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Numerous violations have been found in the trade of low-income housing in Hanoi.
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| Numerous violations have been found in the trade of low-income housing in Hanoi |
According to Vinaconex Xuan Mai Concrete and Construction JS Company, the investor of low-income housing block CT1 Ngo Thi Nham, in Ha Dong District, up to 69 apartments in the block, a total of 21%, have been handed over to buyers for three months, yet none of these families have moved in.
The families gave various reasons, including some who said they had to wait for their children to finish out the school year in another area. Others claimed that they had not yet found a convenient day for moving, or did not have the money to buy furniture for their new accommodations.
The apartments are air conditioned and furnished. These "extras" have a value of about VND100 million (USD4,854).
A number of families at block CT1 Ngo Thi Nham are not in the difficult financial circumstances they claimed to have been in during the application process. During registration, all confirmed that they either did not have housing, or were living in very cramped conditions.
The first reported violation was the transaction of apartment No. 1702 of block CT1. The owner, Cao Thi Loan, sold the apartment to another at price of VND1.1 billion (USD53,398). Loan bought the house for just VND600 million (USD29,126).
An official from the Hanoi Department of Construction said this particular case might have involved realty investors who colluded with Loan to buy the apartment, afterwards helping her to sell it so that both sides could benefit from the difference in price.
After discovering these wrongdoings, authorities found four other transactions in the same block in which the buyers did not meet the buying requirements.
The situation also exists in other low-income apartment blocks. In one such case, in Kien Hung Ward, Ha Dong District, there was a lottery held to choose who would receive the subsidised housing. However, after the lots were drawn, one of the winners sent a confession to the Hanoi Department of Construction that he\'d already owned an 82-square metre plot of land during the choosing process.
The difficulties of enforcement
To prevent future fraud in the trading of low-income apartments, the Hanoi Department of Construction requested that investors of low-income housing projects add more regulations and safeguards to contracts with buyers.
If, within three months after purchase, buyers do not move onto the premises, the home would be revoked.
However, the most difficult part of enforcing the standards for the beneficiaries of low-income homes is investigating their income, assets and accommodation status.
Investors who build low-income housing projects have the responsibility to check the documents of buyers during the registration process, as well as work with the authorities to report violators.
Le Khac Hiep, Chairman of Vincom Joint Stock Company said, said it is difficult for realty companies to check these documents, adding that it should be the responsibility of state agencies.