There will be many incentive mechanisms for social housing development.
The Ministry of Construction has just submitted to the Government a draft Decree on the development and management of social housing. Accordingly, the draft Decree has introduced many new regulations, including regulations on housing area, support mechanisms, and incentives for social housing development...
| Social housing area for sale to workers in Binh Duong. (Photo: TL) |
According to the provisions of the Housing Law 2005 and Decree 188/2013 of the Government, the standard area of social housing for each apartment in an apartment building is at least 30m2, and the maximum is not more than 70m2. However, in practice, households with few people and poor households have a need for apartments with an area of less than 30m2. In addition, there are many subjects such as officials and civil servants who are subject to returning official housing or low-income households with many members who have a need for apartments with an area larger than 70m2.
International experience shows that even in countries with developed economies such as Korea, Japan, Thailand, China... there are regulations on the minimum area standard for social housing apartments of 20 - 25m2.
On that basis, the draft Decree proposes to adjust the regulations on area standards for social housing, which are apartments from 25m2 to 70m2 of floor space. In addition, based on the specific situation in the locality, the Provincial People's Committee is allowed to adjust the area standards for social housing, which are apartments, to suit the needs in the locality, but the increase shall not exceed 10% compared to the maximum apartment area of 70m2; the proportion of apartments in social housing construction projects with floor areas over 70m2 shall not exceed 10% of the total number of social housing apartments in the project.
Regarding the support and incentive mechanisms for social housing development, the draft Decree proposes: exemption from land use fees and land rent; exemption from basic design appraisal procedures; 20% of residential land and housing area reserved for commercial business; support for investment in technical infrastructure inside and outside the project fence...
According to the Ministry of Construction, these support and incentive mechanisms have been stipulated in Decree 188/2013 of the Government and previously issued legal documents on housing. Particularly for the case of investing in the construction of social housing for rent only, in addition to the above support and incentive mechanisms for social housing, the draft also adds a provision "a 70% reduction in value added tax and corporate income tax according to the provisions of the law on taxes for social housing".
Regarding the purchase of commercial housing for social housing, the Ministry of Construction proposes to only apply to social housing funds invested from local budget sources, ensuring compliance with local housing development programs and plans.
Regarding preferential loans to implement social housing policies, the draft Decree proposes the following forms: preferential loans; preferential loans according to target programs on social housing; preferential loans to invest in building social housing; support for preferential loans to buy, rent, hire-purchase social housing and build new or renovate and repair houses; preferential loan sources to implement social housing policies...
According to the Communist Party of Vietnam
