Decree No. 21/CP Regarding the amendment and supplementation of Article 5 and Article 7 of Decree No. 61/CP dated July 5, 1994 of the Government on the sale and business of Housing

DECREE

Regarding amendments and supplements to Article 5 and Article 6 of Decree No. 61/CP dated July 5, 1994 of the Government on the sale of housing The Government's decree on the sale of housing

THE GOVERNMENT

Pursuant to the Government Organization Law dated September 30, 1992;

At the proposal of the Minister of Construction, the Minister of Finance, the Director of the General Department of Land Administration, and the Head of the Government Price Board,

DECREE:

Article 1. Article 5 and Article 7 of Decree No. 61/CP dated July 5, 1994 of the Government shall be amended and supplemented as follows:

1. Article 5 shall be amended and supplemented as follows:

"Article 5 - The State implements the sale of housing under state ownership to tenants currently renting such housing to enable the buyer to improve their living conditions, except for the following types of housing:
1. Housing located in areas planned for construction of other projects or renovation into new housing;
2. Special-use buildings temporarily arranged as housing (hotels, guesthouses, schools, hospitals, administrative offices, warehouses, and other special-use buildings);
3. Various types of villas planned for use as official residences or for other purposes;
4. Multi-story residential buildings with multiple households in apartment-style structures that are not fully enclosed. Such buildings may only be sold after they have been renovated and repaired to ensure they meet the requirements for enclosed apartments suitable for use."

2. Article 7 shall be amended and supplemented as follows:

"Article 7 - The price for selling state-owned housing to current tenants includes the price of the housing and the price of land when transferring the right to use:

1. The price of the housing is determined based on the remaining value of the housing and the adjustment factor for usage value:

a) The remaining value of the housing is determined based on the ratio of the remaining quality of the house compared to the price of newly constructed housing as stipulated by the People's Committee of the province/city directly under the Central Government (hereinafter referred to as provincial level) based on the minimum standard price for newly constructed housing set by the State. This ratio is determined for each specific area of housing sold based on the duration of use and the actual condition of the house.

The Ministry of Construction, the Ministry of Finance, and the Government Price Board will provide guidance on the method for determining the remaining value of the housing.

b) Adjustment factor for usage value:

b1) The adjustment factor for usage value for various types of housing, excluding the type of housing specified in point b2 below, is defined as follows:

First floor and single-story buildings apply a factor of 1.2

Second floor applies a factor of 1.1

Third floor applies a factor of 1.0

Fourth floor applies a factor of 0.9

Fifth floor applies a factor of 0.8

Floors six and above apply a factor of 0.7

b2) The adjustment factor for usage value for multi-story buildings with multiple households in apartment-style structures is defined as follows:

First floor applies a factor of 1.0

Second floor applies a factor of 0.8

Third floor applies a factor of 0.7

Fourth floor applies a factor of 0.6

Fifth floor applies a factor of 0.5

Floors six and above apply a factor of 0.4

c) For multi-story buildings with multiple households in apartment-style structures handed over for use before November 27, 1992 (the date of issuance of Decision No. 118/TTg of the Prime Minister), the People's Committee at the provincial level may base the adjustment factor for the housing price from 1.0 to 0.5 on the actual usage value of each building. 2. The price of land when transferring the right to use is determined by the People's Committee at the provincial level based on the national framework price for land and the location of the land and the number of floors:

a) For single-story housing and multi-story housing with one household, it is calculated as 40% of the price of land when transferring the right to use.

b) For multi-story housing with multiple households, it is calculated as 10% of the price of land when transferring the right to use and allocated to each floor according to the factors specified in the table below:

In cases where tenants have purchased an apartment in multi-story buildings with multiple households in apartment-style structures as stipulated in Chapter II of Decree No. 61/CP of the Government before the issuance of this Decree, the People's Committee of the province/city directly under the Central Government shall re-determine the price for selling housing according to this Decree and handle it according to the following principles:

Article 2. This Decree takes effect from the date of signature.

1. If the buyer has already paid the full amount, they shall be refunded the difference between the housing price determined according to Decree No. 61/CP and the housing price determined according to this Decree.

2. If the buyer has not yet paid the full amount, a new purchase contract shall be signed according to the housing price stipulated in this Decree.

The Ministry of Finance, together with the Ministry of Construction, the Ministry of Labor, Invalids and Social Affairs, and the General Department of Land Administration, shall study policies to reduce land use fees for state employees (including mass organizations and Party organizations) purchasing housing rented from the state and submit them for consideration.

The Ministry of Finance, together with the Ministry of Construction, the Ministry of Labor, Invalids and Social Affairs, and the Land Administration General Department, shall study policies to reduce land use fees for state officials (including mass organizations and Party organizations) purchasing houses they are currently renting from the state, and submit for approval.

Article 3. Ministers, Heads of ministerial-level agencies, Heads of government-affiliated agencies, Chairpersons of provincial People's Committees under central cities are responsible for implementing this Decree./.