Circular No. 31/2016/TT-BXD on the classification and recognition of apartment building grades

CIRCULAR

Regulations on classification and recognition of apartment building grades

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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;

Pursuant to the Housing Law issued on November 25, 2014;

Upon the proposal of the Director of the Department of Housing Management and Real Estate Market,

The Minister of Construction issues the Circular stipulating the classification and recognition of apartment building grades.

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

This Circular sets forth the regulations on classification, criteria for classification, application dossier for grade recognition, authority and procedures for recognizing the grades of commercial apartment buildings (including residential apartment buildings and mixed-use apartment buildings).

This Circular does not apply to apartment buildings constructed before 1994.

Article 2. Applicability

1. Project investors constructing apartment buildings; Apartment Building Management Board; owners and users of apartment buildings.

2. State management agencies related to the classification and recognition of apartment building grades.

3. Other organizations and individuals related thereto.

Article 3. Purpose and requirements for the classification and recognition of apartment building grades

1. Apartment buildings are classified into different grades to determine their value when managing or trading on the market.

2. Classification and grade recognition shall be carried out for each apartment building and must meet the following requirements:

a) There is a request from organizations or individuals specified in Article 4 of this Circular;

b) The apartment building is constructed in accordance with detailed construction planning approved by competent authorities; in compliance with the Construction Permit issued (in cases where a Construction Permit is required according to construction laws);

c) The apartment building must comply with national technical standards for apartment buildings and other relevant national technical standards;

d) The apartment building has completed investment construction in accordance with laws on housing, construction laws, and related laws, has been handed over for use, and does not violate any legal provisions at the time of submitting the application dossier for grade recognition;

đ) The apartment building must not be subject to demolition and must not be located in areas where land recovery decisions have been made by competent state authorities.

Chapter II

CLASSIFICATION AND RECOGNITION OF APARTMENT BUILDING GRADES

Article 4. Organizations and individuals requesting recognition of apartment building grades

1. For apartment buildings with multiple owners that are required to establish an Apartment Building Management Board under the Law on Housing, the following organization shall request recognition of apartment building grades:

a) In cases where the Apartment Building Management Board has not yet been established, the project investor shall request recognition of apartment building grades;

b) In cases where the Apartment Building Management Board has already been established, the Board shall request recognition of apartment building grades.

2. For apartment buildings with multiple owners but not required to establish an Apartment Building Management Board under the Law on Housing, there must be a unified written document from more than 50% of the total number of owners of those apartment buildings requesting recognition of apartment building grades.

3. For apartment buildings with a single owner (including cases with an Apartment Building Management Board), the owner shall request recognition of apartment building grades.

Article 5. Criteria for classifying apartment buildings

The classification of apartment buildings is based on the following four groups of criteria:

1. Group of criteria on planning and architecture.

2. Group of criteria on systems and technical equipment.

3. Group of criteria on services and social infrastructure.

4. Group of criteria on quality, management, and operation.

Article 6. Classification of apartment buildings

Apartment buildings are classified into three categories as follows:

1. Category A: Apartment buildings that fully meet the requirements for classification as prescribed in Clause 2, Article 3 of this Circular, and must achieve at least 18 out of 20 criteria as guided in Appendix No. 01 issued together with this Circular.

2. Category B: Apartment buildings that fully meet the requirements for classification as prescribed in Clause 2, Article 3 of this Circular, and must achieve at least 18 out of 20 criteria as guided in Appendix No. 02 issued together with this Circular.

3. Category C: Apartment buildings that fully meet the requirements for classification as prescribed in Clause 2, Article 3 of this Circular but do not meet the criteria to be recognized as Category A and Category B as prescribed in Clause 1 and Clause 2 of this Article.

Article 7. Documents for application to recognize the category of apartment buildings

1. Application form for recognition of the category of apartment buildings according to the model provided for reference as prescribed in Appendix No. 03 issued together with this Circular.

2. Certified copy of the Construction Permit for apartment buildings (for apartment buildings required to have a Construction Permit under construction laws).

3. Certified copy of the decision approving the detailed planning at a scale of 1/500 or the approval document for the overall layout of the area containing the apartment building (in cases where detailed planning at a scale of 1/500 is not required), accompanied by the approved overall layout plan of the apartment building by the competent authority.

4. Certified copy of the assessment document by the competent authority, accompanied by the basic design drawings of the apartment building as prescribed by construction laws.

5. Certified copy of the notification of the results of the final inspection of the apartment building project by the specialized construction management agency.

6. Self-declaration and evaluation of the apartment building category by the organization or individual applying for recognition of the apartment building category according to the model provided for reference as prescribed in Appendix No. 04 issued together with this Circular.

Article 8. Authority to recognize the category and procedures for recognizing the category of apartment buildings

1. The Department of Construction of the province or centrally governed city where the apartment building is located (hereinafter referred to as the Department of Construction) shall implement the recognition of the category of apartment buildings within its jurisdiction in accordance with this Circular.

2. Procedures and formalities for recognizing the category of apartment buildings are stipulated as follows:

a) Organizations or individuals applying for recognition of the category of apartment buildings submit one set of documents as prescribed in Article 7 of this Circular to the Department of Construction. The Department of Construction is responsible for receiving and checking the documents; if the documents are incomplete as prescribed in Article 7 of this Circular, the Department of Construction must issue a written notice requesting the submission of missing documents within three working days from the date of receipt of the documents.

b) Within fifteen days from the date of receiving complete documents as prescribed in Article 7 of this Circular, the Department of Construction organizes the examination and assessment of the documents and on-site inspection of the apartment building.

c) If the apartment building meets the requirements prescribed in Article 3 and the criteria prescribed in Article 6 of this Circular, the Department of Construction issues a decision recognizing the category of the apartment building according to the model prescribed in Appendix No. 05 issued together with this Circular.

If the apartment building does not meet the requirements and criteria as prescribed, the Department of Construction must issue a written response to the organization or individual applying for recognition of the category, clearly stating the reasons why the apartment building was not recognized in the requested category.

d) Within three working days from the date of issuance of the decision recognizing the category of the apartment building, the Department of Construction is responsible for publicly posting the information and decision on the Department's electronic portal and sending the decision to the organization or individual applying for recognition of the apartment building category for public disclosure to the owners and users of the apartment building.

3. The decision recognizing the category of apartment buildings prescribed in this Circular has a validity period of five years. When the decision recognizing the category of apartment buildings expires, the Department of Construction must remove the posted information and decision recognizing the category from the Department's electronic portal and issue a written notice to the owner, Management Board, and developer (if any) of the apartment building.

4. For apartment buildings that have been recognized in a category, during the inspection and supervision process, if the competent authority finds that the apartment building no longer meets the classification criteria at the time of recognition or engages in violations of housing laws, construction laws, and related laws, the Department of Construction will revoke the decision recognizing the category of the apartment building; remove the posted information and decision recognizing the category from the Department's electronic portal, and issue a written notice to the owner, Management Board, and developer (if any) of the apartment building.

5. The Department of Construction shall coordinate with the Department of Finance to report to the People's Committee of the province or centrally governed city (hereinafter referred to as the Provincial People's Committee) to establish the budget for inspecting, assessing documents, and recognizing the category of apartment buildings suitable for the actual situation of each locality.

Organizations or individuals applying for recognition of the category of apartment buildings are responsible for paying the fees as prescribed in this clause when submitting the application for recognition of the category of apartment buildings.

Article 9. Recognition of adjustment of classification level and re-recognition of classification level for apartment buildings

1. The recognition of adjustment of classification level or re-recognition of classification level for apartment buildings shall be carried out upon the request of organizations and individuals specified in Article 4 of this Circular.

2. In cases where the decision recognizing the classification level of apartment buildings has not yet expired according to regulations, and organizations and individuals specified in Article 4 of this Circular have a need to adjust the classification level of apartment buildings, they must submit one set of documents as prescribed in Clause 3 of this Article at the Department of Construction for examination, inspection, and recognition of adjustment of classification level of apartment buildings. The procedures and formalities for recognizing the adjustment of classification level of apartment buildings shall be implemented according to the provisions of Clause 2 of Article 8 of this Circular.

When delivering the decision recognizing the classification level of apartment buildings (after adjustment), the Department of Construction must retrieve the original decision recognizing the current classification level still within its validity period to file the documents and publish information and the decision on the Department of Construction's electronic portal.

3. Documents for requesting adjustment of classification level of apartment buildings include:

a) A request form for adjustment of classification level of apartment buildings according to the model provided for reference as stipulated in Appendix No. 03 issued together with this Circular;

b) A self-declaration and evaluation form for classification level of apartment buildings by organizations and individuals requesting adjustment of classification level of apartment buildings according to the model provided for reference as stipulated in Appendix No. 04 issued together with this Circular;

c) A certified copy of the decision recognizing the classification level of apartment buildings still within its validity period.

4. In cases where the decision recognizing the classification level of apartment buildings has expired according to regulations, and organizations and individuals specified in Article 4 of this Circular have a need to request re-recognition of classification level, they must submit one set of documents as prescribed in Article 7 of this Circular at the Department of Construction for examination, inspection, and re-recognition of classification level of apartment buildings. The procedures and formalities for re-recognition of classification level of apartment buildings shall be implemented according to the provisions of Clause 2 of Article 8 of this Circular.

5. Organizations and individuals requesting re-recognition or adjustment of classification level of apartment buildings as prescribed in Clauses 2 and 3 of this Article must pay the inspection and review fee for the documents as prescribed in Clause 5 of Article 8 of this Circular.

Chapter III

INSPECTION AND VIOLATION HANDLING

Article 10. Organization of inspection of classification level determination and recognition of classification level for apartment buildings

1. The Department of Housing Management and Real Estate Market shall organize inspections or take the lead and coordinate with relevant agencies and units under the Ministry of Construction and other related ministries and sectors to conduct regular or spot inspections of classification level determination and recognition of classification level for apartment buildings nationwide.

2. Departments of Construction of provinces and centrally-administered cities shall organize inspections or take the lead and coordinate with local functional agencies to conduct regular or spot inspections of classification level determination and recognition of classification level for apartment buildings in their respective areas.

Article 11. Violations

1. Recognizing new, re-recognizing, or recognizing adjustment of classification level for apartment buildings that do not meet the requirements and criteria stipulated in this Circular.

2. Tampering with documents, information, or materials for requesting recognition of new, re-recognizing, or recognizing adjustment of classification level for apartment buildings.

3. Announcing incorrect information that has been recognized or advertising, publishing information about the classification level of apartment buildings without being officially recognized by competent state authorities according to the provisions of this Circular.

Article 12. Handling of violations

1. In cases where there is any of the violations stipulated in Clauses 1 and 2 of Article 11 of this Circular, the Department of Construction shall revoke the recognition decision and publicly announce it; remove the published information and decision recognizing the classification level from the Department's electronic portal, and issue a notification to the owners, management boards, and developers (if any) of the apartment buildings.

2. Depending on the degree of violation, organizations and individuals committing violations stipulated in Article 11 of this Circular shall be subject to administrative penalties or criminal responsibility as prescribed by law; if damage is caused, compensation must be made according to the law.

Chapter IV

IMPLEMENTATION

Article 13. Responsibilities of the People's Committee of the province and the Construction Department

1. Provincial People's Committees shall be responsible for:

a) Direct the Construction Department to implement the recognition of new, re-recognition, or adjustment of the classification of apartment buildings within its jurisdiction in accordance with the provisions of this Circular;

b) Handle violations within its authority or propose competent authorities to handle violations according to the provisions of this Circular.

2. The Construction Department shall be responsible for:

a) Providing guidance and organizing the implementation of the recognition of new, re-recognition, and adjustment of the classification of apartment buildings in accordance with the provisions of this Circular;

b) Compiling the situation of classification and recognition of the classification of apartment buildings within its jurisdiction to report to the Ministry of Construction every six months or upon urgent request from the Ministry of Construction;

c) Performing other tasks as prescribed in this Circular and as directed by the People's Committee of the province.

Article 14. Responsibilities of the Real Estate Management Agency and Housing Market Administration

1. Provide guidance and urge the implementation of this Circular.

2. Take the lead or coordinate with the Construction Departments of provinces and centrally-run cities to organize regular or spot checks on the classification and recognition of the classification of apartment buildings nationwide.

3. Compile and report to the Minister of Construction the situation of classification and recognition of the classification of apartment buildings nationwide; study and propose to the Minister of Construction amendments and supplements to this Circular to suit actual conditions.

Article 15. Effective Date

1. This Circular takes effect from February 15, 2017.

2. Circular No. 14/2008/TT-BXD dated June 2, 2008, issued by the Minister of Construction guiding the classification of apartment buildings becomes invalid from the date this Circular takes effect.

3. During the implementation process, if difficulties or obstacles arise, they should be promptly reported to the Ministry of Construction for guidance or amendment and supplementation to suit the actual situation./.