Housing Function Conversion Procedure in Vietnam

The housing function conversion procedure in a provincial-level project allows an investor to adjust the intended use of a residence to meet actual market demands. This process requires strict adherence to conditions regarding planning, construction, and related financial obligations. This article will detail the conditions, competent authorities, dossier requirements, and implementation process according to current legal regulations.

Conditions for the Housing Function Conversion Procedure

The conversion of housing function within a provincial-level project must comply with strict conditions to ensure no impact on the general planning and regional infrastructure. These conditions are regulated to tightly control changes in use, ensuring the converted housing still meets safety and quality standards. The investor must demonstrate the necessity and feasibility of the conversion.

According to Subsection 2.10, Section II.2, Part II of Decision No. 891/QD-BXD of 2024, the specific conditions are as follows:

• The housing has been accepted for use according to construction laws but has not yet been occupied.
• The converted housing must comply with Clause 2, Article 124 of the Law on Housing 2023 and Article 49 of Decree 95/2024/ND-CP.
• Function conversion is only applicable to housing specified in Clause 1, Article 124 of the Law on Housing 2023; for apartment buildings, a part or the entire building may be converted.
• The conversion must not alter the technical and social infrastructure systems of the area, must comply with construction standards and regulations, and fulfill financial and tax obligations for the converted property as stipulated by laws on land, housing, and taxation.
• The converted housing must have the same construction investment capital source as the post-conversion housing.

>>> See more at: Investing in Project Land: A Guide

Competent Authorities for Resolution

According to Subsection 2.6, Section II.2, Part II of Decision No. 891/QD-BXD of 2024, the authority to resolve the procedure is decentralized as follows:

• Decision-Making Authority: The provincial-level People’s Committee is the highest authority responsible for reviewing and issuing the final written approval for the housing function conversion.
• Direct Implementing Agency: The Department of Construction is the specialized agency that receives the dossier from the investor. The Department of Construction is responsible for checking and appraising the dossier’s validity, then reporting and submitting it to the provincial-level People’s Committee for consideration and decision.

Thus, the process involves two levels. The investor works directly with the Department of Construction for dossier submission and completion, while the final approval is issued by the provincial-level People’s Committee.

Procedure for Housing Function Conversion

The procedure for converting housing function follows specific steps, from dossier preparation and submission to receiving the final decision. Adhering to this process is crucial for obtaining approval. Investors need to understand each stage to be proactive in preparation and monitoring.

Dossier Components

The dossier for housing function conversion must be prepared completely and accurately. Based on Subsection 2.3, Section II.2, Part II of Decision No. 891/QD-BXD of 2024, the investor needs to prepare one set of documents including:

• A written request for housing function conversion, made according to Appendix IV issued with Decree No. 95/2024/ND-CP.
• A housing function conversion plan detailing: the address and quantity of housing to be converted; the reasons and necessity for conversion; implementation timeline; the type of housing after conversion; a plan for management and use post-conversion (lease, lease-purchase, or sale); responsibilities of individuals and organizations involved; and fulfillment of financial obligations (if any).
• A legally valid copy (certified copy or electronic copy) of: the decision or approval of the project investment policy from the competent authority, and documents on the acceptance of the housing for use according to construction laws.

>>> See more at: Form Appendix IV issued together with Decree No. 95/2024/NĐ-CP.

Submission Methods

Based on Subsection 2.2, Section II.2, Part II of Decision No. 891/QD-BXD of 2024, investors can choose the most convenient method to submit their dossier to the competent authority. Permitted submission methods include:

• Direct submission.
• Submission via postal service.
• Online submission through electronic platforms.

The dossier is submitted to the provincial Public Administration Service Center or the dossier reception unit of the Department of Construction.

Implementation Steps

Based on Subsection 2.1, Section II.2, Part II of Decision No. 891/QD-BXD of 2024, the housing function conversion procedure is carried out in 3 main steps with a total resolution time not exceeding 45 days:

• Step 1: Dossier Submission: The investor prepares one complete dossier set and submits it to the Department of Construction where the project is located.
• Step 2: Appraisal at the Department of Construction: Within a maximum of 15 days from receiving a complete dossier, the Department of Construction checks and appraises it. If the dossier meets the conditions, the Department will report to the provincial-level People’s Committee. If not, the Department must issue a written response to the investor, stating the reasons.
• Step 3: Approval at the Provincial-Level People’s Committee: Within a maximum of 30 days from receiving the report from the Department of Construction, the provincial-level People’s Committee will review and issue a written approval for the conversion. If not approved, a written response stating the reasons will be provided.

Fees for the Conversion Procedure

According to Subsection 2.8, Section II.2, Part II of Decision No. 891/QD-BXD of 2024, the procedure for converting the function of housing built in a provincial-level project is not subject to fees. This means the investor will not pay any administrative fees or charges to state agencies throughout the process.

However, investors should note that while there are no state fees, they are still responsible for costs related to preparing the conversion plan, compiling the dossier, and any professional consulting services they choose to use. Additionally, the investor must fulfill all financial obligations related to land and taxes arising from the conversion as required by law.

Consulting Services

The procedure for housing function conversion in a provincial-level project involves complex regulations on housing, construction, land, and finance. To ensure the process is smooth, legally compliant, and time-efficient, using professional consulting services is an effective solution. Long Phan Consulting Company provides comprehensive services to support investors throughout this process.

Our services at Long Phan Consulting Company include:

• Analyzing and assessing the housing’s compliance with conversion conditions.
• Advising on and assisting with the drafting of a detailed and robust function conversion plan.
• Consulting on financial and tax obligations that may arise post-conversion.
• Drafting the official written request for conversion according to legal templates.
• Guiding the collection and preparation of necessary project documents.
• Reviewing, checking, and organizing the entire dossier to ensure its validity before submission.
• Representing the investor to submit the dossier at the Department of Construction.
• Monitoring the processing progress, working with, and providing clarifications to state agencies as required.
• Receiving the written approval for conversion and delivering it to the client.

Frequently Asked Questions

Below are frequently asked questions regarding the procedure for converting the function of housing built in a provincial-level project.

Which agency has the final authority to decide on the conversion of housing function in a provincial-level project?

The provincial-level People’s Committee has the final decision-making authority by issuing the written approval for the housing function conversion. The Department of Construction is the agency that directly receives and appraises the dossier. Legal basis: Subsection 2.6, Section II.2, Part II, Decision No. 891/QD-BXD of 2024.

What is the total processing time for the housing function conversion procedure in a provincial-level project?

The total time to resolve the procedure does not exceed 45 days from the date the competent authority receives a complete and valid dossier. Legal basis: Subsection 2.1, Section II.2, Part II, Decision No. 891/QD-BXD of 2024.

Is there a fee for carrying out the housing function conversion procedure in a provincial-level project?

No. According to regulations, the investor does not have to pay any administrative fees or charges to state agencies for this procedure. Legal basis: Subsection 2.8, Section II.2, Part II, Decision No. 891/QD-BXD of 2024.

What are the main documents required in the dossier for housing function conversion?

The dossier consists of three main components: a written request for conversion based on the prescribed form, a detailed function conversion plan, and copies of the project’s legal documents (such as the investment policy approval and acceptance documents). Legal basis: Subsection 2.3, Section II.2, Part II, Decision No. 891/QD-BXD of 2024.

What is a key prerequisite regarding the condition of the housing to be eligible for function conversion?

A key prerequisite is that the housing must have been fully accepted for use in accordance with construction laws but has not yet been occupied for its original purpose. Legal basis: Subsection 2.10, Section II.2, Part II, Decision No. 891/QD-BXD of 2024.

Conclusion

Executing the housing function conversion procedure for projects at the provincial level provides investors with an opportunity to optimize business efficiency but demands strict adherence to legal regulations. To ensure the process is accurate, swift, and effective, please contact Long Phan Consulting Company via our hotline: 1900636389 for the most professional and comprehensive support.