Decree No. 30/2021/ND-CP dated March 26th 2021

On March 26th, 2021, the Government promulgates Decree no. 30/2021/ND-CP amending and supplementing a number of articles of Decree no. 99/2015/ND-CP dated October 20th, 2015 detailing and guiding a number of articles of the Law on Housing. Decree no. 30/2021/ND-CP takes effect from the date of promulgation.

Decree No. 30/2021/ND-CP amends many articles of Decree No. 99/2015/ND-CP, including some new noticeable points as follows:

Firstly, regarding the order and procedures for setting up local housing development programs and plans. Previously Decree no. 99/2015/ND-CP only generally regulated provisions on the basis of the local housing development program approved by the Provincial People’s Committee. The Department of Construction directly implements or hires a consultant to coordinate with relevant local agencies in formulating a 5-year and annual housing development plan to submit to the Provincial People’s Committee for approval. Decree no. 30/2021/ND-CP provides unambiguously time, order, and procedures for adjusting housing development programs and plans.

Secondly, regarding investment procedures for housing construction investment projects. Decree 99/2015/ND-CP stipulating the agency competent to decide/approval the policy of investment project policy and the subjects to be consulted for appraisal based on the source of the project investment capital, the owner-approving agency investment plan and project scale in Article 9; regulations on dossiers and order of a request for decision/approval of housing construction investment project policy in Article 10; regulations related to investment in the form of build-transfer in Article 14, Clause 2, Article 26 and Article 27. Thus, the above provisions of Decree 99/2015/ND-CP have additional provisions conditions and investment procedures compared to the provisions of the Law on Investment 2014. Meanwhile, the Law on Investment 2020 has taken effect to replace the Law on Investment 2014. To be consistent with the provisions of the Law on Investment 2020, Decree 30/2021/ND-CP has canceled regulations on dossiers and procedures for requesting decision/approval of investment policies in housing construction projects, and at the same time amending regulations on collecting opinions. appraisal opinion of the State management agency in charge of housing. In addition, Decree 30/2021/ND-CP also abolishes regulations related to investment in housing construction investment projects in the form of build-transfer (BT) specified in Article 14, Clause 2. Article 26, Point c Clause 2, Points c, đ Clause 4 Article 27, Clause 3 Article 29. According to new regulations, housing construction investment projects are implemented in the form of build-transfer (BT), the Forward processing shall be carried out in accordance with the law on investment in the form of public-private partnership.

Thirdly, regarding the opening, handover of expenses for maintenance of common areas of the apartment building with multiple owners. Decree no. 30/2021/ND-CP still maintains the 2% level of maintenance expenses for common areas of the apartment building, but amend and supplement that:

  • Time to open an account to manage expenses for maintenance of the apartment building: Before signing a contract to buy, sell or rent a house or other area in the apartment building;
  • Location of account opening: a credit institution or foreign bank branch (hereinafter referred to as a credit institution) operating in the area where the house is located for purchase, sale, or lease purchase. for each housing construction investment project with an apartment building, the investor must set up an account as prescribed in law to manage the maintenance expenses of the apartment building of that project; after opening an account, the investor must notify the Department of Construction where the project is located about the account name, opened account number, name of the credit institution where the account is opened and the deposit term.
  • Using funds for maintenance of the apartment building: When the maintenance fund has not been handed over to the Management Board of the apartment building, the maintenance of items and equipment under the common ownership of the apartment building has expired. Within the prescribed warranty period, the investor is responsible for performing the maintenance of these items and equipment, but must comply with the maintenance plan and process established in accordance with the law on construction and The investor is entitled to a refund of the amounts used for maintenance if there are reports and supporting documents.
  • Apart from the above case, the Investor is not allowed to request the credit institution to deduct the funds that the parties have paid into the account to use for any other purposes before handing over to the Management Board of the apartment building.

As for the apartment area, the other area that the investor keeps not sold or has not sold has not been leased out by the time of handing over and putting the apartment building into use is subject to payment of maintenance expenses 2% according to the provisions of the Law on Housing 2014, the investor must transfer this amount to the established account. In case the investor fails to pay the maintenance expenses or fails to hand over the maintenance expenses as prescribed, the investor shall be administratively punished and be forced to hand over according to the provisions of Article 37 of this Decree; In addition, depending on the case, the investor will also be examined for penal liability according to the provisions of law.