Consulting on the rights of investors in projects to renovate and rebuild apartment buildings

Rights of investors in projects to renovate and rebuild apartment buildings ensuring legal and economic benefits, creating a solid foundation to promote project success. The investor is allowed to conduct surveys, plan and organize construction based on compliance with planning, ensuring project quality as well as residents’ rights. In addition, this power also provides the ability to optimize capital resources, increase real estate value, and enhance long-term investment efficiency.

Principles when renovating and rebuilding apartment buildings

Article 5 of Decree 98/2024/ND-CP stipulates the principles for developing plans to renovate and rebuild apartment buildings from August 1, 2024 as follows:

• The People’s Committees of provinces and centrally run cities (hereinafter referred to as provincial-level People’s Committees) may develop and approve plans for renovation and reconstruction of apartment buildings in provincial-level housing development plans in accordance with the provisions of the law on housing; if plans for renovation and reconstruction of apartment buildings are developed in provincial-level housing development plans, they must have the contents prescribed by the law on housing.
• For projects to renovate and rebuild apartment buildings, the Provincial People’s Committee organizes the preparation and approval of plans to renovate and rebuild private apartment buildings according to the provisions of Article 7 and Article 8 of the Decree 98/2024/ND-CP.
• Every 6 months, the provincial housing management agency is responsible for presiding over and coordinating with local authorities and People’s Committees of districts, towns, and cities directly under the province or city. Streets of centrally run cities (hereinafter referred to as district-level People’s Committees) organize the review, inspection and assessment of the quality of apartment buildings according to the provisions of Clause 3, Article 58 of the Law on Housing 2023 above area, as a basis for adjusting the provincial housing development plan and building and approving plans to renovate and rebuild private apartment buildings according to the provisions of Decree 98/2024/ND-CP.
• Criteria for assessing the quality of apartment buildings specified in Article 59 of the Law on Housing 2023 for inclusion in the plan to renovate and rebuild apartment buildings are determined according to the process of assessing the safety of construction works during the opening process exploitation and use issued by the Minister of Construction.

Rights of investors in projects to renovate and rebuild apartment buildings

The preferential mechanism for implementing investment projects to renovate and rebuild apartment buildings for each investor is specifically guided in Article 63 of the Law on Housing 2023. Accordingly, each investor of the investment project Renovating and rebuilding apartment buildings will enjoy different incentives:

For investors who are real estate businesses investing capital or contributing capital to apartment owners.

Investors of investment projects to renovate and rebuild apartment buildings are entitled to the following incentive mechanisms:

• Exemption from land use fees and land rents for land areas subject to land use fees and land rents within the scope of investment projects to renovate and rebuild apartment buildings, including: area Land for construction of existing apartment buildings, existing individual houses (if any), land area for construction of service business, commercial works, public works, land area with technical infrastructure works , traffic, social infrastructure and other works, including land areas with public assets within the scope of investment projects to renovate and rebuild apartment buildings.

The investor does not have to carry out procedures to determine land prices, calculate land use fees, exempted land rents and does not have to carry out procedures to request exemption from land use fees and land rents;

• To do business with the remaining housing area after resettlement arrangements and service and commercial business areas within the project scope. Investors of investment projects to renovate and rebuild apartment buildings do not have to pay land use fees or land rent when selling apartments in renovated or rebuilt apartment buildings on the area of ​​land used for building common houses and existing residence after resettlement has been arranged.

For the business area outside the scope of exemption and not having to pay land use fees or land rent specified in this point and point a of this clause, the investor of the project invests in renovating and rebuilding houses. The apartment building fulfills its financial obligations according to the provisions of land law;

• Borrow capital according to the provisions of law from the Land Development Fund and other non-budget state financial funds; advance funds from compensation, support, and resettlement when carrying out site clearance; collect money to buy and rent to buy houses formed in the future and areas of service and commercial works within the scope of the project to implement the project;
• Receive financial support from the local budget to build technical and social infrastructure within the scope of the project according to the decision of the Provincial People’s Council.
• Tax incentives, credits and other incentives according to the provisions of law.

For investors who are Provincial People’s Councils using capital from the local budget or housing belonging to public property with a central agency as the owner’s representative

Investors of investment projects to renovate and rebuild apartment buildings are entitled to the following incentives:

• Exemption from land use fees and land rents for land areas subject to land use fees and land rents within the scope of investment projects to renovate and rebuild apartment buildings, including: area Land for construction of existing apartment buildings, existing individual houses (if any), land area for construction of service business, commercial works, public works, land area with technical infrastructure works, traffic, social infrastructure and other works, including land areas with public assets within the scope of investment projects to renovate and rebuild apartment buildings.

The investor does not have to carry out procedures to determine land prices, calculate land use fees, exempted land rents and does not have to carry out procedures to request exemption from land use fees and land rents;

• Tax incentives, credits and other incentives according to the provisions of law.

Detailed planning of apartment renovation and reconstruction projects

• The planning of the apartment renovation and reconstruction project area must ensure synchronization with the urban embellishment plan and in accordance with the general planning.
• Competent state agencies are responsible for preparing, approving, and adjusting detailed planning for apartment renovation and reconstruction projects or detailed planning according to an abbreviated process (hereinafter collectively referred to as planning) as a basis for project implementation. Projects to renovate and rebuild apartment buildings do not require land area allocation to build social housing.
• Based on the actual location of independent apartment buildings that are subject to demolition, investment in rebuilding the apartment building cannot be made or the apartment building can be rebuilt but the socio-economic efficiency of the apartment building cannot be guaranteed. Project, when organizing and approving planning, the Provincial People’s Committee shall decide on solutions to consolidate apartment buildings to ensure the socio-economic and environmental efficiency of the project, associated with renovation and adjustment of urban pages.
• In case the population target requirement according to the general planning or approved zoning planning is not met, the agency with authority to approve the planning may adjust the detailed planning of the project to adjust the use of the project. Use works or land use functions in the project to ensure the socio-economic efficiency of the project.
• When approved, the project scope must comply with the provisions in Clause 9, Article 3 of Decree 98/2024/ND-CP.
• The procedure for preparing, appraising and approving detailed project planning complies with regulations on urban planning, construction and housing.

Consulting services on the rights of investors in projects to renovate and rebuild apartment buildings in Long Phan

Long Phan is a pioneer in the field of legal consulting for construction and investment projects. Our team possesses practical experience in supporting many investors to successfully implement projects nationwide. We always update the latest regulations on construction and housing laws to ensure maximum benefits for customers. Long Phan provides in-depth consulting services including:

• Legal review and consulting on project preparation procedures;
• Evaluate the feasibility of the project;
• Instructions for preparing legal documents;
• Consulting on project approval process;
• Incentive consulting and investment support;
• Analysis of incentive mechanisms under the Law on Housing 2023;
• Consulting on procedures for exemption of land use fees and land lease;
• Instructions for accessing preferential capital sources;
• Support project implementation;
• Drafting contracts and agreements;
• Dispute resolution consulting;
• Representative working with state agencies.

Long Phan commits to accompanying customers during the implementation of apartment renovation and rebuilding projects with an experienced team. For detailed advice on investor rights and related legal procedures, please contact the hotline 0906735386 for quick and professional support.