Notification of Eligibility for Capital Mobilization through Cooperation for Housing Development

The Notification of Eligibility for Capital Mobilization through Cooperation for Housing Development (via capital contribution, investment cooperation, business cooperation, joint venture, or association) is an important procedure allowing investors to mobilize social resources legally. This procedure requires investors to meet all legal, financial, and documentation conditions under housing and real estate business laws. This article introduces the sequence, dossier, and necessary notes.

Conditions for raising capital through capital contributions, investment cooperation, business cooperation, joint ventures, and partnerships by organizations and individuals.

According to Article 43 of Decree No. 95/2024/ND-CP and Decision 891/QD-BXD (2024), the project must meet specific criteria:

1. Project Type: Belongs to housing development forms under Clause 1, Article 30 of the Law on Housing, excluding projects for constructing infrastructure to transfer land use rights (subdividing plots for sale) for individuals to build their own houses.
2. Land Rights: Must have a decision on land allocation/lease or land use rights. If investment policy approval is simultaneous with investor approval, there must be an approval document and permission to change land use purpose (if applicable).
3. Mortgage Clearance: If the project or housing is mortgaged, capital mobilization is only allowed after deregistering the mortgage or withdrawing the mortgaged asset. This protects capital contributors.

The agency responsible for issuing the notification of eligibility to raise capital for housing development is authorized to do so.

According to Decision 891/QD-BXD (2024), the authority belongs to the Provincial-level.

• Implementing Agency: The Department of Construction is responsible for receiving and processing the procedure.
• Role: Verifying legal papers, ensuring consistency with planning, and publicly announcing eligible projects on its portal (including investor name, location, progress, mobilization form, capital amount, and duration).
• Submission: Investors submit dossiers to the Provincial Public Administration Center or the Department of Construction’s One-Stop Shop.

Required Dossier for the procedure to notify eligibility for fundraising.

The dossier is specified in Subsection 1, Section II, Part II A of Decision 891/QD-BXD (2024), including:

1. Written Request: From the investor (stating investor name, project location, progress, form and amount of capital mobilization, mobilization duration).
2. Land Documents: Decision on land allocation/lease or proof of land use rights.
3. Investment Approval: Investment policy approval document and permission for land use purpose change (for projects with simultaneous investor approval).

Procedure for notifying eligibility to raise capital for housing development.

The process is standardized to ensure timeliness:

Step 1: Submission The investor sends the dossier to the Department of Construction (directly, via post, or online).

Step 2: Appraisal and Notification Within 15 days from receiving the dossier:

• The Department checks legality.
• If eligible: Issues the Notification of Eligibility for Capital Mobilization and publishes it.
• If incomplete: Issues a written request for supplementation within 10 days. The agency cannot return the dossier to restart the process but must guide supplementation.
• Important: If the dossier is valid but the agency does not reply within the time limit, the investor is allowed to sign capital mobilization contracts but bears responsibility for the mobilization; the agency bears responsibility for not notifying.

Consulting services for procedures to notify eligibility for capital mobilization through equity contributions, investment cooperation, business cooperation, joint ventures, and partnerships by organizations and individuals for housing development in Long Phan.

Long Phan Consulting Company provides comprehensive solutions for investors:

• Legal Review: Reviewing land dossiers, investment approvals, and mortgage status; assessing compliance with mobilization conditions.
• Problem Solving: Proposing solutions for mortgage release or land use purpose adjustments.
• Drafting: Drafting the Written Request and perfecting the dossier.
• Representation: Submitting the dossier to the Department of Construction; monitoring progress; explaining issues.
• Contract Advisory: Advising on capital structures; drafting/reviewing Investment Cooperation/Capital Contribution Contracts to protect investor rights and ensure compliance with mobilization limits.

Frequently Asked Questions

Below are some frequently asked questions regarding the procedure for notifying eligibility to raise capital through equity contributions, investment cooperation, business cooperation, joint ventures, and partnerships by organizations and individuals for housing development. Please refer to them:

What is the maximum mobilization limit?

The total capital mobilized (via cooperation, contribution, etc.) plus the enterprise’s equity must not exceed the total investment capital of the project (including land use/rent fees). (Legal Basis: Clause 4, Article 43, Decree No. 95/2024/ND-CP).

Does this apply to plot subdivision projects for self-building?

No. This procedure does not apply to projects constructing infrastructure to transfer land use rights (subdividing plots) for individuals to build their own houses. (Legal Basis: Clause 1, Article 43, Decree No. 95/2024/ND-CP).

Can the investor sign contracts if the Department doesn’t reply after 15 days?

Yes. If the dossier is valid and the deadline passes without a response, the investor may sign contracts but bears full liability. The Department is liable for the failure to notify. (Legal Basis: Clause 3, Article 43, Decree No. 95/2024/ND-CP).

Where is the eligibility information published?

On the Web Portal of the Provincial Housing Management Agency (Department of Construction). (Legal Basis: Clause 3, Article 43, Decree No. 95/2024/ND-CP).

Can profits be distributed via stocks?

Yes. Profit distribution via stocks is legal, provided it complies with enterprise and securities laws. (Legal Basis: Clause 4, Article 43, Decree No. 95/2024/ND-CP).

Conclusion

Compliance with the Notification of Eligibility for Capital Mobilization through Cooperation for Housing Development establishes the legality of cash flows and enhances project reputation. Please contact Long Phan Consulting Company via Hotline 1900636389 for professional support.