Proposal for a series of new incentives to develop affordable housing and rental housing

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The draft revised Housing Law supplements a series of new regulations on affordable commercial housing, rental housing...

The Ministry of Justice is considering and appraising the draft revised Housing Law, drafted by the Ministry of Construction with many important adjustments, aiming to improve the legal framework for housing development, management and use in the new period.

According to Deputy Minister of Construction Nguyen Van Sinh, after more than two years of implementation, the 2023 Housing Law has contributed to completing the legal framework, promoting the development of the housing market and ensuring social security.

However, the current development context has changed a lot, especially the implementation of the two-level local government organization model, the arrangement of administrative units along with the promulgation of many new laws such as the 2025 Construction Law, the 2025 Investment Law, requiring the Housing Law to be amended to ensure the unity and synchronization of the legal system.

Notably, the draft revised Housing Law has added a number of new concepts including: affordable commercial housing, housing for purposes of stay, rental housing and policy housing to determine corresponding policies.

At the same time, the draft supplements regulations on developing affordable commercial housing, such as regulations on project implementation (choosing project investors without auctioning or bidding; allowing the development and adjustment of detailed planning of the project at the same time as the development and adjustment of zoning planning; allowing the simultaneous implementation of a number of construction procedures according to decisions of the Provincial People's Committee; land allocation for a limited time for the project); regulations on incentives for projects (not having to perform the obligation to arrange rental housing, social housing; being entitled to preferential loans; preferential capital mobilization); regulations on land prices of projects calculated according to the land price table.

In addition, the draft stipulates that the type of affordable commercial housing is apartment buildings; the price of affordable commercial housing is determined according to the price calculation method issued by the Provincial People's Committee for each area, suitable to the affordability of the people. At the same time, the draft stipulates that homebuyers are not allowed to resell houses within 5 years from the date of full payment of the house purchase price.

Along with that, the draft adds a new chapter on rental housing development, including: rental housing invested in construction according to projects (regulations on subjects and conditions for renting housing; forms of rental housing development, including the form of rental housing of the National Housing Fund; land reserved for rental housing development; requirements for projects; investment procedures for project construction; incentives for project investors; rental housing prices; management of rental housing); worker dormitories in industrial parks and high-tech parks (regulations on subjects and conditions to enjoy policies to support worker dormitories; requirements for projects investing in building worker dormitories; investors and incentives for projects investing in building worker dormitories; rental prices and management of worker dormitories).

At the same time, the draft decentralization in rental housing development supplements regulations on decentralization for provincial-level People's Committees on the following contents: deciding on the rate of development of rental housing, the rate of development of social housing in commercial housing construction investment projects or swapping social housing implementation obligations to make rental housing; deciding to assign local housing management agencies, local state-owned enterprises or the National Housing Fund to be investors of rental housing construction investment projects.

In addition, the draft supplements incentives for investors of social housing construction projects, housing for people's armed forces in the direction of legalizing the content of Resolution No. 201/2025/QH15 of the National Assembly on compensation, support, resettlement, investment in technical infrastructure systems, creating land funds for social housing development; project construction investment procedures; preferential VAT tax from social housing rental revenue; and at the same time stipulates that in cases where provincial-level People's Committees decide to allocate a proportion of houses for lease of the project greater than the minimum ratio according to the provisions of the Housing Law, investors are entitled to incentives on floor area, land area for commercial housing according to the conversion ratio prescribed by the Government.

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