Circular No. 36/2009/TT-BXD guiding the sale, lease, lease-purchase, and management of low-income housing in urban areas.

CIRCULAR

||| Guidelines for selling, renting, leasing to purchase, and managing the use of

||| low-income housing in urban areas

________________

WHEREAS, Decree No. 17/2008/NĐ-CP dated February 4, 2008 of the Government stipulates the functions, tasks, powers, and organizational structure of the Ministry of Construction;

||| Pursuant to Resolution No. 18/NQ-CP dated April 20, 2009 of the Government on certain mechanisms and policies to promote the development of housing for students and trainees at educational institutions, workers in concentrated industrial zones, and low-income individuals in urban areas;

||| Pursuant to Decision No. 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister on issuing certain mechanisms and policies for developing low-income housing in urban areas;

||| The Ministry of Construction hereby provides guidelines for selling, renting, leasing to purchase, and managing the use of low-income housing in urban areas as follows:

PART I

GENERAL PROVISIONS

Article 1. Scope of Regulation

||| This Circular regulates matters related to the sale, rental, lease to purchase of low-income housing in urban areas (hereinafter referred to collectively as low-income housing), including: eligible subjects, conditions for purchasing, renting, and leasing to purchase; model contracts for purchasing, renting, and leasing to purchase, and management of usage and operation of low-income housing funds in accordance with Decision No. 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister.

Article 2. Applicability

||| 1. Low-income individuals in urban areas eligible to purchase, rent, or lease to purchase housing under Decision No. 67/2009/QĐ-TTg dated April 24, 2009 of the Prime Minister.

||| 2. Organizations and individuals involved in the sale, rental, lease to purchase; management and use, and operation and exploitation of low-income housing.

Chapter II

||| ELIGIBLE SUBJECTS, CONDITIONS, MODEL CONTRACTS FOR PURCHASING, RENTING, LEASING TO PURCHASE AND MANAGEMENT OF USE AND OPERATION AND EXPLOITATION OF LOW-INCOME HOUSING FUNDS

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Article 3. Eligible Subjects for Purchasing, Renting, or Leasing to Purchase Low-Income Housing

||| 1. Households with at least one member or single individuals (single households) falling into the following categories:

||| a) Civil servants, public officials, and employees receiving salaries from the state budget in Party, State, and mass organizations; civil servants in public service units; officers and professional military personnel in the People's Armed Forces (including those who have retired according to regulations);

||| b) Workers in non-public service units, enterprises belonging to various economic sectors, cooperatives established and operating in accordance with the law (including those who have retired according to regulations); self-employed workers and individual traders with sufficient income to pay for purchasing, renting, or leasing to purchase housing as stipulated.

||| 2. Households and individuals whose houses or land were compulsorily expropriated by the State for land clearance work, old building renovation, and dilapidation repair projects and who received compensation in cash but not in housing or land according to the law.

Article 4. Conditions for Purchasing, Renting, or Leasing to Purchase Low-Income Housing

||| Eligible subjects for purchasing, renting, or leasing to purchase low-income housing must meet all of the following conditions:

||| 1. Not having housing or having housing owned by themselves but with insufficient space, specifically:

||| a) Individuals without housing owned by themselves and living with others, renting, or borrowing housing from others; individuals with housing that has been expropriated by the State for land clearance work according to the decision of the competent authority, and who have received compensation in cash but not in housing or land.

||| b) Individuals with housing owned by themselves but with insufficient space, who have been issued a certificate of ownership of housing by the competent state authority or have housing meeting the conditions to be issued a certificate of ownership of housing according to the laws on housing and land. Specifically:

||| - Having housing in apartment buildings, but the average housing area per household member is less than 5 square meters;

||| - Having separate housing, but the average housing area per household member is less than 5 square meters and the land area of the housing is lower than the minimum standard allowed for renovation and construction according to the regulations of the provincial People's Committee.

||| 2. Not having received any form of housing support from the State, specifically:

||| a) Not having been allocated residential land according to the laws on land;

||| b) Not having rented or purchased state-owned housing according to the laws on housing;

||| c) Not having rented or leased to purchase social housing;

||| d) Not having received charitable housing gifts;

||| đ) Not having been compensated with housing or land according to the laws on compensation, assistance, and resettlement when the State expropriates land, renovates old buildings that are damaged or deteriorated (for households and individuals specified in Clause 2, Article 3 of this Circular);

||| e) Not having received housing improvement support through other forms according to the laws.

||| 3. For those who wish to purchase or lease to purchase low-income housing, they must have permanent residence registration or long-term temporary residence registration in the province or centrally-administered city where the project is located. In cases involving members of the People's Armed Forces, if they do not have permanent residence registration or long-term temporary residence registration, they must provide confirmation from their current workplace regarding their position, length of service, and housing status.

||| 4. Monthly income (averaged per person) below the average level set by the provincial People's Committee (excluding compensation money for those specified in Clause 2, Article 3 of this Circular).

Article 5. Principles for Selecting Eligible Recipients for Low-Income Housing Purchase, Rental, or Lease-Purchase

1. The selection of eligible recipients for low-income housing purchase, rental, or lease-purchase shall be conducted through a scoring method, with those having a higher total score being prioritized for resolution first (with a maximum score of 100 points).

2. The scoring table shall be determined based on the following specific criteria:

3. Based on the scoring principles and the scoring table stipulated in Clauses 1 and 2 of this Article, the Provincial People's Committee shall specify the criteria for selecting eligible recipients for low-income housing purchase, rental, or lease-purchase within its jurisdiction, in accordance with the local characteristics, to guide developers in implementing the sale, rental, or lease-purchase of low-income housing to the correct eligible recipients as prescribed.

4. Developers of low-income housing projects shall base their implementation of publicizing the principles, order, and eligible recipients for low-income housing purchase, rental, or lease-purchase for projects they manage on the specific regulations issued by the Provincial People's Committee regarding the selection of eligible recipients.

Article 6. Procedures for Implementing Low-Income Housing Purchase, Rental, or Lease-Purchase

1. After the commencement of the project, the developer of the low-income housing project shall be responsible for providing information related to the project (Project name; project developer; contact address, application submission address; construction site; project progress; project scale; number of units, including: number of units for sale, number of units for rent, number of units for lease-purchase; start and end dates for accepting applications and other relevant contents) to publicly announce at the headquarters of the Construction Department, the Construction Department’s website where the project is located; publish at least once in the local government’s official newspaper and announce at the real estate trading floor of the developer (if any) so that the public can know, register, and supervise.

2. The developer of the low-income housing project shall be responsible for reporting in writing the total number of units intended for sale, rent, or lease-purchase and the start date for these activities to the Construction Department for knowledge and inspection (post-inspection).

3. Based on the information about low-income housing projects in the jurisdiction that have been publicly announced according to Clause 1 of this Article, households or individuals who wish to register for low-income housing purchase, rental, or lease-purchase shall submit the Application Registration Form to the project developer. The form includes:

a) An Application for Low-Income Housing Purchase, Rental, or Lease-Purchase according to Model 01 attached hereto;

b) A Certificate of Household Registration and Current Housing Status according to Model 01a issued by the Ward People's Committee (issued only once). For individuals without household registration who belong to the armed forces, the confirmation process shall follow the provisions of Clause 3, Article 4 of this Circular;

c) A Certificate of Eligibility and Income Level according to Model 01b issued by the agency or unit where each member of the household works (issued only once); for self-employed workers or individual traders, the Ward People's Committee shall confirm eligibility and occupation without confirming income level;

d) For cases stipulated in Clause 2, Article 3 of this Circular, in addition to the Certificates required under points b and c of Clause 3 of this Article, it is necessary to supplement a copy of the Decision on the Recovery of Housing and Land of the Household or Individual issued by the competent authority, accompanied by a certificate from the District or County People's Committee confirming that compensation for housing and land has not yet been resolved;

e) For applicants registered under the Ministry of National Defense, an additional copy of the Certificate according to Model 01b issued by the agency or unit where they work shall be sent to the Provincial Military Command or the Central City Military Command in the locality where the project is located for consolidation.

4. After collecting all the Application Registration Forms of interested parties, the developer of the low-income housing project shall be responsible for reviewing each Application Registration Form, comparing them with the regulations on eligible recipients, conditions, and priority order stipulated in Articles 3, 4, and 5 of this Circular to establish a list of eligible recipients for low-income housing purchase, rental, or lease-purchase for projects managed by themselves.

If an applicant who wishes to register for low-income housing purchase, rental, or lease-purchase has submitted a valid Application Registration Form according to Clause 3 of this Article to the developer, but there is no remaining housing fund in the project to resolve, the developer of the project shall be responsible for clearly stating the reason and returning the Application Registration Form (including the Certificate of Eligibility and Conditions for Low-Income Housing Purchase, Rental, or Lease-Purchase that the applicant has submitted) so that the applicant knows and submits the Application Registration Form at another project.

When an applicant submits an Application Registration Form, the recipient must issue a receipt. If the Application Registration Form is not valid (does not comply with the provisions of Clause 3 of this Article), the recipient must clearly state the reason for non-resolution and return it to the applicant for supplementation and completion within a maximum period of 15 working days from the date of returning the Application Registration Form.

5. The investor of the low-income housing project shall be responsible for submitting a list of the intended beneficiaries to purchase, lease, or lease-purchase low-income housing, prioritized according to scores assigned based on the principles set forth in Article 5 of this Circular, to the Construction Department where the project is located for verification to prevent low-income individuals from receiving multiple support benefits. In cases where individuals listed by the investor have already received state support for housing or land under the forms prescribed in Clause 2, Article 4 of this Circular, or have purchased, leased, or lease-purchased low-income housing at another project, the Construction Department shall notify the investor in writing to remove such individuals from the list. After fifteen (15) working days from receipt of the list, if the Construction Department does not provide feedback, the investor shall notify the intended beneficiaries in the project to agree and sign the contract.

6. Each household or individual seeking to purchase, lease, or lease-purchase low-income housing may only submit an application form at one project. If the project has no remaining housing units available for sale, lease, or lease-purchase, the investor must clearly state the reasons and return the application to allow the applicant to submit it at another project. Payment for low-income housing shall be directly made between the buyer, lessee, or lease-purchaser and the investor, or through a bank agreed upon by both parties.

7. Following the signing of the Contract for the sale, lease, or lease-purchase of low-income housing (as stipulated in Article 7 of this Circular), the project investor shall prepare a complete list of the beneficiaries (including all members of the households) who have purchased, leased, or lease-purchased low-income housing (with signed contracts) and send it to the Construction Department where the project is located for public announcement within thirty (30) working days from receipt of the list, and retain it for management and inspection purposes. Simultaneously, the investor shall publicly announce this list at their office premises and at the real estate trading floor or on the website dedicated to low-income housing (if available).

Article 7. Contracts for the Purchase, Lease, or Lease-Purchase of Low-Income Housing

1. The purchase, lease, or lease-purchase of low-income housing must be formalized in a Contract according to the model specified in Appendices 2, 3, and 4 of this Circular.

The maximum term of the low-income housing lease contract is three years (36 months). Prior to the expiration of the contract, the tenant must complete the procedures to confirm continued eligibility (as provided in Article 4 of this Circular) to continue leasing low-income housing for the aforementioned period.

2. The selling price, rental fee, or lease-purchase price of low-income housing recorded in the Contract shall be proposed by the project investor based on ensuring the principles set forth in Clauses 2, 3, and 4 of Article 4 of Decision No. 67/2009/QĐ-TTg dated April 24, 2009, issued by the Prime Minister, and must be reviewed and approved by the People's Committee of the province (the method for determining the selling price, rental fee, or lease-purchase price of low-income housing is implemented according to Circular No. 15/2009/TT-BXD dated June 30, 2009, issued by the Ministry of Construction).

3. The payment methods for purchasing, leasing, or lease-purchasing low-income housing shall be agreed upon by the project investor and the buyer, lessee, or lease-purchaser in the Contract according to the following principles:

a) For low-income housing intended for sale, payment can be made in full or in installments. If the investor agrees to collect advance payments from customers, the construction project must have a design that has been approved and the foundation must be completed. In the case of installment payments, the buyer must pay the first installment not exceeding twenty percent (20%) of the housing price (unless otherwise agreed with the investor).

b) For low-income housing intended for lease, the tenant shall pay the monthly rent as agreed in the Contract.

c) For low-income housing intended for lease-purchase, the lease-purchaser shall pay the initial installment not exceeding twenty percent (20%) of the housing price (unless otherwise agreed with the investor). The time for paying the remaining balance (excluding the initial payment) shall be agreed upon by the investor and the lease-purchaser, but shall be no less than ten years. The payment method shall also be agreed upon by the investor and the lease-purchaser (which could be monthly, quarterly, or periodically).

Article 8. Rights and responsibilities of the project investor for low-income housing

1. The project investor has the right to:

a) Enter into contracts for the sale, lease, or lease-purchase of housing that comply with the specified target groups; collect money from the sale, lease, or lease-purchase of housing according to signed contracts; terminate contracts for the sale, lease, or lease-purchase of housing in cases of violation of agreed provisions in the contract or when the lessee is no longer a member of the low-income group;

b) Directly provide housing services within the project or enter into agreements with organizations or individuals to provide such services;

c) Exploit and operate other services as stipulated in Clause 6, Article 12 of this Circular to generate revenue to offset management and operation costs and maintenance of housing;

d) Enjoy other rights of the project investor as prescribed by law.

2. The project investor has the responsibility to:

a) Fulfill tasks prescribed in Clause 5 and Clause 7, Article 6; point a, Clause 1 and point b, Clause 2, Article 11; Clause 1 and Clause 6, Article 12; not to transfer the project arbitrarily or change the purpose of low-income housing without permission as stipulated in Clause 1, Article 15 of this Circular;

b) Manage and operate housing or select enterprises with the appropriate functions and expertise to manage and operate low-income housing;

c) Process procedures with relevant state agencies concerning the issuance of certificates of land use rights, ownership of housing, and other assets attached to the land for the buyer of housing (except where the parties have agreed otherwise);

d) Develop and promulgate (or authorize the managing and operating unit to develop and promulgate) the Rules on the use of low-income housing, publicly announce them so that buyers, lessees, lease-purchasers, and related organizations and individuals are aware and can comply. These rules must include the following main contents: Responsibilities of related organizations in the management and use of low-income housing; rights and obligations of owners or lawful users; prohibited acts in the management and use of low-income housing; funds to be contributed for management and operation, maintenance of low-income housing, and other reasonable expenses; determine the list, location, area, and scale of individual ownership parts within low-income housing, common ownership and use parts inside and outside low-income housing. These rules are attached and form an inseparable part of the sales, lease, and lease-purchase contracts for low-income housing;

đ) Develop plans and organize the implementation (or authorize the managing and operating unit to implement) maintenance of low-income housing; coordinate with health authorities, fire prevention and firefighting authorities, local governments, and community police to carry out work on disease prevention, fire prevention, firefighting, and ensuring social security in low-income housing areas;

e) Fulfill other tasks related to the responsibilities and powers of the project investor as prescribed by laws on housing and construction laws.

Article 9. Rights of buyers, lessees, and lease-purchasers of low-income housing

1. For buyers (owners) of low-income housing

a) Accept delivery of housing along with floor plans and housing files and use the purchased housing according to the signed contract with the project investor;

b) Request the project investor to process procedures with competent authorities to obtain certificates of ownership of housing and land use rights according to the law after paying off the full purchase price; request the project investor to facilitate and provide relevant documents to enable the competent authority to issue certificates of ownership of housing and land use rights (in cases where the buyer processes the procedures themselves to obtain the certificates);

c) Request the project investor (or the managing and operating unit) to repair defects in the housing during the warranty period if they were not caused by the buyer;

d) Enjoy other rights of housing owners as prescribed by laws on housing and civil laws after obtaining certificates of ownership of housing and land use rights.

2. For lessees of low-income housing

a) Accept delivery and use the house and accompanying equipment according to the signed lease contract with the project investor;

b) Request the project investor (or the managing and operating unit) to promptly repair defects in the leased housing if they were not caused by the lessee; request extension or renewal of the lease contract if they still belong to the eligible group and meet the conditions for leasing low-income housing;

c) Enjoy other rights of housing lessees as prescribed by laws on housing and civil laws.

3. For lease-purchasers of low-income housing

a) Accept delivery and use the house and accompanying equipment according to the signed lease contract with the project investor;

b) When the lease-purchase payment has not been fully settled, the lease-purchaser of low-income housing has the right to request the project investor (or the managing and operating unit) to promptly repair defects without having to pay for repairs (if the defects were not caused by the lease-purchaser); in cases where the lease-purchase payment has been fully settled, the lease-purchaser must pay for repairs of their individual ownership parts;

c) Upon full settlement of the lease-purchase payment, the lease-purchaser has the right to request the project investor to act on their behalf to process procedures with competent authorities to obtain certificates of ownership of housing and land use rights according to the law; request the project investor to facilitate and provide relevant documents to enable the competent authority to issue certificates of ownership of housing and land use rights (in cases where the lease-purchaser processes the procedures themselves to obtain the certificates); receive floor plans and housing files from the project investor and enjoy other rights of housing owners as prescribed by laws on housing and civil laws after obtaining certificates of ownership of housing.

Article 10. Obligations of the buyer, lessee, or purchaser on installment of low-income housing

1. For buyers (owners) of low-income housing

a) Fulfill all commitments stipulated in the Housing Purchase Contract; comply with all regulations in the Low-Income Housing Usage Internal Regulations and other obligations of the housing buyer as prescribed by laws on housing and civil laws;

b) Shall not lease, sublease, mortgage, or sell (transfer) the housing before fully repaying the purchase price (in cases of deferred or gradual payment);

c) Only permitted to conduct transactions involving low-income housing (sale, lease, lease-purchase) after fully repaying the developer and obtaining the certificate of ownership of the housing, but must ensure a minimum period of 10 years from the date of signing the housing purchase contract. Transactions concerning low-income housing (after 10 years from the date of signing the housing purchase contract) as provided for in this Clause shall be carried out in accordance with guidelines issued by the Ministry of Construction;

d) In case the full purchase price has been paid, but less than 10 years have passed since the date of signing the Housing Purchase Contract, the buyer of low-income housing may only sell the housing (if necessary) to the local Housing Management Authority, the project developer, or another eligible low-income housing buyer (at a sale price not exceeding the current market price of similar low-income housing at the time of sale);

2. For lessees of low-income housing

a) Fulfill all commitments stipulated in the Housing Lease Contract;

b) Use the housing for its intended purpose; maintain the housing and be responsible for self-repairing or paying for repairs of damages caused by themselves; pay the rent according to the due date specified in the Contract; settle all usage costs such as electricity, water, and other services outside those included in the rental price (if applicable), in full and on time;

c) Return the housing to the project developer when the Housing Lease Contract expires as prescribed;

d) Comply with all regulations in the Low-Income Housing Usage Internal Regulations and other obligations of the housing lessee as prescribed by laws on housing and civil laws;

3. For lease-purchasers of low-income housing

a) Fulfill all commitments stipulated in the Housing Lease-Purchase Contract; comply with all regulations in the Low-Income Housing Usage Internal Regulations and other obligations of the housing lease-purchaser as prescribed by laws on housing and civil laws;

b) Use the housing for its intended purpose; maintain the housing and be responsible for self-repairing or paying for repairs of damages caused by themselves; pay the lease-purchase price according to the due date specified in the Contract; settle all usage costs such as electricity, water, and other services outside those included in the lease-purchase price (if applicable), in full and on time; shall not lease, sublease, mortgage, or transfer the housing under any form before fully repaying the lease-purchase price and ensuring a minimum period of 10 years from the date of signing the Contract;

c) When fully repaying the lease-purchase price, but less than 10 years have passed since the date of signing the Housing Lease-Purchase Contract with the developer, the lease-purchaser of low-income housing may only sell the housing (if necessary) to the local Housing Management Authority, the project developer, or another eligible low-income housing buyer (at a sale price not exceeding the current market price of similar low-income housing at the time of sale). Transactions concerning low-income housing lease-purchase after the lease-purchaser obtains the certificate of ownership of the housing shall be carried out in accordance with guidelines issued by the Ministry of Construction.

Article 11. Management and operation organizations for low-income housing

1. Management and operation units for low-income housing

a) After completing the investment and construction phase of low-income housing, the Project Investor shall be responsible for establishing a subordinate unit or hiring or entrusting a capable enterprise with expertise in managing and operating apartment buildings to carry out the management and operation of low-income housing;

b) The service activities related to the management and operation of low-income housing shall enjoy benefits as prescribed by law for public utility services.

2. Management Board for low-income housing

a) The Management Board for low-income housing shall be elected by the Owners' Meeting of low-income housing owners and users (including: buyers, renters, or rent-to-own purchasers). The Owners' Meeting of low-income housing owners and users may be organized for one house or a cluster of houses (hereinafter referred to collectively as low-income housing area) and held once a year; in case of necessity, it can be convened irregularly when more than 50% of the total number of owners and users submit a written request or when requested by the Management Board of the low-income housing area, simultaneously with a written request from more than 30% of the owners and users of that area;

b) Within twelve months from the date the low-income housing area is handed over for use and when more than 50% of the apartments have owners or users residing there, the Investor shall be responsible for organizing the first Owners' Meeting of low-income housing owners and users;

c) The Management Board of the low-income housing area shall consist of five to seven members, depending on the specific conditions of that area. The composition of the Management Board includes representatives of owners and users and one representative of the management and operation unit of low-income housing. The structure of the Management Board includes one Chairperson and one or two Deputy Chairpersons.

3. Rights and responsibilities of the management and operation units, Management Boards of low-income housing areas are stipulated in Article 13 of this Circular.

4. Warranty for low-income housing

The warranty for low-income housing shall be carried out according to the commitment in the contract between the investor and the construction unit, equipment supply unit, and guaranteed in accordance with Article 74 of the Housing Law.

5. Establishment and storage of records

a) The Investor of low-income housing shall be responsible for establishing and storing housing records in accordance with Clause 3, Article 66 of the Housing Law and guidance documents issued by competent state agencies; providing copies of completion records to the management and operation unit of low-income housing;

b) The management and operation unit shall be responsible for storing copies of completion drawings and related records concerning the management and operation, warranty, and maintenance of low-income housing;

c) Housing management agencies at all levels of centrally governed cities and provinces shall be responsible for managing low-income housing records in accordance with laws on housing;

d) Management agencies shall be responsible for establishing and storing records about individuals who have purchased, rented, or rent-to-own low-income housing in their jurisdiction, including: lists (including household members); apartment sizes, addresses of purchased, rented, or rent-to-own apartments, and information about income and housing conditions of these individuals for monitoring and management;

đ) The agency managing low-income housing records shall be responsible for providing information about housing records when organizations or individuals make requests.

Article 12. Content and Operating and Management Costs for Low-Income Housing

1. The work of operating and managing low-income housing includes: managing, operating, and maintaining the activities of the system of equipment (including elevators, water pumps, backup generators, technical infrastructure systems, and other equipment) that belong to the common ownership or common use of low-income housing; providing services (security, cleaning, waste collection, garden and ornamental plant care, pest control, and other services) to ensure that the low-income housing area operates normally.

2. The operating and management costs for low-income housing in cases of leasing and lease-purchase shall be determined according to the principles stipulated in Clause 2, Article 3 of Circular No. 15/2009/TT-BXD dated June 30, 2009 issued by the Ministry of Construction.

The operating and management costs for cases of buying and selling low-income housing shall be agreed upon in the purchase contract according to the principles stipulated in Clause 4, Article 4 of Circular No. 15/2009/TT-BXD dated June 30, 2009 issued by the Ministry of Construction.

The project investor is responsible for determining the operating and management costs for low-income housing and clearly stating them in the purchase, lease, and lease-purchase contracts, but they must not exceed 85% of the operating and management costs set by the provincial People's Committee for commercial apartment buildings of Class 4.

3. The contribution amount for operating and management costs shall be calculated monthly, allocated based on the area of individual ownership or use, and paid once a month.

In cases of leasing and lease-purchasing low-income housing, the operating and management costs may be paid together with the monthly rent or lease-purchase payments, or separately. If the operating and management costs are included in the monthly rent or lease-purchase payments, the project investor is responsible for deducting the portion of the operating and management costs from the rent or lease-purchase payments and transferring it to the management and operation unit.

4. Service costs related to fuel, energy, water usage, and other service costs that have separate contracts with each owner or user shall be directly paid by the users to the service providers. For service costs without separate contracts, the users shall pay according to the volume consumed, including additional losses.

5. Bicycle and motorcycle parking fees shall be implemented according to the regulations of the provincial People's Committee applicable throughout the administrative region.

6. During the development project planning process for low-income housing, the project investor may calculate and allocate an appropriate area (after meeting the required common-use area within the project according to current construction standards and regulations) for the management and operation unit to conduct business operations, generating revenue to offset the operating and management costs, ensuring that buyers, renters, and lease-purchasers only contribute to the operating and management costs of low-income housing in accordance with Clause 2 of this Article.

Article 13. Content and Maintenance Costs for Low-Income Housing

1. Maintenance of low-income housing includes minor repairs, medium repairs, major repairs, and emergency repairs to maintain the quality of the housing. Maintenance shall be carried out in accordance with current laws regarding maintenance of construction projects.

2. Maintenance of the common ownership parts, technical infrastructure systems, commonly used equipment, and rental apartments shall be performed by the project investor or the low-income housing management and operation enterprise or organizations with legal status and construction capabilities, and must comply with the instructions of the designers, manufacturers, procedures, and norms issued by competent state agencies.

3. Maintenance of the private ownership parts in low-income housing intended for sale shall be self-maintained by the low-income housing buyers.

4. The level of contributions for maintenance of the common ownership or use parts in the low-income housing area shall be implemented as follows:

a) For low-income housing intended for sale, it shall be implemented according to the provisions of Clause 2, Article 4 of Circular No. 15/2009/TT-BXD dated June 30, 2009 issued by the Ministry of Construction;

b) For low-income housing intended for leasing and lease-purchasing, the maintenance costs of the facilities shall be determined and calculated by the project investor in the rental or lease-purchase price of the low-income housing according to the calculation formula specified in Articles 6 and 8 of Circular No. 15/2009/TT-BXD dated June 30, 2009 issued by the Ministry of Construction.

Within thirty days from the date the low-income housing area is put into use, the management and operation unit is responsible for opening a deposit account at a commercial bank with an interest rate no less than the interest rate for non-term savings deposits to deposit the maintenance fund contributions as prescribed (in cases where authorized by the project investor). Any interest generated during each deposit period at the bank must be added to the maintenance fund for low-income housing.

In cases of leasing and lease-purchasing low-income housing, the maintenance fund may be paid together with the monthly rent or lease-purchase payments, or separately. If the maintenance fund is included in the monthly rent or lease-purchase payments, the project investor is responsible for deducting the portion of the maintenance fund from the rent or lease-purchase payments and submitting it to the management and operation unit.

6. Maintenance of low-income housing must be carried out through a contract. The acceptance, payment, settlement, and termination of the maintenance contract shall be conducted according to the laws on construction and civil law.

7. The management and operation unit must establish a record of income and expenditure for the maintenance fund and cooperate to implement the verification of settlement and management of income and expenditure according to financial laws; publicly disclose all income and expenditure items for the maintenance fund for low-income housing at the annual low-income housing meeting.

Article 14. Rights and responsibilities of the management and operation unit, Management Board of low-income housing area

1. Rights and responsibilities of the management and operation unit:

a) Implement the provision of management and operation services for housing according to signed contracts or entrusted by the project owner, ensuring safety and compliance with standards set by competent authorities;

b) Enter into sub-contracts with other businesses to provide services (if applicable); supervise the provision of management and operation services for apartment buildings by these businesses to ensure compliance with signed contracts;

c) Notify in writing about requirements and necessary precautions for owners and users when starting to use low-income housing; guide owners and users on installing personal equipment into the common-use system within the low-income housing area; establish and issue the Low-Income Housing Usage Regulations (if authorized by the project owner), publicly announce them so that owners, users, and related organizations and individuals are aware and can comply;

d) Regularly inspect the quality of low-income housing according to the prescribed deadlines under construction laws to manage operations, repairs, and maintenance as required;

đ) Promptly prevent risks causing damage to owners and users of low-income housing and be responsible for repairing any damages to common property or shared facilities within the low-income housing area, ensuring normal operation of the housing area;

e) Collect service management fees for low-income housing according to Article 12 of this Circular;

g) Exploit and operate other services according to the law to generate revenue to offset management and maintenance costs of low-income housing as stipulated in Clause 6, Article 12 of this Circular;

h) Collect maintenance fees, manage maintenance funds, and carry out maintenance work for common property of low-income housing as specified in Article 13 of this Circular;

i) Publicly report every six months on the management and operation of low-income housing to the Management Board and cooperate with the Management Board to gather opinions from owners and users regarding the provision of management and operation services;

k) Coordinate with the Management Board and neighborhood associations in maintaining security, order, and other related issues during the management and operation of low-income housing;

2. Rights and responsibilities of the Management Board of low-income housing area:

a) Protect the legitimate rights of owners and users of low-income housing according to the law; inspect and urge owners and users to comply with the Low-Income Housing Management and Usage Regulations and relevant laws on managing and using low-income housing; create conditions for the management and operation company to fulfill its tasks according to signed contracts;

b) Gather and compile opinions and suggestions from owners and users regarding issues related to the management, usage, and provision of low-income housing services to reflect to the management and operation company, relevant authorities, and related organizations and individuals for consideration and resolution;

c) Coordinate with local authorities and neighborhood associations in building civilized living habits and maintaining social order and safety in the managed apartment buildings;

d) Every six months, the Management Board collects opinions from owners and users of low-income housing to evaluate the quality of management and operation services provided by the management and operation unit;

đ) Recommend to the project owner to replace the management and operation unit if the service quality does not meet the requirements.

Article 15. Prohibited Acts in the Management and Use of Low-Income Housing

1. Changing the purpose of use of housing without authorization.

2. Expanding, occupying space, or damaging common property or shared-use property in any form; demolishing, altering, dismantling, or changing the load-bearing structure, technical infrastructure system, shared-use facilities, or exterior architecture of the housing.

3. Dividing or converting common ownership or shared-use property contrary to regulations.

4. Creating excessive noise beyond prescribed limits; affecting order and security within low-income housing areas.

5. Randomly disposing of waste, wastewater, exhaust gases, toxic substances; causing seepage, leakage, environmental pollution; raising livestock or poultry in areas of common ownership or shared-use within low-income housing areas.

6. Advertising, writing, or drawing in violation of regulations or engaging in other acts not permitted by law; using materials or colors on the exterior of low-income housing units contrary to regulations; altering the structure or design of private ownership or private-use portions (constructing partition walls on floor surfaces, moving equipment and technical systems attached to common ownership, expanding the area of housing in any form).

7. Using or allowing others to use private ownership or private-use portions of low-income housing contrary to prescribed purposes.

8. Raising livestock or poultry in areas of private ownership or private-use portions that affect the order, aesthetics, and living environment of other households and public areas within low-income housing areas (if keeping ornamental animals, must comply with legal regulations).

9. Misusing management operation funds and maintenance funds for low-income housing.

10. Other prohibited acts as stipulated by law.

Chapter III

SETTLEMENT OF DISPUTES AND HANDLING OF VIOLATIONS

Article 16. Resolution of Disputes

1. Disputes related to ownership rights of low-income housing shall be resolved by the Court.

2. Disputes concerning the right to use low-income housing shall be resolved through mediation, but must ensure the provisions of this Circular. If mediation fails, the dispute shall be resolved by the Court.

3. Disputes regarding contracts for purchasing, renting, or leasing low-income housing during implementation according to this Circular shall be handled in accordance with laws on housing and civil laws.

Article 17. Handling Violations

1. Administrative violations as provided for in this Circular shall be dealt with in accordance with laws on administrative penalties, construction laws, and housing laws.

2. Organizations and individuals who engage in fraudulent activities regarding eligibility criteria and conditions for purchasing, renting, or leasing low-income housing, in addition to being subject to administrative penalties under laws on administrative penalties in housing management and development, shall also be compelled to return the purchased, rented, or leased housing.

3. Individuals who abuse their positions or powers to violate regulations concerning confirmation of eligible recipients, as well as sales, rentals, leases, and management of low-income housing, depending on the severity of the violation, shall be subject to administrative penalties or criminal prosecution. Those who cause material damage due to violations must compensate for such losses.

4. Developers of low-income housing projects that fail to sell, rent, or lease low-income housing in accordance with this Circular, in addition to being subject to administrative penalties under laws on administrative penalties in housing management and development, shall also be compelled to refund subsidized expenses; have their projects revoked; and be barred from undertaking real estate business projects for two years from the date of project revocation or business registration revocation.

Chapter IV

IMPLEMENTATION

Article 18. Implementation Organization

Article 17. Responsibilities of Provincial People's Committees and Municipal People's Committees Directly Under the Central Government

a) Organizing and directing investigations, surveys, compiling needs, developing annual and five-year (2009-2015) investment plans for low-income housing construction within their jurisdiction;

b) Specifying and publicly announcing standards, eligible recipients, and conditions for purchasing, renting, or leasing low-income housing within their jurisdiction; organizing strict management and monitoring of sales, rentals, and leases by developers to minimize profit-seeking behavior;

c) Issuing specific regulations within their authority regarding procedures and formalities for reviewing applications, priority order for eligible recipients seeking to purchase, rent, or lease low-income housing, as well as specific regulations on management, use, exploitation, and operation of low-income housing within their jurisdiction; appraising and approving prices for sale, rental, and lease of low-income housing based on proposals from project developers;

d) Organizing inspections, supervision, and handling of violations related to the selection of eligible recipients as well as sales, rentals, and leases of low-income housing, and strictly dealing with violations within their authority;

e) Organizing regular six-month and annual meetings to review and evaluate the results of managing, exploiting, and operating low-income housing funds, reporting to the Ministry of Construction for consolidation, and reporting to the Prime Minister;

Article 18. Responsibilities of Construction Departments of Provinces and Municipalities Directly Under the Central Government

a) Organizing inspections and compiling periodic reports on the management, use, exploitation, and operation of low-income housing projects within their jurisdiction;

b) Urging and inspecting the implementation of sales, rentals, and leases of low-income housing; maintenance work for low-income housing; service provision activities for families and individuals residing in low-income housing projects, and recommending measures to the provincial people's committees to handle violations;

c) Monitoring and compiling information on sales, rentals, and leases; management, use, exploitation, and operation of low-income housing within their jurisdiction; reporting to the provincial people's committees and the Ministry of Construction periodically or urgently (when required).

3. The Department of Housing and Real Estate Market Management shall be responsible for assisting the Minister of Construction in guiding, urging, inspecting the situation of buying, selling, renting, lease-purchase; managing the use, exploitation, operation of low-income housing in all localities nationwide, and the implementation of this Circular. It shall compile and report on the implementation of this Circular periodically, and propose amendments and supplements to be submitted to the Minister of Construction for consideration and issuance within his authority, or reported to the Prime Minister for consideration and decision.

Article 19. Implementation Provisions

1. This Circular takes effect from January 1, 2010.

2. In the course of implementation, if there are difficulties, please send comments to the Ministry of Construction for amendment and supplementation within its authority, or submit to the Prime Minister for consideration and decision./.