New regulations on renovating old apartments take effect from August 15

The Ministry of Construction has just issued Circular 21/2016/TT-BXD guiding the implementation of some contents of Decree No. 101/2015/ND-CP of the Government on renovation and reconstruction of apartment buildings, effective from August 15.

Accordingly, the preparation of a proposal to register to participate as an investor in a project to renovate or rebuild an apartment building only applies to the case of selecting an investor in a project to renovate or rebuild an apartment building according to the provisions of Clause 1, Article 9 of Decree No. 101/2015/ND-CP.

Real estate business enterprises that have sufficient conditions and capacity to be project investors according to the provisions of the law on housing and the law on real estate business, if they have a need to participate as investors in projects to renovate and rebuild apartment buildings, must prepare a proposal dossier to register to participate as project investors according to the regulations to get opinions from apartment building owners.

Quang Trung high-rise apartment complex - Illustration photo

The application dossier for registration to participate as an investor in a project to renovate and rebuild an apartment building includes: Application to participate as an investor in a project to renovate and rebuild an apartment building; Documents proving legal capital according to the provisions of the law on real estate business, proving owner's equity according to the provisions of the law on land business;

Proposed plan for project implementation, including contents on preliminary design plan and master plan of the project; basic planning indicators including land use coefficient, average height, total number of apartments; essential technical infrastructure and social infrastructure works of the project; compensation, support and resettlement plan; financial solutions, capital mobilization solutions to implement the project; expected progress of project implementation; other relevant proposals.

Regarding the principles of resettlement housing arrangement, the Circular clearly states that resettlement housing arrangement must be carried out through contracts according to regulations; The signing of contracts to arrange resettlement housing must be based on the compensation and resettlement support plan approved by the Provincial People's Committee.

The Circular clearly states that in case the owner of the demolished apartment building does not have the need to resettle on the spot, the signing of a contract to lease, hire-purchase, or purchase and sell housing to arrange resettlement is carried out as follows: For available housing, it is implemented according to the provisions of Decree No. 99/2015/ND-CP of the Government detailing and guiding the implementation of a number of articles of the Housing Law.

For future housing, it shall be implemented in accordance with the provisions of Decree No. 76/2015/ND-CP of the Government detailing and guiding the implementation of a number of articles of the Law on Real Estate Business.

In case the owner of a demolished apartment building needs to be resettled on the spot, the signing of a contract for renting, hire-purchasing, or buying and selling housing to arrange resettlement is carried out as follows: In case of compensation in the form of housing and on-site resettlement, the owner of a demolished apartment building signs a contract with the investor or the unit assigned to arrange resettlement; In case of resettlement arrangement in the form of renting housing, it shall be implemented according to the provisions of Decree No. 99/2015/ND-CP.

In case the owner is arranged for resettlement and is eligible to purchase additional apartments according to the provisions of Clause 3, Article 4 of Decree No. 101/2015/ND-CP, the signing of the contract for purchase of additional apartments for future housing shall be carried out according to the provisions of Decree 76/2015/ND-CP, and for existing housing, it shall be carried out according to the provisions of Decree No. 99/2015/ND-CP.

According to VOV