In order to implement a credit program of VND 120,000 billion to support investors and homebuyers of social housing projects in accordance with Resolution 33/NQ-CP (“Program”), dated April 1, 2023, the State Bank of Vietnam has issued Official Letter 2308/NHNN-TD guiding the implementation of the Program (“Official Letter 2308”). Accordingly, ATA Legal Services has an article on this issue, interested customers can refer here.
Following Official Letter 2308, on April 20, 2023, the Ministry of Construction issued Official Letter No. 1551/BXD-QLN (“Official Letter 1551”), providing specific instructions on identifying targets borrowers and conditions for preferential loans for development of social housing, housing of workers ("HFW"), renovation and reconstruction of apartment buildings ("Project"), specifically as follows:
1. Targeted borrowers
Compared with Official Letter 2308, Official Letter 1551 specifically guides borrowers who are entitled to lease, lease-purchase and sell social housing according to the provisions of Clause 1, Article 50 of the Law on Housing. Particularly for houses in apartment building renovation and reconstruction projects, only the owners of the apartment buildings are relocated and must pay amount charged on difference in area to get a loan under the Program.
2. Conditions and criteria
In addition to ensuring the conditions and criteria for credit according to Official Letter 2308 and legal regulations, the beneficiaries of a credit program of VND 120,000 billion must also meet the following conditions and criteria:
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Targets of the Program |
Conditions |
Criteria |
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Individuals |
Individual buying social house, HFW. |
Must have house purchase agreement with investors. |
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Individuals who are resettled in an apartment building renovation or rebuilding project. |
Must have house purchase agreement and resettlement construction works according to regulations. |
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Project Investors |
General conditions. |
The project must be on the list of projects on social housing,HFW, renovation and construction of old apartment buildings announced by the Provincial People's Committee. |
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Specific conditions |
Construction project of social housing, HFW |
In addition to meeting the above general conditions, these projects must also satisfy the following conditions: - Acquired decision on the investment policy; - Acquired a decision on land allocation or land use right and the compensation for site clearance has been completed; - To be granted a construction permit or exempted from a construction permit. |
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Specific conditions |
Apartment renovation and rebuilding project |
Projects with investment plan approved by competent state agencies. |
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3. Project list
Regarding the projects list under the Program, the Ministry of Construction authorizes the Provincial People's Committee to be responsible for reviewing and inspecting legal procedures, making a list of projects for social housing, construction, renovation and construction projects and publicizing the legal procedures on the portal of the Provincial People's Committee.
In addition to the above Program, in order to provide more support to those in need, on May 10, 2023, the Prime Minister issued Decision 486/QD-TTg stipulating the preferential lending interest rates at Bank for Social Policies to buy, lease-purchase social housing, build new or renovate and repair residential houses in accordance with the provisions of Decree 100/2015/ND-CP. Specifically, the preferential interest rate applied to the above-mentioned items at the Bank for Social Policies is 4.8%/year from May 10, 2023 to December 31, 2024 (preferential policy). This offer is not included in the above 120,000 billion program).
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