On July 15, 2021, the Government issued Decree 69/2021/ND-CP on renovation and reconstruction of apartment buildings (“Decree 69”), this Decree replaces Decree 101/2015/ND-CP on renovation and reconstruction of apartment buildings (“Decree 101”).

The introduction of Decree 69 is expected to overcome the difficulties and backlogs that have not been resolved during the implementation of Decree 101 which have been raised by the Ministry of Construction in Official Dispatch No. 159/BXD-QLN dated June 28, 2019. Specifically:
“The Ministry of Construction still receives many opinions from businesses, associations, the press and especially the opinions of National Assembly deputies and voters nationwide regarding the implementation of renovation and reconstruction of old apartments in most localities, it is still slow, leading to the situation that many households are still living in severely damaged and in danger of collapse, do not guarantee the safety of the owners and users of the old apartment building.”

Following are the highlights of Decree 69:
1. Firstly, Decree 69 clearly stipulates the cases in which the apartment building “must” be demolished to rebuild the apartment building or build other works according to the planning (Article 5 of Decree 69).
2. Second, Decree 69 stipulates more clearly on compensation, support, resettlement, and arrangement of temporary accommodation for owners and users of apartment buildings. In which, there is a separate section to specify relevant regulations (From Article 20 to Article 24 of Decree 69):
– Principles and content of compensation, support, resettlement, and temporary accommodation arrangements for owners and users of the apartment building.
– Compensation, support, and resettlement plans for houses and construction works not under state ownership.
– Compensation, support, and resettlement plans for houses and construction work under state ownership.
– A plan for temporary accommodation for owners and users of the apartment building.
– Sign contracts to buy, rent, lease-purchase houses, and construction works for resettlement.

Decree 69 takes effect from September 1, 2021.

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