Hanoi City People's Committee is seeking opinions on the draft Decision promulgating regulations on the conversion between types of housing in the city.
Previously, in the revised Capital Law, the National Assembly allowed Hanoi to switch between types of commercial housing, social housing, and resettlement housing for flexible use, meeting the actual needs of the people.
According to the draft, Hanoi proposes to allow conversion according to 6 groups of cases including: commercial housing to social housing and vice versa; commercial housing to resettlement housing and vice versa; resettlement housing to social housing and vice versa.
Accordingly, commercial housing can become social housing when the project has not been allocated, leased land and has not completed financial obligations.
At the same time, the project investor commits to a maximum profit margin of 10% on the total investment cost of the converted commercial housing part.
Meanwhile, the conversion from social housing to commercial housing is only considered when the project has completed construction investment, meets the conditions for opening for sale but after at least 12 months the product is still not sold out due to low market demand.
The draft also sets a limit for local conversion from social housing to commercial housing not exceeding 20% of the total number of apartments or the total floor area of social housing of the entire project.
For the resettlement housing group, Hanoi proposes to allow conversion to commercial housing or social housing in cases where the housing fund does not have actual use needs for a minimum of 9 months from the date of handover.
Conversely, the city also allows the conversion of commercial housing or social housing to housing for resettlement if a sudden need arises to serve site clearance, urban renovation or reconstruction.
The draft emphasizes that all conversion cases must be approved by the Hanoi People's Committee in writing or a separate decision for each specific project.
The investor must fully fulfill additional financial obligations related to land, land use fees or land rent at market prices at the time of permission to convert.
