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Ho Chi Minh City
Tuesday, May 18, 2021

HCMC proposes demolishing old apartment buildings if half of residents agree

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HCMC – The HCMC government has proposed that old and deteriorated apartment buildings should be demolished and rebuilt with the agreement of half of the residents of the apartment buildings, instead of all the residents under the current regulations.

The city has submitted its comments and recommendations to the Ministry of Construction for a draft decree amending, supplementing and removing some articles of the Government’s Decree 101/2015 on the renovation and reconstruction of old apartment buildings to accelerate the demolition and reconstruction of aging apartment buildings in the city, Thanh Nien Online newspaper reported.

The city is now home to 474 apartment buildings, which were built before 1975 and only 10 of them have been rebuilt. The others, such as Nguyen Thien Thuat in District 3, Vien Dong in District 5, Ngo Gia Tu and An Quang in District 10 and Thanh Da in Binh Thanh District, have seriously deteriorated, threating the safety of residents and damaging the city’s landscapes.

Under Decree 101/2015, the owners of dangerous and seriously deteriorated apartment buildings will have three and 12 months, respectively, to choose investors for the apartment building demolition projects and decide compensation solutions.

Within the periods, if the apartment building owners fail to choose investors, the State will take responsibility for the demolition of the apartment buildings and the selection of investors.

However, in reality, many apartment building owners and residents have yet to reach a conclusion. In addition, the calculation of the value and the compensation of the apartments is complicated.

To remove these obstacles, the HCMC government proposed two solutions to the Ministry of Construction to renovate and rebuild dangerous and seriously deteriorated apartment buildings in case the State takes the responsibility.

As part of the first solution, residents will receive apartments as compensation. Under the second solution, they can receive either apartments or cash but the State will demolish the apartment buildings if half of the residents agree with the demolition plans.

In addition, the city suggested adding a regulation that the investors of projects to demolish apartment buildings will be chosen with the agreement of 80% of residents

The municipal government also proposed that the State should support the investors during the compensation, site clearance, land reclamation, resettlement and demolition processes.

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