Resolution No. 23/2006/NQ-CP on certain measures to accelerate the progress of selling state-owned housing to tenants as stipulated in Government Decree No. 61/CP dated July 5, 1994.

 RESOLUTION

On some measures to accelerate the progress of selling state-owned housing to tenants as prescribed in the Government Decree

number 61/CP dated July 5, 1994

On July 5, 1994, the Government issued Decree No. 61/CP on the purchase and sale of housing (hereinafter referred to as Decree No. 61/CP), which stipulates the sale of state-owned housing to tenants. During the implementation process, to adapt to the actual situation, on April 16, 1996, the Government issued Decree No. 21/CP on amending Article 5 and Article 7 of the Government Decree No. 61/CP dated July 5, 1994 on the purchase and sale of housing (hereinafter referred to as Decree No. 21/CP). Subsequently, the State has issued several supportive policies, creating favorable conditions for house buyers, especially those who have rendered meritorious service to the revolution, through the exemption or reduction of land use fees and the reduction of house prices when purchasing state-owned housing under Decree No. 61/CP.

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In practice, over nearly 12 years, the policy of selling state-owned housing to tenants has significantly improved living conditions for tens of thousands of households; however, the sales progress remains very slow, failing to meet the set requirements, averaging about 45% (Hanoi has sold 82,000 units, Ho Chi Minh City has sold 54,963 units, Hai Phong has sold 10,000 units, Da Nang has sold 3,530 units...). Localities with many state-owned houses have not completed the sale of housing within the deadline set by the Government Resolution No. 06/2004/NQ-CP dated May 19, 2004 on some measures to develop a healthy real estate market.

The reasons for the above situation are due to: the slow transfer of housing from self-managed agencies to local land management agencies; inadequate coordination among departments; complex administrative procedures in many places; slow issuance of certificates of ownership to buyers; some regulations on payment for housing when selling self-built fourth-tier housing are not suitable for reality.

To accelerate the progress of selling state-owned housing to tenants to address the concerns of homebuyers, create conditions for implementing the provisions of the Housing Law adopted by the National Assembly, and improve the management of state-owned housing funds, at the regular meeting of the Government in July 2006, the Government agreed on the following measures:

1. Agencies and units currently managing state-owned housing funds shall be responsible for transferring the entire housing fund to the People's Committee of the province or centrally-administered city (hereinafter referred to as the provincial People's Committee). The provincial People's Committee shall accept the housing fund in its current condition to implement management according to unified regulations on the management of state-owned housing for sale to tenants within their jurisdiction. The transfer must be completed before December 30, 2006.

2. For state-owned housing whose managing agency cannot be identified, the provincial People's Committee shall proceed with management without needing an agreement from the managing agency.

The Government requests that ministers, heads of ministerial-level agencies, and government-affiliated agencies strictly implement the transfer of self-managed housing for management by the provincial People's Committee. If heads of agencies or units fail to carry out the transfer, they will bear full responsibility before the Government for any losses caused by damage to the housing or mismanagement leading to waste or corruption.

3. Regarding the collection of land use fees and house payments when selling state-owned housing to tenants:

a) The land price when selling state-owned housing to tenants shall be implemented based on the price applied by the provincial People's Committee as of December 31, 2004. The collection of land use fees when selling state-owned housing shall be carried out according to the provisions of Decree No. 61/CP and Decree No. 21/CP;

For adjacent land areas expanded in conjunction with state-owned housing, if consistent with construction planning, the buyer must pay land use fees for the expanded area according to the provisions of Decree No. 61/CP;

b) For fourth-tier housing transferred from self-managed agencies but not yet subject to a lease contract and where the tenant has demolished and rebuilt the house, the remaining value of the house shall be considered zero;

c) The exemption and reduction of land use fees and house payments when selling state-owned housing according to Decree No. 61/CP shall be implemented according to the systems established before January 1, 2005.

4. From the date this Resolution takes effect, buyers applying the installment payment method over ten years shall pay the remaining amount annually in Vietnamese dong (without converting to gold) plus interest calculated at the non-fixed-term deposit rate for individuals at commercial banks at the time of payment. In cases where the Resolution takes effect and the buyer has not fully paid, the outstanding debt previously converted to gold shall now be paid in cash plus interest as stipulated above. No refund shall be made for cases that have completed house purchase payments before the effective date of this Resolution.

5. For those purchasing state-owned housing according to Decree No. 61/CP, a Certificate of House Ownership and Land Use Right shall be issued according to the model specified in Decree No. 60/CP dated July 5, 1994 of the Government (red book) until the Government Decree guiding the Housing Law comes into effect.

6. Assign the provincial People's Committee:

a) To direct relevant agencies of the locality to closely cooperate in receiving self-managed housing funds and resolving the sale of state-owned housing to tenants (including cases with contracts or without contracts but without disputes) on the principle of simplifying procedures and creating favorable conditions for homebuyers.

a) Direct relevant local agencies to closely coordinate in receiving self-managed housing funds, resolving the sale of state-owned housing to current tenants (including cases with contracts or without contracts but without disputes), with a spirit of simplifying procedures and facilitating homebuyers.

b) Transfer the entire amount from the sale of state-owned housing to tenants according to Decree No. 61/CP into the local Housing Development Fund as stipulated in the Law on Housing. Localities that previously used funds from the sale of state-owned housing for tenants not in accordance with Decree No. 61/CP must have plans to repay the Housing Development Fund to develop social housing.

c) Organize inspections and supervision of units directly assigned the task of selling state-owned housing; develop plans and mechanisms to encourage economic sectors to participate in investment in renovation and reconstruction of housing funds that cannot be sold or rented to tenants who do not purchase them, ensuring safety requirements, improving living quality, and contributing to urban beautification under strict management principles, ensuring the preservation of investment capital. For resettlement areas after renovation and reconstruction, rental prices and management shall be carried out in accordance with regulations applicable to social housing funds.

6. The Ministry of Construction is responsible for monitoring, urging, inspecting, and compiling reports to the Prime Minister on the implementation results of this Resolution; take the lead in researching and establishing rental prices for state-owned housing that has not been reconstructed as a basis for amending and supplementing Decision No. 118/TTg dated November 27, 1992 of the Prime Minister on rental prices for housing and incorporating housing costs into salaries, to be submitted to the Prime Minister in the second quarter of 2007.

7. 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 Resolution./.