Circular No. 383/BXD-ĐT guiding the implementation of the Decision of the Council of Ministers on the settlement of certain housing issues.

CIRCULAR

OF THE MINISTER OF CONSTRUCTION NUMBER 383/TT-BXD-ĐT DATED OCTOBER 5, 1991 GUIDING THE IMPLEMENTATION OF THE DECISION OF THE CHAIRMAN OF THE STATE COUNCIL ON SETTLING SOME ISSUES REGARDING HOUSING

On October 2, 1991, the State Council issued Decision No. 297/CT on settling some issues regarding housing.

The Ministry of Construction guides specifically as follows:

I. POLICY FOR REFORMED HOUSING

1. After the liberation of the North and the reunification of the country, the State promulgated policies for reforming real estate in cities and towns. With the results achieved after implementing these policies, we have managed all houses within the scope of reform and arranged them for agency offices or for housing for officials, workers, and laborers.

Most of the housing under State management have completed declaration procedures, handover, and the State has issued management decisions.

However, due to many objective reasons, there were also cases where when State agencies carried out management and use of housing, they did not complete transfer procedures, did not issue management decisions, and in some cases, handled incorrectly compared to the policies at that time.

To stabilize the status of housing after reform, to bring management work into order, Article 1 of the decision clearly states: "Housing currently under State management and use according to housing reform policies (Decree No. 19-CP dated June 29, 1960, Decree No. 24-CP dated February 13, 1961 of the Council of Ministers and guiding documents issued by the ministries applicable to northern provinces, Decision No. 111-CP dated April 14, 1977, Decision No. 305-CP dated November 17, 1977 of the Council of Ministers and guiding documents issued by the ministries applicable to southern provinces) includes all housing that has or has not been decided on management by the competent People's Committee but has been arranged for use, which belongs to State ownership."

The scope of housing mentioned in this article includes: "All types of rented, borrowed, temporary accommodation, donated, and houses of organizations and individuals belonging to the administrative apparatus of the puppet army, puppet government, and reactionary parties, which, upon implementation of housing reform policies, were brought under State management or arranged for use by State agencies and the people."

In terms of administrative procedures, the scope of housing mentioned above includes both houses with and without State management decisions (because of various objective reasons during that period, many houses within the scope of reform were handed over to the State, but the provincial People's Committees did not issue management decisions).

In terms of management procedures, most of the aforementioned housing has been transferred to the land and housing sector for leasing, but there are also houses that, due to being dilapidated, the land and housing sector does not directly manage and instead hands them over to the occupying units for self-management and use without paying rent. Houses within the scope of reform, but previously leased or borrowed from private individuals, were not reported to the land and housing sector for management procedures when the reform policy was implemented, and houses whose owners were represented by their representatives in handing over the house to the State...

As of July 1, 1991, the aforementioned types of housing were registered in the national housing fund and the users (individuals, economic and social organizations, state agencies) must sign a lease contract with the housing management agency. Housing rented or lent outside the reform scope and not included in the reform does not fall within the scope regulated by Article 1 of Decision No. 297-CT dated October 2, 1991, of the Chairman of the State Council.

From now on, local People's Committees at all levels will no longer review past reforms for correctness or incorrectness. In cases where the owner had complaints before July 1, 1991, and is currently facing difficulties with housing, the provincial People's Committees need to consider each case specifically and base assistance on the locality's capacity, prioritizing those who have contributed to the Revolution, cadres engaged in resistance activities, and families of policy beneficiaries...

2. After the State takes over the leased reformed housing, the owner no longer receives fixed rental income.

3. The area left for the owner after reform is the area under their ownership. The competent People's Committee stipulates in Article 11 of the Housing Ordinance to provide the owner with a certificate of ownership for the area left to them.

4. Housing within the scope of reform, but as of July 1, 1991, the State has not conducted management procedures and in reality, State agencies have not managed or used it (commonly referred to as "missed reform"), the State still recognizes the ownership rights of the owner, and they have the right to dispose of their housing according to the law.

If the owner sold their house before July 1, 1991, and completed the transfer registration procedures, then the house belongs to the buyer.

5. Housing within the scope of reform in southern provinces, but the owner sold it to another person before the issuance of Decision No. 111-CP dated April 14, 1977, will be considered for issuing a certificate of ownership to the buyer after completing the purchase and sale procedures according to the Housing Ordinance.

6. When implementing the reform policy, some individuals belonging to the administrative apparatus of the puppet army, puppet government, and reactionary parties (commonly abbreviated as "2/IV") after handing over their houses to State management, were provided with areas of State-owned property for living, the competent People's Committee stipulates in Article 11 of the Housing Ordinance to provide certificates of ownership to these individuals for the areas allocated to them.

II. POLICY FOR HOUSING WITHOUT OWNERS UNDER STATE MANAGEMENT

Houses without owners managed by the State pursuant to Decree No. 19-CP dated June 29, 1960, and Decree No. 24-CP dated February 13, 1961, were included in Decision No. 111-CP dated April 14, 1977, due to their formation at different times and under various historical circumstances. Over many years, these houses without owners have been stably allocated for use by agencies and the public, with some having deteriorated and been rebuilt or renovated. In some cases, houses that were previously simple single-story structures have now been rebuilt into multi-story buildings or office buildings for public use. To stabilize the current status of housing and ensure a stable life for the people, from July 1, 1991, all houses without owners managed by the State will be transferred to state ownership.

From now on, People's Committees at all levels shall not accept or consider petitions regarding the return or transfer of ownership or management rights of houses without owners. If the owner of a house without owners legally returns to reside in the locality where their former house has been transferred to state ownership and genuinely faces difficulties in housing, the provincial People's Committee shall assist them. If the owner of a house without owners was previously a cadre who participated in the resistance war or revolutionary activities and only recently had the opportunity to return, the provincial People's Committee shall provide them with another house or equivalent compensation.

III. POLICY TOWARDS PRIVATE HOUSES RENTED UNDER THE MINIMUM AREA

When implementing housing renovation, private individuals renting out small areas (commonly referred to as minimum area rentals) may continue to rent, but must comply with the unified management regulations of the State concerning rental prices and the right of tenants to reside.

Currently, the situation of privately rented houses is complex, with many landlords submitting requests to reclaim their rented houses, but tenants unable to return them, leading to tensions between both parties and negatively impacting social order and security. Therefore, while salary reform has not yet eliminated the subsidized rental price system, the policy towards privately rented houses under the minimum area must still protect the interests of tenants (mainly cadres and working-class people) while also considering the legitimate interests of landlords. Specifically:

1. Regarding rental prices, the current state-prescribed prices (equivalent to state rental prices) will continue to be applied.

2. If the landlord genuinely faces difficulties such as living space being too cramped compared to the local average, or genuine living difficulties... and the tenant can return the house, such as the landlord providing alternative accommodation for the tenant, or the tenant has secured other accommodation or lives in excess space compared to the landlord... then the court will consider and resolve the issue.

If the rented house has been repaired or improved by the tenant, the landlord must pay the repair and improvement costs to the tenant before reclaiming the house.

3. During the tenancy period, if the tenant adds living space without a complaint from the landlord at the time of construction and with written approval from the competent authority, that additional area belongs to the tenant. The competent People's Committee, as stipulated in Article 11 of the Housing Ordinance, will issue a certificate of ownership to the tenant for the additional area they constructed.

If the tenant wishes to sell the added area, the landlord has the right of first refusal to purchase it.

IV. POLICY TOWARDS LEGAL EMIGRANTS

1. For housing owned by legal emigrants mentioned in Clause 2, Article 5 of Decision No. 297-CT dated October 2, 1991, issued by the Chairman of the Council of Ministers, if at least one of the following family members remains legally residing in the house (based on household registration and certification by the local authority): parents, spouse, or children, then the State grants them ownership of part or all of the house based on the number of remaining family members and the size of the house. Other individuals remaining who are not parents, spouse, or children do not have ownership rights even if they lived in the house. They may continue to reside there and sign a lease agreement with the land management agency, or the State may reclaim the house if it is too large and allocate another area for them to lease.

2. Vietnamese citizens permitted to emigrate, except those mentioned in Clause 2, Article 5 of Decision No. 297-CT dated October 2, 1991, issued by the Chairman of the Council of Ministers, have the right to dispose of their housing. If before leaving, they request the State to manage their property, this will be accepted, and upon returning to settle in Vietnam, they will reclaim the house after paying the State for management and repair costs (if any). If the owner does not return (but remains a Vietnamese citizen), they may transfer ownership or management rights to another Vietnamese citizen residing in Vietnam according to the law. If the house is sold, the State has the right of first refusal to purchase it.

V. POLICY TOWARDS ILLEGAL EMIGRANTS

Houses owned by illegal emigrants (commonly referred to as border-crossing houses) are handled according to the provisions of Article 5 of Decision No. 297-CT dated October 2, 1991, issued by the Chairman of the Council of Ministers.

When handling such houses, attention should be paid to the following points:

1. If a family illegally emigrates but some members remain, it will be handled as specified in Point 1, Section IV of this Circular.

2. If the house does not belong to the illegal emigrant:

a. If the house is state-owned, the State will reclaim it.

b. If the house is privately owned (rented or occupied), the owner has the right to reclaim it for use.

VI. POLICY TOWARDS ILLICIT HOUSING CONSTRUCTION, EXPANSION, PURCHASE, SALE, AND TRANSFER PRIOR TO THE ANNOUNCEMENT OF THE HOUSING REGULATION

At present, the situation of constructing, expanding, buying, and transferring illegal housing occurs quite extensively in most localities. Many houses have been built for several decades but lack construction permits; many cases of house transactions without official registration still exist; the number of state-owned housing commissions is increasing, but land management agencies cannot control them adequately... The handling of the aforementioned cases must be based on the principles set forth in Article 7 of Decision No. 297-CT dated October 2, 1991, issued by the Chairman of the Council of Ministers. For those who intentionally violate construction regulations, resolute measures should be taken. For cases of non-serious violations and genuine difficulties, consideration may be given to legalizing ownership or usage rights after obligating the payment of necessary fees (fines, stamp duty, back rent payments, etc.). Local People's Committees need to regard this as one of the key tasks that must be addressed to facilitate future declarations and registrations of housing.

VII. IMPLEMENTATION ORGANIZATION

Implementing Decision No. 297-CT dated October 2, 1991, issued by the Chairman of the Council of Ministers, is currently a focal point of work for the real estate sector to ensure uniform and effective enforcement of the Housing Ordinance. It is recommended that the People's Committees of provinces and centrally-administered cities establish Provincial Land Councils comprising representatives from land management agencies, inspection bodies, finance departments, public security organs, and inviting participation from judicial and prosecution sectors to assist the provincial People's Committee Chair in implementing the Chairman of the Council of Ministers' decision at the local level and regularly reporting to the Council of Ministers on results and remaining issues for the Council of Ministers to consider and resolve./.