
3. In case of difficulties during implementation, please reflect them to the Ministry of Construction for consideration and guidance within its authority./.