Circular No. 69-TC/ĐT guides the collection and use of funds from the sale of state-owned housing to tenants.

CIRCULAR

OF THE MINISTRY OF FINANCE

Guidelines for the collection and use of

funds from the sale of state-owned housing to tenants

Pursuant to Decree No. 61/CP dated July 5, 1994 of the Government on the purchase and sale of housing, the Ministry of Finance provides guidance on the implementation of the collection, submission, and use of funds from the sale of state-owned housing to tenants as follows:

This technical regulation sets out technical requirements, testing methods, sampling procedures; management requirements; responsibilities of organizations and individuals producing, trading, and importing cigarettes.

1. The transfer of housing under state ownership managed by administrative agencies, armed forces, people's organizations, political and social organizations, and state-owned enterprises must be carried out according to the asset handover system and capital transfer regulations currently in effect.

2. Directors of provincial housing trading companies, Chairmen or Vice-Chairmen of People's Committees at the provincial, city, district, and county levels where there are no housing trading companies (hereinafter referred to as the seller of housing), who are currently managing or have been transferred management of state-owned housing funds (as mentioned in Point 2, Article 8, Decree 61-CP), when selling state-owned housing must collect and submit the proceeds from the sale of housing in accordance with this Circular.

3. The person purchasing state-owned housing is a tenant of state-owned housing.

4. The price of state-owned housing is determined based on:

The decision to sell state-owned housing issued by the Chairman of the People's Committee of provinces and centrally-administered cities.

The sales contract signed by both parties involved in the sale of housing.

The proceeds from the sale of housing include: the sale price of the housing (based on its remaining value) and the land use fee when transferring the right to use the land.

5. The state-owned housing fund sold to tenants includes:

Housing constructed using central and local State Bank funds through new construction and management by local real estate sectors; direct investment in administrative agencies, armed forces, Party organizations, mass organizations (collectively referred to as economic public institutions) for distribution to employees; new construction for state-owned enterprise employees; purchase of housing for distribution to employees.

Housing created using funds from administrative agencies and state-owned enterprises originating from state budget funds.

Housing with other ownership origins that have been transferred to state ownership.

Housing constructed using state budget funds and a portion of individual and organizational contributions.

6. The sellers of housing and those transferring housing (mentioned in Point 2, Article 8, Decree No. 61-CP) must coordinate with the directly responsible financial management agency to monitor and confirm the housing fund, land use, housing capital, and land capital during the sale and transfer of housing according to current fixed asset management and land management regulations.

7. All proceeds from the sale of state-owned housing must be submitted to the state budget through the State Treasury. Proceeds from the sale of state-owned housing include: the sale price of the housing, the land use fee when transferring the right to use the land, and fines imposed on buyers for breach of contract.

8. Preferential policies for housing and land for persons with meritorious service shall be implemented according to the policy for persons with meritorious service.

II. COLLECTION OF PROCEEDS FROM THE SALE OF STATE-OWNED HOUSING

1. Payment for the purchase of housing.

a) The seller of housing bases the receipt of payment for the sale of housing (invoice for payment according to the regulations of the Ministry of Finance) on the sales contract signed with the buyer. Depending on the payment method stipulated in the sales contract, the receipt of payment for the sale of housing will reflect the following payment contents:

Payment in full after signing the contract results in a 10% discount on the sale price.

Payment within one year requires an initial payment of not less than 20% of the total amount payable immediately after signing the contract, resulting in a 2% discount on the sale price.

Multiple payments but with a payment period not exceeding ten years. The initial payment after signing the contract must be not less than 20% of the total amount payable; each subsequent annual payment must be not less than 8% of the total amount payable.

The remaining amount is converted into 98% gold as the basis for subsequent payments. The quantity of gold for each subsequent payment is converted into Vietnamese Dong and 98% gold according to the selling price of the State Bank of Vietnam (VND) at the time of payment, based on the exchange rate between Vietnamese Dong and 98% gold set by the State Bank of Vietnam (state-owned gold and silver company in the locality).

Example: The sales contract for state-owned housing between Mr. Nguyen Van A (buyer) and Provincial Housing Trading Company N (seller) is VND 81,000,000, including: Housing purchase price: VND 20,000,000; Land use fee when transferring the right to use the land: VND 61,000,000.

The payment period for the purchase of housing is ten years. The initial payment after signing the contract must be 20% of the contract value. Each subsequent annual payment must be not less than 8% of the total amount payable.

Mr. A must pay for the purchase of housing as follows:

First payment:

VND 81,000,000 x 20% = VND 16,200,000.

The remaining amount is VND 64,800,000, which is converted into 98% gold at the time of sale at a price of VND 480,000 per tael of gold. Therefore, the converted quantity of gold is VND 64,800,000 ÷ VND 480,000 = 135 taels of gold, which must be paid off over the remaining nine years to complete the contract, with each subsequent payment being:

135 taels of gold ÷ 9 = 15 taels of gold.

Second payment (year two) at a price of 98% gold at VND 500,000 per tael, the buyer pays:

15 taels of gold x VND 500,000 per tael = VND 7,500,000.

Third payment (year three) at a price of 98% gold at VND 450,000 per tael, the buyer must pay:

15 taels of gold x VND 450,000 = VND 6,750,000. Thus, the remaining quantity of gold after two subsequent payments is 135 taels - 30 taels = 105 taels of gold.

Subsequent payments from the fourth to the ninth payment (excluding the first payment) are calculated similarly until the initial converted quantity of gold (135 taels of gold) is fully paid.

b) Payment of penalties equal to 5% of the contract value for the sale of housing due to the buyer's breach of contract without justifiable reasons, such as: the buyer has not fully paid the purchase price of the housing when the contract term has expired; the buyer has not made the payment for the purchase of housing according to the payment schedule stipulated in the contract.

2. Collection of proceeds from the sale of housing:

a) The seller of housing is the directors of housing trading companies under provinces and centrally governed cities; in cases where the seller is the Chairman or Vice-Chairman of the People's Committee of a province-level city, town, district, or county, the Department of Land and Housing Management at these levels shall carry out the sale of housing. The seller is responsible for guiding, monitoring, and urging the implementation process until the completion of housing purchase contracts such as:

Issuing payment vouchers for purchasing housing in three copies: one copy retained by the seller, one copy transferred to the State Treasury to collect money, and one copy given to the buyer for tracking;

Maintaining records to monitor the execution of housing purchase contracts, payment methods for selling housing, fines for breach of contract, and other related transactions;

Keeping all documentation and receipts for housing sales: contracts, payment vouchers for purchasing housing, invoices for collecting money, etc., for each housing sale case;

Preparing a settlement record for housing purchase contracts;

b) The buyer of housing has the responsibility to:

Fully and correctly implement all contents of the housing purchase contract;

Pay the housing purchase price at the state treasury office within their jurisdiction;

Retain all relevant documents and writings concerning the housing purchase;

c) The State Treasury Office has the responsibility to:

Based on the payment voucher for purchasing housing issued by the seller to collect housing sale proceeds and issue invoices for collecting money to be paid into the State budget. Payment receipts are made in three copies: one copy retained at the State Treasury; one copy transferred to the seller for retention; and one copy given to the buyer;

Maintaining records to track the collection of housing sale proceeds for each case;

Monitoring other related transactions concerning housing purchases;

For housing owned by the state with a portion contributed by individuals or organizations, the seller only sells the value of the housing owned by the state, after deducting the value of the housing contributed by individuals or organizations. The buyer must pay the sale price of the housing owned by the state and land fees when transferring usage rights. The method of collecting and paying the purchase and sale prices of housing is as stated above;

3. Proceeds from the sale of state-owned housing paid into the State budget shall be implemented according to Circular No. 68 TC/NSNN dated August 15, 1994, of the Ministry of Finance regarding guidance for supplementing and amending the current budget catalog;

4. Reporting and accounting system:

The seller of state-owned housing must fully implement the reporting and accounting-statistical system according to the current financial management regulations of the state, regularly reporting the results of implementing the housing sale program to the Chairman of the People's Committee of the province or centrally governed city, and sending copies to the Ministry of Construction;

The State Treasury Office is responsible for organizing the accounting of collected housing sale proceeds, reporting to higher-level State Treasuries and peer-level financial authorities about the situation of collecting state-owned housing sale proceeds. The State Treasury Bureau will compile reports to the Ministry of Finance;

Proceeds from the sale of state-owned housing paid into the State budget shall be recorded in the corresponding Chapter, Type, Clause, and Category of the current budget catalog under the item "Proceeds from the sale of state-owned housing and land fees when transferring usage rights";

III. USE OF PROCEEDS FROM THE SALE OF STATE-OWNED HOUSING

Proceeds from the sale of state-owned housing shall be invested in constructing and supporting the development of housing funds as stipulated in Article 11 of Decree No. 61-CP dated July 5, 1994, of the Government (hereinafter referred to as construction and support for housing fund development);

1. Planning and implementing the development of housing funds:

a) Based on the housing sale plan approved by the Chairman of the People's Committee of the province or centrally governed city, the seller prepares a plan to collect housing sale proceeds. The proceeds from the sale of state-owned housing are reflected in the annual provincial or centrally governed city budget revenue plan;

b) Based on the determined revenue plan, the People's Committee of the province or centrally governed city directs competent agencies to prepare a plan for housing construction and support for housing fund development in the year that is appropriate;

The plan for housing construction and support for housing fund development includes the following contents:

b.1. Plan for constructing and renovating high-rise housing or converting fourth-grade housing areas into high-rise housing for sale. After completion, this type of housing is handed over to the local housing sales council to establish a housing sale plan as stipulated in Point 3, Article 8 of Decree No. 61-CP dated July 5, 1994, of the Government;

The housing for sale mentioned above is prioritized for sale to households currently residing in housing as specified in Clauses 1, 2, and 3 of Article 5 of Decree No. 61-CP dated July 5, 1994, of the Government. The selling price of this type of housing includes:

The housing price based on the final settlement handover, plus the allocated infrastructure cost (if applicable);

The land transfer fee when changing usage rights is determined according to Point 2, Article 7 of Decree No. 61-CP dated July 5, 1994, of the Government;

In cases of selling to those without housing or with excessively cramped living conditions, the selling price includes:

The housing price agreed upon in the contract (plus allocated infrastructure costs if applicable);

The land transfer fee when changing usage rights according to the current local price and the framework price set by the state;

The collection of housing sale proceeds in this category is carried out as stated in Section II above;

b.2. Plan for constructing and renovating high-rise housing or converting fourth-grade housing areas into high-rise housing for rental. Upon completion, this type of housing is handed over to the housing management and trading agency;

The rental of housing by the housing trading company is prioritized for the groups listed in Points 1, 2, and 3 of Article 5 of Decree No. 61-CP dated July 5, 1994, of the Government. The housing management and trading agency implements rental and management of housing according to the current national housing management and rental regulations;

Those without housing or with excessively cramped living conditions are rented housing by the housing management and trading agency at an agreed-upon price recorded in the lease contract;

Local financial authorities guide the determination and accounting of capital sources for units transferring housing to the housing management and trading agency according to the current state asset management and financial management regulations.

b.3. Plan for constructing infrastructure in areas planned for housing development. The Chairman of the Provincial People's Committee assigns competent agencies to establish and implement this plan. Once the infrastructure is completed, the final settlement value of the infrastructure area will be allocated to the housing constructed on that infrastructure area.

The housing management and business unit assigned by the Provincial People's Committee to implement the housing construction plan for sale or lease must accept and maintain the infrastructure capital handed over and the land price when transferring usage rights as the basis for determining the future housing sales price.

b.4. Plan to improve residential areas where living conditions are too low, including the following contents:

Improving internal traffic;

Improving water supply;

Improving drainage;

Constructing and installing public lighting.

These works shall be carried out under the principle of joint effort between the State and the people. Depending on the specific conditions of each area, the Provincial People's Committee may consider and decide to support with up to 50% of the budget approved from the national housing fund for this plan.

b.5. Plan to implement social policies on housing includes the following two cases:

Housing for families of martyrs who are alone and have no place to rely on.

Housing for those who have contributed to the revolution.

b.5.1. In the case of new housing construction according to planning, the capital plan includes: Construction costs, land transfer fees, and other related expenses.

b.5.2. In the case of providing financial assistance to the beneficiaries of the aforementioned policies, the Provincial People's Committee assigns competent agencies to develop funding plans for each specific case.

Units assigned by the Provincial People's Committee to establish and implement housing construction and support plans must submit their plans in accordance with regulations and deadlines set by the Provincial People's Committee to the Science Committee, Department of Finance and Prices, city for consolidation, balance, and report to the Chairman of the Provincial People's Committee for consideration and submission to the People's Council at the same level for approval.

c) Plan for housing construction and support development according to projects approved by the People's Council at the same level is reflected in the annual investment plan for construction and development of the province, centrally-administered city sent to the National Planning Commission, Ministry of Finance, Ministry of Construction for consolidation and reporting to the Government.

d) Management and allocation of funds according to the housing construction and support plan approved by the People's Council of the province and approved by the Chairman of the Provincial People's Committee shall be implemented as follows:

Plans mentioned in points b.1; b.2; b.3; b.5.1 shall be implemented under the current state management system for investment capital in construction and development.

Plans mentioned in point b.4; b.5.2. Units assigned by the Chairman of the Provincial People's Committee to prepare budgets according to the level of support from the competent authority and local finance agency review and submit to the Chairman of the Provincial People's Committee for approval. Allocation and management shall be carried out according to the approved budget.

2. Establishing a cost plan for selling houses.

a) Costs for the seller and the selling council to carry out the house selling process, established by the seller according to the current financial standard include the following main contents:

Printing costs for materials serving the house selling process, office supplies;

Training costs;

Operational guidance costs;

Rent for working equipment of the selling council;

Costs for determining the residual value of housing;

Costs for auditing, inspection, and re-inspection;

Costs for meetings, reviews, and project evaluations;

Other costs related to the activities of the selling council.

b) The budget for house selling costs is prepared simultaneously with the establishment and implementation of the local housing development plan by the selling agency, reviewed by the local finance agency, and approved by the selling council, submitted to the Chairman of the Provincial People's Committee, centrally-administered city for approval. The cost plan for selling houses must be reflected in the provincial or city's annual budget plan, with the total budget for selling costs not exceeding 2% of the proceeds from selling state-owned housing.

c) Management and allocation of funds for selling houses are handled by the local finance agency according to the current state management system for public service funds.

For the time being, in the fourth quarter of 1994, the local finance agency will advance the funds for selling houses. This amount will be repaid once there is revenue from selling houses.

IV. IMPLEMENTATION

1. The Provincial People's Committee directs the selling agency and relevant agencies to implement the sale of houses, collect house money, and manage and use the proceeds from the sale of state-owned housing for tenants in accordance with the guidelines in this Circular.

2. The Provincial People's Committees report to the Prime Minister, copied to the Ministry of Finance, about the proceeds from selling houses and the use of proceeds from selling houses before the issuance of Decree No. 61-CP dated July 5, 1994 of the Government for consideration and handling.

3. This Circular takes effect from July 5, 1994. Previous documents contrary to this Circular are no longer effective. During implementation, if there are difficulties, please promptly reflect them to the Ministry of Finance for research and resolution./.