Nghị định 101/2015/ND-CP

DECREE

ON RENOVATION AND RE-CONSTRUCTION OF APARTMENT BUILDINGS

Pursuant to the Law on Governmental Organization dated December 25, 2001;

Pursuant to the Law on Housing dated November 25, 2014;

Pursuant to the Law on Construction dated June 18, 2014;

Pursuant to the Law on Urban Planning dated June 17, 2009;

Pursuant to the Law on Land dated November 29, 2013;

Upon requests of The Minister of Construction,

The government issues this Decree on renovation and re-construction of apartment buildings.

Chapter I

GENERAL PROVISIONS

Article 1. Scope

1. This Decree details renovation and re-construction run-down apartment buildings in posing a risk of collapse and thus threatening their residents as regulated in Article 110 of the Law on housing and housing arrangement for re-allocating people; regulates a number of regimes and policies on planning, land use, finance, credit and construction technology used for renovating and rebuilding apartment buildings.

2. Apartment building demolition and site clearance taken place under the State’s withdrawal of land to serve the national defense and security, national interest, public interest are not regulated by this Decree.

Article 2. Regulated entities

1. Domestic organizations, households and individuals located in Vietnam or Vietnamese citizens who reside abroad, foreign organizations and individuals related to renovation and re-construction of apartment buildings.

2. The regulatory authorities in charge of renovation and reconstruction of apartment buildings.

3. Other organizations and individuals related to renovation and reconstruction of apartment buildings.

Article 3. Interpretation of terms

For the purpose of this Decree, the terms below shall be construed as follows:

1. A detached apartment building is a block of apartments (consisting of a number of dwelling units) constructed on a planned plot.

2. An apartment building complex consists of at least 2 blocks of apartments constructed on a planned plot.

3. A run-down apartment building which is in danger of collapsing and may threaten residents (hereinafter referred to as a run-down apartment building) is the one which is out of its life span and its structure sinks down, cracks and has other ominous signs under the criteria of risk assessment of an apartment building structure and the conclusions of the quality inspection released by competent authorities. This type of apartment building shall be demolished in a certain time to ensure residents’ safety.

4. A dangerous apartment building is the one which is out of its life span or sinks down, cracks, slide and has other ominous signs under the criteria of risk assessment on apartment building structure and the conclusions of the quality inspection released by competent authorities and this building shall be urgently demolished or removed.

5. A renovation/reconstruction project means the project which partially or completely demolishes the existing apartment building and works (if any) to upgrade the structure and adjust the area of apartment in this apartment building or build a new one and architectural works and infrastructure according to the planning approved by competent authorities.

6. An occupier of an apartment building is the apartment owner or owner of and another area in the apartment building (hereinafter referred to as the occupier).

7. An apartment owner is the one who is eligible for and has been granted the Certificate of ownership of housing, land use rights and property thereon (hereinafter referred to as Certificate) under regulations of laws on land and laws on housing.

8. An owner of an area of an apartment building is the one who is eligible for or has been granted the Certificate for this area under regulations of laws on land and housing.

In case of an apartment building having apartments and parts of area under the State ownership, the representative of the owner shall be an organization, authority or unit under regulations of laws on management and use of state-owned housing.

9. A user of an apartment building is an occupier or an organization, household and individual who legally uses the apartment building in forms of renting, borrowing, staying, managing or using with legal authorization under decisions of the State competent authorities.

Article 4. Rules for renovation and re-construction of apartment buildings

1. Renovation and re-construction of an apartment building shall not be separately conducted (except for detached apartment buildings), it shall be upgraded and rebuilt under a renovation/reconstruction project in compliance with requirements in clause 3, Article 112 of the law on housing.

2. At least one project that is approved by competent authorities and complies with issued standards and regulations of construction shall be deployed in one area in which apartment buildings need upgrading and rebuilding.

3. If an occupier requires to settle in at the old site and he/she gets 02 registration books or more, this owner shall be given priority to buy additional apartments in the same place at a commercial price which is mutually agreed by the investor and the owner of the apartment building, besides the new house with the area is arranged under regulation of point b, clause 1, Article 116 of the laws on housing.

4. Organizations and individuals participating in the renovation/reconstruction project and the occupier of the apartment building which must be demolished to be renovated and rebuilt under regulations in Article 110 of the law on housing shall receive incentives as regulated in Chapter III of this Decree.

Article 5. Methods of execution of renovation/reconstruction projects

Methods of execution of a renovation/reconstruction project are determined in regulations in Article 113 of the law on housing, including:

1. The occupier of the apartment building that has to be demolished for renovation and reconstruction specified in Article 110 of the law on housing shall select enterprises, cooperatives which operate in property ( hereinafter referred to as real estate enterprises) to invest in or contribute their capital to the demolition of the apartment building in compliance with regulations of laws.

2. The State shall invest in renovation and reconstruction of apartment buildings in following cases:

a) If the occupier of the apartment building, which is under the scope of renovation and reconstruction in clause 1 and clause 2 of Article 110 of the law on housing and is beyond the regulated time limit in clause 5 and clause 6, Article 7 of this Decree, fails to select an real estate enterprise to execute the demolition, the State shall forcibly demolish and directly invest in renovation and reconstruction of this apartment building with sources of capital regulated in clause 3, Article 36 of the law on housing;

b) The State shall award a BT (Build- Transfer) contract to the investor, who takes charge of rebuilding the old apartment building which needs demolishing to be renovated and reconstructed in the same place or another for the purpose of relocation of its occupier.

The renovation/reconstruction project under BT contract shall be conducted in accordance with the law on housing and relevant laws.

Chapter II

RIGHTS AND OBLIGATIONS OF INVESTORS AND OCCUPIERS, PROCEDURES FOR EXECUTION OF RENOVATION/RECONSTRUCTION PROJECTS

Session 1. PROCEDURES FOR EXECUTION OF RENOVATION/RECONSTRUCTION PROJECTS

Article 6. Investigation, surveys and quality inspection of apartment buildings

1. The Department of construction shall take charge of and cooperate with local competent authorities to investigate and survey the status of the apartment whose useful life expires under regulations of laws on construction or run-down apartment buildings within its administration and shall inspect the quality of such apartment buildings.

The inspection of quality of such apartment buildings shall be conducted in accordance with laws on quality control of construction works.

The Ministry of Construction shall release guidance on risk assessment of apartment building structure and procedures for inspection of the apartment building quality.

2. With regard to a run-down apartment building which needs demolishing to be upgraded and rebuilt, the Department of Construction shall issues the inspection conclusion of the apartment building quality and request the People’s Committees of the province and central-affiliated cities (hereinafter referred to as People’s Committee of the province) to notify occupiers of such apartments of the inspection conclusion in writing. The written inspection conclusion shall be published on the portal of the People’s Committee of the province and the portal of the Department of Construction and shall be posted at least once on the local press of the apartment building.

The written inspection conclusion shall give a clear conclusion of the run-down apartment building or the dangerous apartment building under guidelines of the Ministry of Construction regulated in clause 1 of this Article.

3. In the event that an apartment complex whose plan for reconstruction is approved by the State competent authorities has at least 01 block that needs demolishing to be reconstructed according to the written notification of the People’s Committee of the province and many wear-and-tear blocks beyond the demolition, the whole apartment complex shall uniformly be rebuilt according to the renovation/reconstruction plan approved by the People’s Committee of the province.

Article 7. Development and announcement of plans for renovation and reconstruction of apartment buildings

1. After the quality inspection of the apartment building, the Department of Construction shall develop a renovation/reconstruction plan within its administration and submit it to the People’s Committee of the province to approve. The renovation/reconstruction plan shall be published on the portal of the People’s Committee of the province, the portal of the Department of Construction at the head offices of the People’s Committee of the district and the People’s Committee of the commune in a period of at least 30 days, and concurrently notified to residents within the scope of the project of the aforesaid plan.

Where any feedback on the renovation/reconstruction plan, the Department of Construction shall review and respond to such feedback within the period of 15 working days from the date of receipt of such feedback.

Where any supplementation or adjustments of the renovation/reconstruction plan, the Department of Construction shall propose a plan for such supplementation and submit it to the People’s Committee of the province to review for approval within its jurisdiction.

2. The renovation/reconstruction plan may be made and approved independently of the local housing development plan or may be developed in combination of the local housing development plan.

3. The renovation/reconstruction plan which must be demolished to be reconstructed stipulated in Article 110 of the law on housing includes:

a) A list of run-down apartment building, dangerous apartment buildings and apartment buildings which must be demolished to be reconstructed to achieve the uniformity across demolished apartment buildings according to the construction planning approved by the State competent authorities;

b) The scope and geographical limitation of renovation and reconstruction of the apartment building;

c) Primary criteria of planning – architecture of the renovated and reconstructed area (the height of works; building density, floor area ratio);

d) Estimates of capital distribution, forms of capital mobilization for renovation and reconstruction of apartment buildings;

dd) Duration of a renovation/reconstruction project and its schedule;

e) Responsibilities of relevant organizations and individuals for the plan implementation.

4. According to the renovation/reconstruction plan approved and published by the People's Committee of the province, the occupier of the apartment building that must be demolished to be reconstructed shall select a real estate enterprise to invest in or contribute capital to the renovation/reconstruction project under Article 9 of this Decree.

5. With respect to run-down apartment buildings and apartment buildings which may not be demolished but are included to be reconstructed to achieve the uniformity across demolished apartment buildings regulated in clause 1 and clause 2 of Article 110 of the law on housing, if occupiers of such apartment buildings fail to appoint a real estate enterprise being the investor of the project within a period of 12 months from the date of announcement of the renovation/reconstruction plan of the People’s Committee of the province, the People’s Committee of the province shall forcibly demolish the apartment building and execute the plan as regulated in clause 2, Article 113 of the law on housing.

6. With regard to dangerous apartment buildings, if the occupiers of such buildings fail to select a real estate enterprise being the investor of the project within 03 months from the date of urgent evacuation for demolition, the People’s Committee of the province shall invest in renovation and reconstruction of the apartment building as regulated in clause 2, article 113 of the law on housing.

Article 8. Renovation/reconstruction planning

1. The planning on renovation and reconstruction of apartment buildings (hereinafter referred to as renovation/reconstruction planning) shall ensure the uniformity across all technical infrastructures, social infrastructures and the connection with neighboring areas; ensure sufficient area and space (including underground works) for public services.

2. The development, appraisal, approval and adjustment to planning in the areas of renovation and reconstruction of apartment buildings shall comply with regulations of laws on urban planning and laws on construction;

3. According to the renovation/reconstruction plan approved and published by the People's Committee of the province under Article 7 of this Decree, the People's Committee of the province shall review the renovation/reconstruction planning under following regulations:

a) With respect to an apartment building that must be demolished to be renovated and reconstructed located in approved zoning plans (ratio 1/2000 or 1/5000) without any adjustments or addition, the execution of the plan shall:

- In case of an apartment complex or detached apartment building with the area of less than 2 hectares, the investor shall develop the investment renovation/reconstruction project of the apartment building under regulations of laws on construction planning and laws on construction and does not need develop any detailed planning;

- In case of the apartment building with the area of above 2 hectares, the investor shall develop a detailed planning (ratio 1/500) and submit it to competent authorities to approve under regulations of laws on urban planning prior to the development of the renovation/reconstruction project of the apartment building.

b) Where an apartment building need demolishing for renovation and reconstruction as the locality of approved zoning plans (ratio 1/2000 or 1/5000) and detailed planning (ratio 1/500) or the existing zoning plan and detailed planning, which need adjusting and supplementing, the investor of the project shall apply for planning permission for the area of the renovated and reconstructed apartment building under regulations of laws on urban planning prior to development of the renovation/reconstruction project of the apartment building.

4. Within 30 days from the day on which the detailed planning on reconstruction of the apartment building under clause 3 of this Article is approved, the Department of Construction (or Department of Planning and Architecture, if any) shall publish the detailed planning on the portal and at the head office of Department of Construction, head offices of the Department of Planning and Architecture, the People’s Committee of the province and the People’s Committee of the commune in a minimum period of 30 days.

5. According to the overall planning and detailed planning of the area of renovated and reconstructed area approved by competent authorities, the People’s Committee of the province shall decide to give permission for adjustment to the floor area ratio, the height of the works to ensure the connection with infrastructure system, the harmony of architectural space according to the approved planning and the effectiveness of the project.

In case of adjustments to increase in the floor area ratio and the height of the works in the inner city under the scope of limitations of high-rise building, building density and residential density, according to the overall planning approved by competent authorities, such adjustments shall be reviewed and approved by the Prime Minister.

6. Published items of the detailed planning on renovation and reconstruction of an apartment building:

A) The name of the apartment building and detached apartment building;

b) The location of the project;

c) The realities, characteristics of the current area, boundaries, area of land and population of the area in the scope of the project;

d) Criteria related to planning and architectures after the renovation and reconstruction: The height of works; the floor area ratio; building density; the area of housing and commercial & service works; technical and social infrastructures, plantations and public works (if any); requirements for architectural space organization; landscapes, environment, standards and tie-in works in urban technical infrastructure (including underground works);

đ) The duration and schedule of the project and stages of investment (if any)

Article 9. Selection of investors in renovation/reconstruction projects

1. Procedures for selection of an investor that is a real estate enterprise investing in or contribute capital to renovation and reconstruction of an apartment building under clause 1, Article 5 of this Decree:

a) After the announcement of the renovation/reconstruction plan under regulations in clause 1, clause 2 and clause 3, Article 37 of this Decree, the People’s Committee of the province shall direct the Department of Construction to make a list of real estate enterprises qualified for being the investor and send it to occupiers of apartment buildings that must be demolished to be reconstructed;

a) The list of real estate enterprises qualified for being the investor made by the Department of Construction shall be published at the head office of the People’s Committee of the province and at population groups as the locality of the apartment building in at least 15 working days prior to the apartment building meeting;

c) In addition to the real estate enterprises in the list recommended by the Department of Construction, other real estate enterprises may directly register with the occupier of the apartment building that must be demolished to reconstructed for being introduced at the Apartment building meeting;

d) The management board of the apartment building or the People’s Committee of the district (for an apartment building that has no management board) shall send invitations to the occupier of the apartment building in order to hold an apartment building meeting with the aim of selecting an investor. The investor shall be selected based on following principles:

- The selection of the investor shall be voted under the majority rule, and shall be made on record with the signatures of chairpersons and the secretary of the Meeting of the apartment buildings;

- With regard to an apartment building in which a part of demolished area belongs to the State, the representative of this area shall attend the apartment building meeting;

- Consultants may be invited to attend the apartment building meeting to give advice on selection of investors. Cost for hiring consultants shall be negotiable and paid by the occupiers;

- At least 70% of the total number of the apartment owners building shall attend the apartment building meeting;

- The occupiers shall recommend a potential investor based on applications for project bidding and plans for compensation, relocation and assistance proposed by the real estate enterprise. An application for project bidding shall be made in accordance with the guidance of the Ministry of Construction and shall be enclosed with a plan for renovation, assistance and relocation as regulated in Article 116 of the law on housing and clause 1, Article 14 of this Decree.

dd) If there is only one real estate enterprise registering for project bidding and it receives 51% of the total vote from the apartment owners, the People’s Committee of the province shall consider appointing it as the investor.

e) If there are more than one real estate enterprise registering for project bidding, the People’s Committee of the province shall consider appointing the one that receives the highest number of vote from the occupiers who attend the apartment building meeting;

g) If there are more than 03 real estate enterprises applying for the project, the management board of the apartment building (or representatives of the occupiers where management boards have not established yet) shall take charge of and cooperate with consultants (if any) to select up to 03 real estate enterprises to report to the apartment building meeting;

h) If the first apartment building meeting fails to select an investor, the management board or the People’s Committee of the district shall hold the second apartment building meeting, within 30 days from the day on which the first meeting takes place, to appoint an investor and adopt a plan for compensation, assistance and relocation under point d of this Clause;

i) After an investor is selected, chairpersons shall submit a report on proposed selection of the investor and the plan for compensation, relocation and assistance drawn by the selected real estate enterprise to the Department of Construction where the project is located.

Within 20 working days from the date of receipt of the report, the Department of Construction shall appraise the selection of the investor and the plan for compensation, assistance and relocation and submit to the People’s Committee of the province. Within 10 working days from the date of receipt of the appraisal document of the Department of Construction, the People’s Committee of the province shall review and issue an acceptance document of the investor and the plan for compensation, assistance and relocation.

k) After the People’s Committee of the province issued the decision on acceptance of the investor and the plan for compensation, assistance and relocation of, all occupiers (including those who object to the approved plan) shall comply with the plan and the investor approved by the People’s Committee of the province; the People’s Committee of the province shall forcibly displace those who disobey the appointed investor and the approved plan for compensation, assistance and relocation;

l) After 90 days from the date of issuance of acceptance document of the investor, the investor; however, fails to execute the project in accordance with regulations of laws on construction and law on housing due to the investor’s faults, the People’s Committee of the province shall withdraw the acceptance document and direct to hold another Apartment building meeting to select another investor.

2. If the State directly invests in renovation and reconstruction of the apartment building under point a, clause 2, Article 5 of this Decree, the Department of Construction shall request the People’s Committee of the province to select the investor under regulations of laws on public investment, laws on housing and other relevant laws;

3. In the event of the State offers a BT contract to the investor under point b, clause 2, Article 5 of this Decree, the Department of Construction shall select an investor by bidding or direct contracting under regulations of the law on housing and law on bidding.

Article 10. Development, appraisal, approval and execution of renovation/reconstruction projects

1. The development, appraisal, approval and execution of a renovation/construction project shall be complied with regulations of the laws on construction and relevant laws;

2. The application and procedure for approval for a renovation/reconstruction project shall comply with regulations of laws on investment, the law on housing and other relevant laws;

3. The execution of a renovation and reconstruction project, from the stage of design, construction, and acceptance to operation within the scope of the project shall comply with regulations of laws on construction and relevant laws;

Article 11. Demolition of apartment buildings

1. If a real estate enterprise invests in or contributes capital together with the occupiers to renovation and reconstruction of an apartment building under clause 1, Article 5 of this Decree, the investor of the project shall execute the demolition as follows:

a) If the investor is capable of construction, the investor shall demolish the apartment building on their own or hire a capable entity carry out the demolition;

b) Prior to demolition, the investor shall develop a plan for demolition of the apartment building under point c of this clause and submit it to the Department of Construction to review for approval. The Department of Construction shall appraise and approve for the plan for demolition within 30 day from the date of receipt of the plan for demolition of the apartment building of the investor;

c) Main items in the plan for demolition:

- The name of the project (or works);

- The location of the project

- The workload, quantity and scale of the works which need demolishing;

- Technical solutions and construction;

- HSE measures;

- The number of workers, types of construction vehicles and equipment used for demolition;

- Demolition duration and progress;

- Other relevant items (if any).

2. If the State invests in renovation and reconstruction of the apartment building under clause 2, Article 5 of this Decree, the investor appointed by the People’s Committee of the province shall responsible for demolishing this apartment building according to the process and procedure regulated in clause 1 of this Decree.

3. If a dangerous apartment building is forcibly demolished under the Decision of the People’s Committee of the province, the Department of Construction shall propose a plan for movement, temporary relocation and enforcement measures for urgent demolition to submit to the People’s Committee of the province.

Section 2. RIGHTS AND RESPONSIBILITIES OF INVESTORS AND OCCUPIERS FOR EXECUTION OF RENOVATION/RECONSTRUCTION PROJECTS

Article 12. Rights and responsibilities of investors of apartment buildings for execution of renovation/reconstruction projects

1. Rights of investors in renovation/reconstruction projects:

a) Request relevant organizations and authorities to comply with procedures for development, appraisal and execution of a renovation/reconstruction project regulated in Vietnam laws;

b) Enter into agreements on lease, lease purchase and sale of housing and service works (if any) within the scope of the project; raise capital, collect payments from such agreements under regulations of the law on housing and laws on real estate trading in respect of service works that the investor is permitted to do business and the remaining area of the house after relocation as agreement signed with the occupier of the apartment building and approved by the People’s Committee of the province;

c) Manage and operate technical infrastructure system within the scope of the project under the decision on investment in the project issued by the State competent authorities;

d) Request the State authorities competent to issue the Certificate to houses in the scope of the project to accommodate the occupiers at the old site; be permitted to transfer his/her houses and construction works to other occupiers under the law on housing and law on real estate trading;

dd) Receive assistance in forms of capital and temporary housing (if any) from the People’s Committee of the province and incentives during the execution of the project as regulated in this Decree and relevant laws

e) Have other rights regulated in laws on construction, laws on land and relevant laws.

2. Responsibilities of investors in renovation/reconstruction projects:

a) Take responsibilities of an investor regulated in clause 1,2,3,4,5,6,7,8,9 and 10, Article 26 of the laws on housing;

b) provide temporary housing, assistance and compensation for the occupiers of the demolished apartment building under regulations of the law on housing, this Decree and other relevant laws;

c) Fulfill financial obligations and others under regulations of this and relevant laws.

Article 13. Rights and responsibilities of occupiers of apartment buildings in renovation/reconstruction projects

1. Rights of occupiers:

a) Participate in selecting real estate enterprises investing in or contribute capital to the renovation/reconstruction project;

b) Select forms of compensation and accommodate relocation at the site or relocation housing and other items regulated in Article 14 of this Decree.

c) Receive the Certificate issued by competent authorities under regulations of laws on relocated housing;

d) Participate in supervising the execution of the project as regulated in laws;

đ) Request the competent authority to change the investor and receive compensation for damage in the event that the investor fails to deliver the scope and the schedule of the project under the decision on investment approved by the State competent authorities. The replacement of the investor shall be adopted at the apartment building meeting and reported to the People’s Committee of the province.

2. Responsibilities of occupiers:

a) Move out to facilitate the demolition of the apartment building and construction works within the scope of the project approved by the competent authorities.

b) Enable the investor and contractors to execute the projects within the scope approved by competent authorities;

c) Follow procedures for obtaining Certificates under regulations of laws.

Article 14. Plans for compensation, assistance and relocation

1. A plan for compensation, assistance and relocation for real estate enterprises that invest in or contribute capital to the renovation/reconstruction project together with the occupiers:

a) The plan for compensation, assistance and relocation shall specify information of the occupiers:

- Full name and address of the occupier;

- The area of the old apartment and others (if any), the location of the apartment of the owner of the apartment building; if the old apartment has patio ancillary works according to the initial design, the area of the ancillary works shall be aggregated with the area of the old apartment for arranging relocation;

- The number of household registration books and residents in the demolished apartment building that need relocation;

- Relocation accommodation: the area and location of the new apartment of the occupier (the occupier shall not pay for the new apartment); the area and location of the additional apartments that the occupier is allowed to buy (if any) if he/she has 2 registration books or more;

- Arrangement for temporary relocation: competent authorities shall assist in forms of cash or accommodate temporary housing (specify the area and location of the temporary apartment of the occupier);

- Other items related to relocation accommodation and temporary relocation mutually agreed by the real estate enterprise and the occupier (if any).

b) The poll on plan for compensation, assistance and relocation shall be conducted together with the selection of the investor at apartment building meeting as regulated in clause 1, Article 9 of this Decree.

c) Procedures for application for compensation, assistance and relocation shall be conducted together with the application for renovation/reconstruction project under regulations in clause 1, Article 9 of this Decree;

d) According to the plan for compensation, assistance and relocation approved by the People’s Committee of the province, the real estate enterprise and the occupier shall sign an agreement on relocation and temporary relocation which is made using the form released by the Ministry of Construction with the occupier.

2. Compensation, assistance and relocation with respect to renovation/reconstruction projects invested by the State:

a) The investor, selected by People’s Committee of the province, shall prepare a plan for compensation, assistant and relocation for the occupier and send it to the Department of Construction. The Department of Construction shall appraise this plan prior to submission to the People’s Committee of the province. Items in the plan for compensation, assistance and relocation:

- The full name and address of the occupier;

- The number of registration books and residents in the demolished apartment building that need relocation;

- The area of the old apartment and others (if any), the location of the apartment of the apartment building; if the old apartment has the patio ancillary works according to the initial design, the area of the patio ancillary works shall be aggregated with the area of the old apartment for arranging relocation;

- Relocation accommodation: the area and location of the new apartment of the occupier (the occupier shall not pay for this apartment); the area and location of the additional apartments that the occupier is allowed to buy (if any) in case he/she has 2 registration books or more;

- Basis of assessment on relocation accommodation: the price of the old apartment, the difference between the price of the old apartment and the price of the new one;

- Provision of temporary relocation: competent authorities shall provide assistance assist in forms of cash or arrange temporary housing (specify the area and location of the temporary apartment of the occupiers);

- Other relevant items (is any).

b) The Department of Construction shall appraise the plan for compensation, assistance and relocation and request the People’s Committee of the province to approve for this plan within 10 working days from the day of receipt of the plan for compensation, assistance and relocation; The People’s Committee of the province shall consider approving the plan for compensation, assistance and relocation within 07 working days from the day of receipt of the plan appraisal document of the Department of Construction;

c) In case of dangerous apartment buildings which need immediately demolishing, the People’s Committee of the province shall direct the enforcement of demolition of such apartment building under regulations in clause 3, Article 11 of this Decree. After the demolition, the investor selected by the People’s Committee of the province shall make a plan for compensation, assistance and relocation and submit it to the People’s Committee of the province. The procedure for the development of the plan for compensation, assistance and relocation shall be conducted in accordance with regulations in point a and point b of this clause.

3. If the occupier does not require settling in at the old site, the relocation accommodation shall be conducted in accordance with regulations in Article 38 of the law on housing. If the occupier requires compensation in cash and has a demand to get a social house through purchase, leasing out or lease purchase agreements, this case shall be dealt with in accordance with the law on social house management and development.

4. With regard to social infrastructure in the scope of the project (if any), the compensation and assistance shall be given in accordance with regulations of laws on land.

5. For works which are expanded without permission or constructed on the illegal occupied land shall only receive assistance under regulations of the on land and shall not be given compensation. For those who are eligible for social houses through purchase, leasing out or lease purchase agreements shall be deal with in accordance with the laws on housing;

6. Expenditures on temporary accommodation shall be included in the renovation /construction project.

Chapter III

REGIMES AND POLICIES ON INVESTMENT PROJECTS IN RECONSTRUCTION OF APARTMENT BUILDINGS

Article 15. Policies on land

A real estate enterprise being the investor of a renovation/reconstruction investment project shall:

1. Receive land given by the State and permission for land use change within the scope of the renovation/reconstruction project under regulations of laws on land.

2. Procedures for land withdrawal, land given, land- use repurposing of an apartment building that must be demolished to be reconstructed shall comply with regulations of laws on land.

3. Repurpose part of the project area to do business and/or service in conformity with investment policies approved by the State competent authorities.

4. Exemption from land levies, land rent, and fees for land repurposing on the whole land given to the project (including the land area permitted to be repurposed mentioned in clause 3 of this Article).

Article 16. Policies on invested capital mobilization

1. A real estate enterprise is the investor of a renovation/reconstruction investment project shall be funded from:

a) The equity of the investor;

b) Capital from capital contribution, investment cooperation, business cooperation, joint-ventures and associations of organizations, households and individuals;

c) Payments for apartment lease/ rent and/or purchase of off-the-plan housing in the remaining of the area (after relocation) and business areas (if any) within the scope of the project;

d) Loans granted by credit institutions and financial institutions operating in Vietnam;

dd) Loans granted by housing development funds and other local funding (if any).

2. In case of an occupier who receives a new apartment must pay for the difference in area, this occupier is entitled to take loans from a credit institution, financial institution in Vietnam, housing development fund and other funding of the locality (if any) under regulations of laws on credit and laws on finance.

3. The investor is permitted to business in the remaining area (after relocation) and areas for business and/or services (if any) within the scope of the project according to the approved planning and investment decision issued by the competent authorities.

Article 17. Other incentives

The investor shall:

1. Be allowed to adjust the floor area ratio and the height of the apartment building under regulations in clause 5, Article 8 of this Decree.

2. Receive complimentary design patterns, classic design, home designs and advanced techniques in construction to lower the cost of construction; be allowed to make such design or apply technological advances themselves is capable

3. Be directly awarded contracts that need immediately executing under laws on bidding.

4. Free the occupier who is given a new house as compensation from the registration fee for application for the Certificates under regulations of laws on registration fee.

5. Tenant of apartments in state-owned apartment building (which has not been transferred into the individual ownership) that shall be demolished to be renovated and reconstructed may:

a) Leased a new apartment (after the renovation and reconstruction) whose area is equivalent to that of the old one;

b) Buy a new apartment as regulated in laws on management and use of state-owned apartments;

c) Buy, lease, lease purchase a social housing within the scope of project under regulations of laws on housing (if necessary).

6. If a real estate enterprise is selected as the investor in the renovation/reconstruction project by the People’s Committee of the province as regulated in clause 2, Article 9 of this Decree, this real estate enterprise shall receive a limit quota of 10% the total investment volume of the project.

Chapter IV

TERMS OF IMPLEMENTATION

Article 18. Transitional provisions

1. If the application for the investment policy or investment decision on renovation / re-construction investment projects is submitted before the day on which this Decree takes effect, and no official dispatch or investment decision is issued, the decision on investment according to regulations of laws on housing and this Decree shall apply.

2. Any renovation/reconstruction project which is approved before the day on which this Decree takes effect shall not be repeatedly approved under regulations of Month his Decree.

3. In case, the owner completes the application for approval for the renovation/reconstruction project on the day on which this Decree takes effect, this application; however, is still not approved by competent authorities, the approval for this application shall be conducted under regulations of the law on housing and this Decree; if the competent authorities approve for a plan for compensation, assistance and relocation before the day on which this Decree takes effect, this plans shall be executed as approved.

4. Where the investor of a project is determined, but this investor is still not approved by competent authorities up to the day on which this Decree takes effect, the selection of an investor and procedures for approval for the plan for compensation, assistance and relocation shall be implemented under this Decree.

5. Where a project is approved, the investor; however, fails to conduct this project within 12 months from the date of the approval or this projects is executed with 24 months behind the schedule due to the investor's faults, the People’s Committee of the province shall withdraw the project and transfer it to another investor under regulations of this Decree.

6. With regard to an on-going renovation/reconstruction project that its investor receives a lower incentives than that regulated in this Decree, the investor shall benefit from incentive policies and regimes under this Decree.

Article 19. Responsibilities for implementation

1. The Ministry of Construction shall:

a) Issue regulations on detailing risk assessment on apartment building structure and procedures for quality inspection of apartment buildings under regulations in clause 1, Article 6 of this Decree; detail an application for project bidding as stipulated in point Article, clause 1, Article 9 of this Decree; specify the scope and form of relocation accommodation contract in accordance with point Article, clause 1, Article 14 of this Decree.

b)Take charge of and cooperate with relevant Ministries and Departments to supervise, speed up, examine and periodically report on renovation and re-construction of the apartment building to the Prime Minister;

c) Amend and supplement policies related to demolition, renovation and reconstruction of apartment buildings.

2. Ministries and Departments with relevant functions and responsibilities shall be assigned to issue or amend regulations related to demolition, renovation and reconstruction of apartment buildings, within its jurisdiction.

3. People’s Committees of provinces shall:

a) Arrange budgets and direct competent authorities to investigate, survey and inspect quality control on apartment buildings within its administration, including detached apartment buildings, expired apartment buildings, run-down or dangerous apartment buildings;

b) Direct functional authorities to develop and appraise or adjust the urban planning and construction planning to facilitate the renovation/reconstruction project;

c) Make a renovation/reconstruction plan within its administration under regulations of this Decree, approve, announce and report this plan to the Ministry of Construction;

d) Develop, evaluate and approve the planning and arrange land for construction of relocation housing for households and individuals whose apartments are subject to removal;

dd) Issue specific policies on renovation and reconstruction of apartment buildings according to the reality of the province;

e) Evict an occupier from his/her apartment building in case he/she disobeys the determination of the investor and the plan for compensation, assistance and relocation approved by the People’s Committee of the province; Execute assigned duties, within its jurisdiction, regulated in this Decree and relevant laws.

Article 20. Entry into force

1. This Decree comes into effects from December 10, 2015.

2. The Resolution No. 34/2007/NQ-CP on renovation and reconstruction of run-down or degrade apartment buildings dated July 03, 2007 by the Government shall be void and null from the day on which this Decree takes effect.

3. In case of the scope of works related to demolition, renovation and construction of apartment buildings which is regulated in Decrees of the Government, Decisions of the Prime Minister and other legal normative documents issued before the day on which this Decree takes effect by Ministries, Departments and People’s Committees of provinces and against regulations on the scope of this Decree, the scope of this Decree shall prevail.

Ministers, heads of ministerial-level agencies, heads if governmental agencies, Chairman of People’s Committees of shall be responsible for the implementation of this Decree. /.