Authorized by the Prime Minister, Minister of Construction Tran Hong Minh presented directions for amending the Housing Law to the National Assembly on the morning of 19/8.

The minister stated that the draft law comprises 13 chapters and 132 articles, reducing the total by 66 articles (32%) compared to the current law. The government aims to add 6 policies to the draft, including provisions on housing ownership.

According to the submission, the government proposes regulations for "limited-term apartment buildings" based on the lifespan of the construction, linked to guaranteed property rights. Additionally, apartment owners will fulfill financial obligations to reconstruct the apartment building once its term expires. This proposal aims to concretize the Party's viewpoint in Resolution 21 regarding directions for amending the Land Law and related laws.

In the draft law, the lifespan of apartment buildings is determined by design documents and actual usage time, based on inspection conclusions. This regulation is similar to the current Housing Law.

However, the draft law specifies more details regarding the rights and responsibilities of apartment owners when the structure is demolished. Regarding compensation and resettlement plans, the draft expands compensation options for owners of old apartment buildings (built before 1994).

Under current regulations, when old apartment buildings are reconstructed, apartment owners can receive resettlement housing or money. In the draft, the government proposes that apartment owners have additional options: social housing or land use rights equivalent to the value of resettlement housing.

For apartment buildings not built before 1994, according to the draft, owners have the right to continue using the land area with the apartment building to self-renovate or reconstruct through financial contributions.

The expected contribution amount is calculated based on the ratio of the apartment's usable area multiplied by the new construction investment rate per square meter of floor space at the time of demolition. The specific amount will be outlined in the compensation and resettlement plan and can be paid in installments or as a lump sum after the apartment handover.

If apartment owners do not wish to contribute funds for reconstruction, they may be compensated for the value of the land use rights associated with the apartment building. The compensation amount is calculated based on the land use rights allocation ratio at the time of the apartment building's demolition.

Minister of Construction Tran Hong Minh at the session on the morning of 19/8. Photo: National Assembly Electronic Information Portal

The National Assembly's Law and Justice Committee agreed with the 6 policy groups the government proposed adding to the amended Housing Law draft. Mr. Phan Chi Hieu, Chairman of the Law and Justice Committee, stated that the draft law introduced a new concept: "limited-term apartment buildings". However, according to the verification agency, the remaining articles of the draft law do not use this term, only stipulating "lifespan of apartment buildings".

"This concept essentially inherits the provisions of the 2023 Housing Law," the Committee stated, and simultaneously requested the drafting agency to consider adding the concept of "limited-term apartment buildings" to the draft to avoid different interpretations related to "lifespan of apartment buildings".

The National Assembly is expected to review and approve the amended Housing Law draft at its session in october.

Anh Tu