"Abandoned" resettlement houses will be auctioned
According to the Hanoi Department of Construction, there are 9 resettlement housing projects in the area with a scale of nearly 2,491 units. Of which, 2 resettlement housing construction projects at plot NO15, 16, Thuong Thanh ward (Long Bien district) and the project to build houses B, C in the resettlement area of Tran Phu ward (Hoang Mai district) have been completed but not yet put into use, causing serious waste.
The reason is that some resettlement projects have not been accepted and put into use due to existing problems such as the slow progress of site clearance projects; they are in the preparation, investigation and survey stages; investors with site clearance projects have not submitted to the city to issue a decision to sell houses...
These projects were designed and constructed according to previous regulations and standards. Currently, some regulations and standards have changed, especially regulations on fire prevention and fighting, so they are not qualified for acceptance.
In order to put the resettlement housing projects into effective operation as soon as possible, the Hanoi Department of Construction has reported and proposed to the Hanoi People's Committee a number of specific solutions. In particular, it is requested that localities where the projects are located and the Civil Works Construction Investment Project Management Board urgently coordinate with relevant units to implement procedures to put them into use no later than the fourth quarter of 2024.
The official entry into force of the 2024 Land Law, along with its guiding documents, has opened up conditions for piloting solutions to address the situation of abandoned resettlement housing for a long time.
Solutions to consider
Vice President of Hanoi Real Estate Club - Mr. Nguyen The Diep - said that the newly issued Housing Law 2023 has overcome the problems in previous documents when it specifically regulates resettlement housing on many issues, from development, resettlement housing arrangement to quality management, and conversion of functions. Once the mechanism is in place, Hanoi City needs to study solutions to resolve the situation of abandoned resettlement apartment buildings in the past. However, if the quality of the project is not guaranteed and the surrounding facilities are not commensurate, it will not be able to attract people to live there.
According to Ms. Hoa Dung - Director of Business and Communications, Con Bap Eco-Tourism Company, the livable real estate market depends on policy mechanisms, Hanoi's plan to auction "abandoned" resettlement houses is very reasonable: "Businesses are stuck in many policy mechanisms, removing policies for resettlement houses has helped businesses overcome difficulties and people can buy houses".
According to Ms. Dung, the auction of resettlement housing projects is a welcome option as it brings good revenue to the budget. However, it is necessary to carefully consider the organization plan as most resettlement housing projects have their own problems. In particular, the key issue is still the quality of the project.
According to lawyer Nguyen Duc Toan (Vimax Asia Law Firm, Hanoi Bar Association), regarding procedures, there is a legal framework for transferring types of resettlement housing belonging to public assets for public auction, stipulated in Point d, Clause 1, Article 124 of the 2023 Housing Law and Article 57 of Decree No. 95/2024/ND-CP detailing a number of articles of the Housing Law. However, this is not a simple procedure with many steps to take.
The law stipulates that the resettlement housing fund must not meet the conditions for conversion to social housing, then the investor must submit the project to the People's Committee of the province where the project is located to report to the Prime Minister for consideration and approval to allow the auction of this housing according to the provisions of Clause 3, Article 57 of Decree 95/2024/ND-CP.
“There is still no clear guidance on how to determine what a resettlement housing fund is that is “not eligible to be converted to social housing”. On the other hand, the legal procedures to submit to the Prime Minister for approval to auction houses may go through many appraisal and review procedures from ministries and branches,” said lawyer Nguyen Duc Toan.
