According to HoREA, if you give up preferential loans to rent and buy social houses, low-income people will lose the opportunity to settle down, negatively affecting social security.
The Ho Chi Minh City Real Estate Association (HoREA) has just sent a document to the State Bank and the Ministry of Construction to protest against proposals to exclude subjects entitled to preferential credit loans to rent and buy social housing according to regulations. provisions of the Housing Law. This content is a new point in the draft Circular amending and supplementing a number of articles of Circular 25 which is being consulted by the State Bank recently.
The reason for the amendment of the State Bank is that the Law on Housing stipulates support policies at the Bank for Social Policies to buy, rent-purchase social housing, build new or renovate and repair houses. Designated credit institutions only have support policies for new construction or renovation or repair of residential houses, no support policies for buying, renting and buying social housing.
Decree 100 stipulates that credit institutions are designated to provide preferential loans to buy, rent, or lease-purchase social housing. Most recently, Decree 49 stipulates that credit institutions are designated to provide preferential loans to buy, rent-purchase social housing. According to the Law on Promulgation of Legal Documents, in case the documents contain different provisions on the same issue, the document with higher legal effect shall prevail.
Thus, the Law on Housing differs from Decree 100 and Decree 49 on the same issue, the Law on Housing applies, ie commercial banks only support loans to build, renovate and repair houses to live. If you want to get a preferential loan to buy or rent social housing, you need to find the Bank for Social Policies.
Responding to this issue, Le Hoang Chau, Chairman of HoREA, said that the State Bank’s proposal to exclude people entitled to preferential credit loans to buy or rent-purchase social housing is not consistent with the provisions of the Law on Housing 2014. Because, the current Law on Housing does not prohibit commercial banks designated by the State Bank from providing preferential loans to buy or rent-purchase social housing.
Chau analyzed, through research from developed countries, the most core policy on social housing is based on two foundations: one is preferential credit support with low interest rates, the other is long loan term. . In Vietnam, social housing policy has many similarities with industrialized countries.
Before 1975, the State had a public housing policy in Hanoi for officials and employees to rent at very low subsidized prices. This policy continued to be implemented after 1975. In the South, before 1975, there were apartments sold by installments for 12 years. In 1990, Ho Chi Minh City successfully implemented a project of 1,000 houses sold on installment payments for 10 years in Bau Cat Residential Area, Tan Binh District.
The Law on Housing 2005, 2014 has gradually developed and perfected policies on social housing to support 9 target groups, of which 5 groups are allowed to buy, rent, lease-purchase social housing, or build new, Renovating and repairing houses for living are entitled to long-term credit loans with preferential interest rates. Over the past 15 years, hundreds of thousands of households have benefited from preferential policies on social housing.
However, in the period 2015-2020, very few people can get preferential credit for social housing due to the lack of projects leading to few products and preferential credit capital, or interest rate compensation provided by the State. too slow and little.
In fact, what low-income people need most when buying or renting social housing is getting credit with preferential interest rates and long loan terms. Therefore, the State Bank’s proposal to exclude those eligible for preferential credit loans to rent and buy social housing will be contrary to the purpose of supporting settlement set by the State and at the same time not suitable for Housing law.
“The beneficiaries of social housing policies, people with low incomes, will be disadvantaged the most. This also negatively affects the goal of ensuring social security for housing in the context of house prices. is still escalating as it is now,” Chau said.
HoREA President recommends that for customers with preferential loans to buy or rent-purchase social housing, the maximum loan amount is equal to 80% of the value of the house purchase or lease-purchase contract. For customers taking preferential loans to build new or renovate or repair their houses, the maximum loan amount is 70% of the estimated value or the loan plan, not exceeding VND 500 million and not exceeding VND 500 million. exceed 70% of the value of the loan collateral.
Mr. Chau also suggested that the Ministry of Construction consider and submit to the Government a proposal to amend Clause 4, Article 50 of the Law on Housing 2014 in the direction of adding the phrase “buy, rent-purchase social housing” to ensure consistency. set of legal regulations.