Housing

Preventing waste in construction of public housing

TB (summary) January 16, 2025 21:59

Some urban area projects, commercial housing, social housing, renovation and reconstruction projects of apartment buildings and public housing currently still have potential risks of loss and waste.

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It is necessary to arrange and use public housing effectively, for the right subjects and purposes, to avoid loss and waste (illustrative photo)

The Ministry of Construction has just sent a document to the People's Committees of provinces and centrally-run cities on the implementation of waste prevention and control in housing construction investment and management and use of public housing assets.

This is an urgent requirement to ensure thrift practice, prevent loss and waste, and at the same time remove difficulties for real estate projects, urban area projects, commercial housing projects, social housing projects, renovation and reconstruction projects of apartment buildings, contributing to increasing housing supply, reducing product costs, as well as effectively managing and using housing funds belonging to public assets in the locality.

According to Deputy Minister of Construction Nguyen Van Sinh, through monitoring and synthesizing reports from localities, the Ministry of Construction found that a number of real estate projects, urban area projects, commercial housing projects, social housing projects, renovation and reconstruction projects of apartment buildings, public housing, and the current management and use of public housing still have potential risks of loss and waste.

Specifically, a number of real estate projects, urban area projects, commercial housing projects, social housing projects, renovation and reconstruction projects of apartment buildings that have been or are under construction must be temporarily suspended, delayed or delayed due to problems with legal procedures and investment procedures (such as planning, investment procedures and sequences, land valuation, implementation of financial obligations on land, site clearance, capital mobilization, and issuance of corporate bonds).

According to the Ministry of Construction, the above situation leads to waste of land resources and social resources, many urban areas are abandoned, causing instability and reducing people's trust in the government; businesses face losses in costs, financial risks, lost development opportunities, slowing down socio-economic development and affecting the sustainable development of the country.

In addition, some resettlement projects and student housing projects, although completed and handed over for use, have not yet been put into use, are left vacant, or have been put into use but the efficiency of use is still not high.

Some student housing projects have been approved for investment and construction according to the provisions of Decision No. 65/2009/QD-TTg of the Prime Minister, but the construction progress is still slow or in some cases the projects have not yet started investment and construction.

In addition, some public housing properties have not been arranged for use or maintenance, repair, and operation management are not regular, leading to housing degradation, damage, unsafety during use, and waste of assets.

Faced with the above situation, the Ministry of Construction requested the People's Committees of provinces and centrally-run cities to direct competent agencies to review each real estate project, urban construction investment project, commercial housing project, and social housing project invested in construction without public investment capital in the area.

From there, localities specifically identify the existing problems and difficulties in each project; have solutions to completely resolve the problems and difficulties within their authority or report to competent authorities to completely resolve the difficulties and problems; promptly put the project into construction according to schedule, increase the supply of housing products, promptly put it into business, management, exploitation, use, reduce product prices, avoid wasting resources of people and businesses.

For public housing construction investment projects (resettlement housing projects, social housing, student housing, public housing, apartment building renovation and reconstruction projects using public investment capital) that are in the construction investment phase and have difficulties or problems, the Ministry of Construction requests that localities direct competent authorities to inspect and review to resolve or report to competent authorities to completely resolve existing problems and problems, promptly deploy and complete the project construction investment to put it into operation, prevent loss and waste.

Along with that, localities need to direct local authorities to regularly inspect and review public housing projects that have completed construction investment and put into use... to ensure effective housing arrangement and use, for the right subjects and purposes, avoiding loss and waste; resolutely carry out recovery and have strict sanctions for violations when arranging, managing and using public housing for the wrong subjects and those who do not meet the conditions.

For housing projects that have not been completed and put into use but need to adjust investment objectives, localities need to study and adjust project objectives in the investment policy according to the provisions of the law on investment. For projects using public investment capital, the adjustment of project investment policy shall be implemented according to the provisions of the law on public investment.

For housing projects that have completed acceptance and put into use according to the provisions of the law on construction but have not been arranged for use or are no longer in need of use, localities need to study the provisions of the 2023 Housing Law, Decree No. 95/2024/ND-CP dated July 24, 2024 of the Government detailing a number of articles of the Housing Law and relevant legal provisions to carry out the conversion of housing functions in accordance with the provisions of law.

The Ministry of Construction also requested localities to direct local authorities to strengthen inspection and examination work to detect and strictly handle violations in investment and development of urban area projects, commercial housing projects, social housing projects, renovation and reconstruction projects of apartment buildings and the management and use of public housing under their authority in the area.

Localities must strictly implement Party and State regulations on handling violations against heads of agencies, units and individuals who cause loss and waste in investment, construction, and management of public housing.

TB (summary)
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Preventing waste in construction of public housing