New regulations on renovation and rebuilding of apartment buildings

On September 1st, 2021, Decree No. 69/2021/ND-CP, which was issued by the Government (“Decree 69/2021/ND-CP”) to replace Decree 101/2015/ND-CP dated October 20th, 2015 detailing the renovation and reconstruction of apartment buildings, has officially come into effect. Some outstanding contents of Decree No. 69/2021/ND-CP including:

Firstly, determining the principles of renovation and reconstruction of apartment buildings, including: 

  • Supplementing the case that apartment building is not included in the approved renovation and reconstruction plan must be immediately deconstructed due to incident, natural disaster or fire, the People’s Committee of the province must immediately relocate households away from this apartment building and then supplement to the local apartment building renovation and reconstruction plan.
  • Determining that the projects of renovation and reconstruction of apartment buildings do not require a spare land area for the construction of social houses by the law on housing.
  • In case the locality implements the project on damaged apartment buildings that are not demolished but are located in the area subject to renovation or construction synchronized with the apartment building subject to demolition according to the approved construction planning, investors may divide investment into stages to implement apartment projects.
  • In case of delay in the implementation of the investment project according to the approved decision on approval of investment project, the agency competent approving the investment project shall decide to extend or terminate the implementation of the investment project. 

Secondly, Decree 69/2021/ND-CP clearly stipulates the cases in which the apartment building must be deconstructed for reconstruction or construction of other buildings as per planning, specifically as follows:

  • The apartment building must be immediately demolished due to incidents, natural disasters, fire.
  • The apartment building runs out of its service life or has not yet expired, but there is an overall or local danger situation according to inspection conclusions of the provincial housing management agency.
  • The apartment building has damaged one of the primary structural components, including: foundation, columns, walls, beams which do not meet the requirements of normal use but are not required to be deconstructed but located in the area where the apartment building is subject to demolition.

Thirdly, competent state agencies to prepare, appraise and approve detailed planning of areas where apartment buildings and apartment complexes are required to be renovated and reconstructed.

Fourthly, clearly stipulating principles in the development and implementation of compensation plans applied to renovation and reconstruction projects of apartment buildings. At the same time, stipulating the compensation coefficient and assign local agencies based on each project area to determine this coefficient.

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This legal update is for general information only and is not a substitute for legal advice.