On February 23, 2023, the Hanoi People's Committee officially issued Decision No. 1186/QD-UBND ("Decision 1186") promulgating the Hanoi housing development plan for the period of 2021 – 2025 to detail the approved housing development objectives and solutions and manage the list of housing construction investment projects in the period of 2021 - 2025. Notably, in Decision 1186, the Hanoi People's Committee introduced strict policies on the approval and management of investment projects and investors of housing construction projects in the area.
ATA Legal Services would like to introduce some notable contents as follows:
1. Tightening policies on planning and investment:
a. Housing construction projects and new urban areas on the list of Housing Development Plans are considered for approval/adjustment of investment policies. Accordingly, housing construction investment projects in Hanoi shall be subject to stricter management pursuant to the Housing Development Plan from the stage of planning and proposal until the housing products are eligible for business. Clients interested in such information can find out more about the Housing Development Plan of Hanoi City here.
b. Condominium development shall be minimized in commercial housing projects in the historic inner city. The Government of Hanoi will allocate land funds for housing development, ensuring conformity with approved land use plans, and creating land funds for housing development through the rapid relocation of industrial production facilities, hospitals, higher education institutions, and vocational education out of the inner city.
c. Social housing shall be prioritized:
- Priority of capital: Allocate and use the proceeds from the 20% and 25% land fund, capital from the budget, or loans from the City's Investment Fund;
- Priority of land: Supervise land lots within land funds of 20%, 25% in commercial housing and urban area investment projects;
- Allocate the minimum rate of social housing for rent according to the central regulations, housing for rent or purchase must reach at least 10% of the social housing area in the project.
2. Policies to enhance the responsibility of housing project investors:
a. Focus on criteria related to ensuring progress as a basis for evaluating and selecting projects:
- Prioritize investors having plans highly appreciated for planning, architecture, technical infrastructure, social infrastructure, and implementation progress.
- Investors who are deliberately sluggish, have insufficient capacity, or are behind schedule will be considered not allowed to participate in similar projects.
b. Intensify the inspection of projects, and resolutely revoke projects that are behind schedule to carry out bidding for selecting other investors as per regulations.
c. Consider removing from the list of projects under the Housing Development Plan for projects of investors infringing reporting obligations. Accordingly, investors of housing projects must fulfill the obligation to report on the implementation of housing construction projects quarterly (every 3 months), and annually (before October 25). In case of reporting failure for at least 02 consecutive quarters, the project of that investor will be considered for removal from the list of projects under the Housing Development Plan.
Decision 1186 took effect on 23/02/2023.
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