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

CIRCULAR

 Guidelines for Implementing the Prime Minister's Decision on Resolving Certain Housing Issues

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On October 2, 1991, the Council of Ministers issued Decision No. 297/CT regarding the resolution of certain housing issues.

The Ministry of Construction provides specific guidance as follows:

I. POLICY FOR REFORMED HOUSING

1. After the liberation of the North and the reunification of the country, the State issued policies to reform housing and land in cities and towns. With the results achieved from implementing these policies, we have managed all housing under the reform program and arranged it for agency offices or for civil servants and workers.

Most housing managed by the State has completed registration procedures and handover processes, and the State has issued management decisions.

However, due to various objective reasons, there were also some cases where state agencies did not complete transfer procedures or issue management decisions when managing and using housing, and in some cases, they handled matters incorrectly compared to the policies at that time.

To stabilize the status of housing after reform, and to bring management into a regular system, Article 1 of the decision clearly states: "Housing currently managed and used by the State 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 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 ministries applicable to southern provinces) includes all housing, whether with or without management decisions from competent People's Committees, but which have been arranged for use and are state-owned."

The scope of housing mentioned in this article includes: "All types of rented, borrowed, or temporary accommodation houses, donated houses, and houses belonging to organizations and individuals within the machinery of the puppet army, puppet government, and reactionary political parties, which have been included in state management or allocated for use by state agencies and the people through the implementation of housing reform policies."

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

In terms of management procedures, most of the aforementioned housing has been transferred to the real estate sector for leasing, but there are also houses that are too dilapidated for the real estate sector to manage directly, thus they are managed and used free of rent by the occupying units. Houses in the reform program, but previously leased or borrowed from private individuals by state agencies, were not reported to the real estate sector for management procedures when the reform policy was implemented, and houses whose owners were represented by their agents who handed them over 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 lease contracts with the housing management authority. Housing rented or borrowed outside the reform program does not fall within the scope regulated by Article 1 of Decision No. 297-CT dated October 2, 1991 of the Prime Minister.

From now on, local People's Committees at all levels will no longer review past reforms for correctness. In cases where the owner had filed complaints before July 1, 1991, and is currently facing difficulties with housing, the provincial People's Committee needs to consider each case specifically and provide assistance based on the locality's capacity, prioritizing those with meritorious service to the revolution, revolutionary cadres, and families of policy beneficiaries...

2. After the reformed housing is leased and becomes state-owned, the owner no longer receives fixed rental income.

3. The area left for the owner after the reform is the area under their ownership. The competent People's Committee, pursuant to Article 11 of the Housing Ordinance, shall issue certificates of ownership to the owner for the area left to them.

4. Housing in the reform program, but as of July 1, 1991, if 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 owner's ownership rights, 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 and registration procedures, the house belongs to the buyer.

5. For housing in the reform program in southern provinces, if the owner sold it to another person before the issuance of Decision No. 111-CP dated April 14, 1977, then after completing the purchase and sale procedures according to the Housing Ordinance, a certificate of ownership will be issued to the buyer.

6. When implementing the reform policy, some individuals within the machinery of the puppet army, puppet government, and reactionary political parties (commonly abbreviated as "2/IV") who handed over their houses to state management were provided with state-owned areas for living. The competent People's Committee, pursuant to Article 11 of the Housing Ordinance, shall issue certificates of ownership to these individuals for the areas allocated to them.

II. POLICY FOR STATE-MANAGED HOUSING WITHOUT OWNERS

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 arranged for agencies and people to use stably; some houses have collapsed or deteriorated and thus have been rebuilt or improved. In some cases, houses without owners that were previously simple single-story houses have now been rebuilt into multi-story buildings or office buildings for public use, etc. To stabilize the current status of houses and ensure the stable living conditions of the people, from July 1, 1991, all houses without owners managed by the State will be transferred to state ownership.

From now on, the 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. In cases where the owner of a house without an owner legally returns to reside in the locality where their former house has been transferred to state ownership and genuinely faces housing difficulties, the provincial People's Committee shall assist them. If the owner of a house without an owner 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 pay them an equivalent amount.

III. POLICY TOWARDS PRIVATE HOUSES RENTED UNDER THE "DIEN" CATEGORY

When renovating housing, private individuals renting out small areas (commonly referred to as "dien" category) may continue to rent, but must comply with the unified management regulations of housing by the State, particularly 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 rented houses, but tenants cannot return the houses, leading to tensions between both parties and negatively affecting 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 "dien" category must still ensure the benefits of tenants (mainly cadres and working-class people) while also considering the legitimate interests of landlords with rented houses. 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: the landlord's family living space being much smaller than the average local standard, the landlord having genuine living difficulties... and the tenant can return the house such as: the landlord's family creates conditions to arrange other living space for the tenant, the tenant has already secured another place to live or is currently living in a larger space than 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 tenant for the repair and improvement costs 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's ownership. 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 of 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 persons—parents, spouse, or children—remained legally residing in the house (based on household registration and certification by the local authority), the State grants them ownership rights over part or all of the house based on the number of remaining residents and the house size. Other residents who are not parents, spouse, or children, even if they lived in the house, do not have ownership rights. They can continue to reside and sign a lease contract with the land management agency, or the State may reclaim the house if it is too large and provide them with another rental area.

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. Upon returning to settle in Vietnam, they can reclaim their house after paying the State for management and repair costs (if any). If the owner does not return (but remains a Vietnamese citizen), they are allowed to transfer ownership or authorize management 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 called "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 emigrated but some members remained, it will be handled as specified in Point 1, Section IV of this Circular.

2. If the house does not belong to an illegal emigrant, it will be handled as follows:

a. If the house belongs to the State, the State will reclaim it.

b. If the house belongs to a private individual (rented or provided accommodation), the owner has the right to reclaim the house for their own use.

VI. POLICY TOWARDS HOUSING BUILT, EXPANDED, PURCHASED, SOLD, OR TRANSFERRED ILLEGALLY BEFORE THE HOUSING REGULATION WAS ANNOUNCED

At present, the situation of constructing, expanding, buying, and transferring illegal housing occurs quite extensively in most localities. Many houses have been built for 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 less serious violations where genuine difficulties exist, consideration may be given to legalizing ownership or usage rights after requiring the payment of necessary fees (fines, stamp duties, 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 the focal point of the real estate sector to ensure the uniform and effective enforcement of the Housing Ordinance. It is recommended that the People's Committees of provinces and centrally governed 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 Chairmen in implementing the Chairman of the Council of Ministers' decision at the local level and regularly reporting to the Council of Ministers on the results and remaining issues for the Council of Ministers to consider and resolve.