Minister of Finance: Without controlling the maximum selling price, social housing to fall into the commercial channel

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The National Assembly listens to the Chairman of the National Assembly's Law Committee, Hoang Thanh Tung, presenting the report on verifying the Housing Law (amended) project. Photo: Quochoi.vn

Towards the goal of 1 million social housing

At the meeting on June 5, 2023, presenting the project of the Housing Law (amended), Minister of Construction Nguyen Thanh Nghi said that the purpose of building the Housing Law (amended) is to promptly institutionalize the guidelines of the Party and the State in the development of housing for the people, especially the low-income people and people with low incomes, who are unable to create housing according to the market.

Minister Nguyen Thanh Nghi also shared that the construction of the Housing Law Project (amended) has inherited the current regulations that are still appropriate, and at the same time, legalizing regulations related to housing development, management, and use has proven effective in practice. Along with that is continuing to promote decentralization, reforming administrative procedures, and shifting the focus from management by administrative tools to effective use of economic tools to promote housing development...

According to the Government's report, compared with the 2014 Housing Law, the draft Housing Law (amended) has some new points, such as: including several articles on housing development programs and plans in different chapters of the current Law and legislating some contents from Decree No. 99/2015/ND-CP and Decree No. 30/2021/ND-CP.

Amending and supplementing some contents such as construction bases, contents of the National Housing Development Strategy; Strategy formulation period and authority to approve the National Housing Development Strategy; bases, construction requirements and contents of the provincial housing development program; formulating and adjusting the provincial housing development program; the basis for construction and planning period, the content of the provincial housing development plan; formulating, approving and adjusting the provincial housing development plan, cancelling the annual housing development plan.

Minister of Construction Nguyen Thanh Nghi emphasized the review and completion of support policies, incentives, and administrative procedures for social housing, housing for industrial park workers, etc., to facilitate the construction of at least 1 million social houses for workers and low-income people by 2030.

Presenting the inspection report, the Chairman of the Law Committee of the National Assembly, Hoang Thanh Tung, endorsed the comprehensive amendment of the Housing Law. But this agency suggested paying attention to social housing, housing for workers in industrial zones, strong decentralization for local authorities, and ensuring clear responsibilities and conditions for implementation.

Chairman of the Law Committee Hoang Thanh Tung found that the draft Housing Law (amended) has a close relationship with many related laws, such as the Law on Land, the Law on Real Estate Business, the Law on Investment and the Law on Construction ..., therefore, it is necessary to carefully review to avoid overlapping and conflicts in the scope of regulation.

"The State must decide the price of social housing"

After the meeting in the hall, the National Assembly deputies conducted a group discussion on the Housing Law (amended). The majority of the National Assembly deputies agreed with the need to amend the Law to handle violations of housing policies and laws strictly, fundamentally solve problems in the past time in the implementation of policies related to housing as well as ensure synchronization and consistency with other relevant laws such as laws on land, public investment, investment, construction, bidding, urban planning.

However, many National Assembly deputies are interested in issues related to renovating old apartments, determining selling prices, rents, rent purchases, etc.

Accordingly, on determining the selling price, rent, and rent-purchase price of social housing not built by the State, the majority of opinions in the Law Committee agreed with the provisions of the draft Law on expenses included in the selling price to recover the enterprise's investment capital and ensure the legitimate rights and interests of investors. However, to ensure transparency and closeness, this agency proposed to study and clarify "other reasonable costs" included in the selling price or prescribe principles and conditions so that costs can be considered reasonable in the selling price.

Minister of Finance Ho Duc Phoc suggested that the State must decide on the price of social housing.

Speaking at the group, Finance Minister Ho Duc Phoc said there are two types of social housing: houses invested by the State and houses from socialized capital, which is invested by businesses. According to the Minister, if the State invests in social housing, the draft should stipulate that the Provincial People's Committee has the authority to assign the investor to implement and "the one who sets the selling and rental prices".

But the draft amended Law has not yet specified who decides the selling price for social housing invested by enterprises. According to Minister Ho Duc Phoc, if an enterprise invests capital, but the land allocated by the State is clean without collecting land use levy, the State must control the maximum selling price to sell and lease to the right subjects, otherwise will fall into the "channel" of commercial housing.

"The State must decide the price of social housing. Projects invested by the State must be sold at the correct price, and invested enterprises must set a maximum price. When the maximum price is available, businesses will save more and make more profits", emphasized Minister Ho Duc Phoc

In addition, the Minister of Finance also emphasized that the fee for maintenance and management of social housing must be assigned to the Provincial People's Committee for promulgation. Otherwise, each apartment complex sets a fee. Previously, social housing had no more than 5 floors, so it was only necessary to take the stairs, but now it has to take the elevator and more modern infrastructure, requiring the management apparatus to be professional.

Also, with the above issues, participating in the discussion at the group, the Secretary General of the National Assembly, Chairman of the National Assembly Office Bui Van Cuong, said that the construction of worker accommodation is necessary. However, when constructing it is necessary to take into account the essential needs of residents so that there are supermarkets, schools, medical facilities, social services, and cultural institutions in the area to serve the workers' lives, gradually forming a permanent residential area.